Barnes & Noble Education, Inc. (NYSE:BNED) Q2 2020 Earnings Conference Call - Final Transcript

Dec 04, 2019 • 10:00 am ET


Barnes & Noble Education, Inc. (NYSE:BNED) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Barnes & Noble Education Fiscal 2020 Second Quarter Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference call over to Tom Donohue, CFO. Thank you. Please go ahead.

Thomas D. Donohue

Thank you. Good morning and welcome to our fiscal 2020 second quarter earnings call. Joining us today are Mike Huseby, CEO and Chairman; Barry Brover, EVP of Operations; Kanuj Malhotra, President of Digital Student Solutions, as well as other members of our Senior Management team.

Before we begin, I'll remind you that the statements we will make on today's call are covered by the Safe Harbor disclaimer contained in our press release and public documents. The content of this call are for the property of Barnes & Noble Education and are not for rebroadcast or use by any other party without prior written consent of Barnes & Noble Education. During this call we will be making forward-looking statements with predictions, projections and other statements about future events. These statements are based upon current expectations and assumptions that are subject to risks and uncertainties, including those contained in our press release and public filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements that may be made or discussed during this call.

At this time, I'll turn the call over to Mike Huseby.

Michael P. Huseby

Thanks, Tom, and thank you all for joining us today. As you saw in this morning's press release, today, we announced BNED's Board of Directors has approved the engagement of a financial advisor to assist with the evaluation of a range of potential strategic opportunities. This review will help position BNED to be able to deliver more immediate benefits for the institutions and students we serve, and allow for the exploration of all strategic paths to enhance shareholder value.

The higher ed industry we serve has significantly transformed over the past few years, including a rapid shift to digital, declining enrollments, student retention issues and an increased focus on affordability. Our strategic initiatives are centered on addressing affordability to access an achievement and include growing our high margin DSS business by introducing and scaling Bartleby subscriptions, growing our share of course material adoptions through BNC FirstDay and other new digital models, stabilizing and now increasing revenue from new business wins to grow our footprint of managed stores and strengthening and growing our general merchandise business.

The operational highlights in today's press release provide evidence of our progress on each of these priorities. Our strategy is being validated daily by the markets we serve. However, we need to accelerate the execution of our strategy in order to more rapidly deliver value to our customers and to enhance shareholder value. We believe that more aggressively exploring strategic opportunities will help facilitate this acceleration of value creation.

The past few years have