MAIN NEWS HEADLINES
May 21 – May 28, 2009 Edition
Hastings Book Retailer Reports
Decline in First Quarter Earnings
AMARILLO,TX/Authorlink News/05/19/09–Hastings Entertainment, a leading multimedia entertainment retailer and new and used books, today reported results for the three months ended April 30, 2009. Net earnings dived from $3.0 million in the same quarter of 2008 to approximately $1.7 million for the first quarter of fiscal 2009.
"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."
Total revenues for the first quarter of 2009 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%.
"Net earnings for the quarter were better than our internal forecast, which is the basis for our guidance," said Dan Crow, Vice President and Chief Financial Officer. "Due to continued uncertainty in the retail environment, particularly with respect to the holiday selling season, we are not changing our guidance for the full fiscal year. Consequently, we are reaffirming our guidance of net earnings per share ranging from $0.40 to $0.45 for the full fiscal year ended January 31, 2010."
Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and CDs, as well as trends merchandise, with the rental of videos and video games in a superstore format. The company currently operate 153 superstores, averaging approximately 21,000 square feet, primarily in medium-sized markets throughout the United States. They also operate www.gohastings.com, an e-commerce Internet Web site.