BAM Looks for Better Fiscal 2002
Staff -- Publishers Weekly, 5/21/2001
Coming off what he called a "challenging year" in which net income fell 48% and comparable store sales were off 2.9% (News, Apr. 2), Books-A-Million chairman Clyde Anderson told shareholders in BAM's annual report that plans for fiscal 2002 include the integration of the recently acquired Crown Books stores, the expansion of its Joe Muggs Newsstand concept and the continued development of its e-commerce operations.
Despite the disappointing results last year, Anderson said BAM's core book business "held up well," led by sales of religious and inspirational books as well as children's books. Booksamillion.com reportedly had an "excellent" year with sales exceeding projections and expenses below budget; BAM has never disclosed figures for its e-commerce unit. The company opened 12 new stores in the last fiscal year and closed seven. With the Crown acquisition, BAM owns 201 stores, including 155 superstores.
BAM has budgeted $14.8 million for new capital expenditures for the current year, to be used to integrate the Crown outlets and open four or five new superstores and eight Joe Muggs stands, primarily in Atlanta and Birmingham. Capital expenditures last year were $12.4 million.
BAM has also quietly entered the online publishing business, using the services of iUniverse to develop a "publishing center." BAM offers three publishing program: Writers Club Press, for new manuscripts from unpublished authors; Authors Choice, for new manuscripts from published authors; and Authors Choice Out-of-Print Books, for works that are no longer in print. Writers Club publishing fees are $99 for online submissions and $299 for mail submissions, while under its Authors Choice program writers pay a publishing fee of $199 for an online submission and $399 for a mail submission. In both cases, there is no editorial review and authors receive one free book. In the out-of-print service, BAM charges a $299 fee for mail submissions only, and while there is no editorial review, authors receive no free copies. The royalty rate under all three programs is 20%.
