Hastings Guides Break Even for 20024 Feb, 2003 By: Hive News
Hastings Entertainment saw a 3.2 percent decrease in home video rentals during December and today updated guidance to break even for the full year ended Jan.31, despite a rental rebound in January.
Based on lower than anticipated comparable-store revenues for December, Hastings now estimates it will break even on a pre-tax basis for its fiscal year 2002. The guidance includes a $2.5 million expense recorded in the second quarter, as a result of settlement of class action lawsuits.
"Even though overall comp revenues were up 1 percent during December, book comps decreased 1.2 percent and rental video comps decreased 3.2 percent, well below our internal forecast," said Dan Crow, VP and CFO. "Although total comp revenues rebounded nicely to 7.6 percent in January with book comps up 6.9 percent and rental video comps up 10.7 percent and we continued to see improvements in costs of our inventory return and replenishment processes, these improvements were not enough to offset the impact of our revenue shortfall in December. Cash flow from operations for the 11 months ended Dec. 31 was $69.5 million, an increase of $12.0 million over the same period in the prior year."
Founded in 1968, Hastings operates 146 stores in the United States.