Barnes & Noble Education, Inc. (BNED), a leading provider of educational pro ducts and services, has announced its financial results for the year ending January 28, 2023. Despite an increase in revenue driven by product sales and rental income, the company reported a net loss of $25.0 million. Let's delve deeper into the financial statements to gain a comprehensive understanding of BNED's performance.
Financial Statements Overview
BNED's condensed consolidated statements of operations reveal that the company achieved total sales of $1.3 billion during the 39-week period ending January 28, 2023. This represents an increase of 4.7% compared to the same period in the previous year when total sales amounted to $1.3 billion.
Net Loss and Loss per Share
Despite the increase in revenue, BNED incurred a net loss of $25.0 million for the year ending January 28, 2023. This loss is higher than the net loss of $36.8 million reported in the previous year. The loss per share of common stock for both basic and diluted shares stood at $0.48.
Revenue and Gross Profit
BNED's revenue primarily comprises product sales and rental income. Product sales and other revenue amounted to $1.2 billion for the 39-week period, showing a year-over-year increase of 3.7%. Rental income, on the other hand, witnessed a significant surge, reaching $96.6 million, a growth of 10.1% compared to the previous year.
The company achieved a gross profit of $312.5 million, indicating an improvement over the previous year's gross profit of $292.5 million. This increase can be attributed to the growth in revenue.
Operating Expenses
Selling and administrative expenses amounted to $305.0 million, slightly lower than the previous year's expenses of $295.6 million. Depreciation and amortization expense decreased from $36.8 million to $33.9 million. However, an impairment loss of $6.0 million and restructuring and other charges of $6.6 million were recorded during the period.
Financial Position
BNED's condensed consolidated balance sheets indicate that the company's total assets stood at $1.3 billion as of January 28, 2023. The company reported cash and cash equivalents of $11.1 million, while its merchandise inventories amounted to $408.9 million.
On the liabilities side, BNED's total liabilities were reported at $1.1 billion. The company had current liabilities of $609.6 million, including accounts payable and accrued liabilities.
Cash Flows
BNED's condensed consolidated statements of cash flows revealed net cash flows used in operating activities amounting to $22.6 million for the 39-week period. The company also reported net cash flows used in investing activities of $26.3 million and net cash flows provided by financing activities of $56.4 million.
Stockholders' Equity
As of January 28, 2023, BNED's total stockholders' equity amounted to $176.5 million. The company's common stock had a par value of $0.01 and was issued at 55,140 shares.
Barnes & Noble Education's financial performance for the year ending January 28, 2023, saw an increase in revenue driven by product sales and rental income. However, the company reported a net loss of $25.0 million. BNED continues to focus on improving its financial position and delivering quality educational products and services to its customers.