Showing posts with label Barnes Noble. Show all posts
Showing posts with label Barnes Noble. Show all posts

Wednesday, September 22, 2021

MediaWeek (Vol 14, No 8) Pearson Sues Chegg, B&N goes COVID Book Crazy, UK Copyright, Open Access Policies + More

Pearson plc is suing Chegg for Copyright Infringement over test packs. (CourtListener)
As part of Pearson’s focus on pedagogy, Pearson and its authors devote significant creative effort to develop effective, imaginative, and engaging questions to include in the textbooks it publishes. Pearson’s end-of-chapter questions are strategically designed and carefully calibrated to reinforce key concepts taught in the textbooks, test students’ comprehension of these issues, enhance students’ problem-solving skills, and, ultimately, improve students’ understanding of the subject matter. Pearson’s textbooks can contain hundreds or thousands of end-of-chapter questions. These end-of-chapter questions form core components of the teaching materials contained in Pearson textbooks and are frequently hallmarks of Pearson titles. As such, the availability, quality, and utility of these questions are often important considerations when educators select which textbooks to adopt for their courses.

Barnes & Noble has done well during COVID.  News reports suggest double digit growth unseen 'since before Amazon (NYPost)

Industrywide, US sales of books are up 12 percent so far this year through August compared to the same period a year ago —  and up 20 percent from 2019 over the same time period, according NPD Group, a market research company. CEO James Daunt says B&N sales have risen 6 percent since 2019.Jon Enoch Photography

“Double-digit growth in books has not happened since Amazon came along,” Barnes & Noble Chief Executive James Daunt told The Post in an interview. 

Those kinds of numbers are encouraging for Elliott, a fund known for taking big positions in public companies and agitating for change: In this case, it bought B&N whole as a fixer-upper. A source familiar with the matter says Elliott is about halfway through its plan that would eventually spin the bookseller back onto the public markets — or sell it to another private buyer.

Guardian Opinion on proposed changes to UK copyright law: 

It might sound like good news for book lovers too, but only in the short term. While books might become a bit cheaper, the long-term loss for readers has the potential to far overshadow the gain. “The loss of revenue will make publishers more risk-averse and close down access for new work,” Hilary Mantel has warned, with knock-on effects including cramping the innovation that feeds our film and TV industries.

Researchers and publishers respond to new UK open-access policy (Physics World)

IOP Publishing, which publishes Physics World, broadly welcomes the UKRI’s new open-access policy, which it says “aligns with our mis­sion to expand physics globally”. However, it thinks that the require­ment for researchers to deposit the final version of a manuscript in a repository under no embargo will be “harmful to the significant OA pro­gress already made”. “This approach cannot form the basis for an econom­ically viable publishing model for physics journals seeking to maintain the highest standards of peer review and publication.”

That view is echoed by the Inter­national Association of Scientific, Technical, and Medical Publishers (STM), which says it is “deeply con­cerned” that the UKRI policy gives equivalent status to the “subscrip­tion-tied accepted manuscript and the full OA publication of the version of record”. This, the STM says, could “jeopardize the continued progress of the open-access publishing tran­sition by enabling an entirely unsus­tainable route”. The STM urges the UKRI board to “carefully consider these issues”.

 An App called Libby (New Yorker)

The sudden shift to e-books had enormous practical and financial implications, not only for OverDrive but for public libraries across the country. Libraries can buy print books in bulk from any seller that they choose, and, thanks to a legal principle called the first-sale doctrine, they have the right to lend those books to any number of readers free of charge. But the first-sale doctrine does not apply to digital content. For the most part, publishers do not sell their e-books or audiobooks to libraries—they sell digital distribution rights to third-party venders, such as OverDrive, and people like Steve Potash sell lending rights to libraries. These rights often have an expiration date, and they make library e-books “a lot more expensive, in general, than print books,” Michelle Jeske, who oversees Denver’s public-library system, told me. Digital content gives publishers more power over prices, because it allows them to treat libraries differently than they treat other kinds of buyers. Last year, the Denver Public Library increased its digital checkouts by more than sixty per cent, to 2.3 million, and spent about a third of its collections budget on digital content, up from twenty per cent the year before.
 Wuthering fights! Will this priceless book collection be preserved or broken up at auction? (Stephan Fry -Airmail)

The story in brief: over their lifetimes, a pair of childless, mid–19th century North Country millowner brothers named William and Alfred Law assembled, with knowledge and discernment, a private collection of books and manuscripts. This library passed to successive descendants for a century, neither supplemented, catalogued, nor open to visitation by academics or enthusiasts—save on a few occasions which served only to enhance the legend of the collection’s existence. And now the entirety is for sale at Sotheby’s in London.

Very little is known about the Laws, but their taste and judgment give the lie to that snooty stereotype—vented if not invented by Dickens in Hard Times—of the hard-nosed industrialist for whom art and books are nowt but fancy folderols for fops and fools.

Barnes & Noble Education Financial Results (Edgar)
  •  Versus same period last year: Revenues up $40mm and Net Income flat on higher selling and admin costs
 Houghton Mifflin Harcourt Financial results (Edgar)
  • Revenues up 30% for same quarter in 2020
  • Significant improvement in Net Income
  • Gain on sale of trade business $218mm 
Wiley Financial Results (Edgar)
 
 
Publishing Technology Report 2021 - Insight into software and services companies supporting publishers and content owners. 

Monday, July 26, 2021

Media Week (Vol 14, No.7): B&N Education Reports, Book TikTok, Teaching Reading, Must Read-TV,

Barnes & Noble Education Reports (Edgar)

Financial results for the fourth quarter and fiscal year 2021show severe impact of COVID.  Over two years revenues are down $500mm.

  • Consolidated fourth quarter sales of $222.8 million decreased 13.3% as compared to the prior year period; consolidated fiscal year sales of $1,433.9 million decreased 22.5% as compared to the prior year.
  • Consolidated fourth quarter GAAP net loss was $(44.4) million, compared to a net loss of $(40.3) million in the prior year period. Consolidated fiscal year GAAP net loss was $(131.8) million, compared to a net loss of $(38.3) million in the prior year
  • Consolidated fourth quarter non-GAAP Adjusted EBITDA loss was $(31.4) million, compared to a non-GAAP Adjusted EBITDA loss of $(20.7) million in the prior year; consolidated fiscal year non-GAAP Adjusted EBITDA loss was $(65.6) million, as compared to non-GAAP Adjusted EBITDA of $42.2 million in the prior year.
  • Consolidated fourth quarter non-GAAP Adjusted Earnings was $(32.8) million, compared to non-GAAP Adjusted Earnings of $(28.1) million in the prior year period; consolidated fiscal year non-GAAP Adjusted Earnings was $(89.0) million, compared to non-GAAP Adjusted Earnings of $(21.1) million in the prior year.
  • Total fiscal year 2021 borrowings increased by only $2.9 million to $177.6 million as compared to the prior year period, led by working capital improvements, the sale of logo and emblematic merchandise inventory to Lids, and the strategic equity investment in BNED by Fanatics and Lids. 
Operational highlights for fiscal year 2021:
  • BNC First Day® digital course delivery model year-over-year revenue increased 94%, benefiting from the accelerated move to digital courseware.
  • Reached agreements for 64 campus stores to support the BNC First Day® Complete courseware delivery program in Fall Term 2021, representing approximately 300,000 in total undergraduate enrollment; up from 12 campus stores and 43,000 in total undergraduate enrollment in Fall Term 2020.
  • Gained over 300,000 gross subscribers for the bartleby® suite of services in fiscal 2021, with DSS revenue increasing 15.7% for the same period.
  • Launched beta release of bartleby Expert Live Chat, a text-based tutoring offering that connects students to our expert network for students who have follow-up questions on a bartleby solution, need more clarity on a textbook question, or want to speak to a tutor as soon as possible.
  • Continued to attract new clients and generate new business growth, signing over $103 million in gross new business in fiscal year 2021 and expanding BNED’s footprint by 52 institutions and 31 K-12 schools.
  • Entered into a long-term strategic omni channel merchandising partnership with Fanatics and Lids (FLC), forging an alliance with the two retail and ecommerce leaders in the licensed sports and emblematic merchandise category. Significant joint go-to-market activity planned with Fanatics and Lids to attract new business through enhanced offering.

Book Tik Tok (Evening Standard)

TikTok doesn’t seem like an obvious destination for book buzz but that hasn’t stopped it from booming. The #BookTok hashtag has racked up over 5.8 billion views, and some authors have seen a tenfold increase in book sales for works that are often decades old.

Even bookstores are jumping on the trend. The Barnes & Noble website now has a “BookTok” page dedicated to the most popular books on TikTok and its American stores have introduced allocated sections displaying titles that have gone viral on the platform.

Also - The Rise of BookTok (Guardian)

Teaching Reading Right (The Economist)

The consequences of this are striking. Less than half (48%) of all American adults were proficient readers in 2017. American fourth graders (nine-to ten-year olds) rank 15th on the Progress in International Literacy Study, an international exam. And that was before covid-19 closed schools. According to UNESCO, American schools were closed either fully or partially for 56 weeks, compared with 47 in Canada and 27 in the United Kingdom and China. In theory the need to make up for lost schooling could be an opportunity to try something new. But America remains stuck in debate about teaching children to read that has been rumbling on for decades.

Wiley's "Tech-Enabled" Publishing (SiliconAngle)

“It’s been amazing to be part of education and research during this pandemic, during a time when these things have never really been more important. For a long time, we’d been building these online and computer-based education platforms and really trying to get folks to move there. And that’s been a long, long process. The pandemic has really accelerated that,” Mack stated.

Wiley has seen a profound increase in the usage of its online education platforms with the onset of the pandemic — but it has definitely not been the only one. With the number of businesses that have been given a “digitization boost” by the pandemic, maybe there’s a bit of opportunity in every tragedy after all.

Making writing more working class (The Economist)

The entire publishing industry has been colonised by the middle and upper classes. A study last year of literary types found that only 13% came from a working-class background. So Ms Carthew has launched the “Nature Writing Prize for working-class writers”, now in its second year, to “burst the stereotype of what it means to be a nature writer” and allow other species to thrive.

Emoting in the open air might seem an egalitarian pursuit. Fields are free, while pens and paper cost mere pennies. It is not so simple, says Ms Carthew. One cannot wander lonely as a cloud if one is working in a call centre, and it is easier to write about the questing vole in a plashy fen if one owns the fen. Such accusations make the publishing industry squirm: like most liberal elites, publishers are happier to be seen as liberal than elite. Steps therefore are being taken. Surveys have been conducted, working-class networks have been launched, hands have been wrung. There remains an uncomfortably large number of people in the industry called Sophie.

 The Rise of Must-Read TV (The Atlantic)

All of this has had a profound effect on the literary world. As you might expect, becoming a TV show increases a novel’s popularity enormously. Adaptations can drive book sales, as in the case of this winter’s breakout hit Bridgerton. The Regency-era bodice-ripper is not alone: A number of backlist titles, such as The Queen’s Gambit, have enjoyed a late-in-life revival thanks to Netflix’s attention.

We see evidence of the adaptation effect in other measures of literary success as well. We compiled a list of about 400 21st-century novels that met certain criteria—inclusion in top-10 best-seller lists, critics’ picks, publishers’ comp titles, and so on. Within this group, a novel that becomes a show will receive about four times as many ratings on Goodreads.com as a novel that has never been adapted to TV or film. (Film still has a bigger effect, boosting a novel’s Goodreads ratings more than 1000 percent; TV nonetheless dramatically improves the fortunes of a novel.)

Emerging formats in Scholarly Publishing (Research Information)

Making content easily discoverable is vital to create an impact. Embracing digital transformation is key to survival in the current scenario. The publishing industry is contending with the availability of free content, declining readership, and switching to various content delivery platforms. Forward-looking organisations must embrace the digital revolution to meet changing customer needs. New and more effective content formats, like infographics and video summaries can help researchers, particularly those working in multidisciplinary fields, discover more relevant studies.

 

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See more headlines from past MediaWeek posts - going back to 2006.



 

Thursday, March 18, 2021

Barnes & Noble Education: 3Q Results Show COVID Impact

Barnes & Noble Education reported their third quarter results on March 9th, showing a predictable decrease in revenues due to Covid.  Third quarter sales ($411MM) were off 18% versus 2020 which contributed to a year to date negative revenue ($1,211MM) variance of 24%.  EBITDA for the period showed a loss of $(48)MM versus $(1.7)MM in 2020. The year to date loss is $(87)MM versus income of $2.1 in 2020.  The company indicated they took a write down of $27MM for store fixtures.

It is worth noting that revenue results for 3Q 2020 were off 8% for the quarter and 6% year to date versus 2019 showing that the COVID impact has been significantly worse in recent periods.  In the 2019 3Q filing, revenues for the quarter were $550mm which indicates revenue has fallen $140mm over two years.  Year to date revenues in 2019 were $1.6B versus $1.2B in 2021.

(See Follett release below).

As this chart shows however, recent investors might be happy with share performance:

 


Additional details from their press release: 

Operational highlights for the third quarter 2021:
Entered into a long-term strategic omnichannel merchandising partnership with FLC, forging an alliance with the two online and offline leaders in the licensed sports and emblematic merchandise category. Under the terms of the agreement, Fanatics and Lids together made a $15 million strategic equity investment in BNED
BNC First Day® year-over-year revenue increased 107%, benefiting from the accelerated move to digital courseware.
Reached agreements with 31 campus stores to date, which includes new business accounts, to support the BNC First Day® Complete program in Fall Term 2021, representing over 160,000 in total undergraduate enrollment; up from 12 campus stores and 43,000 in total undergraduate enrollment in Fall Term 2020.
Continue to work with a significant number of additional campuses to secure agreements to launch First Day Complete for Fall Term 2021.
Gained over 210,000 gross subscribers for the bartleby® suite of services year to date, with DSS revenue increasing 11.8% for the same period.
Announced agreement with Wolfram|Alpha to develop a math solver as a new feature in the Company’s bartleby suite of solutions. Powered by Wolfram|Alpha’s best-in-class computation engine, the math solver will allow students to access an interactive digital calculator that provides real-time, step-by-step explanations for even the most advanced math problems.
Continued to attract new clients and generate new business growth, signing over $84 million in net new business to date this fiscal year and expanding BNED’s footprint by 54 BNC institutions and 31 K-12 schools.

 

Related news from Higher Ed retailer Follett:  Web Sales Show Rapid Growth

Wednesday, July 29, 2020

Barnes & Noble Education Reports Full Year. Standstill Agreement with Key Investor

Two important news stories related to the performance and future of Barnes & Noble Education this week.

Firstly, the company reported their full year results and, no surprise, the business performance was much below 2019.  From their press release:

Financial results for the fourth quarter and fiscal year 2020:
  • Consolidated fourth quarter sales of $256.9 million decreased 23.2% as compared to the prior year period; fiscal year 2020 consolidated sales of $1,851.1 million decreased 9.0% as compared to the prior year.
  • Consolidated fourth quarter GAAP net loss was $(40.3) million, compared to a net loss of $(46.2) million in the prior year period. Consolidated fiscal year 2020 GAAP net loss was $(38.3) million, compared to a net loss of $(24.4) million in the prior year.
  • Consolidated fourth quarter non-GAAP Adjusted EBITDA loss was $(20.7) million, compared to non-GAAP Adjusted EBITDA of $19.7 million in the prior year; fiscal year 2020 consolidated non-GAAP Adjusted EBITDA was $42.2 million, compared to non-GAAP Adjusted EBITDA of $104.9 million in the prior year.
  • Consolidated fourth quarter non-GAAP Adjusted Earnings was $(28.1) million, compared to non-GAAP Adjusted Earnings of $0.5 million in the prior year period; fiscal year 2020 consolidated non-GAAP Adjusted Earnings was $(21.1) million, compared to non-GAAP Adjusted Earnings of $25.4 million in the prior year.

Operational highlights for the fiscal year 2020:
  • Progressed on the execution of a number of strategic initiatives; all of which remained on target prior to the onset of the COVID-19 pandemic, which has accelerated the demand and need to scale such key initiatives.
  • Continued to drive subscriptions for the Company’s bartleby® suite of solutions, gaining more than 170,000 subscribers in fiscal year 2020, representing over 200% growth over fiscal year 2019 new subscribers.
  • Achieved a six-fold increase in fiscal year 2020 bartleby revenue versus prior year; bartleby peak Spring traffic increased over 10x year-over-year and almost 3x versus peak Fall traffic.
  • Completed initial build of the Company’s next generation eCommerce platform; recently executed selective launch with expected further roll-out throughout fiscal year 2021 to grow increased high-margin general merchandise sales.
  • Continued to grow the BNC First Day® inclusive access programs, with revenue increasing 91% year-over-year.
  • Increased adoption of BNC First Day Complete, with eleven campus partners utilizing the complete access model in the upcoming Fall Term 2020, increasing from four in fiscal year 2020.
  • Continued to win new business for both physical and virtual bookstores, including the University of Nevada, Reno, Western Kentucky University, Front Range Community College and The City Colleges of Chicago.
  • Provided valuable solutions to schools to help mitigate the COVID-19 on-campus learning disruption utilizing BNED’s virtual store offerings and course material fulfillment capabilities, its BNC First Day offering, and its digital bartleby offerings to help students continue to perform while studying remotely.
COVID-19 impacts on bookstore sales were particularly acute in the final quarter with same store sales of $238.5 million for the quarter, declining $81.4 million, or 25.4%, as compared to the prior year period, with comparable store sales decreasing 34.7%. Retail non-GAAP Adjusted EBITDA was $(13.0) million for the quarter, compared to $29.1 million in the prior year period.

While the company is excited about their online subscription study tools and products, the revenue base is still low versus the overall company. 2020 full year DSS revenues of $24mm were 10% higher versus 2019 but saw a 21% increase in the 4th quarter which could bode well for future growth during the COVID period.  However, any suggestion this line item compensates for the decline in retail sales in the short to medium term would be misguided.

Later in the week, the company also announced they have reached a cooperation agreement with Outerbridge Investment LLC a key investor which will result in Outerbridge placing board members on the B&N Education board.  From the press release:
Pursuant to the cooperation agreement, Outerbridge will vote all of its shares in favor of all the persons nominated by the Board to serve as directors of the Company at the 2020 Annual Meeting, which will include Mr. Robinson. Additionally, pursuant to the agreement, the Company has agreed to nominate Zachary Levenick as a director candidate for election at the 2020 Annual Meeting. Outerbridge has also agreed to abide by certain customary standstill provisions. The full agreement between BNED and Outerbridge will be filed in a Form 8-K with the U.S. Securities and Exchange Commission.

“We have engaged in a constructive dialogue with BNED over the past year and are pleased to have reached this agreement in support of BNED’s future,” said Rory Wallace, Chief Investment Officer of Outerbridge. “With its unique set of offerings that serve digital, virtual and in-person education, and its highly differentiated retail business, BNED has a special opportunity not only to deliver value to its shareholders and to all stakeholders in the higher education system, but to help shape the future of the industry by stepping forward in this time of disruption. The Company has demonstrated its ability to manage expenses and liquidity while simultaneously growing bartleby® and its inclusive access offerings, First Day® and First Day Complete at an impressive, and accelerating, rate. We remain deeply committed to BNED, which we believe to be an investment opportunity with tremendous standalone and strategic value, and are excited to continue our engagement with management and the Board as we pursue our common goal of enhancing shareholder value.”

Morgan Stanley & Co. is acting as financial advisor to the Company and Gibson, Dunn & Crutcher LLP is acting as legal counsel to the Company. Olshan Frome Wolosky LLP is acting as legal counsel to Outerbridge.
Earlier in 2020, the company enacted a short term shareholder rights plan otherwise known as a poison pill defence to ward off unwanted suitors.  (Press Release)

BNED is trending higher over the past six months but remains significantly below its 52 week high.