Gallery Posts First Consolidated Profit15 Apr, 2008 By: Erik Gruenwedel
It might be baby steps, but bankrupt Movie Gallery Inc. reported consolidated net income of $5.7 million on revenue of $177.2 million for the period from Feb. 11 to March 9, according to a U.S. Bankruptcy Court filing.
The results represented the first time Dothan, Ala.-based Gallery and subsidiary Hollywood Video posted separate monthly profits since the No. 2 DVD rental chain filed for bankruptcy protection last October.
Hollywood generated more than $116.9 million in revenue, including $77.8 million in rental and $39.1 million in product sales. Gallery reported $60.2 million in revenue, including $54.8 million in rental and $5.4 million in sales.
The two units previously traded profit-and-loss statements, with Hollywood posting profit of $4.1 million on revenue of $131.2 million for the period from Jan. 7 to Feb. 10. It recorded a net loss of $36.2 million and revenue of $182 million in the period from Dec. 3, 2007, to Jan. 6, 2008.
Gallery previously reported a net loss of $4.5 million on revenue of $68.6 million from Jan. 7 to Feb. 10, versus profit of $48.9 million and revenue of $71.5 million during the previous period.
Since filing for bankruptcy, Gallery has generated a consolidated net loss of $85.3 million on revenue approaching $926 million.
Separately, Gallery reported income of $8.1 million on revenue of $288.1 million. Hollywood Video reported a net loss of $93.5 million on revenue approaching $638 million.
Gallery acquired Hollywood Video in 2005 for $1.1 billion.
The company, which last week received court approval for its financial reorganization plan, said it would exit bankruptcy protection during the second quarter.