Movie Gallery Posts Monthly Profit11 Feb, 2008 By: Erik Gruenwedel
The light at the end of the tunnel may be getting brighter for bankrupt Movie Gallery Inc., which reported net income of $12.6 million for the period from Dec. 3, 2007, to Jan. 6, 2008.
The Dothan, Ala.-based No. 2 video rental chain reported consolidated revenue of $253.5 million, including $160.7 million in rental and $92.7 million in DVD sales, according to a filing with U.S. Bankruptcy Court in Richmond, Va.
Subsidiary Hollywood Video generated $182 million in revenue, compared to Gallery stores with $71.5 million, but recorded a net loss of $36.2 million, versus $48.9 in net income for Gallery.
Store operating expenses topped $55.5 million for Hollywood Video — almost twice Gallery's expenses at $28.9 million.
Since declaring bankruptcy Oct. 16, 2007, Gallery (including Hollywood Video) has posted a net loss of $69.3 million on revenue of $548.8 million.
The company had $54.4 million in available cash at the end of the period.
Gallery recently said it would shutter an additional 400 stores, on top of 520 store closings announced late last year.