The Company's cash and cash equivalents were $30.2 million as of October 30, 2010, compared with $95.7 million as of October 31, 2009.
not to mention they decreasing every Quarter, and sales...this is last gasp for fresh air imo...Nook has been around and keeping them afloat, what does it matter they are still competing with same product and has no growth...
> "Gee, thanks for reminding us what the balance sheet looked like BEFORE they received a 200 million cash infusion (not loan)."
Yea, it's not a loan because they're paying 7% preferred dividends instead of 7% interest.
It's got the upside of not being counted as debt on the balance sheet, but the downside of the payments associated with it not being tax deductible.
To illustrate the difference, let's say BKS had $20m in pre-tax, pre-interest income.
With $200m in debt, the $14m interest expense is deducted before income taxes. So BKS would only pay income tax on $20m - $14m = $6m. At 35% tax rate, income tax is about $2m and net income would be about $4m.
But with $200m in preferred stock, the $14m preferred dividend is deducted after income taxes. So BKS would pay income tax on $20m. At 35% tax rate, income tax is $7m and net income would be $13m before paying the $14m preferred dividends. After paying the preferred dividend, BKS is left with -$1m.
Are you spending your time looking at obsolete data to console yourself or to convince yourself you haven't made a dumb trading move. BTW, Nook has not been keeping the company afloat. It will likely be profitable in the future, but so will the bookstores now that Borders has become a distant memory.
The next earnings report will likely have updates on the positive impact of the closure of Borders on the bookstores, plus the huge acceleration of e-book sales.
B&N might surprise everyone and turn profitable this year due to the positive momentum in e-book/bookstore sales. If this happens, B&N will go well over $20, perhaps to $25.