Movie Gallery Same-Store Revenue Exceeds Company's Predictions8 Oct, 2003 By: Holly J. Wagner
Movie Gallery today announced a 5 percent increase in same-store revenue for the third quarter of 2003, compared with the company's earlier guidance for third-quarter same-store revenue growth in the low single digits.
“Movie Gallery produced strong same-store revenue for the third quarter of 2003, particularly in light of a 4.7 percent increase for the third quarter last year,” said chairman and CEO Joe T. Malugen. “In addition, we added a net total of 114 stores during the third quarter, with 79 new stores, 42 acquired stores and 7 store closures.”
Among the stores added, the most recent acquisition of a four-store chain in North Dakota gives the rentailer a presence in every state in the union.
The company expects net income per diluted share for the third quarter of at least 27 cents.
Based on the stronger-than-expected revenue performance, Movie Gallery also raised its established guidance for adjusted net income for the 13-week period ended Oct. 5 to at least 29 cents per diluted share, from its previously increased range of 25 cents to 27 cents per diluted share.
This guidance for third-quarter adjusted net income excludes 2 cents per diluted share related to the non-cash impact of the accounting change for rental inventory amortization discussed in the company's fourth-quarter 2002 earnings press release. Movie Gallery believes its calculation of adjusted net income per share provides a better measure of the company's ongoing performance and provides better comparability to prior periods, because it excludes items not related to the company's core business operations.
Movie Gallery intends to release final financial results for its third quarter on Nov. 4.