Circuit City Revises Results, Rewards CEO30 Apr, 2007 By: Erik Gruenwedel
Circuit City Stores Inc., the national consumer electronics retailer beset with sagging financials due in part to falling flat-panel TV prices, April 30 announced a reversal in accounting fortunes.
Richmond, Va.-based Circuit City said increased vendor allowances resulted in a $3.5 million reduction to the previously reported $12.2 million loss for the fourth quarter (ended Feb. 28) and fiscal 2007 results, according to a regulatory filing.
In addition, changes in the timing of revenue recognition for Internet-based sales resulted in Circuit City reducing by $4.5 million to $7.2 million the net loss from continuing operations in the fourth quarter.
The reduction, however, increased the company's third quarter (ended Nov. 30, 2006) net loss by an identical $4.5 million to $20.4 million.
In a statement, CEO Philip Schoonover said that despite accelerating “transformation initiatives,” the first half of fiscal 2008 (ended Aug. 31) would be “volatile.”
That uncertainty apparently didn't translate to Schoonover's compensation in fiscal 2007.
The Associated Press reported that the former Best Buy EVP, who became CEO of Circuit City last March, received a base salary of $894,615 and related compensation of $208,447, in addition to stock and options totaling $16 million.
Last month, citing an excessive pay structure, Circuit City terminated 3,400 hourly employees (with severance) telling them they could reapply for their positions at lower hourly rates after 10 days.