Barnes & Noble Education(BNED) - 2025 Q3 - Quarterly Results

Financial Performance - Total sales for the 13 weeks ended January 25, 2025, were $466.3 million, a slight increase from $456.7 million for the same period in 2024, representing a growth of 1.4%[2] - Gross profit for the 39 weeks ended January 25, 2025, was $281.2 million, down from $286.9 million in 2024, reflecting a decrease of 2.3%[2] - The company reported a net income of $7.1 million for the 13 weeks ended January 25, 2025, compared to a net loss of $9.6 million for the same period in 2024[2] - Adjusted EBITDA for the 39 weeks ended January 25, 2025, was $72.7 million, up from $46.3 million in 2024, showing an increase of 56.9%[7] - The net loss from continuing operations for the 39 weeks ended January 25, 2025, was $42,632,000, compared to a loss of $35,045,000 for the same period in 2024[18] Expenses and Liabilities - Selling and administrative expenses decreased to $71.6 million for the 13 weeks ended January 25, 2025, down from $79.8 million in 2024, a reduction of 10.3%[2] - The total current liabilities decreased significantly from $849.6 million in January 27, 2024, to $534.7 million in January 25, 2025, a reduction of 37%[5] - The company recognized a loss on extinguishment of debt of $55.2 million related to the June 10, 2024, Term Loan debt conversion[8] Cash Flow and Investments - Free cash flow for the 39 weeks ended January 25, 2025, was $(160.3) million, compared to $(114.6) million for the same period in 2024, indicating a worsening cash flow situation[10] - Cash flows used in operating activities from continuing operations totaled $138,527,000 for the 39 weeks ended January 25, 2025, compared to $83,221,000 for the same period in 2024[18] - The company reported a net cash flow used in investing activities of $8,508,000 for the 39 weeks ended January 25, 2025, compared to a cash inflow of $10,014,000 for the same period in 2024[18] - Proceeds from borrowings for the 39 weeks ended January 25, 2025, were $667,355,000, an increase from $454,459,000 in the same period in 2024[18] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $11,843,000 for the 39 weeks ended January 25, 2025[18] - The cash, cash equivalents, and restricted cash at the end of the period for continuing operations was $16,727,000 as of January 25, 2025, compared to $15,024,000 at the end of the same period in 2024[18] Capital Expenditures - Total capital expenditures for the 39 weeks ended January 25, 2025, were $9,300,000, a decrease of 18.9% from $11,459,000 for the same period in 2024[11] - Physical store capital expenditures for the 13 weeks ended January 25, 2025, were $1,219,000, up 5.3% from $1,158,000 in the same period in 2024[11] Financial Measures - Adjusted earnings and adjusted EBITDA are used as non-GAAP financial measures to evaluate ongoing operating performance[12] - The company emphasizes the importance of reviewing GAAP financial information alongside non-GAAP measures for a complete understanding of financial performance[16] Sales Composition - The percentage of product sales and other for the 13 weeks ended January 25, 2025, was 90.7%, slightly down from 91.0% in 2024[3] Accumulated Deficit - The company’s accumulated deficit increased to $(699.2) million as of January 25, 2025, compared to $(629.2) million in 2024[5]