Q3 Sales Up At Movie Gallery9 Oct, 2002 By: Hive News
Movie Gallery, Inc. today increased its earnings guidance for the third quarter based on an increase of 4.7 percent in same-store sales for its 13-week third quarter ended Oct. 6.
The figure bests the chain's previous same-store sales expectations of flat to 2 percent and prompted a hike in the pro forma earnings per diluted share target to a range of $0.26 to $0.28, up from the previous target range of $0.21 to $0.24. Expected pro forma results for the third quarter exclude the income statement impact of non-cash compensation expense resulting from variable stock options.
"We are pleased with our same-store sales growth for the third quarter and the resulting expected impact on our earnings and cash flow,” said Joe Malugen, chairman and CEO of Movie Gallery.
“We are also excited about the growth in our store base during the quarter. We opened 42 internally developed stores during the third quarter, the largest number of openings in the company's history. Additionally, we acquired 73 stores during the quarter and closed 13 stores. As a result, stores in operation at the end of the third quarter increased 53.6 percent to 1,662 from 1,082 at the end of the third quarter of 2001."
Movie Gallery, which owns and operates 1,671 video specialty stores in 42 states and five Canadian provinces, expects to report actual third-quarter financial results Nov. 6.