Seasonality

The Company’s business is highly seasonal, with sales significantly higher and substantially all operating income realized during the fourth quarter, which includes the Christmas selling season. The information below excludes discontinued operations and asset impairments and other writedowns.

Other Matters

Subsequent Event

Subsequent to the Company’s fiscal year-end, the Company entered into an agreement with Ingram Book Group (‘‘Ingram’’), a wholesaler of books, spoken audio and magazines, pursuant to which Ingram will provide book fulfillment services for the Company’s special order and online sales. The transaction includes the sale of approximately $12.0 million of the Company’s book inventory to Ingram, and will result in an after-tax charge of approximately $15.0 to $20.0 million to be taken in the first quarter of fiscal 2001. This charge is substantially non-cash and is primarily related to the writedown of assets used by the current Company-owned facility to fulfill special order and online sales, including warehouse equipment, hardware and software, and a reduction of recorded inventory.