-----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, FUQZyLVaG54EP7EvIXEoNgxcfVuSH19umb17eP2VaypLqWVQmRaRTw3zyA3Li7WP RVmzVdHG9R9DR93apCR5wg== 0000893877-97-000403.txt : 19970724 0000893877-97-000403.hdr.sgml : 19970724 ACCESSION NUMBER: 0000893877-97-000403 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970722 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970723 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOLLYWOOD ENTERTAINMENT CORP CENTRAL INDEX KEY: 0000905895 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-VIDEO TAPE RENTAL [7841] IRS NUMBER: 930981138 STATE OF INCORPORATION: OR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21824 FILM NUMBER: 97644359 BUSINESS ADDRESS: STREET 1: 25600 SW PARKWAY CENTER DRIVE CITY: WILSON STATE: OR ZIP: 97070 BUSINESS PHONE: 5035701600 MAIL ADDRESS: STREET 1: 25600 SW PARKWAY CENTER DRIVE CITY: WILSONVILLE STATE: OR ZIP: 97070 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 22, 1997 HOLLYWOOD ENTERTAINMENT CORPORATION ------------------------------------------------------------ (Exact name of registrant as specified in its charter) Oregon 0-21824 93-0981138 - ------------------------------- ----------- ------------------ (State or other jurisdiction of (Commission (IRS Employer incorporation or organization) File No.) Identification No.) 25600 SW Parkway Center Drive, Wilsonville, Oregon 97070 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (503) 570-1600 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) No Change - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Item 5. Other Events On July 22, 1997 Hollywood Entertainment Corporation (the "Company") announced its financial results for the three and six months ended June 30, 1997. The Company's press release announcing the results is attached hereto as Exhibit 99.1. Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 Press release dated July 22, 1997. 2 SIGNATURE 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 hereunto duly authorized. Dated: July 23, 1997 HOLLYWOOD ENTERTAINMENT CORPORATION By DOUGLAS A. GORDON --------------------------------- Douglas A. Gordon, Senior Vice President of Finance 3 EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Press release dated July 22, 1997. EX-99.1 2 PRESS RELEASE EXHIBIT 99.1 Hollywood Entertainment Corporation Reports Record Second Quarter Results PORTLAND, Ore., July 22 /PRNewswire/ -- Hollywood Entertainment Corporation (Nasdaq:HLYW), dba Hollywood Video, a chain of 661 corporate owned video superstores operating in 33 states as of June 30, 1997, today reported revenue for the quarter ended June 30, 1997 of $110.0 million, an increase of 72% compared to $63.9 million for the same period in 1996. The Company had net income of $5.5 million, which was up 83% compared to net income of $3.0 million for the second quarter of 1996. Net income per share was $0.15, which was up 67% compared to net income per share of $0.09 for the same period in 1996. Additionally, the Company announced that it opened a total of 60 new stores during the quarter and had an increase in same-store sales of 5%. Commenting on second quarter results, Mark J. Wattles, Chairman and CEO of Hollywood Entertainment Corporation, said "We believe our second quarter results continue to show the difference between Hollywood and the other video store chains. While other public video store chains have experienced weak or negative same-store sales, Hollywood Entertainment has achieved an increase of 5% in its same-store sales for both the first and the second quarters of 1997." Mr. Wattles added, "I am also excited with the Company's plan to issue $200 million in high yield notes and enter into a new $300 million credit facility. We believe the combination of both of these transactions, half a billion dollars, significantly strengthens the Company's financial resources." Hollywood Video is the second largest video store chain in the United States. Hollywood Video superstores average approximately 7,500 square feet and typically carry approximately 10,000 titles and 16,000 videocassettes. According to video industry analyst Paul Kagan Associates, Inc., the Company operates the highest volume video stores in the country. Hollywood Video opened 33 new stores in 1994, 121 new stores in 1995, 250 new stores in 1996, 110 new stores in the first half of 1997 and plans to open approximately 240 additional new stores in 1997. Hollywood Entertainment Corporation will be hosting a conference call to review the second quarter results tomorrow at 8:00 AM, PDT.
HOLLYWOOD ENTERTAINMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Six Months ended June 30, ended June 30, -------------------------- -------------------------- 1997 1996 1997 1996 -------- -------- --------- --------- Revenue: Rental revenue $ 93,035 $ 54,310 $ 184,715 $ 109,059 Product sales 16,967 9,639 35,762 19,963 110,002 63,949 220,477 129,022 Operating costs and expenses: Cost of product sales 10,828 5,931 22,429 12,176 Operating and selling 80,204 46,517 157,253 92,734 General and administrative 6,197 4,033 12,166 8,489 Amortization of intangibles 1,596 1,483 3,123 3,007 Operating income 11,177 5,985 25,506 12,616 Nonoperating income (expense): Interest income 26 31 108 128 Interest expense (2,068) (1,007) (3,617) (1,625) Litigation settlement -- -- (18,874) -- Income before income taxes 9,135 5,009 3,123 11,119 Income taxes 3,654 2,004 1,249 4,387 Net income $ 5,481 $ 3,005 $ 1,874 $ 6,732 Net income per share $0.15 $0.09 $0.05 $0.19 Weighted average shares outstanding 37,577 34,804 37,465 34,916
HOLLYWOOD ENTERTAINMENT CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) June 30, December 31, 1997 1996 ----------- ------------ (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $5,782 $ 12,849 Receivables 23,792 25,785 Merchandise inventories 44,697 45,255 Prepaid expenses and other current assets 4,673 3,232 Total current assets 78,944 87,121 Videocassette rental inventory, net 182,824 144,264 Property and equipment, net 154,639 115,812 Excess of cost over net assets acquired, net 96,517 99,229 Deferred income taxes 4,844 783 Other assets 3,621 2,574 Total assets $521,389 $449,783 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $205 $205 Accounts payable 61,029 67,207 Accrued liabilities 11,079 10,402 Income taxes payable -- 2,914 Total current liabilities 72,313 80,728 Long-term debt, excluding current maturities 9,402 156 Line of credit 130,000 82,000 Deferred rent and other liabilities 7,920 6,452 Deferred income taxes 5,684 5,744 225,319 175,080 Commitments and contingencies -- -- Shareholders' Equity: Common stock 100,000,000 shares authorized; 36,747,921 and 36,006,201 shares issued and outstanding, respectively 257,382 238,021 Retained earnings 40,866 38,992 Intangible assets, net (2,178) (2,310) Total shareholders' equity 296,070 274,703 Total liabilities and shareholders' equity $521,389 $449,783
HOLLYWOOD ENTERTAINMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, ------------------------------- 1997 1996 ------ ------ Operating activities: Net income $1,874 $6,732 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 61,811 39,411 Litigation settlement warrants 9,000 -- Deferred rent and other liabilities 1,468 1,135 Deferred income taxes (4,121) 1,162 Changes in operating assets and liabilities: Merchandise inventories 558 (3,780) Prepaid expenses and other current assets (1,441) (1,276) Accounts payable (6,178) (8,396) Accrued liabilities 677 893 Income taxes payable (2,914) 1,841 Net cash provided by operating activities 60,734 37,722 Investing activities: Construction and other receivables 1,993 5,087 Purchases of videocassette rental inventory, net (87,501) (41,724) Purchases of property and equipment, net (48,557) (24,368) Other assets (1,343) (618) Net cash used in investing activities (135,408) (61,623) Financing activities: Proceeds from the issuance of common stock, net 4,695 -- Proceeds from long-term debt 10,000 -- Repayments of long-term debt (754) (7,288) Tax benefit from exercise of stock options 2,252 (8) Proceeds from exercise of stock options 3,414 164 Repurchase of common stock -- (54,250) Borrowings on line of credit 48,000 60,000 Cash provided by (used in) financing activities 67,607 (1,382) Increase/(decrease) in cash and cash equivalents (7,067) (25,283) Cash and cash equivalents: Beginning of period 12,849 29,980 End of period $5,782 $4,697
- -------------------------------------------------------------------------------- SOURCE: Hollywood Entertainment Corp. Contact: Doug Gordon, Senior Vice President of Finance of Hollywood Entertainment Corporation, 503-570-1600 -----END PRIVACY-ENHANCED MESSAGE-----