Hollywood Video Expects Higher Q1 Earnings3 Apr, 2002 By: Hive News
DVD and video games are helping Hollywood Video is outperform its same-store sales estimates for the quarter ended March 31 and the 1,800-store rental chain expects to revise its earnings per share estimate upward, the company announced today.
"We are very pleased with our company's performance in the first quarter, especially considering the difficult comparison as a result of the popularity of the broadcast of the winter Olympics," CEO and founder Mark Wattles said. "The company is benefiting from continued improvements in our operations and industry growth fueled by DVD and games."
On the strength in same-store sales, Hollywood is increasing its target for first quarter adjusted diluted earnings per share, to a range of 28 cents to 30 cents from 25 cents and for the year, to a range of $1.05 to $1.10 per share.
Adjusted diluted earnings per share represents income before taxes less an assumed normalized effective income tax rate and does not include an extraordinary charge of approximately $3.5 million related to the company's recently completed closing of its new senior secured credit facilities and equity offering announced March 19. This charge is the result of the writeoff of the deferred financing costs associated with the termination of the company's prior revolving credit facility.
Hollywood expects to release its first quarter earnings April 25.