Joe Malugen Quotes on Business & Commerce (2 Quotes)

Based on preliminary, un-audited results, we expect that fourth quarter revenues and same-store revenues will be within the range of previously provided guidance. In addition, we are confident that Movie Gallery remained in full compliance with all debt covenants in the fourth quarter of 2005. Looking forward to 2006, with the continued softness in the rental industry, we will soon resume discussions with our lenders regarding further amendments to Movie Gallery's senior credit facility. We continue to believe that our industry is long-term fundamentally sound, and we are looking forward to the introduction of next-generation, high-definition DVDs as a significant catalyst for our business.

Fiscal 2005 was a challenging year for the industry and our company primarily due to a weak box office and, to a lesser extent, the continued growth of various alternative entertainment options and new technologies.