-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KXUE4vTqAQQPrveSA3/uaRiExwGRNnYiAhmjEtum1wc4NRNluZy+7mgLh/6D7dPR qkjkqRw+U2Dvx7R0fSdZFQ== 0000925178-98-000012.txt : 19980819 0000925178-98-000012.hdr.sgml : 19980819 ACCESSION NUMBER: 0000925178-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980705 FILED AS OF DATE: 19980818 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOVIE GALLERY INC CENTRAL INDEX KEY: 0000925178 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-VIDEO TAPE RENTAL [7841] IRS NUMBER: 631120122 STATE OF INCORPORATION: DE FISCAL YEAR END: 0105 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-24548 FILM NUMBER: 98693767 BUSINESS ADDRESS: STREET 1: 739 W MAIN ST CITY: DOTHAN STATE: AL ZIP: 36301 BUSINESS PHONE: 3346772108 MAIL ADDRESS: STREET 1: 739 W MAIN ST CITY: DOTHAN STATE: AL ZIP: 36301 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended July 5, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Transition Period From___________ to__________ Commission file number 0-24548 Movie Gallery, Inc. (Exact name of registrant as specified in its charter) Delaware 63-1120122 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 739 West Main Street, Dothan, Alabama 36301 (Address of principal executive offices) (Zip Code) (334) 677-2108 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. YES X NO ____ The number of shares outstanding of the registrant's common stock as of August 12, 1998 was 13,422,380. Movie Gallery, Inc. Index Part I. Financial Information Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets - July 5, 1998 and January 4, 1998.................1 Consolidated Statements of Operations - Thirteen weeks ended July 5, 1998 and July 6, 1997; Twenty-six weeks ended July 5, 1998 and July 6, 1997..................................................2 Consolidated Statements of Cash Flows - Twenty-six weeks ended July 5, 1998 and July 6, 1997..................................................3 Notes to Consolidated Financial Statements (Unaudited) - July 5, 1998..........4 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition..........................................6 Part II. Other Information Item 4. Submission of Matters to a Vote of Security Holders..................10 Item 6. Exhibits and Reports on Form 8-K.....................................10 Movie Gallery, Inc. Consolidated Balance Sheets (in thousands)
July 5, January 4, 1998 1998 -------- -------- (Unaudited) Assets Current assets: Cash and cash equivalents $ 1,216 $ 4,459 Merchandise inventory 9,756 13,512 Prepaid expenses 1,483 1,341 Store supplies and other 2,937 2,561 Deferred income taxes 255 531 -------- -------- Total current assets 15,647 22,404 Videocassette rental inventory, net 88,235 92,183 Property, furnishings and equipment, net 47,021 50,321 Deferred charges, net 7,827 8,940 Excess of cost over net assets acquired, net 81,002 83,381 Deposits and other assets 1,887 1,904 -------- -------- Total assets $241,619 $259,133 ======== ======== Liabilities and stockholders' equity Current liabilities: Accounts payable $ 12,818 $ 21,517 Accrued liabilities 6,061 7,014 Current portion of long-term debt 388 4,751 -------- -------- Total current liabilities 19,267 33,282 Long-term debt 58,618 63,479 Other accrued liabilities 1,389 1,899 Deferred income taxes 13,381 12,844 Stockholders' equity: Preferred stock, $.10 par value; 2,000,000 shares authorized, no shares issued and outstanding -- -- Common stock, $.001 par value; 60,000,000 shares authorized, 13,421,030 and 13,418,885 shares issued and outstanding, respectively 13 13 Additional paid-in capital 131,694 131,686 Retained earnings 17,257 15,930 -------- -------- Total stockholders' equity 148,964 147,629 -------- -------- Total liabilities and stockholders' equity $241,619 $259,133 ======== ======== See accompanying notes.
1 Movie Gallery, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except per share data)
Thirteen weeks ended Twenty-six weeks ended July 5, July 6, July 5, July 6, 1998 1997 1998 1997 --------- --------- --------- --------- Revenues: Rentals $ 54,090 $ 52,045 $ 113,023 $ 107,628 Product sales 9,572 9,283 21,130 19,378 --------- --------- --------- --------- 63,662 61,328 134,153 127,006 Operating costs and expenses: Store operating expenses 33,341 32,860 68,391 66,014 Amortization of videocassette rental inventory 17,094 17,293 34,396 33,576 Amortization of intangibles 1,747 1,762 3,494 3,536 Cost of product sales 6,678 5,561 14,197 11,266 General and administrative 4,307 4,085 8,567 8,131 --------- --------- --------- --------- Operating income (loss) 495 (233) 5,108 4,483 Interest expense, net (1,391) (1,546) (2,968) (3,042) --------- --------- --------- --------- Income (loss) before income taxes (896) (1,779) 2,140 1,441 Income taxes (341) (576) 813 648 --------- --------- --------- --------- Net income (loss) $ (555) $ (1,203) $ 1,327 $ 793 ========= ========= ========= ========= Basic and diluted earnings (loss) per share $ (.04) $ (.09) $ .10 $ .06 ========= ========= ========= ========= Weighted average shares outstanding: Basic 13,421 13,420 13,421 13,420 Diluted 13,421 13,420 13,895 13,420 See accompanying notes.
2 Movie Gallery, Inc. Consolidated Statements of Cash Flows (Unaudited) (in thousands)
Twenty-six weeks ended July 5, July 6, 1998 1997 -------- -------- Operating activities Net income $ 1,327 $ 793 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44,189 42,399 Deferred income taxes 813 648 Changes in operating assets and liabilities: Merchandise inventory 3,756 272 Other current assets (518) (405) Deposits and other assets 17 256 Accounts payable (8,699) (6,289) Accrued liabilities (1,463) 915 -------- -------- Net cash provided by operating activities 39,422 38,589 Investing activities Business acquisitions (2) (262) Purchases of videocassette rental inventory, net (30,448) (37,031) Purchases of property, furnishings and equipment (2,999) (8,099) -------- -------- Net cash used in investing activities (33,449) (45,392) Financing activities Net proceeds from issuance of common stock 8 -- Payments on notes payable (200) -- Proceeds from issuance of long-term debt -- 4,000 Principal payments on long-term debt (9,024) (129) -------- -------- Net cash (used in) provided by financing activities (9,216) 3,871 -------- -------- Decrease in cash and cash equivalents (3,243) (2,932) Cash and cash equivalents at beginning of period 4,459 3,982 -------- -------- Cash and cash equivalents at end of period $ 1,216 $ 1,050 ======== ======== See accompanying notes.
3 Movie Gallery, Inc. Notes to Consolidated Financial Statements (Unaudited) July 5, 1998 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the twenty-six week period ended July 5, 1998 are not necessarily indicative of the results that may be expected for the fiscal year ended January 3, 1999. For further information, refer to the consolidated financial statements and footnotes thereto included in Movie Gallery, Inc.'s annual report on Form 10-K for the fiscal year ended January 4, 1998. 2. Financing Obligations The Company has a Credit Agreement with First Union National Bank of North Carolina with respect to a reducing revolving credit facility (the "Facility"). At July 5, 1998, $58.3 million was outstanding and $18.2 million was available for borrowing under the Facility. The available amount of the Facility reduces quarterly with a final maturity of June 30, 2000. The interest rate of the Facility is based on LIBOR plus an applicable margin percentage, which depends on the Company's cash flow generation and borrowings outstanding. The Company may repay the Facility at any time without penalty. The more restrictive covenants of the Facility restrict borrowings based upon cash flow levels. The Company has entered into an interest rate swap agreement with a commercial bank which effectively fixes the Company's interest rate exposure on $37 million of the amount outstanding under the Facility at 6.22% plus an applicable margin percentage. The interest rate swap reduces the risk of increases in interest rates during the remaining life of the Facility. The Company accounts for its interest rate swap as a hedge of its debt obligation. The Company pays a fixed rate of interest and receives payment based on a variable rate of interest. The difference in amounts paid and received under the contract is accrued and recognized as an adjustment to interest expense on the debt. There are no termination penalties associated with the interest rate swap agreement; however, if the swap agreement was terminated at the Company's option, the Company would either pay or receive the present value of the remaining hedge payments at the then prevailing interest rates for the time to maturity of the swap agreement. The interest rate swap agreement terminates at the time the Facility matures. 3. Earnings Per Share Effective January 4, 1998, the Company adopted Statement of Financial Accounting Standards No. 128, "Earnings per Share". This statement is effective for fiscal periods ending after December 15, 1997 and requires restatement of prior periods' earnings per share data. Under this Statement the calculation of primary and fully diluted earnings per share is replaced with basic and diluted earnings per share and requires presentation of both amounts on the income statement. Unlike primary earnings per share, basic earnings per share excludes any dilutive effects of common stock equivalents. Diluted earnings per share is similar to the previously reported fully diluted earnings per share. Adoption of this Statement had no significant impact on earnings per share calculations for any period presented. 4 Movie Gallery, Inc. Notes to Consolidated Financial Statements (Unaudited)(continued) 3. Earnings Per Share (continued) Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per share is computed based on the weighted average number of shares of common stock outstanding during the periods presented, increased solely by the effects of shares to be issued from the exercise of dilutive common stock options (none for the thirteen weeks ended July 5, 1998 and 474,000 for the twenty-six weeks ended July 5, 1998; none for the thirteen weeks and twenty-six weeks ended July 6, 1997). No adjustments were made to net income (loss) in the computation of basic or diluted earnings per share. 4. Recently Issued Accounting Standard In April 1998, the AICPA issued Statement of Position (SOP) 98-5, Reporting the Costs of Start-up Activities. The SOP is effective for the Company beginning on January 4, 1999, and requires that start-up costs capitalized prior to January 4, 1999 be written-off and any future start-up costs to be expensed as incurred. The unamortized balance of start-up costs as of January 3, 1998 will be written off as a cumulative effect of an accounting change as of January 4, 1999. The impact of adopting this SOP has not yet been determined. 5 Movie Gallery, Inc. Management's Discussion and Analysis of Results of Operations And Financial Condition The following table sets forth, for the periods indicated, statement of operations data expressed as a percentage of total revenue, the percentage increase or decrease from the comparable period and the number of stores open at the end of each period.
Thirteen weeks ended Twenty-six weeks ended --------------------------- --------------------------- July 5, July 6, Increase July 5, July 6, Increase 1998 1997 (Decrease) 1998 1997 (Decrease) --------------------------- --------------------------- Revenues: Rentals 85.0% 84.9% 0.1% 84.2% 84.7% (0.5)% Product sales 15.0 15.1 (0.1) 15.8 15.3 0.5 ----- ----- ----- ----- ----- ----- 100.0 100.0 -- 100.0 100.0 -- Operating costs and expenses: Store operating expenses 52.4 53.6 (1.2) 51.0 52.0 (1.0) Amortization of rental inventory 26.9 28.2 (1.3) 25.6 26.4 (0.8) Amortization of intangibles 2.7 2.9 (0.2) 2.6 2.8 (0.2) Cost of product sales 10.5 9.0 1.5 10.6 8.9 1.7 General and administrative 6.7 6.7 -- 6.4 6.4 -- ----- ----- ----- ----- ----- ----- Total 99.2 100.4 (1.2) 96.2 96.5 (0.3) ----- ----- ----- ----- ----- ----- Operating income (loss) 0.8 (0.4) 1.2 3.8 3.5 0.3 Interest expense, net (2.2) (2.5) 0.3 (2.2) (2.4) 0.2 ----- ----- ----- ----- ----- ----- Income (loss) before income taxes (1.4) (2.9) 1.5 1.6 1.1 0.5 Income taxes (0.5) (0.9) 0.4 0.6 0.5 0.1 ----- ----- ----- ----- ----- ----- Net income (loss) (0.9)% (2.0)% 1.1% 1.0% 0.6% 0.4% ===== ===== ===== ===== ===== ===== Number of stores open at end of period 842 862 (20) 842 862 (20) ====== ===== ===== ===== ===== =====
For the thirteen weeks and twenty-six weeks ended July 5, 1998, revenues were $63.7 million and $134.2 million, respectively, increases of 3.8% and 5.6% over the comparable periods in 1997. The increase was due to an increase in same-store sales of 4.6% and 6.0% for the thirteen week and twenty-six week periods, respectively, offset by fewer stores in operation during 1998 versus 1997. The increase in same-store sales for the second quarter and year-to-date period of 1998 was the result of (i) the Company's increase in depth of copies of hit titles compared to the prior year periods; (ii) an increase in the game rental business due to increasing consumer acceptance of the Nintendo 64 and Sony Playstation game platforms; and (iii) successful, chain-wide internal marketing programs designed to generate more consumer excitement and traffic in the Company's base of stores. Product sales as a percentage of total revenue for the thirteen weeks and twenty-six weeks ended July 5, 1998 were 15.0% and 15.8%, respectively, compared to 15.1% and 15.3% for the comparable periods in 1997, respectively. This increase for the twenty-six weeks ended July 5, 1998 was primarily the result of the Company's increasing sale of previously viewed rental inventory due, in part, to greater quantities of rental product available to consumers. Store operating expenses, which reflect direct store expenses such as lease payments and in-store payroll, decreased as a percentage of revenues to 52.4% and 51.0% for the thirteen weeks and twenty-six weeks ended July 5, 1998, respectively, from 53.6% and 52.0% for the comparable periods in 1997, respectively. The decrease in store operating expenses as a percentage of 6 Movie Gallery, Inc. Management's Discussion and Analysis of Results of Operations And Financial Condition (continued) revenues was primarily due to the same-store sales increase during the quarter and some decreases in several expense categories, offset, in part, by an increase in rental product revenue sharing expense in 1998 versus 1997. For the second quarter and year-to-date period of 1998, amortization of videocassette rental inventory decreased as a percentage of revenue to 26.9% and 25.6%, respectively, from 28.2% and 26.4% for the comparable periods in 1997, respectively. The decrease in amortization as a percentage of revenues was due primarily to the increased revenues associated with the Company's same-store sales increase for the second quarter and first two quarters of 1998. Cost of product sales includes the costs of new videocassettes, confectionery items and other goods, as well as the unamortized value of previously viewed rental inventory sold in the Company's stores. Cost of product sales increased with the increased revenue from product sales and increased as a percentage of revenues from product sales from 59.9% and 58.1% for the second quarter and year-to-date period of 1997, respectively, to 69.8% and 67.2% for the second quarter and year-to-date period of 1998, respectively. The decrease in product sales gross margins resulted primarily from (i) an intense effort by the Company to reduce inventory levels through discounts on selected inventory, and (ii) lower margins on the sale of previously viewed tapes due to selling those tapes earlier than in the past, which results in a higher write-off of the unamortized value of the tapes at the time of sale. Net interest expense as a percentage of revenues decreased to 2.2% for the second quarter and year-to-date period of 1998 from 2.5% and 2.4% for the second quarter and year-to-date period of 1997, respectively. These decreases were due primarily to both lower total debt outstanding in 1998 versus 1997 and the increasing revenues that the Company has achieved. LIQUIDITY AND CAPITAL RESOURCES Historically, the Company's primary capital needs have been for opening and acquiring new stores and for the purchase of videocassette inventory. Other capital needs include the remodeling of existing stores, the relocation of existing stores and the continued maintenance and upgrading of the Company's point of sale system and management information systems. The Company has funded inventory purchases, remodeling and relocation programs, new store opening costs and acquisitions primarily from cash flow from operations, the proceeds of two public equity offerings, loans under revolving credit facilities and seller financing. During the twenty-six weeks ended July 5, 1998, the Company generated approximately $19.4 million in Adjusted EBITDA versus approximately $10.6 million for the comparable period in 1997, an increase of approximately 82.5%. The increase in Adjusted EBITDA is attributable primarily to both the same-store sales increase of 6.0% and the Company's leveraging of rental inventory purchases in the first and second quarters of 1998 versus the comparable periods in 1997. "Adjusted EBITDA" is earnings before interest, taxes, depreciation and amortization, less the Company's purchase of videocassette rental inventory which excludes inventory purchases specifically for new store openings. Adjusted EBITDA does not take into account capital expenditures, other than purchases of videocassette rental inventory, and does not represent cash generated from operating activities in accordance with generally accepted accounting principles ("GAAP"), is not to be considered as an alternative to net income or any other GAAP measurements as a measure of operating performance and is not indicative of cash available to fund cash needs. The Company's definition of Adjusted EBITDA may not be identical to similarly titled measures of other companies. The Company believes that in addition to cash flows and net income, Adjusted EBITDA is a useful financial performance measurement for assessing the operating performance of the Company because, together with net income and cash flows, Adjusted EBITDA is widely used in the videocassette specialty retailing industry to provide investors with an additional basis to evaluate the ability of the Company to incur and service its debt and to fund growth. 7 Movie Gallery, Inc. Management's Discussion and Analysis of Results of Operations And Financial Condition (continued) Net cash provided by operating activities was $39.4 million for the twenty-six weeks ended July 5, 1998 as compared to $38.6 million for the comparable period in 1997. The increase was primarily due to an increase in depreciation and amortization, offset in part by a decrease in accounts payable and other accrued liabilities, as well as a decrease in merchandise inventory. Over the past two quarters, the Company's merchandise inventory and accounts payable have been reduced by 27.8% and 40.4%, respectively. Some of these decreases are associated with seasonal changes; however, much of the merchandise inventory reduction is attributable to the Company attempting to reduce and refine its sell-through inventory presentation by selling older, less-attractive titles to consumers at a discount and replacing this merchandise with fewer, more attractive product offerings. The accounts payable decrease is due both to seasonality as well as the fact that the Company has lowered its overall tape purchases versus a year ago through copy depth initiatives and revenue sharing, which has lowered its outstanding payables amount at quarter end. Net cash used in investing activities was $33.4 million for the twenty-six weeks ended July 5, 1998 as compared to $45.4 million for the comparable period in 1997, primarily as a result of a decrease in the expenditures of capital for both videocassette rental inventory and property, furnishings and equipment. Net cash used in financing activities was $9.2 million for the twenty-six weeks ended July 5, 1998 as compared to net cash provided by financing activities of $3.9 million for the comparable period in 1997. This change resulted directly from the Company's improved Adjusted EBITDA performance and allowed the Company to decrease its debt outstanding during the first two quarters of 1998 versus an increase in debt in the comparable period of the prior year. The Company has a Credit Agreement with First Union National Bank of North Carolina with respect to a reducing revolving credit facility (the "Facility"). At July 5, 1998, $58.3 million was outstanding and $18.2 million was available for borrowing under the Facility. The available amount of the Facility reduces quarterly with a final maturity of June 30, 2000. The interest rate of the Facility is based on LIBOR plus an applicable margin percentage, which depends on the Company's cash flow generation and borrowings outstanding. The Company may repay the Facility at any time without penalty. The more restrictive covenants of the Facility restrict borrowings based upon cash flow levels. The Company grows its store base through internally developed and acquired stores and may require capital in excess of internally generated cash flow to achieve its desired growth. To the extent available, future acquisitions may be completed using funds available under the Facility, financing provided by sellers, alternative financing arrangements such as funds raised in public or private debt or equity offerings or shares of the Company's stock issued to sellers. However, there can be no assurance that financing will be available to the Company on terms that will be acceptable, if at all. At July 5, 1998, the Company had a working capital deficit of $3.6 million, due to the accounting treatment of its videocassette rental inventory. Videocassette rental inventory is treated as a noncurrent asset under generally accepted accounting principles because it is not an asset that is reasonably expected to be completely realized in cash or sold in the normal business cycle. Although the rental of this inventory generates the major portion of the Company's revenue, the classification of this asset as noncurrent results in its exclusion from working capital. The aggregate amount payable for this inventory, however, is reported as a current liability until paid and, accordingly, is included in working capital. Consequently, the Company believes that working capital is not an appropriate measure of its liquidity and it anticipates that it will continue to operate with a working capital deficit. 8 Movie Gallery, Inc. Management's Discussion and Analysis of Results of Operations And Financial Condition (continued) The Company believes its projected cash flow from operations, borrowing capacity with the Facility, cash on hand and trade credit will provide the necessary capital to fund its current plan of operations for Fiscal 1998, including its anticipated new store openings. However, to fund a resumption of the Company's acquisition program, or to provide funds in the event that the Company's need for funds is greater than expected, or if certain of the financing sources identified above are not available to the extent anticipated or if the Company increases its growth plan, the Company will need to seek additional or alternative sources of financing. This financing may not be available on terms satisfactory to the Company. Failure to obtain financing to fund the Company's expansion plans or for other purposes could have a material adverse effect on the Company. OTHER MATTERS The Company has performed an analysis of its operating systems to determine systems' compatibility with the upcoming year 2000. Substantially all of the Company's operating systems are year 2000 compliant, and the Company does not believe that there will be any material exposure related to year 2000 compatibility. This report contains certain forward-looking statements regarding the Company. The Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and in that regard is cautioning the readers of this report that a number of important risk factors could affect the Company's actual results of operations and may cause changes in the Company's strategy with the result that the Company's operations and results may differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. These risk factors include competitive factors and weather conditions within the Company's geographic markets, adequate product availability from Hollywood and the risk factors that are discussed from time-to-time in the Company's SEC reports, including, but not limited to, the report on Form 10-K for the fiscal year ended January 4, 1998. 9 Part II - Other Information Item 4. Submission of Matters to a Vote of Security Holders The Company's Annual Meeting of Stockholders (the "Annual Meeting") was held on June 3, 1998. The following actions were taken at the Annual Meeting, for which proxies were solicited pursuant to Regulation 14 under the Securities Exchange Act of 1934, as amended: 1. The six nominees proposed by the Board of Directors were elected as directors by the following votes: Name For Withheld ------------------- ---------- -------- Joe Thomas Malugen 10,660,348 31,335 H. Harrison Parrish 10,660,548 31,135 William B. Snow 10,660,468 31,215 Sanford C. Sigoloff 10,646,798 44,885 Phillip B. Smith 10,660,298 31,385 Joseph F. Troy 10,657,548 34,135 2. A proposal to amend the Company's 1994 Stock Plan, as amended, to increase the number of shares available for grant from 2,250,000 to 2,600,000 was approved by a vote of 8,238,915 for versus 2,384,268 against. There were 23,500 abstentions and 45,000 broker non-votes. Item 6. Exhibits and Reports on Form 8-K a) Exhibits 27 Financial Data Schedule 27.1 Financial Data Schedule - Restated for July 6, 1997 b) Reports on Form 8-K None. 10 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Movie Gallery, Inc. ----------------------------------------- Date: August 18, 1998 /s/ J. Steven Roy ----------------------------------------- J. Steven Roy, Executive Vice President and Chief Financial Officer 11 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000925178 MOVIE GALLERY, INC. 1,000 6-MOS JAN-03-1999 JAN-05-1998 JUL-05-1998 1,216 0 665 0 9,756 15,647 270,595 135,339 241,619 19,267 0 0 0 13 148,951 241,619 21,130 134,153 14,197 129,045 0 0 2,968 2,140 813 1,327 0 0 0 1,327 0.10 0.10 INCLUDES $191,681 OF VIDEOCASSETTE RENTAL INVENTORY. INCLUDES $103,446 OF ACCUMULATED AMORTIZATION ON VIDEOCASSETTE RENTAL INVENTORY.
EX-27.1 3 FDS - RESTATED FOR JULY 6, 1997
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000925178 MOVIE GALLERY, INC. 1,000 6-MOS JAN-04-1998 JAN-06-1997 JUL-06-1997 1,050 0 1,002 0 10,296 16,687 258,019 111,458 261,429 27,151 0 0 0 13 147,504 261,429 19,378 127,006 11,266 122,523 0 0 3,042 1,441 648 793 0 0 0 793 0.06 0.06 INCLUDES $183,416 OF VIDEOCASSETTE RENTAL INVENTORY. INCLUDES $89,863 OF ACCUMULATED AMORTIZATION ON VIDEOCASSETTE RENTAL INVENTORY.
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