In a recent Washington Post piece, Deepak Chopra posed what may prove to be the essential, yet largely unexamined, question regarding the financial crisis: “What would it take to change a whole subculture that has escaped all ethical boundaries?” Fortune 500 executive coach, author, and radio personality Dave Durand answers this query head-on in his latest book, Win the World Without Losing Your Soul, published by The Crossroad Publishing Company (April 13, 2009). Durand, who runs three small businesses, all of which are experiencing double-digit growth for ’09, notes, “The answer is that it takes morally trained leaders to change this culture. What we have seen unravel over the past several months is the result of a lack of understanding of what it takes to succeed without compromising basic honesty and integrity. Most of this cataclysmic collapse of institutional and governmental structures could have been prevented in a society led by principles over personalities.”
Named one of the nation’s top 100 Leadership Minds on Personal Excellence by Leadership Excellence Magazine, Durand’s Win the World Without Losing Your Soul is not a religious tract, but a vital resource for men and women aspiring to long-term success over short-term gratification whether they be mortgage lenders or peanut manufacturers, US Congressmen or state Governors, students or teachers, lawyers or parents. Win the World Without Losing Your Soul is a book for people in every walk of life who are looking for someone to show them that they matter, that they have a specific purpose in life and that pursuing that purpose with resolve and integrity will lead to a lifetime of fulfillment.
To illustrate this, Americans need look no further than the headlines of the nation’s newspapers. Pick a day. Any day.
Durand went back six months and picked October 10, 2008. The Dow was below 9,000. Newspaper headlines reflected the sentiment of its city residents. “Another losing day,” said The Courier-Journal of Louisville, Ky. In Casper, Wyo., Tacoma, Wash., and Fort Worth, Texas, the word “panic” was on the front page. The Indianapolis Star analyzed the actions of the federal government: “Standard options have failed to shore up unstable markets.” The Burlington (Vt.) Free Press and Hackensack’s The Record offered no hope to its readers with respective headlines, “And it just gets worse” to “Running out of options,” with the added zinger, “Finding a cure for financial crisis proves elusive.”
Even before this particular mid-October day to the present day, people have been waiting to see how bad this is going to get, turning to the pages of their newspapers and websites for advice and direction. So far, they’ve received thousands of pages of diagnosis, but no cure.
For those tired of waiting, Durand’s new book is an antidote, a practical roadmap for millions of Americans struggling to make sense of what has happened around them. “People have witnessed that those who pursue success at all costs don’t succeed; they usually end up soulless — some go broke, some go to prison, but others end up desperate, isolated and unhappy, and oftentimes hated. The good news is it doesn’t have to be that way — we can recover and rebuild — we can win the world by seeking (and achieving) success through the avoidance of the common pitfalls that lead to self-destruction,” says Durand.
Interestingly, amidst the gloom of newspaper headlines on October 10, The Star-Ledger of Newark, N.J., began a series on happiness (“How to Get Happy”), calling it “the most sought-after human emotion.” “This was a step in the right direction though they missed a key aspect. True success is about individual transformation. A commitment to excellence and morality will lead to joy and happiness,” observed Durand. “We need to show people that success without compromise is always possible.”
Dave Durand is available for interviews. For more information on Win the World Without Losing Your Soul, or to schedule an interview, please contact Kari Beckman or Ashley Walker at 678-990-9032, both with The Maximus Group.
SOURCE Dave Durand
Rwandan Refugee Shares Stories of Triumph of Human Spirit, Warns Readers the World Is Getting the Wrong Recovery
In her provocative new book, “The Nightmare of a POSITIVISION: Yes We are Dying. But we are still Breathing” (published by AuthorHouse), Louise Uwacu uses the lens of her personal experiences to filter her views on the current economic recession, offering advice for readers affected by the current global crisis. “You have a better shot at survival in America than anywhere else in the world…Because at least you still have the luxury to complain about it! The crisis is global. The answer is ancient,” she writes.
Born and raised in war-torn Rwanda and Kenya, Uwacu believes that her mission, after witnessing so much death and destruction as a young girl, is to redefine the worth of a single human being. “Human is so fragile and so short term in this physical shape; he cannot afford to waste his time stuck in the trap of material addiction. If the governments and the bankers have chosen to make the economy their number one issue, you do not have to allow the illusionary numbers on a computer screen to become your spirit’s number one concern.”
As the global community finds itself bombarded daily with messages of economic strife and corporate collapse, “The Nightmare of a POSITIVISION: Yes We are Dying. But we are still Breathing” offers a much-needed reminder to concentrate on the internal rather than the external. Uwacu uses examples from her own life to illustrate that, no matter how bad things may seem, they could always be worse. “Ask [me] about loss before you give up,” she writes. Follow her inspirational journey in this riveting new book.
Louise Uwacu refers to herself as “a Canadian made in Africa.” After becoming a refugee she traveled to Montreal in 1998, spending the next 10 years there. She received her degree in international relations from the University of Quebec and currently resides in the Vancouver area. Her goal as an author is to sell books to raise money for education. Her 2008 documentary, “Positivision in Mali” followed her journey to the African villages of Mali in January 2008. She now hosts her own talk shows and writes for her website. Her shows are available online at http://www.blogtalkradio.com/louiseuwacu.
SOURCE AuthorHouse
Building on their successful collaboration on the two most recent and highest grossing James Bond adventures in the history of the franchise, Sony Pictures Entertainment has acquired the motion picture rights to REMOTE CONTROL, a thriller novel by Mark Burnell, to be produced as a feature film by Michael G. Wilson and Barbara Broccoli’s Eon Productions, it was announced today by Doug Belgrad and Matt Tolmach, presidents of Columbia Pictures. Ileen Maisel will join Wilson and Broccoli in producing the project. Burnell will adapt his novel into the screenplay.
In REMOTE CONTROL, a former war correspondent, now British corporate intelligence analyst, gets caught up in a conspiracy by Western corporations to destabilize the Chinese economy. Following the trail to the United States, he discovers that his former lover is also being pursued. On the run together, they try to unravel the mystery of the conspiracy while trying to stay alive.
Remote Control is the second non-Bond property Sony Pictures is developing with Wilson and Broccoli. The studio is also collaborating with the renowned producers on a new adaptation of CHITTY CHITTY BANG BANG with EON Productions and MGM.
Commenting on the announcement, Belgrad explains, “Our collaboration with Michael and Barbara on CASINO ROYALE and QUANTUM OF SOLACE was extraordinary and special and we all wanted to find another way to work together. Mark Burnell’s new novel is an exciting thriller and it’s precisely the kind of material that Michael and Barbara will be able to adapt so well.”
Wilson and Broccoli added, “We have great respect and a wonderful working relationship with the entire team at Sony Pictures, from Amy, Doug, and Matt’s team in production to Jeff Blake’s global marketing and distribution groups and look forward to working with them all again.”
Remote Control will be overseen at Columbia Pictures by Belgrad and Elizabeth Cantillon.
MICHAEL G WILSON AND BARBARA BROCCOLI produced the hugely successful GOLDENEYE, followed by the blockbuster 007 releases TOMORROW NEVER DIES, THE WORLD IS NOT ENOUGH, DIE ANOTHER DAY, CASINO ROYALE and most recently QUANTUM OF SOLACE starring Daniel Craig, Olga Kurylenko and Mathieu Amalric. With a combined sixty six years of experience working on Bond films, Michael and Barbara took over the family business when their father Albert R. Broccoli retired.
When ILEEN MAISEL opened and ran Paramount Pictures prestigious London office, she had already distinguished herself by acquiring, developing and supervising 1988 Best Picture nominee DANGEROUS LIAISONS (starring Glenn Close, John Malkovich, and Michelle Pfeiffer). Ileen has worked as Senior Vice President of European Production for New Line Cinema and this year formed a new international entertainment company: Amber Entertainment with Mark Ordesky, Jane Fleming and Lawrence Elman.
MARK BURNELL is best known for his highly acclaimed series of novels featuring his unique heroine Stephanie Patrick; The Rhythm Section (1999), Chameleon (2001), Gemini (2003) and The Third Woman (2005). In 2005 he was hired by New Line Cinema to adapt Rhythm Section for the big screen. Remote Control is Mark Burnell’s fifth novel and the first outside the Stephanie series.
SOURCE Sony Pictures Entertainment
Michelin announced today that it will publish in October the MICHELIN guide Kyoto Osaka 2010, offering a selection of the best hotels and restaurants in those two cities. The MICHELIN guide Kyoto Osaka will be available in two languages: Japanese and English. This is the second MICHELIN guide in Japan, following MICHELIN guide Tokyo whose second edition was launched last November.
Jean-Luc Naret, Director of MICHELIN guides commented, “We aim to continue our international development, by publishing the first edition of MICHELIN guide Kyoto Osaka in October 2009. One of the best Japanese gastronomy and the cooking traditions since more than 1,200 years are in Kyoto. As for Osaka, it’s the second biggest city in Japan and it has a wide and diverse gastronomic scene.”
Bernard Delmas, President of Nihon Michelin Tire expressed, “The first MICHELIN guide was born in 1900, at the dawn of the automotive era, to offer useful information for drivers to make their trip safe and comfortable. The mission of the MICHELIN guide which has always been the same as that of the Michelin group is summed up in its corporate signature ‘A better way forward.’ As Tokyo edition, MICHELIN guide Kyoto Osaka is made by inspectors and editorial based in Japan. Those guides written originally in Japanese, are aiming firstly the Japanese consumers.”
Michelin inspectors have been on the ground in Kyoto and Osaka since the Autumn 2007. Employees of Michelin, who are experienced hospitality industry professionals, the inspectors conduct visits and anonymously dine in restaurants and sleep in hotels to judge the quality and consistency of meals and services as any other customer.
Stars judge only “what’s in the plate,” meaning the quality of the cooking. The criteria of the stars are the same, whatever the country, whatever the city. In this way, the level of the selection and the value of stars are consistent in all the MICHELIN guides.
The stars have the same meaning:
m: “a very good restaurant in its category”
n: “excellent cooking, worth a detour”
o: “exceptional cuisine, worth a special journey”
A restaurant that receives one or more stars is not only one of the best in its city or country but also one of the best in the world.
Regardless of the country or type of cuisine, five criteria are taken into account to award star(s): product quality, preparation and flavors, the “personality” of the chef’s cooking, consistency over time and across the entire menu, and value for money. Decisions to award stars are made collectively. All the inspectors who have evaluated a meal in a given restaurant present and support their opinions, based on their experiences and reports.
Comfort is rated by fork-and-spoon symbols for restaurants. This is completely independent from the number of stars, and assesses the establishment’s equipment such as exterior and interior, and service. For hotels, pavilion symbols indicate the comfort.
The first MICHELIN guide France was published in August 1900 to offer practical information to enjoy driving. 109-years later, MICHELIN guide covers 23 countries with 26 titles. MICHELIN guide Kyoto Osaka will be 27th title of the collection.
Source: Michelin
Borders Group, Inc. (NYSE:?BGP) today reported results for the fiscal fourth quarter and full year 2008, ended?Jan. 31, 2009. Highlights include:
“Our top priority is getting our financial house in order by continuing to reduce expenses, pay down debt and improve cash flow,” said Borders Group Chief Executive Officer?Ron Marshall. “We are working with vendors and others to enhance cooperation and are pleased to have the continued support of our largest shareholder with the recently announced extension of our financing agreement with Pershing Square. At the same time, we are focused on driving sales through improved execution and by re-engaging with our customers. Borders is a strong brand with millions of loyal customers. I am confident that by shoring up our financial foundation and reclaiming our position as the bookseller for serious readers, we will ultimately secure a viable future.”
Consolidated Results
All sales and earnings/loss figures reported throughout this news release are on a continuing operations basis unless otherwise noted.
Fourth quarter consolidated sales were?$1.1 billion, down 12.9% from a year ago. For the full year, consolidated sales were?$3.2 billion, an 8.8% decrease from 2007. On an operating basis, Borders Group generated fourth-quarter income of?$63.8 million?or?$1.05?per share compared to income of?$74.3 million?or?$1.26?per share for the same period last year. On a GAAP basis, fourth-quarter income was?$28.9 million?or?$0.48?per share compared to GAAP income of?$67.3 million?or?$1.14?per share a year ago. The fourth quarter GAAP income includes non-operating charges — primarily non-cash–totaling?$34.9 million. For the full year, on an operating basis, the company posted a consolidated loss of?$16.2 million?or?$0.27?per share in 2008 compared to a loss of?$0.4 million?or?$0.01?per share in 2007. On a GAAP basis, the full-year loss was?$184.7 million?or?$3.07?per share, compared to a loss of?$19.9 million?or?$0.34?per share in 2007. The GAAP full-year loss includes an after-tax, non-operating charge of?$168.5 million, also primarily non-cash.
Excluding non-operating charges, SG&A as a percent of sales improved in the fourth quarter by 1.8% from 20.7% to 18.9% due to the company’s aggressive expense reduction initiatives, which were offset by de-leveraging due to negative sales trends. Expense reduction initiatives helped reduce SG&A dollar expenses by?$52.1 million?in the quarter. On a GAAP basis, SG&A as a percent of sales decreased in the fourth quarter by 0.3% from 20.6% to 20.3%. For the full year, SG&A as a percent of sales on an operating basis improved by 0.6% from 25.4% to 24.8% due to expense reductions, which drove an SG&A dollar decline of?$96.5 million. On a GAAP basis, SG&A as a percent of sales for the full year increased by 0.4% to 25.9% compared to 25.5% in 2007.
Operating cash flow improved in the fourth quarter by?$18.3 million to $219.6 million?compared to?$201.3 million?for the period in the prior year. For the full-year, operating cash flow improved by?$128.6 million to $233.6 million?from?$105.0 million?in 2007.
Full-year capital expenditures were?$79.9 million?compared to?$131.3 million?in 2007 as management took aggressive action to reduce capital expenditures. In the fourth quarter, capital expenditures totaled?$6.2 million?and further reduction is planned. Year-end debt totaled$336.2 million?compared to debt at the end of 2007 of?$554.0 million, a decrease of 39.3%. Inventory productivity improved as the company reduced its 2008 year-end inventory investment to?$915.2 million?compared to 2007 year-end inventory of?$1.24 billion, a 26.3% reduction.
Non-Operating Adjustments
The following table details the non-operating adjustments for the fourth quarter and full year 2008.
Non-Operating Adjustments -- $in millions Q4 2008 Full Year 2008
Goodwill impairment $40.3 $40.3
Store asset impairments $4.2 $35.3
Store closure costs $9.0 $11.3
Term loan costs $2.8 $9.8
Severance and other compensation costs $7.8 $9.9
Strategic alternative costs $2.2 $7.3
Warrant liability re-measurement $(12.9) $(40.1)
Deferred tax asset impairment
and other tax items $(21.4) $88.2
All other combined $2.9 $6.5
Total $34.9 $168.5
Borders Superstores
Total sales at Borders superstores in the fourth quarter were?$816.1 million, down 14.8% from a year ago. For the full year, total sales were?$2.6 billion, down 9.4% from 2007. In the fourth quarter, comparable store sales decreased by 15.3% at Borders superstores with books generating same-store sales of -11.7% and non-book categories generating same-store sales of -21.1% for the period. For the full year, comparable store sales at Borders stores decreased by 10.8% with books generating same-store sales of -8.2% and non-book categories generating same store sales of -16.1%. Borders.com sales were?$26.4 million?in the fourth quarter and?$45.7 million?for 2008, which included eight months of operation.
Operating income on an operating basis in the fourth quarter was?$86.5 million?compared to$102.1 million?for the same period a year ago. On a GAAP basis, operating income in the fourth quarter was?$17.1 million?compared to?$87.4 million?the prior year. For the full year, operating income on an operating basis was?$17.7 million?compared to?$56.9 million?in 2007. On a GAAP basis, there was an operating loss of?$100.9 million?compared to income of?$30.6 million?in 2007.
The company opened one new Borders superstore in the U.S. during the fourth quarter and closed five, ending fiscal 2008 with a total of 515 superstore locations.
Waldenbooks Specialty Retail
Total sales in the fourth quarter at Waldenbooks Specialty Retail stores were?$195.6 million, a 14.3% decline compared to the same period in 2007. For the full-year, total segment sales were$480 million, a decline of 14.7% from the prior year. Comparable store sales in the fourth quarter decreased by 4.7% and decreased by 5.1% for the full year.
In the fourth quarter, on an operating basis, operating income was?$16.0 million?compared to operating income of?$26.5 million?for the same period in 2007. On a GAAP basis, operating income was?$11.5 million?compared to?$25.5 million?for the same period in 2007. For the full year, on an operating basis, the operating loss was?$16.7 million?compared to an operating loss of?$17.3 million?for the same period in 2007. On a GAAP basis, the full year operating loss was$27.5 million?compared to an operating loss of?$21.4 million?for the same period in 2007.
The company closed 84 Waldenbooks Specialty Retail locations in the fourth quarter, bringing the fiscal 2008 closure total to 112. Borders Group ended fiscal 2008 with a total of 386 locations in this segment.
International
Total sales within the International segment (which consists primarily of Paperchase) totaled$43.2 million?in the fourth quarter, which is down by 21.7% compared to a year ago. Excluding the impact of foreign currency translation, segment sales would have increased by 0.2% for the period. For the full-year, International sales were?$136.7 million, down by 5.8% compared to 2007. Excluding the impact of foreign currency translation, sales would have increased by 4.7% for the year.
On an operating basis, operating income for the fourth quarter was?$6.0 million?compared to income of?$7.0 million?a year ago. On a GAAP basis, operating income in the fourth quarter was$5.5 million?compared to income of?$6.6 million?the prior year. For the full-year, operating income on an operating basis was?$4.5 million?compared to?$8.4 million?in 2007. On a GAAP basis, full-year operating income was?$3.7 million?compared to?$8.0 million?in 2007.
Outlook
“In this economy, we expect sales trends to continue to be negative throughout 2009 and will manage the business accordingly,” said Marshall. “We have planned only minimal capital expenditures and will continue to hold the line on our deeply reduced cost structure while remaining engaged with our vendors and others as we work to get the company on more firm financial footing. In addition, our efforts to drive the top line and improve margins will continue to intensify as we move forward.”
Next Financial Release
Borders Group plans to issue fiscal first quarter 2009 results?May 26?after market close with a conference call for investors the following day,?May 27, at?8 a.m.?Eastern.
About Borders Group
Headquartered in?Ann Arbor, Mich., Borders Group, Inc. (NYSE:?BGP) is a leading retailer of books, music and movies with more than 25,000 employees. Through its subsidiaries, the company operates approximately 1,000 stores worldwide primarily under the Borders(R) and Waldenbooks(R) brand names. For online shopping, visit Borders.com. For more information about the company, visit?www.borders.com/media.
Safe?Harbor?Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of words such as “projects,” “expect,” “estimated,” “look toward,” “going forward,” “continue,” “maintain,” “planning,” “returning,” “guidance,” “goal,” “will,” “may,” “intend,” “anticipates,” and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the company’s future financial condition and performance (including earnings per share, gross margins and inventory turns, liquidity, same-store sales, cost reduction initiatives, and anticipated capital expenditures and depreciation and amortization amounts) and its cost reduction initiatives and the benefits thereof. These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company’s forward- looking statements.
These risks and uncertainties include, but are not limited to, consumer demand for the company’s products, particularly during the holiday season, which is believed to be related to general economic and geopolitical conditions, competition and other factors; the availability of adequate capital-including vendor credit-to fund the company’s operations and to carry out its strategic plans and the performance of the company’s information technology systems and the development of improvements to the systems necessary to implement the company’s strategic plan.
The company’s periodic reports filed from time to time with the Securities and Exchange Commission contain more detailed discussions of these and other risk factors that could cause actual results and plans to differ materially from those included in the forward-looking statements, and those discussions are incorporated herein by reference. The company does not undertake any obligation to update forward-looking statements.
Borders Group, Inc. Financial Statements
(amounts in millions, except per share amounts)
Unaudited
Sales and Earnings Summary
Quarter Ended Quarter Ended
January 31, 2009 (1) February 2, 2008 (1)
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (2) (2) Basis Basis (3) (3) Basis
Borders
Superstores $842.5 $- $842.5 $957.8 $- $957.8
Waldenbooks
Specialty
Retail 195.6 - 195.6 228.3 - 228.3
International 43.2 - 43.2 55.2 - 55.2
Total
sales 1,081.3 - 1,081.3 1,241.3 - 1,241.3
Other revenue 6.4 - 6.4 21.1 - 21.1
Total
revenue 1,087.7 - 1,087.7 1,262.4 - 1,262.4
Cost of
goods sold,
including
occupancy
costs 775.4 18.9 794.3 871.5 6.5 878.0
Gross
margin 312.3 (18.9) 293.4 390.9 (6.5) 384.4
Selling,
general and
administrative
expenses 204.0 14.7 218.7 256.1 ( 0.7) 255.4
Pre-opening
expense 0.4 - 0.4 1.2 - 1.2
Goodwill
impairment - 40.3 40.3 - - -
Asset impairments
and other
writedowns - 7.0 7.0 - 10.4 10.4
Operating
Income
(loss) 107.9 (80.9) 27.0 133.6 (16.2) 117.4
Interest expense 6.5 (8.4) (1.9) 10.5 - 10.5
Income (loss)
before
income
taxes 101.4 (72.5) 28.9 123.1 (16.2) 106.9
Income taxes
(benefit) 37.6 (37.6) - 48.8 (9.2) 39.6
Income (loss)
from
continuing
operations $63.8 $(34.9) $28.9 $74.3 $(7.0) $67.3
Loss from
operations of
discontinued
operations
(net of tax) - - - 10.4 (5.0) 5.4
Gain on disposal
of discontinued
operations
(net of tax) - 0.7 0.7 - (8.0) (8.0)
Gain from
discontinued
operations
(net of tax) - 0.7 0.7 10.4 (13.0) (2.6)
Net Income
(loss) $63.8 $(34.2) $29.6 $84.7 $(20.0) $64.7
Diluted EPS from
continuing
operations $1.05 $(0.57) $0.48 $1.26 $(0.12) $1.14
Diluted EPS from
discontinued
operations $- $0.01 $0.01 $0.18 $(0.22) $(0.04)
Diluted EPS
including
discontinued
operations $1.05 $(0.56) $0.49 $1.44 $(0.34) $1.10
Diluted weighted
avg. common
shares 60.6 60.6 60.6 58.8 58.8 58.8
Comparable Store Sales
Borders Superstores (15.3%) 2.1%
Waldenbooks
Specialty
Retail (4.7%) 1.2%
Sales and Earnings Summary (As Percentage of Total Sales)
Quarter Ended Quarter Ended
January 31, 2009 (1) February 2, 2008 (1)
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (2) (2) Basis Basis (3) (3) Basis
Borders
Superstores 77.9% -% 77.9% 77.2% -% 77.2%
Waldenbooks
Specialty
Retail 18.1 - 18.1 18.4 - 18.4
International 4.0 - 4.0 4.4 - 4.4
Total
sales 100.0 - 100.0 100.0 - 100.0
Other revenue 0.5 - 0.5 1.7 - 1.7
Total
revenue 100.5 - 100.5 101.7 - 101.7
Cost of goods
sold, including
occupancy
costs 71.7 1.7 73.4 70.1 0.6 70.7
Gross
margin 28.8 (1.7) 27.1 31.6 (0.6) 31.0
Selling,
general and
administrative
expenses 18.9 1.4 20.3 20.7 (0.1) 20.6
Pre-opening
expense - - - 0.1 - 0.1
Goodwill
impairment - 3.7 3.7 - - -
Asset
impairments
and other
writedowns - 0.7 0.7 - 0.8 0.8
Operating
Income
(loss) 9.9 (7.5) 2.4 10.8 (1.3) 9.5
Interest
expense 0.6 (0.8) (0.2) 0.9 - 0.9
Income (loss)
before income
taxes 9.3 (6.7) 2.6 9.9 (1.3) 8.6
Income taxes
(benefit) 3.4 (3.4) - 3.9 (0.7) 3.2
Income
(loss) from
continuing
operations 5.9% (3.3)% 2.6% 6.0% (0.6)% 5.4%
(1) The results of Borders Ireland, Books etc., UK Superstores, Borders
Australia, Borders New Zealand and Borders Singapore are reported as
discontinued operations.
(2) Results from 2008 were impacted by a number of non-operating items,
including deferred tax asset impairments, store asset impairments,
goodwill impairment, store closure costs, severance costs,
professional fees related to strategic alternatives and amortization
of the term loan discount and debt issuance costs, offset by income
related to the fair market value adjustment of the warrant liability
and related tax benefit, as well as income received from a legal
settlement. Therefore, solely for analytical purposes and as an aid
to better understand underlying trends, operating basis data are
presented excluding these items.
(3) Results from 2007 were impacted by a number of non-operating items,
including asset impairments, store closure costs and write-offs
related to the Company's music reduction initiative. Therefore,
solely for analytical purposes and as an aid to better understand
underlying trends, operating basis data are presented excluding these
items.
Borders Group, Inc. Financial Statements
(amounts in millions, except per share amounts)
Unaudited
Sales and Earnings Summary
Year Ended Year Ended
January 31, 2009 (1) February 2, 2008 (1)
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (2) (2) Basis Basis (3) (3) Basis
Borders
Superstores $2,625.4 $- $2,625.4 $2,847.2 $- $2,847.2
Waldenbooks
Specialty
Retail 480.0 - 480.0 562.8 - 562.8
International 136.7 - 136.7 145.1 - 145.1
Total
sales 3,242.1 - 3,242.1 3,555.1 - 3,555.1
Other revenue 33.3 - 33.3 42.3 - 42.3
Total
revenue 3,275.4 - 3,275.4 3,597.4 - 3,597.4
Cost of goods
sold, including
occupancy
costs 2,468.9 15.9 2,484.8 2,655.4 12.9 2,668.3
Gross
margin 806.5 (15.9) 790.6 942.0 (12.9) 929.1
Selling,
general and
administrative
expenses 803.1 36.5 839.6 899.6 7.4 907.0
Pre-opening
expense 2.8 - 2.8 5.0 - 5.0
Goodwill
impairment - 40.3 40.3 - - -
Asset impairments
and other
writedowns - 57.1 57.1 - 13.0 13.0
Operating Income
(loss) 0.6 (149.8) (149.2) 37.4 (33.3) 4.1
Interest expense 30.2 (24.9) 5.3 43.1 - 43.1
Loss before
income
taxes (29.6) (124.9) (154.5) (5.7) (33.3) (39.0)
Income taxes
(benefit) (13.4) 43.6 30.2 (5.3) (13.8) (19.1)
Loss from
continuing
operations $(16.2) $(168.5) $(184.7) $(0.4) $(19.5) $(19.9)
Loss from
operations of
discontinued
operations
(net of tax) (1.7) - (1.7) (2.1) (6.6) (8.7)
Loss on disposal
of discontinued
operations
(net of tax) - (0.3) (0.3) - (128.8) (128.8)
Loss from
discontinued
operations
(net of tax) (1.7) (0.3) (2.0) (2.1) (135.4) (137.5)
Net loss $(17.9) $(168.8) $(186.7) $(2.5) $(154.9) $(157.4)
Basic EPS from
continuing
operations $(0.27) $(2.80) $(3.07) $(0.01) $(0.33) $(0.34)
Basic EPS from
discontinued
operations $(0.03) $- $(0.03) $(0.03) $(2.31) $(2.34)
Basic EPS
including
discontinued
operations $(0.30) $(2.80) $(3.10) $(0.04) $(2.64) $(2.68)
Basic weighted
avg. common
shares 60.2 60.2 60.2 58.7 58.7 58.7
Comparable Store Sales
Borders
Superstores (10.8%) 1.5%
Waldenbooks
Specialty
Retail (5.1%) 2.2%
Sales and Earnings Summary (As Percentage of Total Sales)
Year Ended Year Ended
January 31, 2009 (1) February 2, 2008 (1)
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (2) (2) Basis Basis (3) (3) Basis
Borders
Superstores 81.0% -% 81.0% 80.1% -% 80.1%
Waldenbooks
Specialty
Retail 14.8 - 14.8 15.8 - 15.8
International 4.2 - 4.2 4.1 - 4.1
Total
sales 100.0 - 100.0 100.0 - 100.0
Other revenue 1.0 - 1.0 1.2 - 1.2
Total
revenue 101.0 - 101.0 101.2 - 101.2
Cost of goods
sold, including
occupancy
costs 76.2 0.5 76.7 74.7 0.4 75.1
Gross
margin 24.8 (0.5) 24.3 26.5 (0.4) 26.1
Selling,
general and
administrative
expenses 24.8 1.1 25.9 25.4 0.1 25.5
Pre-opening
expense - - - 0.1 - 0.1
Goodwill
impairment - 1.2 1.2 - - -
Asset impairments
and other
writedowns - 1.8 1.8 - 0.4 0.4
Operating
Loss - (4.6) (4.6) 1.0 (0.9) 0.1
Interest
expense 0.9 (0.8) 0.1 1.2 - 1.2
Loss before
income
taxes (0.9) (3.8) (4.7) (0.2) (0.9) (1.1)
Income taxes
(benefit) (0.4) 1.3 0.9 (0.2) (0.3) (0.5)
Loss from
continuing
operations (0.5)% (5.1)% (5.6)% -% (0.6)% (0.6)%
(1) The results of Borders Ireland, Books etc., U.K. Superstores,
Borders Australia, Borders New Zealand and Borders Singapore are
reported as discontinued operations.
(2) Results from 2008 were impacted by a number of non-operating items,
including deferred tax asset impairments, store asset impairments,
goodwill impairment, store closure costs, severance costs,
professional fees related to strategic alternatives and amortization
of the term loan discount and debt issuance costs, offset by income
related to the fair market value adjustment of the warrant liability
and the related tax benefit, as well as income received from a legal
settlement and a landlord lease termination. Therefore, solely for
analytical purposes and as an aid to better understand underlying
trends, operating basis data are presented excluding these items.
(3) Results from 2007 were impacted by a number of non-operating items,
including asset impairments, store closure costs and write-offs
related to the Company's music reduction initiative. Therefore,
solely for analytical purposes and as an aid to better understand
underlying trends, operating basis data are presented excluding these
items.
Borders Group, Inc. Financial Statements
(dollars in millions)
Unaudited
Condensed Consolidated Balance Sheets
January 31, February 2,
2009 2008
Assets
Cash and cash equivalents $53.6 $58.5
Merchandise inventories 915.2 1,242.0
Other current assets 102.4 103.5
Current assets of discontinued
operations(1) - 102.0
Property and equipment, net 494.2 592.8
Other assets and deferred charges 43.4 109.8
Goodwill 0.2 40.5
Noncurrent assets of discontinued
operations - 53.6
Total assets $1,609.0 $2,302.7
Liabilities, Minority Interest and
Stockholders' Equity
Short-term borrowings and current
portion of long-term debt $329.8 $548.6
Trade accounts payable 350.0 511.9
Other current liabilities 313.9 349.8
Current liabilities of discontinued
operations - 57.5
Long-term debt 6.4 5.4
Other long-term liabilities 345.8 325.0
Noncurrent liabilities of discontinued
operations - 25.4
Total liabilities 1,345.9 1,823.6
Minority interest 0.5 2.2
Total stockholders' equity 262.6 476.9
Total liabilities, minority interest
and stockholders' equity $1,609.0 $2,302.7
(1) Includes $2.5 million of cash and cash equivalents as of February 2,
2008.
Certain reclassifications have been made to conform to current year
presentation.
Borders Group, Inc. Financial Statements
(dollars in millions)
Unaudited
Condensed Consolidated Statements of Cash Flows
Quarter Ended Year Ended
January 31, February 2, January 31, February 2,
2009 2008 2009 2008
CASH PROVIDED BY (USED FOR):
OPERATIONS
Income (loss) from
continuing
operations $28.9 $67.3 $(184.7) $(19.9)
Adjustments to
reconcile loss
from continuing
operations to
operating cash flows:
Depreciation 24.7 29.5 107.1 103.7
Stock-based
compensation
cost (2.0) 1.7 3.0 5.1
Change in other
long-term assets,
liabilities and
deferred
charges 13.9 (2.1) 45.1 2.0
Goodwill
impairment 40.3 - 40.3 -
Asset impairment
and other
writedowns 7.0 10.4 57.1 13.0
Decrease in
inventories 340.8 318.4 321.4 52.2
Decrease in
accounts
payable (263.7) (232.1) (160.2) (59.2)
Cash provided by
other current
assets and other
current
liabilities 29.7 8.2 4.5 8.1
Net cash provided
by operating
activities of
continuing
operations 219.6 201.3 233.6 105.0
INVESTING
Capital
expenditures (6.2) (26.6) (79.9) (131.3)
Investment in
Paperchase (3.6) (0.8) (3.6) (0.8)
Proceeds from the
sale of discontinued
operations 2.8 - 97.3 20.4
Net cash
(used for)
provided by
investing
activities of
continuing
operations (7.0) (27.4) 13.8 (111.7)
FINANCING
Net (repayment of)
funding from
debt and financing
obligations (190.6) (241.6) (219.2) 43.4
Issuance and
repurchase of
common stock (0.4) 0.2 (0.1) 3.4
Net (repayment of)
funding from
long-term debt (0.9) 0.4 (0.2) 0.4
Net (repayment of)
funding from
long-term capital
lease obligations (1.0) (0.2) (0.4) (0.4)
Cash dividends paid - - (6.5) (19.4)
Net cash
(used for)
provided by
financing
activities of
continuing
operations (192.9) (241.2) (226.4) 27.4
Effect of exchange
rates on cash
and equivalents (0.9) 0.7 (0.9) 0.8
Net cash (used for)
provided by
discontinued
operations (2.0) 64.0 (25.0) (60.6)
NET INCREASE (DECREASE)
IN CASH AND
EQUIVALENTS 16.8 (2.6) (4.9) (39.1)
Cash and equivalents
at beginning
of period 38.4 61.1 58.5 97.6
Cash and equivalents
at end of period $53.6 $58.5 $53.6 $58.5
Store Activity Summary
Quarter Ended Year Ended
January 31, February 2, January 31, February 2,
2009 2008 2009 2008
Borders Superstores
Beginning number
of stores 519 510 509 499
Openings 1 6 12 18
Closings (5) (7) (6) (8)
Ending number
of stores 515 509 515 509
Ending square footage
(in millions) 12.8 12.6 12.8 12.6
Waldenbooks Specialty
Retail Stores (1)
Beginning number
of stores 467 521 490 564
Openings--Airport stores 3 - 8 1
Closings (84) (31) (112) (75)
Ending number
of stores 386 490 386 490
Ending square footage
(in millions) 1.4 1.9 1.4 1.9
(1) Includes all small format stores in malls, airports and outlet malls.
Borders Group, Inc. Segment Financial Information
(dollars in millions, except per share amounts)
Unaudited
Quarter Ended January 31, 2009 Quarter Ended February 2, 2008
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (1) (1) Basis Basis (2) (2) Basis
Borders Superstores
Sales $842.5 $- $842.5 $957.8 $- $957.8
Deprec-
iation
expense 19.8 - 19.8 24.4 - 24.4
Operating
income
(loss) 86.5 (69.4) 17.1 102.1 (14.7) 87.4
Waldenbooks Specialty Retail
Sales $195.6 $- $195.6 $228.3 $- $228.3
Deprec-
iation
expense 3.7 - 3.7 3.5 (0.6) 2.9
Operating
income
(loss) 16.0 (4.5) 11.5 26.5 (1.0) 25.5
International (3)
Sales $43.2 $- $43.2 $55.2 $- $55.2
Deprec-
iation
expense 1.2 - 1.2 1.6 0.6 2.2
Operating
income
(loss) 6.0 (0.5) 5.5 7.0 (0.4) 6.6
Corporate (4)
Operating
loss $(0.6) $(6.5) $(7.1) $(2.0) $(0.1) $(2.1)
Consolidated (3)
Sales $1,081.3 $- $1,081.3 $1,241.3 $- $1,241.3
Deprec-
iation
expense 24.7 - 24.7 29.5 - 29.5
Operating
income
(loss) 107.9 (80.9) 27.0 133.6 (16.2) 117.4
Year Ended January 31, 2009 Year Ended February 2, 2008
Operating Adjustments GAAP Operating Adjustments GAAP
Basis (1) (1) Basis Basis (2) (2) Basis
Borders Superstores
Sales $2,625.4 $- $2,625.4 $2,847.2 $- $2,847.2
Deprec-
iation
expense 90.7 - 90.7 90.0 0.2 90.2
Operating
income
(loss) 17.7 (118.6) (100.9) 56.9 (26.3) 30.6
Waldenbooks Specialty Retail
Sales $480.0 $- $480.0 $562.8 $- $562.8
Deprec-
iation
expense 10.6 - 10.6 8.3 (0.6) 7.7
Operating
loss (16.7) (10.8) (27.5) (17.3) (4.1) (21.4)
International (3)
Sales $136.7 $- $136.7 $145.1 $- $145.1
Deprec-
iation
expense 5.8 - 5.8 5.2 0.6 5.8
Operating
income
(loss) 4.5 (0.8) 3.7 8.4 (0.4) 8.0
Corporate (4)
Operating
loss $(4.9) $(19.6) $(24.5) $(10.6) $(2.5) $(13.1)
Consolidated (3)
Sales $3,242.1 $- $3,242.1 $3,555.1 $- $3,555.1
Deprec-
iation
expense 107.1 - 107.1 103.5 0.2 103.7
Operating
income
(loss) 0.6 (149.8) (149.2) 37.4 (33.3) 4.1
(1) Results from 2008 were impacted by a number of non-operating items,
including deferred tax asset impairments, store asset impairments,
goodwill impairment, store closure costs, severance costs,
professional fees related to strategic alternatives and amortization
of the term loan discount and debt issuance costs, offset by income
related to the fair market value adjustment of the warrant liability
and the related tax benefit, as well as income received from a legal
settlement and a landlord lease termination. Therefore, solely for
analytical purposes and as an aid to better understand underlying
trends, operating basis data are presented excluding these items.
(2) Results from 2007 were impacted by a number of non-operating items,
including asset impairments, store closure costs and write-offs
related to the Company's music reduction initiative. Therefore,
solely for analytical purposes and as an aid to better understand
underlying trends, operating basis data are presented excluding these
items.
(3) Excludes the results of discontinued operations (Borders Ireland,
Books etc., UK Superstores, Borders Australia, Borders New Zealand
and Borders Singapore).
(4) The Corporate segment includes various corporate governance costs and
corporate incentive costs.
SOURCE Borders Group, Inc.