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Books-A-Million (Books-A-Million) Operating Income : $3.1 Mil (TTM As of Oct. 2015)


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What is Books-A-Million Operating Income?

Books-A-Million's Operating Income for the three months ended in Oct. 2015 was $-6.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2015 was $3.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Books-A-Million's Operating Income for the three months ended in Oct. 2015 was $-6.6 Mil. Books-A-Million's Revenue for the three months ended in Oct. 2015 was $101.6 Mil. Therefore, Books-A-Million's Operating Margin % for the quarter that ended in Oct. 2015 was -6.47%.

Books-A-Million's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Books-A-Million's annualized ROC % for the quarter that ended in Oct. 2015 was -14.76%. Books-A-Million's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2015 was -17.48%.


Books-A-Million Operating Income Historical Data

The historical data trend for Books-A-Million's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Books-A-Million Operating Income Chart

Books-A-Million Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.35 -4.00 6.96 -1.48 4.62

Books-A-Million Quarterly Data
Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.06 19.66 -5.02 -4.96 -6.57

Books-A-Million Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Oct. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.1 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Books-A-Million  (NAS:BAMM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Books-A-Million's annualized ROC % for the quarter that ended in Oct. 2015 is calculated as:

ROC % (Q: Oct. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2015 ) + Invested Capital (Q: Oct. 2015 ))/ count )
=-26.28 * ( 1 - 0.23% )/( (174.567 + 180.787)/ 2 )
=-26.219556/177.677
=-14.76 %

where

Note: The Operating Income data used here is four times the quarterly (Oct. 2015) data.

2. Joel Greenblatt's definition of Return on Capital:

Books-A-Million's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2015 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2015  Q: Oct. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-26.28/( ( (81.533 + max(66.307, 0)) + (79.764 + max(73.089, 0)) )/ 2 )
=-26.28/( ( 147.84 + 152.853 )/ 2 )
=-26.28/150.3465
=-17.48 %

where Working Capital is:

Working Capital(Q: Jul. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.948 + 189.772 + 6.438) - (112.672 + 20.179 + -2.8421709430404E-14)
=66.307

Working Capital(Q: Oct. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.419 + 227.246 + 7.287) - (142.919 + 20.944 + 0)
=73.089

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2015) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Books-A-Million's Operating Margin % for the quarter that ended in Oct. 2015 is calculated as:

Operating Margin %=Operating Income (Q: Oct. 2015 )/Revenue (Q: Oct. 2015 )
=-6.57/101.581
=-6.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Books-A-Million Operating Income Related Terms

Thank you for viewing the detailed overview of Books-A-Million's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Books-A-Million (Books-A-Million) Business Description

Traded in Other Exchanges
N/A
Address
Books-A-Million Inc was founded in 1917, originally incorporated under the laws of the State of Alabama in 1964 and reincorporated in Delaware in September 1992. The Company is a book retailer located in the eastern United States and operates both superstores and traditional bookstores. The Company operates both superstores and traditional bookstores. The first Superstore was opened in 1987 and operates under the names Books-A-Million and Books and Co. and 2nd & Charles. Traditional bookstores are smaller stores operated under the names Bookland, Books-A-Million and BAM. All store formats generally offer a selection of sellers and other hardcover and paperback books, magazines, toys, games, electronics and gifts. In addition to these retail store formats, it offers its products over the internet at Booksamillion.com. Its retail operations also include the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores. It also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties, LLC. The Company operates in three reportable operating segments: Retail trade; Electronic commerce trade; and Real estate development and management. In the retail trade segment, it is engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories in its retail stores. In the electronic commerce trade segment, it is engaged in the retail sale of books and general merchandise over the internet. The real estate development and management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on deriving revenues through developing and leasing commercial retail real estate for purposes of earning rental income. The Company promotes its bookstores through the use of traditional direct mail, e-mail and online advertising, as well as point-of-sale materials posted and distributed in its stores. The retail book business is competitive. The Company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. Its bookstores also compete with specialty retail stores that offer books in particular subject areas, independent single store operators, variety discounters, drugstores, warehouse clubs, mail order clubs and other retailers offering books. In addition, its bookstores face additional competition from the market for electronic books and may face competition from other categories of retailers entering the retail book market. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
Executives
Joel R Anderson other: See Remarks Below 202 NORTH COURT STREET, FLORENCE AL 35630
Ronald James Domanico director 3100 JOE JERKINS BLVD, AUSTELL GA 30106
Terrance G Finley officer: CEO & President, other: See Remarks Below 402 INDUSTRIAL LANE, C/O BOOKS A MILLION, BIRMINGHAM AL 35211
Clyde B Anderson director, 10 percent owner, officer: Executive Chairman, other: See Remarks Below BOOKS A MILLION INC, 402INDUSTRIAL LANE, BIRMING AL 35211
Albert C Johnson director 3172 CROSSINGS DRIVE, BIRMINGHAM AL 35242
Rogers William H Jr director 214 N TRYON STREET, CHARLOTTE NC 28202
Sandra B Cochran director, officer: PRESIDENT & CEO, other: SEE REMARKS BELOW 305 HARTMANN DRIVE, LEBANON TN 37087

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