Bookstore chain and Nook eReading software provider Barnes & Noble Inc. (BKS) posted third-quarter net loss attributable to company of $6.1 million, or $0.18 per share, versus the prior year's income of $52 million, or $0.71 per share, hurt by NOOK inventory charges and promotional allowances. On average, 6 analysts polled by Thomson Reuters expected earnings per share of $0.54 for the quarter. Analysts' estimates typically exclude one-time items.
The latest quarter's loss per share included the impact of the dividend on redeemable preferred shares, according to the company. Consolidated earnings before interest, taxes, depreciation and amortization or EBITDA totaled $55 million, a sharp decline from $150 million reported a year ago.
Three-month sales reached $2.22 billion, down 8.8%, compared with $2.44 billion in the earlier year quarter, while 5 analysts estimated revenues of $2.40 billion for the quarter.
On February 25, 2013, the company's board received notice from Leonard Riggio, the company's founder, largest stockholder and Chairman, that Riggio plans to propose to buy its retail assets. The process of evaluating a proposal and negotiation of any transaction would be overseen by a Strategic Committee of three independent directors: David Golden, David Wilson and Patricia Higgins, who is Chair of the Strategic Committee.
For fiscal 2013, the company still sees Retail comparable bookstore sales to decline on a percentage basis in the low- to mid-single digits, while College comparable-store sales are now expected to decline on a percentage basis in the low single digits. NOOK Media revenues, including the NOOK and College businesses, are likely to be about $2.5 billion. The company expects fourth-quarter NOOK segment EBITDA losses to be comparable to last year's fourth quarter loss.
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