DVD Frames Movie Gallery's Pretty Picture10 Jul, 2002 By: Joan Villa
Movie Gallery has upped its second quarter pro forma earnings expectations for the second time thanks to booming DVD demand.
The 1,560-store chain will also report 1.3 percent higher same-store sales for the quarter ended July 7, and now expects pro forma net income per diluted share to fall between 24 cents and 26 cents versus the previously announced range of 23 cents to 25 cents.
Revenues and profit margins “continue to benefit from demand related to the ongoing transition to DVD,” noted chairman and CEO Joe Malugen. The retailer has also expanded its store base from 1,050 at the end of last year's second quarter, opening 27 new locations, acquiring 80 stores and closing 12 underperformers, he said.
The pro forma results exclude a charge of $2.4 million, or 8 cents per diluted share, to settle class action litigation over extended viewing fees.
Movie Gallery also concluded its spring movie trivia game in conjunction with NASCAR, Richard Petty Driving Experience and Coca-Cola, giving away a $5,000 grand prize to Megan Laine Horry of Pensacola, Fla. She correctly answered “honking his horn” to the question, “How did Herbie communicate in the movie The Love Bug?”
Other winners received tickets to NASCAR races, ride-along experiences in race cars, the opportunity to drive the cars at speeds up to 150 mph and other prizes, according to marketing SVP Ted Innes.