BASKING RIDGE, N.J. - Barnes & Noble Education, Inc. (NYSE: BNED), a prominent provider of educational solutions, announced the appointment of Jonathan Shar as the new Chief Executive Officer, effective Monday. Jonathan Shar, who previously served as President of Barnes & Noble College and Executive Vice President of BNED Retail, succeeds Michael P. Huseby following his resignation from the CEO position.
Shar has been responsible for the company's retail segment, managing both physical campus bookstores and e-commerce sites. His role also included the development and implementation of client-focused solutions such as the First Day® Complete equitable access model. Shar's experience extends beyond BNED, with past positions including Chief Marketing Officer at Akademos, Inc., and General Manager of NOOK Digital Content at Barnes & Noble, Inc.
Upon his appointment, Shar expressed his eagerness to lead the organization to new heights and drive value for stakeholders. He also acknowledged Huseby's significant contributions to the company during his tenure.
Huseby commented on the company's improved financial positioning following recent equity investment and bank refinancing transactions, expressing his confidence in Shar's leadership for BNED's future success.
Chairman of BNED, William C. Martin, highlighted Shar's experience and passion for the business, emphasizing the boundless opportunities to serve academic partners and students.
Barnes & Noble Education is known for driving affordability, access, and achievement at academic institutions nationwide and is committed to equipping students for success beyond the classroom. Shar holds a Bachelor of Arts degree from Tufts University and an MBA from the University of Michigan.
The information in this article is based on a press release statement from Barnes & Noble Education, Inc.
In other recent news, Barnes & Noble Education (BNED) has secured $95 million in equity capital led by Immersion (NASDAQ:IMMR) Corporation. This includes a $50 million equity investment and a $45 million equity rights offering, expected to close in June 2024. The transactions will result in approximately $75 million of net cash proceeds for BNED after transaction costs. BNED's existing second-lien lenders are set to convert around $34 million of debt into common stock.
BNED also plans to refinance its asset-backed loan facility, providing access to a $325 million facility maturing in 2028. This move is expected to enhance BNED's financial flexibility and reduce annual interest expenses. Additionally, BNED's shareholders have approved the appointment of five new directors to BNED's Board of Directors.
In the wake of these developments, Needham maintained a hold rating on BNED's stock following the release of mixed preliminary financial results for fiscal year 2024. BNED's revenue fell short of expectations, but its adjusted EBITDA surpassed forecasts. Lastly, BNED has adopted a stockholder rights plan, designed to be activated if an individual or group acquires 10% or more of the company's common stock.
InvestingPro Insights
As Barnes & Noble Education, Inc. (BNED) welcomes Jonathan Shar as the new CEO, the company's stock has been navigating through turbulent financial waters. According to InvestingPro data, BNED's market capitalization has been adjusted to a modest 5.01 million USD. This figure reflects the challenges the company faces in the highly competitive education solutions market.
An InvestingPro Tip that stands out is the company's current trading at a low Price / Book multiple of 0.05, suggesting that the stock may be undervalued relative to its book value. This could be of interest to value investors looking for potential opportunities. Additionally, BNED's stock has experienced significant volatility, with a one-week price total return showing a sharp decline of 71.43%. This level of price fluctuation underscores the InvestingPro Tip regarding the stock's high price volatility, which investors should consider when evaluating the risk associated with this investment.
Furthermore, the revenue for BNED over the last twelve months as of Q3 2024 stands at 1573.06 million USD, with a gross profit margin of 21.94%. These figures highlight the company's ability to generate revenue and maintain a healthy margin in its operations. However, the company's short-term challenges are evident, with analysts not anticipating profitability this year, as highlighted by another InvestingPro Tip. Investors may want to keep an eye on how the new CEO's strategies could influence future financial performance.
For those interested in a deeper analysis of BNED's financial health and future prospects, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available, which could provide valuable context and guidance. To access these tips and make more informed investment decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.