Corporate Profile Project

This company profile project has been devised as a review for Chief Executive Officer Roger Anderson on whether Books A Million would be a good investment for Accurate Investment Company Limited. Books-A-Million, Inc. corporate office is located at 402 Industrial Lane Birmingham, Alabama 35211. Books A Million is a leading book retailer primarily located in the Southeastern United States. All store formats generally offer an extensive selection of bestsellers and other hardcover and paperback books, magazines, and newspapers. The company is categorized under the North American Industry Classification System. The date of there fiscal year end is the Saturday closest to January 31st. The most recent Annual Report was completed on January 28, 2012.

The common stock of Books-A-Million, Inc. is traded on the NASDAQ Global Select Market under the symbol "BAMM." The companies primary source of revenue comes from two reportable segments which are retail trade and electronic commerce trade. In the retail trade segment the company is engaged in the retail sale of books, magazines, games, and toys. In the electronic commerce trade segment the company sells books and general merchandise over the internet. The total assets reported on the most recent balance sheet are in the amount of $223,897.00. The total cash equivalents for the year 2012 is $10,113 which is a $2,300 increase from last year's annual report.

The current ratio is 1.355. A current ratio of 1 means that book value of current assets is exactly the same as book value of current liabilities. In general, investors look for a company with a current ratio of 2:1, meaning that it has twice as many current assets as current liabilities. Barnes & Noble ranks lowest with a current ratio of 1.0. Following is Golfsmith International Holdings with a current ratio of 1.4. Books-A-Million ranks third lowest. Books a Million is doing fairly well compared to its leading competitors. The total revenues for the company are in the amount of $468,521 and the total operating expenses on the most recent income statement are $$120,265. The net loss for the year 2012 was $2,823. Last year the company had net income of $8,939. The retained earnings at the end of the year were $70,399.

The overall maximum amount of contingencies cannot be reasonably estimated. Historically, the Company has not incurred significant costs related to performance under these types of indemnities. No liabilities have been recorded for these obligations on the Company's balance sheet at each of January 28, 2012. From time to time, the Company enters into certain types of agreements that require the Company to indemnify parties against third party claims. Generally, these agreements relate to: (a) agreements with vendors and suppliers, (b) agreements with vendors who publish books or manufacture merchandise specifically for the Company to indemnify the vendors against trademark and copyright infringement claims, (c) real estate leases and (d) agreements with the Company's directors, officers, and employees. The Company has Directors and Officers Liability Insurance, which, subject to the policy's conditions, provides coverage for indemnification amounts payable by the Company with respect to its directors and officers up to specified limits and subject to certain deductibles.

The company operates under the retail inventory method. This involves store and warehouse values by applying a calculated cost to retail ratio in the retail value of inventories. The companies depreciation method used is straight line. The shares of common stock were at a .01 par value, $30,000,000 shares authorized, $21,887,869 and $21,574,698 shares issued, and $15,733,668 and $15,470,277shares outstanding. The shares of preferred stock are at a .01 par value, 1,000,000 shares authorized, and no shares are issued or outstanding. The shares of treasury stock at cost were $6,154,201 at January 28, 2012 and $6,104,421 on January 29, 2011. The earnings per share of common stock reported on the financial statements were reported at a loss of .18 cents. The closing price for the Company's stock on January 21, 2012 was $2.41. For the fiscal quarter ending January 28, 2012 the high price of the stock was $2.86 and the low price was $2.18. The firm paid 0.05 dividends during the first quarter with an annual total of 0.05. The total cash flows of the operating activities were $ $28,766, investing activities were ($24,522), and financing activities in the amount of ($1,615). The firm had a total amount of $5,445 in long term debt. The total