Neebo, Inc. Reports Q3 Financial Results; Reaffirms Company is Well-Positioned to Make Another Signi

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Neebo, Inc. Reports Q3 Financial Results; Reaffirms Company is Well-Positioned to Make Another Significant Pay Down on Term Loan

LINCOLN, Neb.--(BUSINESS WIRE)-- Neebo, Inc. (the "Company") today announced financial results for the fiscal third quarter ended December 31, 2012. Neebo, Inc. is a holding company and the beneficial owner of Nebraska Book Company, Inc., an industry leader in solutions for the college bookstore marketplace.

Fiscal 2013 Financial Highlights (nine months ended December 31, 2012)

  • Adjusted EBITDA** of $31.4 million for the nine months ended December 31, 2012, an increase of $6.8 million over prior year period
  • Gross profit of 41.6% for the nine months ended December 31, 2012, up from 39.4% in prior year period
  • Selling, general and administrative expenses down 3.3%
  • Comp fall buyback resulted in an increase in units acquired for the first time in years

"We're very pleased with the Company's nine-month financial performance this year. Our Team Members are clearly executing our initiatives," said Steve Clemente, President and Chief Executive Officer of Neebo, Inc. "Our focus is on saving students money by offering the largest rental textbook title base, setting competitive prices backed by our Best Price Promise, and increasing textbook units acquired during buyback to position us to deliver long-term value to students in-store and online at Neebo.com."

"The Company continues to improve in our net working capital position," said Alexi Wellman, Chief Financial Officer of Neebo, Inc. "This is demonstrated by the full pay down of the bridge loan facility in January 2013, as well as the expectation that we will make another significant pay down on our term loan facility in the near future."

The following table presents selected financial data for continuing operations as of and for the nine months ended December 31, 2012 and 2011 ($ in 000's).

    
Nine months ended
December 31,  December 31,

 Percent 

20122011Change
 
Total assets$360,470$517,804*
Long-term debt160,146452,073*
 
Revenues, net of returns332,904356,456(6.6)%
Adjusted EBITDA**31,39024,58527.7%
Adjusted EBITDA Margin9.4%6.9%
 
Net cash flows used in operating activities(24,626)(111,094)(77.8)%
Net cash flows used in investing activities(6,028)(7,914)*
Net cash (used in) provided by financing activities(54,285)115,874*
 

* Not meaningful
** Adjusted EBITDA is a non-GAAP financial measure. See additional disclosure below.

Conference Call

Management will hold a conference call on February 15, 2013, at 9:30 a.m. CST to review the Company's fiscal third quarter financial results.

To participate in the conference call, interested parties should call 800-700-7860 or 612-332-0345 (international) and dial in 10 minutes prior to the start time of the call. The conference ID number is 281293.

A replay of the conference call will be available from February 15, 2013, at 11:30 a.m. CST through March 1, 2013, at 11:59 p.m. To access the replay, callers should dial 800-475-6701 or 320-365-3844 (international) and use access code 281293.

The unaudited condensed consolidated financial statements as of and for the three and nine months ended December 31, 2012 and 2011 are located on the Financial Filings page of the Company's website at http://www.nebook.com/financial/company_filings.asp.

About the Company

Neebo, Inc. is the beneficial owner of the Nebraska Book Company, Inc. Nebraska Book Company, Inc. began in 1915 with a single college store near the University of Nebraska campus and now operates nearly 250 stores, serving more than 2 million students at colleges and universities nationwide. Nebraska Book Company, Inc. sells 6 million textbooks annually and installs more than 1,600 technology platforms and e-commerce sites at more than 2,500 bookstores. Additional information about Nebraska Book Company, Inc. can be found at the Company's website: http://www.nebook.com.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause the Company's business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements that discuss management's beliefs and assumptions and can be identified by the use of words such as "will," "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "continue" or the negative of such terms, or other comparable terminology. These forward-looking statements, which include our expectation that we will make another significant pay down on our term loan facility, speak only as of the date of this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Additional information regarding forward-looking statements, as well as risks and uncertainties, is contained in Management's Discussion and Analysis.

Selected Financial Data

The information contained herein is more fully detailed and explained in the Company's Unaudited Condensed Consolidated Financial Statements and Management's Discussion and Analysis, which are available at http://www.nebook.com/financial/company_filings.asp.

 
 

Consolidated Statement of Operations ($ in 000's)

 
  Three months ended  Nine months ended
    Successor    Predecessor  
six monthsthree months
SuccessorPredecessorendedendedPredecessor
December 31,December 31,December 31,June 30,December 31,
20122011201220122011
Revenues, net of returns$69,353$73,737$265,223$67,681$356,456
Costs of sales 38,191  44,241  151,655  42,725  216,187 
Gross profit 31,162  29,496  113,568  24,956  140,269 
 
Operating expenses:
Selling, general, and administrative32,93430,89180,98430,878115,684
Depreciation1,9171,6783,6791,6115,226
Amortization 2,287  2,000  4,514  2,067  5,971 
 37,138  34,569  89,177  34,556  126,881 
Income (loss) from operations (5,976) (5,073) 24,391  (9,600) 13,388 
 
Operating expenses:
Interest expense5,5228,64615,5998,33730,828
Interest income90-73-(14)
Impairment -  -  -  -  122,639 
 5,612  8,646  15,672  8,337  153,453 

Income (loss) before reorganization items and income taxes

(11,588)(13,719)8,719(17,937)(140,065)
Reorganization items (629) 5,347  (1,308) (274,817) 20,614 

Income (loss) from continuing operations before income taxes

(10,959)(19,066)10,027256,880(160,679)
Income tax expense (benefit) (3,908) (3,480) 3,877  -  (29,828)
Income (loss) from continuing operations(7,051)(15,586)6,150256,880(130,851)

Income (loss) from discontinued operations, net of tax

 (248) (3,106) (570) (1,241) (3,211)
 
Net income (loss)$(7,299)$(18,692)$5,580 $255,639 $(134,062)
 
 

Net Revenues by Segment ($ in 000's)

 
  Three months ended  Nine months ended
    Successor    Predecessor  
six monthsthree months
SuccessorPredecessorendedendedPredecessor
December 31,December 31,December 31,June 30,December 31,
20122011201220122011
College Stores$45,196$45,783$186,914$43,289$254,821
Textbooks30,28231,69988,42725,885113,125
Complementary Services5,5347,08313,1625,32022,668
Intercompany eliminations (11,659) (10,828) (23,280) (6,813) (34,158)
Total net revenues$69,353 $73,737$265,223 $67,681 $356,456 
 
 

Gross Profit by Segment ($ in 000's)

              
Three months endedNine months ended
SuccessorPredecessor
six monthsthree months
Successor Read Full Story

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