Barnes & Noble Education Provides COVID-19 Update
BASKING RIDGE, N.J.--(BUSINESS WIRE)--Mar 17, 2020--
Barnes & Noble Education, Inc. (NYSE: BNED), a leading solutions provider for the education industry, today announced various steps it is taking to help address some of the challenges that the schools and students it serves are facing due to the disruptions caused by the COVID-19 virus.
Yesterday, the Company announced that it has joined VitalSource® and other leading publishers in providing free access to eTextbooks for students at BNED campuses that have closed due to COVID-19 through the remainder of the Spring 2020 term. Given the continued transition to online and distance learning programs by colleges and universities nationwide, to help students, BNED is also offering targeted free self-tutoring and writing services through its bartleby® suite of services, which will continue to provide students with 24/7 on-demand access to academic assistance.
Michael P. Huseby, Chief Executive Officer and Chairman, BNED, said, “Our top priority remains providing schools and students with solutions during this time of unprecedented disruption, while simultaneously protecting the health and safety of our employees and customers. As an organization, we are closely monitoring the continuing developments and following the guidance of the World Health Organization, Center for Disease Control (CDC) and local health authorities. While we cannot predict how long this situation will last, BNED remains committed to actively supporting our students, faculty and the educational institutions we serve during this time. Given the economic uncertainty associated with the ongoing COVID-19 outbreak, including the continued closures of educational institutions nationwide, we are limited in our ability to accurately predict what the negative financial impact to BNED will be in fiscal 2020, and therefore believe it is appropriate to withdraw financial guidance for fiscal 2020.”
BNED’s fiscal fourth quarter is historically a lower revenue quarter for the company because it does not include the fall and spring back-to-school rush periods; nonetheless, due to the uncertainty regarding the duration and extent of the disruptions caused by COVID-19, BNED is withdrawing its fiscal 2020 outlook. The Company does not intend to provide further updates to its fiscal year 2020 outlook unless deemed appropriate.
ABOUT BARNES & NOBLE EDUCATION, INC.
Barnes & Noble Education, Inc. (NYSE: BNED) is a leading solutions provider for the education industry, driving affordability, access and achievement at hundreds of academic institutions nationwide and ensuring millions of students are equipped for success in the classroom and beyond. Through its family of brands, BNED offers campus retail services and academic solutions, a digital direct-to-student learning ecosystem, wholesale capabilities and more. BNED is a company serving all who work to elevate their lives through education, supporting students, faculty and institutions as they make tomorrow a better, more inclusive and smarter world. For more information, visit www.bned.com.
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and information relating to us and our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,” “projections,” and similar expressions, as they relate to us or our management, identify forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Such statements reflect our current views with respect to future events, the outcome of which is subject to certain risks, including, among others: general competitive conditions, including actions our competitors and content providers may take to grow their businesses; a decline in college enrollment or decreased funding available for students; decisions by colleges and universities to outsource their physical and/or online bookstore operations or change the operation of their bookstores; implementation of our digital strategy may not result in the expected growth in our digital sales and/or profitability; risk that digital sales growth does not exceed the rate of investment spend; the performance of our online, digital and other initiatives, integration of and deployment of, additional products and services including new digital channels, and enhancements to higher education digital products, and the inability to achieve the expected cost savings; the risk of price reduction or change in format of course materials by publishers, which could negatively impact revenues and margin; the general economic environment and consumer spending patterns; decreased consumer demand for our products, low growth or declining sales; the strategic objectives, successful integration, anticipated synergies, and/or other expected potential benefits of various acquisitions may not be fully realized or may take longer than expected; the integration of the operations of various acquisitions into our own may also increase the risk of our internal controls being found ineffective; changes to purchase or rental terms, payment terms, return policies, the discount or margin on products or other terms with our suppliers; our ability to successfully implement our strategic initiatives including our ability to identify, compete for and execute upon additional acquisitions and strategic investments; risks associated with operation or performance of MBS Textbook Exchange, LLC’s point-of-sales systems that are sold to college bookstore customers; technological changes; risks associated with counterfeit and piracy of digital and print materials; our international operations could result in additional risks; our ability to attract and retain employees; risks associated with data privacy, information security and intellectual property; trends and challenges to our business and in the locations in which we have stores; non-renewal of managed bookstore, physical and/or online store contracts and higher-than-anticipated store closings; disruptions to our information technology systems, infrastructure and data due to computer malware, viruses, hacking and phishing attacks, resulting in harm to our business and results of operations; disruption of or interference with third party web service providers and our own proprietary technology; work stoppages or increases in labor costs; possible increases in shipping rates or interruptions in shipping service; product shortages, including decreases in the used textbook inventory supply associated with the implementation of publishers’ digital offerings and direct to student textbook consignment rental programs, as well as the risks associated with the impacts that public health crises may have on the ability of our suppliers to manufacture or source products, particularly from outside of the United States; changes in domestic and international laws or regulations, including U.S. tax reform, changes in tax rates, laws and regulations, as well as related guidance; enactment of laws or changes in enforcement practices which may restrict or prohibit our use of texts, emails, interest based online advertising, recurring billing or similar marketing and sales activities; the amount of our indebtedness and ability to comply with covenants applicable to any future debt financing; our ability to satisfy future capital and liquidity requirements; our ability to access the credit and capital markets at the times and in the amounts needed and on acceptable terms; adverse results from litigation, governmental investigations, tax-related proceedings, or audits; changes in accounting standards; and the other risks and uncertainties detailed in the section titled “Risk Factors” in Part I - Item 1A in our Annual Report on Form 10-K for the year ended April 27, 2019. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release.
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CONTACT: Media Contact:
Carolyn J. Brown
Senior Vice President
Corporate Communications and Public Affairs
Barnes & Noble Education, Inc.
Corporate Finance and Investor Relations
Barnes & Noble Education, Inc.
KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: TECHNOLOGY RETAIL HEALTH ENTERTAINMENT BOOKS TRAINING PRESCHOOL CONTINUING UNIVERSITY OTHER TECHNOLOGY PRIMARY/SECONDARY INFECTIOUS DISEASES EDUCATION SPECIALTY
SOURCE: Barnes & Noble Education, Inc.
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PUB: 03/17/2020 08:30 AM/DISC: 03/17/2020 08:30 AM