Barnes and Noble 1997 Annual Report Download - page 23

and 1995, respectively. Capital expenditures in fiscal 1998,
primarily for approximately 60 new Barnes & Noble stores as well
as computer hardware and software associated with the
Company’s new store point-of-sale system, are expected to be
between $150 million and $175 million, although commitment to
such expenditures has not yet been made.
Based on current operating levels and the store expansion
planned for the next fiscal year, management believes cash flows
generated from operating activities, short-term vendor financing
and its borrowing capacity under its revolving credit facility will
be sufficient to meet the Company’s working capital and debt
service requirements, and support the development of its short-
and long-term strategies for at least the next 12 months.
Year 2000. The Company is continuing its comprehensive
evaluation of all computer systems and microprocessors and is in
the process of replacing, modifying and/or converting those
systems which are not year 2000 compliant. The incremental cost
over the next two years is being determined as part of the
continuing evaluation. Management does not expect such costs to
have a material adverse impact on the financial position or results
of operations of the Company.
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This annual report contains certain forward-looking state-
ments (as such term is defined in the Private Securities Litigation
Reform Act of 1995) and information relating to the Company that
are based on the beliefs of the management of the Company as well
as assumptions made by and information currently available to the
management of the Company. When used in this annual report,
the words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“plan” and similar expressions, as they relate to the Company or
the management of the Company, identify forward-looking
statements. Such statements reflect the current views of the
Company with respect to future events, the outcome of which is
subject to certain risks, including among others general economic
and market conditions, decreased consumer demand for the
Company’s products, possible disruptions in the Company’s
computer or telephone systems, increased or unanticipated costs
or effects associated with year 2000 compliance by the Company
or its service or supply providers, possible work stoppages, or
increases in labor costs, possible increases in shipping rates or
interruptions in shipping service, effects of competition, possible
disruptions or delays in the opening of new stores or the inability
to obtain suitable sites for new stores, higher than anticipated store
closing or relocation costs, higher interest rates, the performance
of the Company’s online initiatives such as BarnesandNoble.com,
unanticipated increases in merchandise or occupancy costs, and
other factors which may be outside of the Company’s control.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those described therein as
anticipated, believed, estimated, expected, intended or planned.
Subsequent written and oral forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by the cautionary statements
in this paragraph.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations continued