BASKING RIDGE, N.J.--(BUSINESS WIRE)--Barnes & Noble Education, Inc. (NYSE: BNED), one of the largest contract operators of bookstores on college and university campuses across the United States and a leading provider of digital education services, today reported sales and earnings for the fourth quarter and full year for fiscal 2016.

Financial highlights for the fourth quarter and fiscal year 2016:

• Fourth quarter sales of $294.8 million increased 7.6%, as compared to prior year period; fiscal year sales of $1,808.0 million increased 2.0%, as compared to prior year period.
• Fourth quarter comparable store sales increased 4.5% for the quarter; fiscal full year comparable store sales decreased 1.9% and excluding community colleges decreased 0.3%.
• Fourth quarter GAAP net loss of $2.8 million included restructuring costs of $8.3 million; full year net income of $0.1 million included previously reported impairment charge of $12.0 million and restructuring costs of $8.8 million.
• Fourth quarter non-GAAP Adjusted EBITDA of $19.0 million, an increase of $5.9 million, as compared to prior year period; full year non-GAAP Adjusted EBITDA of $80.5 million, a decrease of $3.5 million, as compared to prior year period.
• Fourth quarter non-GAAP Adjusted Earnings of $3.3 million, as compared to Adjusted Earnings of $(0.3) million in the prior year period; full year non-GAAP Adjusted Earnings of $15.5 million, as compared to $19.1 million in the prior year.

Operational highlights for fiscal year 2016:

• Opened 39 new stores with estimated annual sales of $64 million, bringing the total stores operated to 751 locations as of April 30, 2016.
• Completed the acquisition of LoudCloud, a sophisticated digital platform and analytics provider for the higher education, for-profit and K-12 markets. This acquisition positions the Company to be able to provide a suite of digital content and learning materials to supplement its traditional products (textbooks and course materials) and help faculty provide a more robust educational experience for students.
• Formed a long-term relationship and completed transition to VitalSource to outsource the Yuzu® eTextbook reading platform, which will allow the Company to reduce digital expenses, while continuing to provide students with an excellent digital reading experience and access to a broad digital catalog.

“Following our separation from Barnes & Noble, Inc. last year, we have made solid progress executing on our standalone strategy, as evidenced by our fiscal full year sales of $1.8 billion, an increase of 2.0% year-over-year,” said Max J. Roberts, Chief Executive Officer of Barnes & Noble Education, Inc. “Our fourth quarter comparable sales increase was driven by strong textbook sales and rentals, as well as general merchandise revenue, which increased 2.6% on a comparable basis driven by strong graduation products and emblematic apparel. Fiscal 2016 was also an excellent year for new store signings and we continued our momentum into Fiscal 2017, with 32 new stores awarded to date and with estimated first year sales of approximately $110 million. In line with typical seasonality, we expect new store signings to be more heavily weighted toward the early part of the year.”

Fourth quarter sales of $294.8 million increased $20.8 million, or 7.6%, as compared to the prior year period. The Company reported a net loss of $(2.8) million, including restructuring costs of $8.3 million. Adjusted Earnings were $3.3 million, an increase of $3.5 million from the prior year period.

Fiscal full year sales were $1,808.0 million, an increase of $35.0 million, or 2.0%, as compared to the prior year period. The Company reported a net income of $0.1 million, which includes an impairment charge of $12.0 million and restructuring costs of $8.8 million. Adjusted Earnings were $15.5 million compared to $19.1 for the prior year period.

Comparable store sales increased 4.5% for the quarter. Consistent with the past and as disclosed in the Company’s third quarter fiscal 2016 earnings release, the Spring Rush period extended into the fourth quarter due to later school openings and a continued pattern of students buying course materials later in the semester.

Comparable store sales decreased 1.9% for fiscal year 2016, driven by the enrollment declines at two-year community colleges. The 1.9% decline in comparable store sales was approximately $31 million of revenue, of which $28 million is attributable to two-year community colleges. Comparable store sales excluding two-year community colleges decreased by 0.3% year to date.

The Company opened 39 new stores with estimated annual sales of $64 million, bringing the total stores operated to 751 locations.

During the fourth quarter ended April 30, 2016, the Company recorded restructuring costs totaling $8.3 million related to the transition of its Yuzu eTextbook platform to the VitalSource platform, including the reduction in staff and closing of the facilities in Mountain View, California, and Redmond, Washington. For the full fiscal year of 2016, the Company recorded $8.8 million of restructuring charges and $12.0 million of impairment charges related to its digital businesses.

The Company’s Adjusted EBITDA was $19.0 million for the quarter, as compared to $13.2 million in the prior year period, due primarily to increased sales and expense leveraging. The Company’s Adjusted EBITDA was $80.5 million for the full year as compared with $84.1 million in the prior year period.

Fourth quarter net loss was $(2.8) million, or $(0.06) per diluted share, compared to net loss of $(0.3) million, or $(0.01) per diluted share, in the prior year period. The current year’s fiscal quarter has 47.2 million diluted shares outstanding, while the prior year period had 39.9 million shares outstanding. The Company reported non-GAAP Adjusted Earnings of $3.3 million during the quarter, compared with net loss of $(0.3) million in the prior year period.

The current period reflects the dilution resulting from the issuance of additional shares of Barnes & Noble, Inc. common stock in connection with the previously disclosed Series J preferred shares by Barnes & Noble, Inc. in July 2015, prior to the legal separation from Barnes & Noble, Inc., partially offset by the share repurchase program announced in December 2015 of 865,427 shares in the quarter for $8.5 million. For the full fiscal year, the Company purchased 1,715,269 shares for $16.6 million.

Outlook

For fiscal year 2017, the Company expects total sales to grow by 2.0% to 4.0%, while comparable store sales are expected to be approximately flat to 2.0% lower than the prior year. The Company currently plans to open 32 new stores in fiscal 2017, based upon contracts awarded to date, with estimated annual sales of approximately $110 million. The Company expects Adjusted EBITDA to increase by approximately 12%, and capital expenditures are expected to be approximately $50 million.

ABOUT BARNES & NOBLE EDUCATION, INC.

Barnes & Noble Education, Inc. (NYSE:BNED), one of the largest contract operators of bookstores on college and university campuses across the United States and a leading provider of digital education services, enhances the academic and social purpose of educational institutions. Through its Barnes & Noble College subsidiary, Barnes & Noble Education serves more than 5 million college students and their faculty through its 751 stores on campuses nationwide, delivering essential educational content and tools within a dynamic retail environment. Through its digital platforms LoudCloud and Yuzu®, Barnes & Noble Education offers an excellent digital reading experience and access to a broad catalog of digital academic relevant titles. Barnes & Noble Education acts as a strategic partner to drive student success; provide value and support to students and faculty; and create loyalty and retention, all while supporting the financial goals of college and university partners.

General information on Barnes & Noble Education, Inc. can be obtained by visiting the Company's corporate website: www.bned.com.