To: Jenna who wrote (17895 ) 11/3/1998 1:56:00 PM From: Jenna Read Replies (3) | Respond to of 120523
a word on HLYW, and Reel.com.. (HLYW from Market Gems newsletter) Hollywood Entertainment Corporation Third Quarter Result PORTLAND, Ore., Nov. 2 /PRNewswire/ -- Hollywood Entertainment Corporation (Nasdaq: HLYW - news), dba Hollywood Video, a chain of 1,134 corporate owned video rental superstores operating in 42 states as of September 30, 1998, today reported revenue of $184.1 million, income from operations of $18.6 million and adjusted EBITDA of $30.5 million for the quarter ended September 30, 1998, increases of 48%, 53% and 54%, respectively, from the same period in 1997. The Company reported net income of $6.1 million, or $0.16 per diluted share, an increase in same store sales of 7% and an increase in same store rentals of 7%. The Company opened 68 new superstores in the quarter.Now today was a very impressive report from Reel.com also: HLYW continues to perform quite well in the face of all the doubters with 7% store comps. that are now accelerating. Also interesting as well was the performance of Reel.COM. From press release: "Reel.com is the third most recognized online merchant behind Amazon.com and CDNow and nearly 40 million Americans recognize the Reel.com brand, according to an Internet brand study conducted by Opinion Research Corporation [Nasdaq:ORCI - news] in September 1998. Not including the sales of Titanic, Reel.com's revenues for the third quarter were a RECORD $3.8 MILLION, a 271% INCREASE compared with revenues of $1.4 million in the second quarter. Cumulative customer accounts INCREASED to 346,000 through the third quarter, an INCREASE OF 307% compared to the second quarter customer base of 85,000." This was a pretty good acquisition for Hollywood Entertainment and should accrue to its value pretty soon. I like to check the companies before they go into the newsletter. If they win, its good but if they don't, its not for lack of research.