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Hastings Entertainment, Inc. Reports Net Earnings of $0.17 per Diluted Share for the First Quarter.

Article Excerpt
AMARILLO, Texas, May 18 /PRNewswire-FirstCall/ -- Hastings Entertainment, Inc. , a leading multimedia entertainment retailer, today reported results for the three months ended April 30, 2009. Net earnings were approximately $1.7 million, or $0.17 per diluted share, for the first quarter of fiscal 2009 compared to net earnings of approximately $3.0 million, or $0.28 per diluted share, for the first quarter of fiscal 2008.

"The recession continued to negatively impact retailers during the first quarter," said John Marmaduke, Chief Executive Officer and Chairman. "We continue to focus on our balance sheet and reducing costs. Our inventory was approximately $13.3 million less than a year ago and we reduced long-term debt by approximately $9.2 million during the quarter. Additionally, cash flows from operations totaled approximately $13.4 million for the period which compares to approximately $4.1 for the comparable period last year."

Financial Results for the First Quarter of Fiscal Year 2009

Revenues. Total revenues for the first quarter decreased approximately $6.2 million, or 4.7%, to $125.7 million compared to $131.9 million for the first quarter of fiscal 2008. Included in fiscal 2008 was approximately $2.0 million in revenues resulting from an additional day of sales due to leap year. Excluding this extra day of sales, total revenues for the first quarter decreased approximately $4.2 million, or 3.2%. The following is a summary of our revenues results (dollars in thousands):

Three Months Ended April 30, 2009 2008 (Decrease) Percent of Percent of Revenues Total Revenues Total Dollar Percent Merchandise revenue $104,096 82.8% $108,317 82.1% $(4,221) -3.9% Rental revenue 21,597 17.2% 23,619 17.9% (2,022) -8.6% Total revenues $125,693 100.0% $131,936 100.0% $(6,243) -4.7% Comparable-store revenues ("Comp"): Fiscal 2009 2009 (excludes leap day) Total -5.9% -4.4% Merchandise -5.1% -3.7% Rental -9.3% -7.6%

Below is a summary of the Comp results for our major merchandise categories:

Three Months Ended April 30, 2009 2009 2008 (excludes leap day) Hardback Cafe 8.5% 14.2% 10.0% Electronics 5.5% 26.8% 7.1% Trends 5.1% 36.8% 6.6% Consumables 4.5% 12.5% 6.4% Books 0.2% 5.6% 1.7% Movies -5.7% 3.2% -4.3% Video Games -10.4% 29.8% -9.1% Music -15.2% -16.0% -13.9%

The following discussion of merchandise and rental Comp sales excludes the additional day of sales due to...