Gallery Slips Back into Red19 Mar, 2008 By: Erik Gruenwedel
One month after reporting monthly profit, bankrupt Movie Gallery Inc. posted a net loss of $469,000 on consolidated revenue of nearly $200 million for the period from Jan. 7 to Feb. 10.
Dothan, Ala.-based Gallery posted profit of $4.1 million on revenue of $131.2 million at its Hollywood Video subsidiary, compared to a net loss of $36.2 million and revenue of $182 million in the previous period from Dec. 3, 2007, to Jan. 6, 2008.
The No. 2 video rental chain reported a net loss of $4.5 million on revenue of $68.6 million at Gallery stores versus a profit of $48.9 million and revenue of $71.5 million during the last period.
Consolidated rental revenue at Gallery approached nearly $150 million, compared more than $160 million last time. DVD and related product sales fell to nearly $50 million, compared to $92.7 million during the last period.
Despite store closures and streamlining, operation expenses remained nearly identical with $53.5 million (versus $55.5 million) for Hollywood and $31 million (versus $28.9 million) for Gallery.
Since filing for bankruptcy protection last October, Gallery has generated $521 million and $228 million in revenue at Hollywood and Gallery locations, respectively.
In that time, Hollywood posted a net loss of $98.5 million, compared to profit of $8.2 million at Gallery.
Gallery is slated to exit bankruptcy protection in the second quarter.