Barnes and Noble 2000 Annual Report Download - page 6

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FINANCIAL HIGHLIGHTS
2000
2000 WILL CERTAINLY GO DOWN IN THE ANNALS OF BOOKSELLING AS A NOTEWORTHY
YEAR. In the nine months leading up to the holiday season, sales at Barnes & Noble bookstores surged, running well
ahead of the national economy and the retail sector. Our post-holiday performance mirrored this trend. But the results
we turned in during the nine weeks from October 29 to December 30, 2000 were disappointing, as our intellectually
curious customer base stopped shopping to watch the U.S. presidential election unfold. Despite this dampening
interlude, we turned in a solid year with strong growth in both retail and online sales.
Last year, the 1,886 stores that comprise Barnes & Noble, Inc. generated record sales of $4.4 billion, up 26 percent
from the prior year. Our “super” stores accounted for 72.4 percent of those revenues and continued to lead the industry
with comparable store sales increases of 4.9 percent. The opening of 32 new “super” stores further contributed to
our top-line growth, as did our June acquisition of Funco, Inc., an electronic games retailer, which we folded into our
Babbage’s Etc. business. With this acquisition, Babbage’s
became the nation’s largest specialty retailer of video games
and PC entertainment, a category poised for explosive growth
in 2001 and beyond. Sales in this segment totaled $757.6
million in fiscal 2000.
The operating profit from our retail businesses topped
$240.7 million excluding the effect of a one-time, non-cash
impairment charge, with our core bookstore business
contributing $234.6 million, an increase of 8.3 percent
over 1999 results. Our video-game segment reported
an operating profit of $6.0 million for the year. Fiscal 2000
was a major transition year for the video-game industry
as game enthusiasts held off purchases in anticipation
of new platforms from Sony, Nintendo and Microsoft,
all of which will become commercially available in 2001.
Retail earnings before interest, taxes, depreciation and
amortization (
EBITDA
) grew 11.9 percent to $385.4 million
for the year. These strong cash flows enabled our company
to fund store openings, system enhancements and other
Executive Officers: Top, from left: J. Alan Kahn, Chief Operating
Officer; Maureen O’Connell, Chief Financial Officer; Mitchell S. Klipper,
President of Barnes & Noble Development. Bottom, from left:
Joseph Giamelli, Vice President & Chief Information Officer;
Michael Archbold, Vice President & Chief Financial Officer of Barnes
& Noble Booksellers; Mary Ellen Keating, Senior Vice President,
Corporate Communications & Public Affairs.