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

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

2012

2011

Change

Total assets

$

360,470

$

517,804

*

Long-term debt

160,146

452,073

*

Revenues, net of returns

332,904

356,456

(6.6

)%

Adjusted EBITDA**

31,390

24,585

27.7

%

Adjusted EBITDA Margin

9.4

%

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 months

three months

Successor

Predecessor

ended

ended

Predecessor

December 31,

December 31,

December 31,

June 30,

December 31,

2012

2011

2012

2012

2011

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 administrative

32,934

30,891

80,984

30,878

115,684

Depreciation

1,917

1,678

3,679

1,611

5,226

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 expense

5,522

8,646

15,599

8,337

30,828

Interest income

90

-

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

)

10,027

256,880

(160,679

)

Income tax expense (benefit)

(3,908

)

(3,480

)

3,877

-

(29,828

)

Income (loss) from continuing operations

(7,051

)

(15,586

)

6,150

256,880

(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 months

three months

Successor

Predecessor

ended

ended

Predecessor

December 31,

December 31,

December 31,

June 30,

December 31,

2012

2011

2012

2012

2011

College Stores

$

45,196

$

45,783

$

186,914

$

43,289

$

254,821

Textbooks

30,282

31,699

88,427

25,885

113,125

Complementary Services

5,534

7,083

13,162

5,320

22,668

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 ended

Nine months ended

Successor

Predecessor

six months

three months

Successor