The news is not good. Here are the highlights from the press release:
- Operating loss in the first quarter was $33.5 million compared to $29.1 million in the same period a year ago.
- Loss from continuing operations in the first quarter improved to $64.5 million from $86.0 million in the same period a year ago, reflecting less warrant expense compared to a year ago. On a per share basis, loss from continuing operations in the first quarter improved to $1.08 per share from $1.44 per share in the same period one year ago.
- Adjusted EBITDA for the first quarter was a loss of $9.3 million on total consolidated sales of $542.4 million compared to income of $3.0 million on sales of $641.5 million for the same period a year ago.
- Debt net of cash at the end of the first quarter was $294.7 million, a $14.5 million or 5.2% increase from the prior year.
- Comparable store sales in the domestic segment in the first quarter declined by 11.4%.
As I read this, it occurs to me that Borders owns part of Kobo. I wonder who would buy their stake if they needed to sell?