Movie Gallery Could Be Delisted From NASDAQ21 Nov, 2006 By: Jessica Wolf
Movie Gallery may be in danger of being delisted from NASDAQ because the retailer has not yet filed a full third quarter earnings report.
The country's No. 2 rental chain filed cursory same store sales and revenue information recently, but due to an accounting audit relating to how the chain assigns costs associated with store closures and end-of-lease agreements, is unable to file a complete 10Q for the third quarter.
As expected, the company has requested a hearing before a NASDAQ Listing Qualifications Panel to review the Staff Determination and address its plan for regaining compliance with NASDAQ Marketplace Rules. The company's common stock will remain listed and will continue to trade on the NASDAQ National Market pending a decision by the NASDAQ Listing Qualifications Panel.
Movie Gallery is working with its independent auditor to ensure compliance with Statement of Financial Accounting Standards No. 143 (SFAS 143) accounting for Asset Retirement Obligations, which is the cause of the filing delay.
The company has said it will file its third quarter 10Q report and issue a press release announcing its complete third quarter financial results as soon as practicable.