Barnes & Noble Education, Inc · NYSE:BNED
Barnes & Noble Education — 20th Annual Needham Growth Conference 2018
26 slides from Barnes & Noble Education's conference presentation, Jan 17, 2018
Slide 1: Barnes & Noble Education, Inc. - 20th Annual Needham Growth Conference
BARNES & NOBLE EDUCATION, INC. 20TH ANNUAL NEEDHAM GROWTH CONFERENCE ∙ JANUARY 17, 2018 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and inf
Slide 3: About Us
ABOUT US Barnes & Noble Education is a leading provider, aggregator and distributor of educational content and services. $1,874.4 Million Million Million Million 3
Slide 4: BNED – At a Glance
BNED – AT A GLANCE 1,483 BNED PHYSICAL AND VIRTUAL BOOKSTORES 6 million STUDENTS AND THEIR FACULTY SERVED BY BNED 3,700 PHYSICAL BOOKSTORES SERVED BY MBS WHOLESALE 20 million UNIQUE MONTHLY VISITORS ON STUDENT BRANDS’ DIGITAL PROPERTIES Growth ORGANIC AND THROUGH ACQUISITIONS INCLUDING: MBS, LOUDCLO
Slide 5: The Market – At a Glance
THE MARKET – AT A GLANCE $10 billion OVERALL COLLEGE BOOKSTORE MARKET $13 billion PRINT AND DIGITAL HIGHER ED BOOK MARKET 52% COLLEGE BOOKSTORES SELF-OPERATED BY SCHOOLS 9.6% EXPECTED INCREASE IN COLLEGE ENROLLMENTS BETWEEN 2012 AND 2026, ACCORDING TO THE NATIONAL CENTER FOR EDUCATION STATISTICS 5
Slide 6: BNED Financial Highlights
BNED FINANCIAL HIGHLIGHTS FY2017 CONSOLIDATED FINANCIAL HIGHLIGHTS Full Year ended Full Year 2018 April 29, 2017 Guidance Revenue $1.9 billion $2.25 - $2.35 billion Adjusted EBITDA(a) $78.3 million $105 - $120 million CAPEX $34.7 million $50 million (a) Refer to Appendix for further information on t
Slide 7: Two Reportable Segments
TWO REPORTABLE SEGMENTS BARNES & NOBLE COLLEGE BOOKSELLERS, LLC • LoudCloud • Student Brands • Promoversity MBS TEXTBOOK EXCHANGE, LLC • MBS Direct • MBS Wholesale • Textbooks.com • MBS Systems 7
Slide 8: Barnes & Noble College
BARNES & NOBLE COLLEGE
Slide 9: Barnes & Noble College
BARNES & NOBLE COLLEGE Barnes & Noble College operates campus bookstores and their school- branded e-commerce sites, with important contractual exclusivity rights. 777 94% On-campus bookstores Contract renewal rate 5 million 5 years Students served in Average contract life higher ed 60% 15 years Of
Slide 10: Brands Partnerships
BRANDS PARTNERSHIPS The strength of our brand and footprint makes Barnes & Noble College a strong partner for many brand marketers. STUDENT SPENDING POWER OPPORTUNITY 6 million students: access to $203 billion an attractive demographic Annual Student Discretionary Spending Monetization opportuni
Slide 11: LoudCloud
LOUDCLOUD LoudCloud is our digital platform, which helps colleges and universities deliver personalized learning and support to their students – improving communication channels, surfacing insights from learning data and driving positive student outcomes. COMPETENCY ANALYTICS OPEN EDUCATIONAL LEARNI
Slide 12: Student Brands
STUDENT BRANDS Student Brands is an education technology company that operates multiple direct-to-student businesses focused on study tools, writing help, and literary research. TRANSACTION BENEFITS 20 million monthly unique visitors Highly visible subscription monetization model Strong and gr
Slide 13: MBS Textbook Exchange
MBS TEXTBOOK EXCHANGE
Slide 14: MBS Textbook Exchange
MBS TEXTBOOK EXCHANGE MBS is one of the largest contract operators of virtual bookstores for the institutional client market and one of the largest used textbook wholesalers in the U.S. ACQUISITION DATE: February 27, 2017 PURCHASE PRICE: $174.2 million in cash LOCATION: Columbia, Missouri DIVISIONS:
Slide 15: MBS Direct
MBS DIRECT Operates over 706 virtual bookstores including 454 virtual stores servicing K-12 schools Advanced warehouse automation: operational efficiency drives competitive advantage with virtual customers Expands sales opportunities for BNED digital courseware and analytics Operates textbooks.com℠,
Slide 16: MBS Wholesale
MBS WHOLESALE Serves more than 3,700 physical bookstores, including the 777 campus bookstores operated by BNC Distribution facilities process more than 13 million textbooks annually MBS Database buying guide: Most complete and accurate source of college textbook information available More than 300,0
Slide 17: Barnes & Noble Education
BARNES & NOBLE EDUCATION
Slide 18: A Holistic Ecosystem
BARNESS-NOBLE A HOLISTIC ECOSYSTEM ak by STUDENT \, JOURNEY ]
Slide 19: A Holistic Ecosystem
BARNES&-NOBLE A HOLISTIC ECOSYSTEM + Access to Incoming + Career Programs Student Email Lists * True Spirit Alumni Sites + Registration & Financial Aid Integration + Course Materials * Writing Tools + Study Help * Predictive Analytics « First Day * Price Match + Advanced OER Courseware 19
Slide 20: A Holistic Ecosystem
BARNES&-NOBLE A HOLISTIC ECOSYSTEM 20
Slide 21: Summary
SUMMARY Large store footprint and student reach, with strong institutional relationships that have exclusive contractual rights Diverse portfolio of assets addressing the needs of students across their academic journey while also enhancing outcomes for our institutional partners Positioned for succe
Slide 22: Q&A
BARNESS-NOBLE Q&A 22
Slide 23: Barnes & Noble Education
BARNESAcNOBLE education
Slide 24: Appendix
BARNES&cNOBLE APPENDIX
Slide 25: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information To supplement BNED’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), BNED uses the Non-GAAP financial measure of Adjusted EBITDA (defined by BNED as earnings before interest, taxes, depreciation a
Slide 26: Consolidated Non-GAAP Information
Consolidated Non-GAAP Information (In thousands) (Unaudited) Adjusted EBITDA 52 weeks ended April 29, 2017 April 30, 2016 Net income (loss) $ 5,361 $ 84 Add: Depreciation and amortization expense 53,318 52,690 Interest expense, net 3,464 1,872 Income tax expense (benefit) 4,730 2,667 Transaction cos
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