Movie Gallery loses $14.8 million
Bad weather, a lackluster movie selection and increased competition contributed to Movie Gallery Inc.’s $14.8 million net loss for the first quarter of 2007, the company said Friday.
The Dothan-based movie-rental company showed a profit of $40 million in the first quarter of 2006.
First-quarter revenues dropped 7 percent to $647.7 million, from $694.3 million in the year-ago period.
The revenue drop is in part the result of the closure of 184 stores, said Chief Executive Officer Joe Malugen. He said numbers should improve with a $900 million deal to refinance the company’s senior secured credit facility, which he predicted would save more than $6 million a year.
The company also expects to benefit from a growing demand for video-game rentals.
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