BB Liquidating Inc. (BLIAQ)

[fredman]

Earnings Preview : Blockbuster Inc. (NYSE: BBI) First Quarter 2010

Blockbuster Inc. (NYSE: BBI: 0.427, 0.0411) is scheduled to report its Q1 2010 results after the market closes on May 13, 2010. Looking forward to 2010, the Company remains cautiously optimistic. Over the longer term, the recent announcement of store closings by Movie Gallery will affect favorably hundreds of Blockbuster locations as Movie Gallery liquidates and closes a number of their U.S. locations. Furthermore, the recently announced transaction between Warner and both Netflix and Redbox will provide Blockbuster with a 28-day head start on Warner titles in their stores. This reinforces an important element of differentiation and enhances Blockbuster's consumer relevance since 60% of the industry's $22 billion rental and retail business represents new releases during the first 30 days of street date.

Blockbuster Inc. is a world''s leading retailer of rentable home videocassettes, DVDs and video games. The company may be accessed internationally at www.blockbuster.com. Blockbuster Inc. is a subsidiary of Viacom Inc., one of the world''s largest entertainment companies and aleading force in nearly every segment of the international media marketplace.

As for Q4 2009, total revenues were $1.08 billion as compared to total revenue of $1.31 billion for the same period one year ago. Gross profit for Q4 of 2009 was $540.4 million, compared to $658.9 million in the same period one year ago.Operating expenses for the Q4 of 2009 decreased by $73.2 million, or approximately 7%, to $934.0 million as compared to operating expenses of $1.01 billion for the same period one year ago. In the Q4 of 2009, the Company incurred a non-cash charge of $369.2 million for the impairment of goodwill and other long-lived assets, compared to a $435.0 million non-cash charge for the impairment of goodwill and other long-lived assets for the same period one year ago. General and administrative expenses during the Q4 of 2009 were $487.6 million as compared to $509.6 million in the Q4 of 2008, representing a decrease of $22.0 million, or approximately 4%. Operating loss for the Q4 of 2009 was $393.6 million as compared to an operating loss of $348.3 million in the Q4 one year ago, which includes non-cash charges for the impairment of goodwill and other long-lived assets.Net loss in the Q4 of 2009 was $434.9 million, or $2.24 per share, which includes the non-cash charge of $369.2 million for the impairment of goodwill and other long-lived assets. Q4 2009 EBITDA was $16.5 million, compared to $122.8 million for the Q4 of 2008. Adjusted EBITDA, which excludes stock-based compensation, costs associated with lease terminations and severance, was $31.3 million in the Q4 of 2009, compared to adjusted EBITDA of $128.1 million in the same period one year ago. Blockbuster ended the Q4 of 2009 with $188.7 million in cash and cash equivalents and $58.5 million in restricted cash related to the Company's letters of credit.

Analysts' estimates for Q1 2010 range from a low of $-0.21 to a high of $-0.06, compared to a consensus estimate of $-0.06, with number of estimates being 6 and the co-efficient variance -42.56. In Q1 2010, Blockbuster expects a significantly lower use of cash for working capital. Studio partners will continue to be a support of Blockbuster and embrace their multichannel approach. BBI will continue to work closely with their studio partners to improve revenue sharing arrangements, and will likely increase their consigned retail product.

The stock closed at $0.39, down 2.03% on May 6, 2010 and most analysts' recommend holding the stock with an average price target of $0.75.

Source: http://alphaearnings.com/news/3542700