INDIGO BOOKS & MUSIC INC. Investor Fact Sheet
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INDIGO BOOKS & MUSIC INC. Fiscal 2009 (For the 13-week period ended June 28, 2008) Investor Fact Sheet CORPORATE PROFILE Indigo Books & Music Inc., (TSX: IDG) is Canada’s largest book retailer and the third largest in North America. Created in August 2001 following the merger with Chapters Inc., Indigo Books & Music Inc. (“Indigo”) has bookstore locations in all ten provinces and one territory in Canada. As at June 28, 2008, Indigo operated 245 stores including 86 superstores under the banners Indigo, Chapters and the World’s Biggest Bookstore, and 159 small format stores under the banners Coles, Indigo, Indigospirit, SmithBooks and The Book Company. Along with the online business of chapters.indigo.ca, Indigo has become Canada’s ultimate booklover’s destination. Headquartered in Toronto, Ontario, the Company employs over 6,000 people across Canada. SUPERSTORES - Indigo superstores, which are on average Traded: TSX Symbol: IDG 24,000 sq. feet, are designed to be a destination for culture-seekers, offering an inspiring and indulging 17.00 environment conducive to browsing and community- 16.50 building. In the 13 weeks ended June 28, 2008, these stores accounted for sales of $131.5 million, representing 16.00 69.0% of total revenues. 15.50 15.00 14.50 13-week trading range: 14.00 High: $14.84 Low: $11.74 Price/Share Average 13.50 Market Capitalization 13.00 (as at June 28, 2008) $325.9 M 12.50 (Quarter Ended June 28, 2008) 12.00 Total Assets: $412.0 M Long-term Debt: Jul-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jun-08 Oct-07 $5.5 M Jan-08 Apr-08 Mar-08 Nov-07 Feb-08 Aug-07 Dec-07 May-08 Sep-07 Shareholders’ Equity: $201.8 M 40,000 30,000 Shares Outstanding: 24,786,342 20,000 10,000 Average Volume 0 SMALL FORMAT STORES – Small format stores are typically ONLINE - Indigo operates chapters.indigo.ca, a leading located in retail shopping centres, street-front retail Canadian destination for online shoppers. The site areas, major airports and central business districts. features a large selection of books, audio books, music Indigo’s small format stores generated combined sales of CDs, DVDs and toys. For the 13-week period ended $32.0 million in the 13 weeks ended June 28, 2008, June 28, 2008, the Company’s online channel accounted representing 16.8% of total revenues. for sales of $21.0 million, representing 11.0% of total revenues. Investor Contact: Jim McGill 416-364-4499 Ext. 4856 Retail Shareholder Contact: Lynne Dean 416-364-4499 Ext. 4356 Indigo Books & Music Inc. Investor Fact Sheet – For the 13-week period ended June 28, 2008 CANADIAN BOOK MARKET Estimated at $2.8 billion dollars per year, the Canadian book market is highly fragmented and regionalized. The largest numbers of per capita book purchases are made by 35-54 year olds. Increased accessibility, improved selection, and the rising international recognition of Canadian authors are all contributing to the growth of the Canadian book market. As the only national multi-channel book retailer, Indigo is well positioned to take advantage of this expanding market. 13 –week period ended 13 –week period ended Statistics % Change (June 28, 2008) (June 30, 2007) (millions of dollars, except per share data) Revenues: Superstores 131.5 129.1 1.9 Small format bookstores 32.0 30.4 5.3 Online 21.0 19.5 7.7 Other 6.1 5.9 3.4 Total Revenue 190.6 184.9 3.1 EBITDA 5.2 5.2 0.0 Net Earnings (loss) (1,225) (2,840) 56.9 Net earnings(loss) per common share $ (0.05) $ (0.12) 58.3 (in thousands) Superstores Square footage 2,042 2,090 (2.3) Sales/square foot* 64.4 61.8 4.2 Small format Stores Square footage 424 427 (0.7) Sales/square foot* 75.5 71.2 6.0 *dollars/sq.ft. RECENT HIGHLIGHTS – OPERATIONS Indigo and Chapters were deemed Canada’s highest Comparable store sales are defined as sales rated retail brands by consumers in the Kubas Major generated by stores that have been open for more Market Retail Report for 2008. than 12 months, comparable store sales growth is a The “Indigo Love of Reading Foundation” granted key performance indicator for the Company as the $1.5 million in literacy funding to 20 high-needs measure excludes sale fluctuations due to store elementary schools across the country bringing total openings, closings and permanent relocations. donations to date to $6.0 million across 50 schools. RECENT NEWS With over 150,000 members, Indigo's Online Community, launched in October 2007 at The first of 9 new superstores opened in Saint John, http://www.chapters.indigo.ca/community, is fast NB on July 29th. The second new superstore is becoming the social network haven for booklovers. scheduled to open in Winnipeg, MB at the end of The platform combines social networking functionality September. Seven more superstores are scheduled to with booklover inspired content and tools. open in the following locations by the end of our 2010 fiscal year: Saskatoon, SK; Stoney Creek, ON; FISCAL 2009 1st QUARTER ACHIEVEMENTS Milton, ON; Surrey, BC; North Calgary, AB; Calgary, AB; Edmonton, AB. First quarter revenues were up 3.1% over the same period last year. This increase was largely attributable to strong comparable store sales growth Investor Contact: Jim McGill 416-364-4499 Ext. 4856 in both superstores (3.3%) and small format stores Retail Shareholder Contact: Lynne Dean 416-364-4499 Ext. 4356 (5.4%). .