Barnes & Noble Education, Inc · NYSE:BNED
Barnes & Noble Education — Q1 FY2024 Earnings Presentation
17 slides from Barnes & Noble Education's earnings presentation, Sep 6, 2023
Slide 1: Fiscal 2024 First Quarter
Fiscal 2024 First Quarter September 6, 2023 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that may be characterized as forward‐looking statements under the Private Securities Litigation Reform Act of 1995. Those statements represent the current beliefs of management with respect to future events, financial performance and i
Slide 3: BNED's Core Value Proposition
BNED’s Core Value Proposition BNED plays a critical role in higher education, serving as a key partner to institutions, students, alumni, fans, faculty & staff, publishers and vendors. The Company is positioning itself to enhance the value it provides to all constituents VALUE TO INSTITUTIONS / ADMI
Slide 4: First Quarter and Recent Highlights
First Quarter and Recent Highlights - Continued to make significant progress on strategic initiatives to deliver profitable growth - Delivered Consolidated revenue growth of 3.7% to $264.2 Million - Retail sales increased 3.8% to $245.5 - Retail gross comparable store sales increased 5.9% - Increase
Slide 5: Fiscal Year 2024 First Quarter Snapshot
Fiscal Year 2024 First Quarter Snapshot $ in millions Metrics Q1 FY 2024 Q1 FY 2023 $ change Retail $245.5 $236.5 $9.0 Wholesale 38.8 37.1 1.7 Eliminations (20.1) (18.9) (1.2) Total Sales $264.2 $254.7 $9.5 Gross Profit $50.6 $56.0 $(5.4) Gross Margin % 19.2% 22.0% (2.8)% Selling & Administrative Ex
Slide 6: Focused On A More Profitable Retail Model
Focused On A More Profitable Retail Model Retail Revenue Key Takeaways $ in millions $245.5 - Retail revenue increased 3.8% year-over-year driven by strength $236.5 in course materials, graduation items and supply products - Achieved $9.0 million of Retail revenue growth despite 117 fewer stores - T
Slide 7: First Quarter Course Material Growth Driven By FDC Strength
First Quarter Course Material Growth Driven By FDC Strength Course Materials Product Sales(1) First Day Complete Sales $25.5 $150.0 $16.5 $138.4 $135.2 $9.0 Q1 22 Q1 23 Q1 24 Q1 22 Q1 23 Q1 24 Revenue Growth 198% 83% 55% Course Materials Comparable Store Sales 21.9% Key Takeaways - Total course mate
Slide 8: BNED is Uniquely Positioned to Deliver a Compelling FDC Experience
BNED is Uniquely Positioned to Deliver a Compelling FDC Experience Student Survey Data and Feedback (1) Differentiated Technology, Seamlessly Integrated - FDC customer platform- a student-facing, personalized platform powered by proprietary software 83% 86% - BNC’s Adoption & Insights Portal provide
Slide 9: FDC Conversion Has a Significant Economic Benefit
FDC Conversion Has a Significant Economic Benefit FDC Conversion Course Material Revenue Increase (1) FDC Conversion Course Material Gross Profit(2) Increase (1) 62.7 19.3 34.4 9.9 FY 22 A la carte FY 23 FDC FY 22 A la carte FY 23 FDC (1) Data represents the cohort of stores that transitioned to FDC
Slide 10: General Merchandise Is A Long-Term Growth Opportunity
General Merchandise Is A Long-Term Growth Opportunity General Merchandise Revenue $88.8 $88.7 Key Takeaways $65.4 - First quarter General Merchandise revenue flat to the prior year due to: - Lower commissions for emblematic general merchandise sales as part of the Fanatics and Lids Partnership agree
Slide 11: General Merchandise Case Studies
General Merchandise Case Studies BNED’s partnership with Fanatics has allowed the Company to unlock emblematic merchandise sales through the widest network of logo product vendors in the industry, including “real-time” product listings to capitalize on major athletic events Opportunity: As the Unive
Slide 12: Be Well. Be You.
Be Well. Be You. BNC launched Be Well. Be You., a collection of thoughtfully curated health and wellness solutions from top brands, including Lifelines™, Rae, OLLY®, Vital Proteins®, Farmers Fridge, Logitech®, iHome®, Warmies® and more A commitment to the well being of students and the campus commun
Slide 13: Store Count and Capex
Store Count and Capex Store Count 1,406 1,289 Key Takeaways 613 563 - First quarter 2024 year-over-year store count was 117 stores lower (67 fewer physical stores) as we focus on winding down under-performing, less 793 726 profitable stores, and satellite locations - Continued execution of the FDC s
Slide 14: FY24 Non-GAAP Adjusted EBITDA From Continuing Operations Outlook
FY24 Non-GAAP Adjusted EBITDA From Continuing Operations Outlook $ in millions ~$40 Key Drivers - Strong FDC growth to continue - General merchandise growth - Wholesale tailwinds from competitor exiting the business - 2023 gross profit margin to be -$10 -$8 flat to down - Continued efficiencies and
Slide 15: Appendix
Appendix NYSE: BNED 15
Slide 16: Adjusted EBITDA (non-GAAP) Reconciliation
Adjusted EBITDA (non-GAAP) Reconciliation $ in thousands Please refer to the company’s 10-Q filing for the period ended July 29, 2023, for additional information. NYSE: BNED 16
Slide 17: 2: BNED
2: BNED @@@® ELEVATING EDUCATION
Barnes & Noble Education — Q1 FY2024 Earnings Presentation on 6ix