Barnes and Noble 1998 Annual Report Download - page 12
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Please find page 12 of the 1998 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Barnes & Noble, Inc.
EARNI NGS
Consolidated net earnings fo r 1998 were $92.4 million, $1.29 per diluted share. They include 100
percent o f the results of barnesandnoble.co m for the first three quarters, 50 percent for the fourth
quarter, and the $64 million gain o n the sale o f 50 percent of barnesandno ble.com to Bertelsmann AG.
Net earnings, excluding barnesandnoble.co m, were $96.8 millio n, an increase of 31 percent over
1997’s retail business net earnings (before barnesandnoble.com results and the extraordinary
charge for early extinguishment of debt). Diluted earnings per share fro m the retail business were
$1.35, an increase of 27 percent.
POSITIVE CASH FLOW / STRONG BALANCE SHEET
As a result of our 1998 earnings achievement, the co mpany has co nsiderably strengthened its
balance sheet, and for the second co nsecutive year, generated free cash flow ($40 million). This was
achieved despite increased spending in new store systems, and the o pening o f 50 new stores.
Other effects of our solid financial positio n are:
Earnings before interest, taxes, depreciatio n and amortization (EBITDA) grew to
$277 millio n, resulting in a reco rd EBITDA margin o f 9.2 percent;
Debt to EBITDA was 0.90 on January 30, 1999, compared with 1.20 on January 31, 1998,
reflecting o ur trend of moderating financial leverage; and
Our $850 million in senior credit facilities were mo re than twice o ur average borrowings,
giving us ample liquidity.
Entering 1999, the strong cash flo ws generated by our retail business, which had previo usly been
the so urce of funding for barnesandnoble.co m, are now fully available to support retail and o ther
strategic initiatives.
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