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Blockbuster Posts $78 Million Loss in April

2 Jun, 2011 By: Erik Gruenwedel

Fiscal loss precludes asset sale to Dish Network Corp.

Bankrupt Blockbuster Inc. reported a net loss of $78.2 million for the period from April 4 to May 1 — a four-week period that included the $320 million asset sale to Dish Network Corp. on April 26.

From Jan. 3 through May 1, Blockbuster Inc. posted a net loss of $192.8 million on revenue of $519.3 million, according to a filing with U.S. Bankruptcy Court in New York.

Blockbuster Inc. is the remaining legal entity following the Dish sale and headed by Bruce Lewis, SVP and controller.

Blockbuster LLC is a new subsidiary of Dish and owner/operator of more than 1,700 Blockbuster stores in the United States, related digital assets and headed by Michael Kelly.

Blockbuster Inc. generated revenue of $60.8 million in April, which included base rental revenue of $45.5 million and previously rented revenue of $15.3 million, merchandise revenue of $8.2 million and other revenue of $2.5 million.

Blockbuster Inc. does not separate revenue from its online by-mail service, transactional video-on-demand or Blockbuster Express — the latter owned and operated under license agreement by NCR Corp.

Blockbuster’s monthly gross profit of $36.7 million was undermined by $151.3 million in general and administrative expenses, including executive and employee salaries, store leases and related capital expenses.

Notably, Blockbuster recorded a $581.9 million book loss on the asset sale to Dish. The sale provided Blockbuster Inc. with $120.4 million in net cash. Blockbuster ended the period with $201.2 million in cash and equivalents.

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