Barnes & Noble Education, Inc. (NYSE:BNED) Q1 2021 Earnings Conference Call - Final Transcript

Sep 03, 2020 • 08:30 am ET


Barnes & Noble Education, Inc. (NYSE:BNED) Q1 2021 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 2021 First Quarter Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Mr. Andy Milevoj. Please go ahead.

Andy Milevoj

Good morning, and welcome to our fiscal 2021 first quarter earnings call. Joining us today are Mike Huseby, CEO and Chairman; Tom Donohue, CFO; Jonathan Shar, Executive Vice President BNED Retail and Client Solutions; Lisa Malat, President of Barnes Noble College; Kanuj Malhotra, President of Digital Student Solutions; and David Henderson, President of MBS.

Before we begin the call, I'd like to remind you that the statements we make on today's call are covered by the Safe Harbor disclaimer contained in our press release and public documents. The contents of this call are 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 make 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.

And now, I'll turn the call over to Mike Huseby.

Michael P. Huseby

Thanks, Andy, and thank you all for joining us this morning. I'd like to begin by providing a brief update on the conclusion of our strategic review process and then I'll provide our business review. On August 24, our board of directors announced that it had concluded this review of strategic opportunities. After extensive evaluation and deliberation and in consultation with its financial and legal advisors, the board unanimously determined that the continued execution of BNED's current business plan is the best path forward for the company and its shareholders.

Shortly after the strategic review commenced, the COVID-19 pandemic emerged, which gave rise to significant challenges to the company's business. At the same time, the company also made significant progress towards implementing and executing its digital transformation strategy, which further enhanced the company's importance and relevance to its customers, particularly after proposed COVID-19 shift through remote learning.

As I'll discuss in further detail, BNED has successfully grown its high margin DSS business, improved its share of course material adoptions through BNC First Day, BNC First Day Complete and other new digital models. We've added revenue from new business wins, leveraged our MBS remote fulfillment and virtual capabilities and strengthened and improved our general merchandise business with the recent release of our new eCommerce platform.

As we move forward, we are confident that we have the right strategy in place to deliver enhanced value for our shareholders. Importantly, we continue to believe that we have sufficient sources of liquidity to manage through the continued impact of COVID-19. We are very focused on preserving