Tuesday, December 9, 2008

hhgregg Extends Promotion to Accept Circuit City Gift Cards

INDIANAPOLIS, Dec 09, 2008 (BUSINESS WIRE) --

Indianapolis-based appliance and electronics leader hhgregg (NYSE:HGG), today announced that due to the positive customer response, the company will continue its promotion to accept Circuit City gift cards on hhgregg purchases through Super Bowl Sunday weekend, which ends February 1, 2009.

Through the duration of the holiday season and until Super Bowl Sunday, hhgregg will accept Circuit City gift cards that, upon verification of the gift card balance, can be applied toward any hhgregg purchase. The gift card value will be good toward up to 20 percent of the total hhgregg product purchase price and is not available for use on hhgregg.com.

"We are continuing this promotion as a way to demonstrate hhgregg's superior customer service and to assist those who may be impacted by other retailer's store closures," said Jeff Pearson, Vice President of Marketing at hhgregg. "Consumers can now use their Circuit City gift card balance toward electronics, as well as appliances and mattresses that are available at hhgregg. Because of hhgregg's professionally-trained, consultative sales force, customers will learn more about these products in advance of their purchase decision."

Renowned for its experienced sales teams, hhgregg associates undergo a rigorous training process to help the customer make the most informed purchase decision possible.

Upon completion of the transaction, the Circuit City gift card will become the property of hhgregg. hhgregg and this promotion are not affiliated with, sponsored by, or endorsed by Circuit City Stores West Coast, INC. or Circuit City Stores, INC. For more information, please see the ad for this promotion on the hhgregg Web site: http://www.hhgregg.com/dynamic.asp?SID=n&did=1015.

CORPORATE OVERVIEW
hhgregg (NYSE: HGG) is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 109 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Monday, November 24, 2008

hhgregg Launches Gaming Business Across Chain

Retailer to Provide One-Stop Shop for Popular Video Game Bundles

INDIANAPOLIS, Nov 24, 2008 (BUSINESS WIRE) --

Indianapolis-based appliance and electronics leader, hhgregg (NYSE:HGG) today announced its entrance into the gaming business. The retailer will be selling video game bundles with popular games and various other accessories in each of its 109 locations across its nine-state network, beginning on November 28, 2008.

"As hhgregg continues its disciplined growth, we are committed to continually assessing our product offerings to best meet the needs of our customers," said hhgregg Chairman and CEO, Jerry Throgmartin. "We are pleased to now offer our loyal patrons some of the most popular merchandise in the gaming market today. hhgregg will provide our customers with a convenient, one-stop gaming solution, packaging gaming consoles with its respective games, controllers and other accessories. This customer-friendly gaming package will make a great gift for the upcoming holiday season."

hhgregg's initial assortment of gaming inventory will include MicrosoftXbox 360 Arcade, Xbox 360 Pro, Sony PS3 and Nintendo Wii. In addition, hhgregg will offer top gaming accessories for these platforms, including "Guitar Hero" and Wii accessories. The company will also be carrying hand-held gaming devices, such as Nintendo DS and Sony PSP.

hhgregg will be conducting its industry-leading training program with its sales staff to ensure they are properly educated on all gaming products. Renowned for its experienced sales teams, hhgregg associates undergo a rigorous training process to help the customer make the most informed purchase decision possible.

"Our knowledgeable sales force will provide our customers with expert advice on the new gaming merchandise offered at hhgregg as part of our superior purchase experience that is unmatched in the industry," said hhgregg President and COO, Dennis May.

CORPORATE OVERVIEW
hhgregg (NYSE: HGG) is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 109 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Thursday, November 6, 2008

hhgregg Announces Operating Results

2nd Quarter Highlights

Net sales for the quarter increase 11.3%

Opens six stores in the quarter

Delivers stable gross profit margins

Revises fiscal 2009 earnings guidance from $1.13-$1.20 of diluted net income per share to $0.75 to $0.90 of diluted net income per share

INDIANAPOLIS, November 6, 2008/Businesswire, hhgregg, Inc. (NYSE: HGG):



hhgregg, Inc. ("hhgregg" or "the Company") today reported net income of $3.4 million, or $0.10 per diluted share, for the three months ended September 30, 2008, compared to a net loss of $6.9 million, or $0.22 per diluted share, for the comparable prior year period. Included in the net loss for the prior year quarter is a pretax loss of $21.1 million, or $0.40 net loss per diluted share, related to the early extinguishment of debt associated with the debt refinancing completed concurrently with the Company's initial public offering in July 2007. Net income for the six months ended September 30, 2008 was $5.5 million, or $0.17 per diluted share, compared to a net loss of $4.0 million or $0.13 per diluted share, for the six months ended September 30, 2007. The net loss in the prior year period included a pretax loss on early extinguishment of debt of $21.7 million, or $0.43 net loss per diluted share. The decrease in earnings, excluding the loss on the early extinguishment of debt in the prior year, reflected a decline in comparable store sales, a significant increase in advertising expense, and investments in distribution and management infrastructure to support planned growth in Florida.

Dennis May, President and COO of the Company, commented, "We were pleased with the resiliency of our business model which has performed well in a difficult economic environment. We developed and executed a plan to deliver stable gross margins and effectively leverage our general and administrative expenses, excluding the impact of certain growth investments, as compared with the prior year period. We invested heavily in advertising to maximize store traffic in new and existing markets, affording our consultative, commissioned sales team the opportunity to distinguish us from the competition. Lastly, we closely managed our inventories and working capital, placing us in a good position to fund our projected organic store growth for the current fiscal year from free cash flow."

Net sales for the three months ended September 30, 2008 increased 11.3% over net sales for the comparable prior year period to $320.3 million. Net sales for the six months ended September 30, 2008 increased 13.6% to $615.7 million compared to $542.1 million for the comparable prior year period. The increase in sales for the three and six months ended September 30, 2008 was primarily attributable to the addition of 23 stores during the past 12 months partially offset by an 8.8% and 6.0% decrease in comparable store sales, respectively. Net sales mix and comparable store sales percentage changes by product category for the three and six months ended September 30, 2008 and 2007 were as follows:


The Company's 8.8% and the 6.0% comparable store sales decreases for the three months and six months ended September 30, 2008, respectively, were driven by double-digit comparable store unit sales declines of major appliance products, particularly at entry-level and lower mid-price points. High efficiency front-load laundry and refrigeration experienced reasonably flat to modestly positive comparable store unit sales increases and contributed to higher average selling prices for the appliances category. The comparable store sales decrease for the three month period in the video category was driven by continued decreases in comparable store sales for projection and tube televisions partially offset by double-digit comparable store sales increases in flat panel LCD televisions. The comparable store sales decrease in the other product category was primarily due to decreased sales of mattresses and personal electronics.

Gross profit margin, expressed as gross profit as a percentage of net sales, was virtually flat for the three months ended September 30, 2008 and decreased 29 basis points for the six months ended September 30, 2008 compared with the respective prior year periods. The appliance product category historically has generated higher gross profit margins than the Company's average margin, particularly during the first half of the fiscal year. While appliance gross profit margins exceeded the Company average as a percentage of sales during the second quarter and the year-to-date period, the appliance category accounted for approximately 3 percentage points less of the consolidated net sales for each period relative to the comparable prior year periods, thereby negatively impacting the consolidated gross profit margin. This was offset by a moderate increase in the gross profit margins realized in the appliance category during the second quarter compared to the prior year period. Gross profit margin in the video category decreased modestly during the three months and six months ended September 30, 2008 as compared with the respective prior year periods. Small shifts in sales mix within the other product category had a modest positive impact on the consolidated gross profit margin during the second quarter and a modest negative impact for the first half of the year when compared with the respective prior year periods.

Net advertising expense, as a percentage of net sales, increased 95 basis points and 78 basis points for the three and six months ended September 30, 2008, respectively, compared with the comparable prior year periods. The increases were largely driven by the de-leveraging effect of our comparable store sales decline, particularly in the second quarter, coupled with the heavy advertising spend associated with the launch of new markets in Florida. The Company enters each new demographic market area with a target "share of voice" for the marketplace and typically adds locations quickly in these demographic market areas to leverage its marketing investment. The Company plans to add five more locations in existing Florida demographic markets by March 31, 2009 which the Company expects will help better leverage its advertising costs as a percentage of net sales in those markets.

SG&A expense, as a percentage of net sales, increased 54 basis points for the three months ended September 30, 2008 and 47 basis points for the six months ended September 30, 2008 compared to the respective prior year periods. The increases were primarily due to growth investments totaling 64 basis points during the second quarter and 70 basis points for the first half largely comprised of store pre-opening expenses associated with new store openings, as well as distribution and management infrastructure investments in Florida. These growth investments, and the de-leveraging effect of our comparable store sales decline, were contained by effective cost controls over general and administrative expense and a reduction in bonus expense.

Fiscal Year 2009 Guidance
Despite the Company closely managing its margins, selling, general and administrative expenses and inventory during this period to ensure a solid working capital position, the economic uncertainty resulting from the turmoil in the financial markets and growing unemployment contributed to a significant drop in customer traffic during the last two weeks of September. It is still difficult to accurately gauge this economic uncertainty and its impact on customer traffic. Accordingly, the Company is revising its previous guidance with a widened range of projected results for fiscal 2009. Based on a comparable store sales decline of between 10% and 17% for the second half of the fiscal year, diluted net income per share for fiscal 2009 would range between $0.75 and $0.90 as compared with previous diluted net income per share guidance of $1.13 to $1.20. This would result in a comparable store sales decline of 8% to 12% for fiscal 2009 as compared with a low single digit comparable store sales decline under prior guidance. Net sales would grow between 6% and 13% for the second half of the fiscal year which would result in net sales growth of between 9% and 13% for the fiscal year as compared with 19% and 21% in previous guidance. The Company still plans to open between 18 and 20 new stores during fiscal 2009, of which 16 have been opened. Capital expenditures, net of sale and leaseback proceeds, are still expected to range between $29 million and $31 million for fiscal 2009. The Company expects to finance these capital expenditures with cash from operations and does not expect to be drawn on its revolving credit facility as of March 31, 2009.

Jerry Throgmartin, Chairman and CEO of the Company, commented, "While we are very focused on operating our business efficiently and effectively in this challenging economic climate, we also continue to position ourselves to grow and capture market share. We will closely monitor our business and make prudent adjustments to our operating and expansion plans to drive shareholder value for the long-term."

Teleconference and Webcast
hhgregg will be conducting a conference call to discuss operating results for the three and six months ended September 30, 2008, on Thursday, November 6, 2008 at 9:00 a.m. (Eastern Time). Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto hhgregg's website at http://www.hhgregg.com/. The on-line replay will be available for a limited time immediately following the call. The call can also be accessed live over the phone by dialing (877) 681-3367. Callers should reference the hhgregg second quarter earnings call.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg™ and Fine Lines™. hhgregg currently operates 107 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Safe Harbor Statement
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of hhgregg, Inc. are forward-looking statements.

hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg's expectations are: competition in existing, adjacent and new metropolitan markets; changes in consumer preferences and demand for the Company's products; its ability to effectively manage and monitor its operations, costs and service quality; its reliance on a small number of suppliers; rapid inflation or deflation in core product prices; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on the Company's key management personnel and its ability to attract and retain qualified sale's personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; the effect of general and regional economic and employment conditions on its net sales; fluctuation in seasonal demand; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to locate suitable new store sites; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; the effect of a disruption at the Company's central distribution centers; changes in cost for print, radio and television advertising; and changes in trade regulations, currency fluctuations, the economy in general and prevailing interest rates.

Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the "Risk Factors" section in the Company's Form 10 - K filed June 3, 2008. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the time of this news release. Actual results may differ materially from anticipated results described in these forward looking statements. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

Contact: Andy Giesler, Director of Investor Relationsinvestorrelations@hhgregg.com(317) 848-8710












View more press releases at ir.hhgregg.com

Monday, October 27, 2008

hhgregg, Inc. Announces Conference Call to Discuss Second Quarter Operating Results

INDIANAPOLIS, Oct 27, 2008 (BUSINESS WIRE) -- hhgregg, Inc. (NYSE:HGG) today announced that it will be conducting a conference call to discuss its operating results for its second fiscal quarter ended September 30, 2008 on Thursday, November 6, 2008 at 9:00 a.m. Eastern Time.

Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto the Company's investor relations page at http://www.hhgregg.com/. The call can also be accessed over the phone by dialing (877) 681-3367. Callers should reference the hhgregg second quarter earnings call. A replay of the earnings call will be available on the Company's website through December 6, 2008.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 106 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Additional Information
All questions and inquiries for further information should be directed to Andy Giesler, Director of Investor Relations of hhgregg, Inc. He can be reached at (317) 848-8710 or investorrelations@hhgregg.com.

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com

Friday, October 3, 2008

hhgregg Continues Sponsorship of the All Pro Dad Father & Kids Experience

Retailer Demonstrates Commitment to Local Communities and Family Values

INDIANAPOLIS, Oct 03, 2008 (BUSINESS WIRE) -- Indianapolis-based appliance and electronics retailer, hhgregg (NYSE:HGG), today announced its continued corporate sponsorship of The All Pro Dad Father & Kids Experience. hhgregg has acted as a presenting sponsor for three consecutive years, demonstrating the retailer's continued commitment to helping the All Pro Dad program reach out to local communities and their families.

"Our partnership with All Pro Dad provides us with a unique opportunity to give back to our customers and the communities in which they live," said hhgregg Chairman and CEO, Jerry Throgmartin. "Relationship-building is a core value at hhgregg, and we are proud to be a partner in All Pro Dad's important mission to improve family relationships across the country."

hhgregg employees, along with area NFL teams, have already donated their time at several All Pro Dad Father & Kids Experience events so far this year, including a recent event in June at the Pro Football Hall of Fame and Fawcett Stadium in Canton, Ohio. Between now and Thanksgiving, hhgregg will sponsor five additional events with NFL teams in the following markets:

-- October 4, Cincinnati Bengals, Cincinnati
-- October 11, Indianapolis Colts, Indianapolis
-- October 25, Jacksonville Jaguars, Jacksonville
-- November 8, Carolina Panthers, Charlotte
-- November 15, Tennessee Titans, Nashville

"Through these events, hhgregg anticipates connecting with approximately 10,000 fathers and their children, helping All Pro Dad instill family values in each and every community," continued Throgmartin.

Founded in part by Indianapolis Colts coach Tony Dungy, the All Pro Dad program is run by parent non-profit organization Family First and aims to educate men on becoming better fathers. All Pro Dad sponsors "Father & Kids Experience" events around the nation, where fathers and their children rotate through football-themed stations, helping fathers gain key parenting tips while connecting with their children in a fun and interactive environment. In order to make the experience especially memorable, hhgregg sponsors a free photo booth opportunity for participants at each event.

CORPORATE OVERVIEW
hhgregg (NYSE: HGG) is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 102 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Friday, August 29, 2008

hhgregg Marks 100th Store Milestone

Growing Retailer Continues to Expand Nationally

INDIANAPOLIS, Aug 21, 2008 (BUSINESS WIRE) -- Indianapolis-based appliance and electronics leader, hhgregg (NYSE:HGG), today announced the company will mark the 100th store milestone with its grand opening of a new store in Mishawaka, Indiana.

"More than 50 years ago, hhgregg opened its very first storefront location in The Hoosier State, and today's milestone opening of our 100th store testifies to the continued momentum and tremendous growth of our business," said hhgregg Chairman and CEO, Jerry Throgmartin.

"We've doubled our store count in the last four years and successfully built an infrastructure that will accommodate additional stores as we continue to expand our presence across the nation."
The 100th store opening is indicative of hhgregg's disciplined and self-funded growth strategy, in which the retailer continues to successfully grow the business and compete effectively with national consumer electronics and appliance retail chains. Just this year, the company entered its ninth state with seven new stores in Florida. hhgregg is on track with its plans to open a total of 18-20 new stores in fiscal 2009.

"Our consultative sales force continues to represent a significant competitive advantage in a tough retail climate," said hhgregg President, Dennis May. "We continue to focus on ensuring that our stores deliver a truly unique customer purchase experience."

About hhgregg
hhgregg (NYSE: HGG) is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 100 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Wednesday, August 6, 2008

hhgregg Announces Operating Results

1st Quarter Highlights

-- Net sales increase 16.2% on strength of new store performance

-- Company reaffirms fiscal 2009 earnings guidance of $1.13 to$1.20 diluted net income per share

-- Company increases range of planned new store openings from15-17 to 18-20 for fiscal 2009-- 100th store opening planned for August in Mishawaka, Indiana

INDIANAPOLIS, Aug 06, 2008 (BUSINESS WIRE) -- hhgregg, Inc. (NYSE: HGG):

Operating Performance Summary
(dollars in thousands, except per share amounts)
--------------------
Three Months Ended
June 30,
--------------------
(unaudited) 2008 2007
---------- ---------
Net sales $295,415 $254,159
Net sales % increase 16.2% 25.0%
Comparable store sales % (decrease)/increase (1) (2.6)% 8.8%
Gross profit as % of net sales 30.6% 31.2%
SG&A as % of net sales 22.6% 22.2%
Net advertising expense as a % of net sales 4.9% 4.4%
Depreciation and amortization expense as a % of
net sales 1.3% 1.1%
Income from operations as a % of net sales 1.8% 3.6%
Net interest expense as a % of net sales 0.6% 1.4%
Loss related to early extinguishment of debt as
a % of net sales --% 0.2%
Net income $ 2,104 $ 2,873
Diluted net income per share $ 0.06 $ 0.10

(1) Comprised of net sales at stores in operation for at least 14 full
months, including remodeled and relocated stores, as well as net
sales for the Company's e-commerce site.

hhgregg, Inc. ("hhgregg" or "the Company") today reported net income of $2.1 million for the three months ended June 30, 2008, or diluted net income per share of $0.06, compared with net income of $2.9 million, or $0.10 per diluted share, for the comparable prior year period. The decrease in net income and diluted net income per share was primarily attributable to three factors:

-- Gross profit margin, expressed as gross profit as a percentage of net sales, declined 60 basis points versus last year largely driven by the anticipated reduction in appliance sales relative to our historical net sales mix. The appliance product category historically has generated higher gross profit margins than the Company's average, particularly during the first half of the fiscal year. While appliance gross profit margins exceeded the company average during the three months ended June 30, 2008, the appliance category accounted for 44% of total sales versus 47% in the comparable prior year period, negatively impacting the consolidated gross profit margin. Gross profit margin in the video category increased moderately over the comparable prior year period. A shift in sales mix within the other product category had a modest negative impact on the consolidated gross profit margin compared to the prior year as a decline in mattress sales and an increase in notebook computer sales were partially offset by an increase in furniture and accessories.

-- Net advertising expense as a percentage of net sales increased 59 basis points with a majority of the increase tied to launching new markets in Florida. hhgregg enters each new demographic market area with a target "share of voice" for the marketplace. The Company typically adds locations quickly in these demographic market areas to leverage its marketing investment. The Company plans to add six locations in its core Florida demographic market areas over the next two fiscal quarters ending December 31, 2008 which is expected to improve its net advertising ratio, measured as net advertising expense as a percentage of net sales, in those markets.

-- SG&A expense as a percentage of net sales increased 37 basis points primarily due to significant growth investments comprised of store pre-opening expenses associated with six new store openings and one relocation during the first fiscal quarter of this fiscal year versus two new store openings during the same quarter last year, as well as the opening of a new Central Distribution Center and creation of a divisional management team designed to support over 30 stores in central and northern Florida. These growth investments negatively impacted SG&A expense as a percentage of net sales by approximately 75 basis points, but were partially offset by effective cost controls over general and administrative expense and a reduction in bonus expense.

Dennis May, President and COO of the Company, commented, "We were pleased with our quarterly performance, with strong results in our video category and prudent and effective SG&A cost management, balancing the anticipated downturn in our core appliance business. We successfully opened our Florida distribution center and staffed our Florida management team and have been pleased with our initial new store results. We look forward to adding more stores in Florida this year, not only gaining a foothold in a market that has strong long-term potential but also leveraging our distribution and marketing investments in the short-term."

Net sales for the three months ended June 30, 2008 increased 16.2% over net sales for the comparable prior year period to $295.4 million. The increase in sales for the first quarter was primarily attributable to the addition of 18 stores during the past 12 months offset by a 2.6% decrease in comparable store sales.

Net sales mix and comparable store sales percentage changes by product category for the three months ended June 30, 2008 and 2007 were as follows:

Net Sales Mix Summary Comparable Store Sales Summary
--------------------- ------------------------------
2008 2007 2008 2007
---------- ---------- ---------------- -------------
Video 43% 39% 5.5% 9.5%
Appliances 44% 47% (9.7)% 6.9%
Other (1) 13% 14% (0.5)% 18.7%
---------- ---------- ---------------- -------------
Total 100% 100% (2.6)% 8.8%
========== ========== ================ =============

(1) Primarily consists of audio, personal electronics, mattresses,
notebook computers and furniture and accessories.

hhgregg's 2.6% comparable store sales decrease for the three months ended June 30, 2008 primarily reflected double-digit comparable store unit sales declines of entry-level and lower mid-price point major appliance products. High efficiency front-load laundry and refrigeration experienced modest comparable store unit increases and contributed to higher average selling prices for the appliances category for the first quarter of fiscal 2009. The video sales performance was fueled by triple-digit comparable store sales growth in large flat panel LCD televisions, outpacing the double-digit sales decline in projection and tube televisions. The comparable store sales decrease in the other product category was due to decreased sales of mattresses and personal electronics, partially offset by increased sales of notebook computers and furniture and accessories.

Net interest expense was $1.8 million for the first quarter of fiscal 2009 compared to $3.6 million for the comparable prior year period. The decrease in net interest expense was primarily attributable to the reduction in debt outstanding following the refinancing completed in July 2007.

Fiscal Year 2009 Guidance

The Company reaffirms its sales and earnings guidance for fiscal 2009. Comparable stores sales are expected to decline in the low single digits, net sales are expected to grow between 19% and 21% and diluted net income per share is anticipated to range between $1.13 and $1.20 for fiscal 2009. The Company has identified additional attractive real estate opportunities and now plans to open between 18 and 20 new stores during fiscal 2009 compared with prior guidance of 15 to 17 new stores. Accordingly, capital expenditures net of sale and leaseback proceeds are expected to range between $29 million and $31 million for fiscal 2009 compared with prior guidance of $28 million to $30 million.

While the Company does not provide specific projections for quarterly comparable store sales, it expects to see improvement in this metric during the second half of the fiscal year reflecting not only the less difficult year-over-year comparisons, but also the natural shift in the Company's balance of sale during the year from appliances in the spring and summer to video in the fall and winter. Likewise, the Company does not provide specific quarterly forecasts for diluted net income per share, but it expects similar difficult year-over-year comparisons during the second quarter not only due to the expected trends in comparable store sales, but also due to the incidence and concentration of pre-opening expenses associated with its front-loaded store opening plans for the year as well as the de-leveraging impact of the Company's third central distribution center in Florida.

Teleconference and Webcast
hhgregg will be conducting a conference call to discuss operating results for the three months ended June 30, 2008, on Wednesday, August 6, 2008 at 8:00 a.m. (Eastern Time). Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto hhgregg's website at http://www.hhgregg.com/. The on-line replay will be available for a limited time immediately following the call. The call can also be accessed live over the phone by dialing (877) 440-5796. Callers should reference the hhgregg first quarter earnings call.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(TM) and Fine Lines(TM). hhgregg currently operates 97 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Safe Harbor Statement
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of hhgregg, Inc. are forward-looking statements.

hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg's expectations are: competition in existing, adjacent and new metropolitan markets; changes in consumer preferences; its ability to effectively manage and monitor its operations, costs and service quality; its reliance on a small number of suppliers; rapid inflation or deflation in core product prices; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on the Company's key management personnel and its ability to attract and retain qualified sale's personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; the effect of general and regional economic and employment conditions on its net sales; fluctuation in seasonal demand; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to locate suitable new store sites; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; the effect of a disruption at the Company's central distribution centers; changes in cost for print, radio and television advertising; and changes in trade regulations, currency fluctuations and prevailing interest rates.
Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the "Risk Factors" section in the Company's Form 10 - K filed June 3, 2008. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)

Three Months Ended
-------------------------
June 30, June 30,
2008 2007
------------ ------------
(In thousands, except share and per share
data)
Net sales $ 295,415 $ 254,159
Cost of goods sold 204,961 174,801
------------ ------------
Gross profit 90,454 79,358
Selling, general and administrative expenses 66,660 56,405
Net advertising expense 14,598 11,057
Depreciation and amortization expense 3,872 2,828
------------ ------------
Income from operations 5,324 9,068
Other expense (income):
Interest expense 1,804 3,612
Interest income (4) (5)
Loss related to early extinguishment of
debt - 608
------------ ------------
Total other expense 1,800 4,215
------------ ------------
Income before income taxes 3,524 4,853
Income tax expense 1,420 1,980
------------ ------------
Net income $ 2,104 $ 2,873
============ ============
Basic net income per share $ 0.07 $ 0.10
Diluted net income per share $ 0.06 $ 0.10
Weighted average shares outstanding-Basic 32,301,019 28,491,600
Weighted average shares outstanding-Diluted 33,249,662 29,536,938

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(AS A PERCENTAGE OF NET SALES)
(UNAUDITED)

Three Months Ended
------------------------
June 30, June 30,
2008 2007
------------ -----------
Net sales 100.0% 100.0%
Cost of goods sold 69.4 68.8
------------ -----------
Gross profit 30.6 31.2
Selling, general and administrative expenses 22.6 22.2
Net advertising expense 4.9 4.4
Depreciation and amortization expense 1.3 1.1
------------ -----------
Income from operations 1.8 3.6
Other expense (income):
Interest expense 0.6 1.4
Interest income 0.0 (0.0)
Loss related to early extinguishment of
debt -- 0.2
------------ -----------
Total other expense 0.6 1.7
------------ -----------
Income before income taxes 1.2 1.9
Income tax expense 0.5 0.8
------------ -----------
Net income 0.7% 1.1%
============ ===========
Certain percentage amounts do not sum due to rounding

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008, MARCH 31, 2008, AND JUNE 30, 2007
(UNAUDITED)

June 30, 2008 March 31, 2008 June 30, 2007
------------- -------------- -------------
(In thousands, except share data)
Assets
Current assets:
Cash and cash
equivalents $ 2,055 $ 1,869 $ 1,328
Accounts receivable--
trade, less allowances
of $296, $450 and $255,
respectively 9,358 8,121 13,308
Accounts receivable--
other, less allowances
of $35, $35 and $26,
respectively 13,023 14,263 12,450
Merchandise inventories 169,491 133,368 120,914
Prepaid expenses and
other current assets 2,734 3,741 4,549
Deferred income taxes 2,615 2,129 1,653
------------- -------------- -------------
Total current assets 199,276 163,491 154,202
------------- -------------- -------------
Net property and
equipment 80,102 77,794 54,273
Deferred financing
costs, net 3,125 3,292 5,818
Deferred income taxes 84,927 85,012 85,463
Other 336 330 371
------------- -------------- -------------
Total long-term
assets 168,490 166,428 145,925
------------- -------------- -------------
Total assets $367,766 $329,919 $300,127
============= ============== =============
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 75,970 $ 80,533 $ 77,502
Line of credit 44,969 - 9,940
Current maturities of
long term debt 227 - -
Customer deposits 18,486 18,039 17,766
Accrued liabilities 31,587 36,799 34,173
------------- -------------- -------------
Total current
liabilities 171,239 135,371 139,381
------------- -------------- -------------
Long-term liabilities:
Long-term debt,
excluding current
maturities 92,381 92,608 129,597
Other long-term
liabilities 18,949 20,266 11,448
------------- -------------- -------------
Total long-term
liabilities 111,330 112,874 141,045
------------- -------------- -------------
Total liabilities 282,569 248,245 280,426
------------- -------------- -------------
Stockholders' equity:
Preferred stock, no par
value; 10,000,000
shares authorized; no
shares issued and
outstanding as of June
30, 2008, March 31,
2008, and June 30, 2007 - - -
Common stock, no par
value; 105,000,000
shares authorized;
32,329,271, 32,285,267
and 28,491,600 shares
issued and outstanding
as of June 30, 2008,
March 31, 2008 and June
30, 2007, respectively 160,022 159,149 114,421
Accumulated other
comprehensive loss (774) (1,292) -
Accumulated deficit (73,891) (75,995) (94,528)
------------- -------------- -------------
85,357 81,862 19,893
Note receivable for
common stock (160) (188) (192)
------------- -------------- -------------
Total stockholders'
equity 85,197 81,674 19,701
------------- -------------- -------------
Total liabilities
and stockholders'
equity $367,766 $329,919 $300,127
============= ============== =============

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(UNAUDITED)

Three Months Ended
---------------------------
June 30, 2008 June 30, 2007
------------- -------------
(In thousands)
Cash flows from operating activities:
Net income $ 2,104 $ 2,873
Adjustments to reconcile net income to
net cash (used in) provided by operating
activities:
Depreciation and amortization 3,872 2,828
Amortization of deferred financing
costs 167 316
Accretion of original issue discount - 138
Stock-based compensation 467 512
Excess tax benefits from stock based
compensation (110) -
Loss (gain) on sales of property and
equipment 67 (16)
Loss on early extinguishment of debt - 608
Deferred income taxes (637) 349
Changes in operating assets and
liabilities:
Accounts receivable--trade (1,237) (2,667)
Accounts receivable--other 1,240 (1,248)
Merchandise inventories (36,123) (7,312)
Prepaid expenses and other assets 237 (1,062)
Deposits 764 3,787
Accounts payable--vendors (12,840) 8,297
Customer deposits 447 808
Other accrued liabilities (5,212) (2,036)
Other long-term liabilities (909) (2,059)
------------- -------------
Net cash (used in) provided by
operating activities (47,703) 4,116
------------- -------------
Cash flows from investing activities:
Purchases of property and equipment (8,079) (6,969)
Proceeds from sale leaseback transactions 4,133 2,300
Deposit on future sale leaseback
transaction - 700
Proceeds from sales of property and
equipment 42 4
------------- -------------
Net cash used in investing
activities (3,904) (3,965)
------------- -------------
Cash flows from financing activities:
Payments received on notes receivable for
issuance of common stock 28 23
Proceeds from exercise of stock options 296 -
Excess tax benefits from stock based
compensation 110 -
Net increase (decrease) in bank
overdrafts 6,390 (4,768)
Net borrowings on line of credit 44,969 9,940
Payment related to early extinguishment
of debt - (5,516)
------------- -------------
Net cash provided by (used in)
financing activities 51,793 (321)
------------- -------------
Net increase (decrease) in cash and
cash equivalents 186 (170)
Cash and cash equivalents
Beginning of period 1,869 1,498
------------- -------------
End of period $ 2,055 $ 1,328
============= =============
Supplemental disclosure of cash flow
information:
Interest paid $ 1,729 $ 312
Income taxes paid $ 2,051 $ 4,781

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com

Tuesday, June 24, 2008

hhgregg, Inc. Announces Conference Call to Discuss First Quarter Operating Results

INDIANAPOLIS, Jul 24, 2008 (BUSINESS WIRE) -- hhgregg, Inc.(NYSE:HGG) today announced that it will be conducting a conference call to discuss its operating results for its first fiscal quarter ended June 30, 2008 on Wednesday, August 6, 2008 at 8:00 a.m. Eastern Time.

Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto the Company's investor relations page at http://www.hhgregg.com/. The call can also be accessed over the phone by dialing (877) 440-5796. Callers should reference the hhgregg first quarter earnings call. A replay of the earnings call will be available on the Company's website through September 6, 2008.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 97 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Additional Information
All questions and inquiries for further information should be directed to Andy Giesler, Director of Investor Relations of hhgregg, Inc. He can be reached at (317) 848-8710 or investorrelations@hhgregg.com.

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com

Tuesday, June 3, 2008

hhgregg Announces Operating Results

hhgregg Announces Operating Results

Fourth Quarter Highlights

-- Comparable store sales increase 0.8% on top of 13.0% increasein prior year period
-- Net sales increase 14.4% as Company opens 91st store
-- Diluted net income per share increases 10.7% to $0.31Fiscal Year Highlights
-- Comparable store sales increase 4.8% on top of 5.5% increasein fiscal 2007
-- Net sales increase 18.6% to $1.3 billion
-- Pro-forma diluted net income per share increases 42.2% to$1.07

INDIANAPOLIS, Jun 03, 2008 (BUSINESS WIRE)
-- hhgregg, Inc. (NYSE: HGG):

Operating Performance Summary
(dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------- -----------------------
(unaudited) 2008 2007 2008 2007
--------- --------- ----------- -----------
Net sales $324,194 $283,361 $1,256,666 $1,059,428
Net sales % increase 14.4% 28.0% 18.6% 17.7%
Comparable store sales %
increase (1) 0.8% 13.0% 4.8% 5.5%
Gross profit as % of net
sales 31.5% 32.0% 30.9% 31.0%
SG&A as % of net sales 21.5% 22.0% 21.3% 21.6%
Net advertising expense as
a % of net sales 4.0% 3.5% 4.3% 4.2%
Income from operations as
a % of net sales 6.0% 6.6% 5.4% 5.1%
Net interest expense as a
% of net sales 0.6% 1.3% 0.8% 1.6%
Loss related to early
extinguishment of debt as
a % of net sales 0.1% 0.7% 1.7% 0.1%
Net income $ 10,323 $ 8,343 $ 21,406 $ 21,358
Diluted net income per
share $ 0.31 $ 0.28 $ 0.67 $ 0.73
Diluted net income per
share, as adjusted (2) $ 0.32 $ 0.32 $ 1.07 $ 0.76
--------------------------
(1) Comprised of net sales at stores in operation for at least 14 full
months, including remodeled and relocated stores, as well as net
sales for the Company's e-commerce site.

(2) Adjusted to exclude the loss on the early extinguishment of debt
primarily from the debt refinancing completed in conjunction with the
initial public offering in July 2007.
See the attached reconciliation of non-GAAP measures.

hhgregg, Inc. ("hhgregg" or "the Company") today reported net income of $10.3 million for the three months ended March 31, 2008, or diluted net income per share of $0.31, compared with net income of $8.3 million, or $0.28 per diluted share, for the comparable prior year period. Net income for the twelve months ended March 31, 2008, adjusted to exclude the loss from the early extinguishment of debt, was $34.6 million, or $1.07 per diluted share, compared to adjusted net income of $22.2 million, or $0.76 per diluted share for the twelve months ended March 31, 2007. Including the impact of the loss from the early extinguishment of debt, net income for the twelve months ended March 31, 2008 was $21.4 million, or $0.67 per diluted share compared to $21.4 million, or $0.73 per diluted share for the twelve months ended March 31, 2007. The improvement in year-to-date earnings, excluding the loss on the early extinguishment of debt, reflects strong comparable store sales growth, improved leverage of SG&A expenses and reduced interest expense due to debt reduction during the past twelve months.

Dennis May, President and Chief Operating Officer of the Company, commented, "Despite the current economic environment and industry trends, we were able to gain market share by delivering a 0.8% same store sales increase for the quarter ended March 31, 2008, on top of the previous year increase of 13.0%. I am very proud of our associates who have done a tremendous job delivering a superior customer purchase experience."

Net sales for the three months ended March 31, 2008 increased 14.4% compared to the comparable prior year period to $324.2 million. Net sales for the twelve months ended March 31, 2008 increased 18.6% over the prior year to $1.3 billion. The increase in sales for the fourth quarter and the twelve months ended March 31, 2008 was primarily attributable to the addition of 14 stores during the past 12 months coupled with a 0.8% and a 4.8% increase in comparable store sales, respectively.

Net sales mix and comparable store sales percentage changes by product category for the three and twelve months ended March 31, 2008 and 2007 were as follows:

Net Sales Mix Summary Comparable Store Sales Summary
-------------------------- ------------------------------
Three Months Twelve Months Three Months Twelve Months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
------------ ------------- ---------------- -------------
2008 2007 2008 2007 2008 2007 2008 2007
------- ---- -------- ---- ---------- ----- ------ ------
Video 50% 49% 46% 47% 2.9% 17.2% 4.7% 9.3%
Appliances 37% 39% 39% 40% (4.9)% 9.3% 1.6% 3.5%
Other (1) 13% 12% 15% 13% 10.8% 8.8% 15.9% (0.6)%
------- ---- -------- ---- ---------- ----- ------ ------
Total 100% 100% 100% 100% 0.8% 13.0% 4.8% 5.5%
======= ==== ======== ==== ========== ===== ====== ======
------------
(1) Primarily consists of audio, personal electronics, mattresses,
computer notebooks and furniture and accessories.

Fourth Quarter Operating Results
hhgregg's 0.8% comparable store sales increase for the three months ended March 31, 2008 primarily reflects a higher average selling price driven by increases in sales of higher-priced items in video and major appliance products. The video sales performance was fueled by double-digit LCD flat panel television sales growth, particularly in larger screen sizes, outpacing the double-digit sales decline in projection and tube televisions. Appliance sales performance declined at entry-and mid-level price points, offset by continued double-digit increases in high-efficiency front load laundry and three-door refrigeration. The comparable store sales increase in the other product category was due to increased sales of notebook computers, personal electronics and furniture and accessories.

Gross profit rate decreased by 0.5% to 31.5% for the three months ended March 31, 2008 compared to the three months ended March 31, 2007. The decrease in gross profit, as a percentage of sales, was attributable to margin declines across all major categories.
SG&A expenses decreased by 0.5%, as a percentage of sales, from 22.0% for the three months ended March 31, 2007 to 21.5% for the three months ended March 31, 2008. The decrease in SG&A rate for the three months ended March 31, 2008 was due primarily to improvements in salaries and wages and the leveraging effect of our sales growth across many expense categories, partially offset by increases in rent, professional fees, and amortization and depreciation expense.

Net advertising expense, as a percentage of sales, increased 0.5% to 4.0% for the three months ended March 31, 2008 from 3.5% for the three months ended March 31, 2007. The increase was attributable to heavier gross spending associated with more grand openings and increased advertising weightings compared to the prior year.

Other expense decreased to $2.2 million for the three months ended March 31, 2008 from $5.5 million for the three months ended March 31, 2007. This decrease was primarily comprised of a $1.7 million reduction in net interest expense on significantly lower debt levels, coupled with a $1.6 million reduction in the loss on early extinguishment of debt related to debt reductions in fiscal 2008 and 2007. The Company paid down $10.0 million of senior term loans at its option during the fourth quarter of fiscal 2008 and repurchased $28.8 million of its 9% senior notes on the open market during the fourth quarter of fiscal 2007.

Full Year Operating Results
hhgregg's 4.8% comparable store sales increase for fiscal 2008 primarily reflects a higher average selling price driven by continued increases in sales of higher-priced items in video, major appliances and mattresses. The video sales performance was fueled by double-digit LCD flat panel television sales growth, particularly in larger screen sizes, outpacing the double-digit sales decline in projection and tube televisions. Our appliance product category growth reflected strong demand for high-efficiency major appliances, particularly in the dishwasher, cooking, laundry and refrigeration sub-categories. The comparable store sales increase in the other product category was primarily due to growth in notebook computers, mattresses, personal electronics and furniture and accessories.

Gross profit rate remained reasonably consistent for fiscal 2008 compared to fiscal 2007.
SG&A expenses, as a percentage of sales, decreased by 0.3%, to 21.3% for fiscal 2008. The decrease in the SG&A rate for fiscal 2008 was primarily attributable to the leveraging effect of sales growth across many expense categories.

Net advertising expense, as a percentage of sales, increased by 0.1% to 4.3% for fiscal 2008. The increase in net advertising expense was primarily due to an increase in gross advertising spending primarily attributable to an increase in promotional activity during fiscal 2008.
Other expense increased $13.9 million for fiscal 2008 to $32.5 million. This increase was largely due to a loss on early extinguishment of debt of $21.9 million for fiscal 2008 primarily arising from the debt refinancing completed in July 2007. This increase was partially offset by a decrease of approximately $6.6 million in net interest expense due to a reduction in debt outstanding following the refinancing.

Income tax expense increased to $14.4 million for fiscal 2008 compared to $13.8 million for fiscal 2007. This increase was the result of an increase in income before income taxes in the current year compared to the prior year. The increase in the Company's effective income tax rate from 39.3% in fiscal 2007 to 40.2% in fiscal 2008 was the result of a reduction in state income tax credits generated during fiscal 2008 as compared to fiscal 2007.

Fiscal Year 2009 Guidance
As the Company considers the current economic environment and assesses current industry business trends, it believes that it is prudent to plan for soft consumer demand for the foreseeable future. Accordingly, the Company is projecting diluted net income per share of $1.13 to $1.20, or an average increase of approximately 9% as compared to $1.07 for fiscal 2008, as adjusted to exclude a $0.40 loss on the early extinguishment of debt. This earnings projection reflects anticipated net sales growth of 19% to 21% driven largely by 15 to 17 new store openings with the majority scheduled to occur during the first half of the fiscal year. The Company currently estimates a comparable store sales decline in the low single digits for the fiscal year. Capital expenditures for fiscal 2009, net of sale and leaseback proceeds, are expected to range between $28 million and $30 million.

While the Company does not provide specific projections for quarterly comparable store sales, it expects to see continued improvement in this metric as the year progresses reflecting not only the more difficult year-over-year comparisons during the first half, but also the natural shift in our balance of sale during the year from appliances in the spring and summer to video in the fall and winter. Likewise, the Company does not provide specific quarterly forecasts for diluted net income per share, but it expects similar difficult year-over-year comparisons during the first half not only due to the expected trends in comparable store sales, but also due to the incidence and concentration of pre-opening expenses associated with its front-loaded store opening plans for the year.

Teleconference and Webcast
hhgregg will be conducting a conference call to discuss operating results for the three and twelve months ended March 31, 2008, on Tuesday, June 3, 2008 at 9:00 a.m. (Eastern Time). Interested investors and other parties may listen to a simultaneous web cast of the conference call by logging onto hhgregg's website at www.hhgregg.com. The on-line replay will be available for a limited time immediately following the call. The call can also be accessed live over the phone by dialing (877)340-7913. Callers should reference the hhgregg earnings call.

Non-GAAP to GAAP Reconciliation
Attached is a reconciliation of non-GAAP measures used in this earnings release including net income to net income, as adjusted, and diluted net income per share to diluted net income per share, as adjusted. Additional non-GAAP financial measures to be discussed in the hhgregg investor earnings call, including net income, as adjusted, diluted net income per share, as adjusted, and adjusted EBITDA (earnings before net interest expense, income tax expense, depreciation, amortization and loss on debt extinguishment) can be found at www.hhgregg.com on the investor relations page.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(TM) and Fine Lines(TM). hhgregg currently operates 97 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Safe Harbor Statement
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of hhgregg, Inc. are forward-looking statements.

hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg's expectations are: competition in existing, adjacent and new metropolitan markets; changes in consumer preferences; its ability to effectively manage and monitor its operations, costs and service quality; its reliance on a small number of suppliers; rapid inflation or deflation in core product prices; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on the Company's key management personnel and its ability to attract and retain qualified sale's personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; the effect of general and regional economic and employment conditions on its net sales; fluctuation in seasonal demand; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to locate suitable new store sites; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; the effect of a disruption at the Company's central distribution centers; changes in cost for print, radio and television advertising; and changes in trade regulations, currency fluctuations and prevailing interest rates.
Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the "Risk Factors" section in the Company's Form 10 - K filed June 3, 2008. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)

Three Months Ended Twelve Months Ended
------------------------- -------------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
(In thousands, except share data)
Net sales $ 324,194 $ 283,361 $ 1,256,666 $ 1,059,428
Cost of goods sold 222,092 192,562 867,733 730,696
------------ ------------ ------------ ------------
Gross profit 102,102 90,799 388,933 328,732
Selling, general
and
administrative
expenses 69,755 60,394 267,091 228,920
Net advertising
expense 13,020 9,794 53,525 43,996
Restructuring and
asset impairment
charges - 1,997 - 1,997
------------ ------------ ------------ ------------
Income from
operations 19,327 18,614 68,317 53,819
------------ ------------ ------------ ------------
Other expense
(income):
Interest
expense 1,972 3,840 10,706 17,464
Interest income (43) (177) (88) (243)
Loss related to
early
extinguishment
of debt 235 1,843 21,930 1,403
------------ ------------ ------------ ------------
Total other
expense 2,164 5,506 32,548 18,624
------------ ------------ ------------ ------------
Income before
income taxes 17,163 13,108 35,769 35,195
Income tax expense 6,840 4,765 14,363 13,837
------------ ------------ ------------ ------------
Net income $ 10,323 $ 8,343 $ 21,406 $ 21,358
============ ============ ============ ============
Basic net income
per share $ 0.32 $ 0.29 $ 0.69 $ 0.75
Diluted net income
per share $ 0.31 $ 0.28 $ 0.67 $ 0.73
Weighted average
shares
outstanding--
Basic 32,264,992 28,491,600 31,130,680 28,496,728
Weighted average
shares
outstanding--
Diluted 33,135,531 29,553,678 32,188,984 29,400,378

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(AS A PERCENTAGE OF NET SALES)
(UNAUDITED)

Three Months Ended Twelve Months Ended
------------------- -------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 68.5 68.0 69.1 69.0
--------- --------- --------- ---------
Gross profit 31.5 32.0 30.9 31.0
Selling, general and
administrative expenses 21.5 21.3 21.3 21.6
Net advertising expense 4.0 3.5 4.3 4.2
Restructuring and asset
impairment charges - 0.7 - 0.2
--------- --------- --------- ---------
Income from operations 6.0 6.6 5.4 5.1
--------- --------- --------- ---------
Other expense (income):
Interest expense 0.6 1.4 0.9 1.6
Interest income - (0.1) - -
Loss related to early
extinguishment of debt 0.1 0.7 1.7 0.1
--------- --------- --------- ---------
Total other expense 0.7 1.9 2.6 1.8
--------- --------- --------- ---------
Income before income taxes 5.3 4.6 2.8 3.3
Income tax expense 2.1 1.7 1.1 1.3
--------- --------- --------- ---------
Net income 3.2% 2.9% 1.7% 2.0%
========= ========= ========= =========
Certain percentage amounts do not sum due to rounding

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2008 AND 2007
(UNAUDITED)

2008 2007
---------------- ----------------
(In thousands, except share data)
Assets
Current assets:
Cash and cash equivalents $ 1,869 $ 1,498
Accounts receivable--trade, less
allowances of $450 and $409,
respectively 8,121 10,641
Accounts receivable--other, less
allowances of $35 and $16,
respectively 14,263 11,203
Merchandise inventories 133,368 113,602
Prepaid expenses and other
current assets 3,741 7,239
Deferred income taxes 2,129 1,574
---------------- ----------------
Total current assets 163,491 145,757
---------------- ----------------
Net property and equipment 77,794 52,129
Deferred financing costs, net 3,292 6,342
Deferred income taxes 85,012 85,891
Other 330 406
---------------- ----------------
Total long-term assets 166,428 144,768
---------------- ----------------
Total assets $ 329,919 $ 290,525
================ ================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 80,533 $ 73,973
Customer deposits 18,039 16,958
Accrued liabilities 36,799 36,325
---------------- ----------------
Total current liabilities 135,371 127,256
---------------- ----------------
Long-term liabilities:
Long-term debt 92,608 134,459
Other long-term liabilities 20,266 12,517
---------------- ----------------
Total long-term liabilities 112,874 146,976
---------------- ----------------
Total liabilities 248,245 274,232
---------------- ----------------
Stockholders' equity:
Preferred stock, no par value;
10,000,000 shares authorized; no
shares issued and outstanding as
of March 31, 2008 and 2007 - -
Common stock, no par value;
105,000,000 shares authorized;
32,285,267 and 28,491,600 shares
issued and outstanding as of
March 31, 2008 and 2007,
respectively 159,149 113,909
Accumulated other comprehensive
loss (1,292) -
Accumulated deficit (75,995) (97,401)
---------------- ----------------
81,862 16,508
Note receivable for common
stock (188) (215)
---------------- ----------------
Total stockholders' equity 81,674 16,293
---------------- ----------------
Total liabilities and
stockholders' equity $ 329,919 $ 290,525
================ ================

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 2008 AND 2007
(UNAUDITED)

2008 2007
---------- ---------
(In thousands)
Cash flows from operating activities:
Net income $ 21,406 $ 21,358
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 12,605 11,663
Amortization of deferred financing costs 843 1,507
Accretion of original issue discount 188 512
Stock-based compensation 1,706 190
Loss on sales of property and equipment 94 85
Loss on early extinguishment of debt 21,930 1,403
Deferred income taxes 1,185 10,617
Restructuring and asset impairment charges - 1,997
Changes in operating assets and
liabilities:
Accounts receivable--trade 2,520 (3,282)
Accounts receivable--other (104) (2,429)
Merchandise inventories (19,766) (13,378)
Prepaid expenses and other assets 262 2,424
Deposits 3,312 (2,069)
Accounts payable--third parties - (3,319)
Accounts payable--vendors 20,797 13,630
Deferred revenue on extended maintenance
agreements 143 24
Customer deposits 1,081 2,046
Other accrued liabilities 458 4,304
Other long-term liabilities (1,021) 3,375
---------- ---------
Net cash provided by operating
activities 67,639 50,658
---------- ---------
Cash flows from investing activities:
Purchases of property and equipment (42,175) (19,492)
Proceeds from sale leaseback transactions 4,402 6,433
Deposit on future sale leaseback transaction 2,858 650
Acquisition of Builder Appliance Supply, Inc. - (2,871)
Proceeds from sales of property and equipment 85 245
---------- ---------
Net cash used in investing activities (34,830) (15,035)
---------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock 48,750 -
Transaction costs for stock issuance (5,513) -
Repurchase of stock previously issued - (105)
Payments received on notes receivable for
issuance of common stock 27 4
Proceeds from exercise of stock options 297 -
Net (decrease) increase in bank overdrafts (14,237) 7,401
Payment on notes payable (750) -
Payment of financing costs (2,930) -
Proceeds from issuance of term loan 100,000 -
Payment for early debt extinguishment (158,082) (43,726)
---------- ---------
Net cash provided by (used in)
financing activities (32,438) (36,426)
---------- ---------
Net increase (decrease) in cash and
cash equivalents 371 (803)
Cash and cash equivalents
Beginning of year 1,498 2,301
---------- ---------
End of year $ 1,869 $ 1,498
========== =========

Supplemental disclosure of cash flow information:
Interest paid 10,960 16,221
Income taxes paid 17,171 97

HHGREGG, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF NET INCOME, AS ADJUSTED AND
DILUTED NET INCOME PER SHARE, AS ADJUSTED
(UNAUDITED)

Three Months Ended Twelve Months Ended
March 31, March 31,
------------------------- -------------------------
(Amounts in 2008 2007 2008 2007
thousands, except
share data)
------------ ------------ ------------ ------------
Net income as
reported $ 10,323 $ 8,343 $ 21,406 $ 21,358
Transactional
Adjustments:
Loss related to
early
extinguishment
of debt 235 1,843 21,930 1,403
Tax impact of
effect of
early
extinguishment
of debt (1) (94) (737) (8,772) (561)
------------ ------------ ------------ ------------
Net income, as
adjusted $ 10,464 $ 9,449 $ 34,564 $ 22,200
Weighted average
shares
outstanding -
Diluted 33,135,531 29,553,678 32,188,984 29,400,378
Diluted net income
per share $ 0.31 $ 0.28 $ 0.67 $ 0.73
Diluted net income
per share, as
adjusted $ 0.32 $ 0.32 $ 1.07 $ 0.76
------------------

(1) Computed using a blended statutory rate of 40%.

SOURCE: hhgregg, Inc.

Wednesday, May 28, 2008

hhgregg, Inc. Announces Conference Call to Discuss Fourth Quarter Operating Results

INDIANAPOLIS, May 28, 2008 (BUSINESS WIRE) -- hhgregg, Inc.(NYSE:HGG) today announced that it will be conducting a conference call to discuss its operating results for its fourth fiscal quarter ended March 31, 2008 on Tuesday, June 3, 2008 at 9:00 a.m. Eastern Time.

Interested investors and other parties may listen to a simultaneous webcast of the conference call by logging onto the Company's investor relations page at http://www.hhgregg.com/. The call can also be accessed over the phone by dialing (877)340-7913. Callers should reference the hhgregg fourth quarter earnings call. A replay of the earnings call will be available on the Company's website through July 3, 2008.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 96 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Additional Information
All questions and inquiries for further information should be directed to Andy Giesler, Director of Investor Relations of hhgregg, Inc. He can be reached at (317) 848-8710 or investorrelations@hhgregg.com.

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com

Thursday, March 27, 2008

Growing Electronics Retailer hhgregg Enters Florida Market

Chain-Wide Grand Opening Celebration Marks Expansion into Ninth State

INDIANAPOLIS, Mar 27, 2008 (BUSINESS WIRE) -- Indianapolis-based appliance and electronics leader, hhgregg (NYSE:HGG), today announced its official entrance into the Florida market. With two new Florida locations opening this afternoon in Jacksonville and Daytona Beach, hhgregg now operates stores in nine different states. A chain-wide grand opening celebration and sale will be held March 27-29, with festivities to observe its launch into Florida.

"Our expansion into Florida demonstrates hhgregg's continued strong and controlled growth strategy of breaking into new markets with multiple locations, as we'll continue to open additional retail locations across the Sunshine State," said hhgregg Chairman and CEO, Jerry Throgmartin. "We look forward to serving and exceeding the needs of our Florida patrons by providing a superior customer purchase experience through our expert sales associates, new store designs, competitive prices and convenient delivery services."

The growing retailer's new Jacksonville and Daytona Beach stores represent its 90th and 91st locations, respectively.

Renowned for its experienced sales teams, hhgregg associates undergo a rigorous training process to help the customer make the most informed purchase decision possible.

"For 50 years, hhgregg's distinction in the marketplace has always been to ensure our customers have the most information possible in advance of their purchase decisions," said hhgregg President, Dennis May. "We pride ourselves on having the best educated sales force in the business."

CORPORATE OVERVIEW
hhgregg (NYSE:HGG) is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 91 stores in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Wednesday, March 5, 2008

hhgregg, Inc. Management to Present at Bank of America Consumer Conference on March 12th

INDIANAPOLIS, Mar 05, 2008 (BUSINESS WIRE) -- hhgregg, Inc. (NYSE:HGG) today announced that members of management will participate in Bank of America's 2008 Consumer Conference on Wednesday, March 12th at 8:00 a.m. Eastern Time.

The presentation and slides will be webcast and can be accessed live or as an archived replay from the link on the hhgregg Investor Relations website at http://ir.hhgregg.com/events.cfm. The archived event will be available through March 28, 2008.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 88 stores in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com

Friday, February 15, 2008

Countdown to Digital: hhgregg Announces Availability of Digital Converter Boxes

INDIANAPOLIS, Feb 15, 2008 (BUSINESS WIRE) -- hhgregg (NYSE:HGG) announced today that in preparation for the digital broadcast transition it has begun stocking and selling coupon-eligible DTV (digital television) converter boxes in all of the company's stores. Consumers can redeem DTV converter box coupons provided by the National Telecommunications and Information Administration (NTIA) and receive $40 toward the purchase price.

hhgregg is committed to helping educate consumers as the countdown to digital draws closer. hhgregg has partnered with local television stations across the Midwest and Southeast where its stores are located to help consumers understand the impact that is expected from the transition. Additionally, consumers are encouraged to go and speak with their local hhgregg store sales associates regarding any questions that they might have regarding the transition and the need for a digital converter box. To offer easy access to information, hhgregg has also added a new section to its website, http://dtv.hhgregg.com/, that offers facts and insights about the transition, including a blog and FAQ sections.

hhgregg has also provided today answers to top questions regarding the digital broadcast transition that will go into effect next year.

What is the FCC digital tuner mandate?
At midnight on February 17, 2009, all full-power television stations in the United States will stop broadcasting in analog and switch to 100% digital broadcasting. Digital broadcasting promises to provide a clearer picture and more programming options and will free up airwaves for use by emergency responders.

How can I ensure I don't lose my ability to enjoy television programming?
A TV connected to cable, satellite or other pay TV service does not require a TV converter box from this program.

Consumers that receive their signal through an antenna have a variety of options to ensure they are able to view digital broadcasting. Options to explore include:

-- Purchase a digital-to-analog converter box that plugs in to an existing television. Coupon-eligible DTV converter boxes are available at all hhgregg locations. The retail price of the converter box will be $49.99.

-- Connect to cable, satellite or other pay service.

-- Upgrade to a new DTV. A digital-ready TV lets you receive a digital signal without a converter box. All TVs now sold at hhgregg have built-in digital tuners.

What does the digital converter box do?
The DTV converter box changes over-the-air broadcast signals to a readable analog format for TVs that rely solely on over-the-air broadcasts for content as opposed to receiving programming through a cable or satellite subscription.

Where can I go to apply for a coupon?
The $40 coupon can be applied for online at http://www.dtv2009.gov/ or by calling the Coupon Program 24-hour hotline 1-888-DTV-2009 (1-888-388-2009). Hearing-impaired consumers can use the Coupon Program's TTY service by calling: 1-877-530-2634 (English/TTY) or 1-866-495-1161 (Spanish/TTY).

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 85 stores in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

SOURCE: hhgregg

View more press releases at ir.hhgregg.com

Thursday, February 14, 2008

hhgregg Announces Third Quarter Results

Third Quarter Highlights

-- Comparable store sales increase 3.0%

-- Net sales increase 16.5% as Company opens 85th Store

-- Diluted net income per share increases 21.6% to $0.45

-- Company expects fiscal year earnings to approach the top ofits guidance range of $0.95 to $1.03

INDIANAPOLIS, Feb 14, 2008 (BUSINESS WIRE) -- hhgregg, Inc. (NYSE: HGG):

Operating Performance Summary
(dollars in thousands, except per share amounts)
Three Months Ended Nine Months Ended

December 31, December 31,
------------------- --------------------
(unaudited) 2007 2006 2007 2006
--------- --------- --------- ----------
Net sales $390,416 $335,101 $932,472 $776,067
Net sales % gain 16.5% 19.2% 20.2% 14.3%
Comparable store sales % gain
(1) 3.0% 5.6% 6.3% 2.9%
Gross profit as % of net sales 30.5% 29.7% 30.8% 30.7%
SG&A as % of net sales 19.0% 18.7% 21.2% 21.7%
Net advertising expense as a %
of net sales 4.3% 4.2% 4.3% 4.4%
Income from operations as a %
of net sales 7.2% 6.8% 5.3% 4.5%
Net interest expense as a % of
net sales 0.7% 1.3% 0.9% 1.7%
Loss (gain) related to early
extinguishment of debt as a %
of net sales 0.0% 0.0% 2.3% (0.1%)
Net income $15,102 $10,866 $11,083 $13,015
Diluted net income per share $0.45 $0.37 $0.35 $0.45
Diluted net income per share,
as adjusted(2) $0.45 $0.37 $0.76 $0.44
------------------------------

(1) Comprised of net sales at stores in operation for at least 14
full months, including remodeled and relocated stores, as well as net
sales for the Company's e-commerce site.

(2) Adjusted to exclude the loss on the early extinguishment of debt
primarily from the debt refinancing completed in conjunction with the
initial public offering in July 2007. See the attached
reconciliation of non-GAAP measures.

hhgregg, Inc. ("hhgregg" or "the Company") today reported net income of $15.1 million for the three months ended December 31, 2007, or diluted net income per share of $0.45, compared with net income of $10.9 million, or $0.37 per diluted share, for the comparable prior year period. Net income for the nine months ended December 31, 2007, adjusted to exclude the loss from the early extinguishment of debt was $24.1 million, or $0.76 per diluted share, compared to net income of $13.0 million, or $0.45 per diluted share, for the nine months ended December 31, 2006. Including the impact of the loss from the early extinguishment of debt, net income for the nine months ended December 31, 2007 was $11.1 million, or $0.35 per diluted share. The improvement in year-to-date earnings, excluding the loss on the early extinguishment of debt, reflects strong comparable store sales growth, gross margin improvement, improved leverage of SG&A expenses and reduced interest expense due to debt reduction during the past twelve months.

Jerry Throgmartin, Chairman and Chief Executive Officer of the Company, commented "Our sales and margin performance was strong in all key merchandise categories and flowed through well to our bottom line. We believe that our results underscored our competitive strengths and unique positioning within our sector. During the competitive holiday season, we remained focused on providing an excellent value proposition, while differentiating ourselves through a superior customer purchase experience led by our consultative sales force."

Net sales for the three months ended December 31, 2007 increased 16.5% to $390.4 million from $335.1 million for the three months ended December 31, 2006. Net sales for the nine months ended December 31, 2007 increased 20.2% to $932.5 million compared to $776.1 million for the comparable prior year period. The increase in sales for the third quarter and the nine months ended December 31, 2007 was primarily attributable to the addition of eleven stores during the past 12 months coupled with a 3.0% and a 6.3% increase in comparable store sales, respectively.

Net sales mix and comparable store sales percentage changes by product category for the three and nine months ended December 31, 2007 and 2006 were as follows:

Net Sales Mix Summary
------------------------------------
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Video 51% 52% 45% 45%
Appliances 31% 33% 40% 41%
Other (1) 18% 15% 15% 14%
--------- -------- -------- --------
Total 100% 100% 100% 100%
========= ======== ======== ========

Comparable Store Sales Summary
------------------------------------
Three Months Ended Nine Months Ended
December 31, December 31,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Video 2.2% 10.7% 5.4% 6.3%
Appliances (0.7)% 2.7% 3.9% 1.6%
Other (1) 13.3% (3.6)% 17.5% (3.3)%
--------- -------- -------- --------
Total 3.0% 5.6% 6.3% 2.9%
========= ======== ======== ========
-------------------------------------------------------
(1) Primarily consists of audio, personal electronics, mattresses,
computer notebooks and furniture and accessories.

Third Quarter Operating Results
hhgregg's 3.0% comparable store sales increase for the three months ended December 31, 2007 primarily reflects a higher average selling price driven by increases in sales of higher-ticket items in video, major appliances and mattresses. The video sales performance was fueled by double-digit LCD flat panel television sales growth, particularly in larger screen sizes, outpacing the double-digit sales decline in projection and tube televisions. Appliance sales performance declined at entry-and mid-level price points, offset by continued double digit increases in high-efficiency front load laundry and three-door refrigeration. The comparable store sales increase in the other product category was due to improvements in all sub-categories including computer notebooks, mattresses, personal electronics and furniture and accessories.

Gross profit rate increased by 0.8% to 30.5% for the three months ended December 31, 2007 compared to the three months ended December 31, 2006. The increase in gross profit, as a percentage of sales, was attributable to margin improvement across all major categories.
SG&A expenses increased by 0.3%, as a percentage of sales, from 18.7% for the three months ended December 31, 2006 to 19.0% for the three months ended December 31, 2007. The increase in SG&A rate for the three months ended December 31, 2007 was due to increased costs of training and promotional financing programs for our third-party private label credit card partially offset by the leveraging effect of the sales growth across many expense categories including payroll.

Net advertising expense, as a percentage of sales, increased 0.1% to 4.3% for the three months ended December 31, 2007 from 4.2% for the three months ended December 31, 2006. The increase was primarily attributable to a heavier holiday promotions campaign.

Other expense decreased to $2.6 million for the three months ended December 31, 2007 from $4.3 million for the three months ended December 31, 2006. This decrease was primarily attributable to a decrease of approximately $1.8 million in net interest expense due to a reduction in debt as a result of the refinancing.

Year-to-Date Operating Results
The 6.3% comparable store sales increase for the nine months ended December 31, 2007 primarily reflects a higher average selling price driven by continued increases in sales of higher-ticket items in video, major appliances and mattresses. The video sales performance was fueled by double-digit LCD flat panel television sales growth, particularly in larger screen sizes, outpacing the double-digit sales decline in projection and tube televisions. The appliance product category growth reflected strong demand for high-efficiency major appliances, particularly in the dishwasher, cooking, laundry and refrigeration sub-categories. The comparable store sales increase in the other product category was primarily due to growth in computer notebooks, mattresses, personal electronics and furniture and accessories

Gross profit, as a percentage of sales, increased by 0.1% to 30.8% for the nine months ended December 31, 2007 from 30.7% for the nine months ended December 31, 2006. This increase was attributable to margin improvement throughout all major categories.

SG&A expenses decreased by 0.5%, as a percentage of sales, from 21.7% for the nine months ended December 31, 2006 to 21.2% for the nine months ended December 31, 2007. The decrease in SG&A rate for the nine months ended December 31, 2007 was primarily attributable to the leveraging effect of the sales growth across many expense categories.

Net advertising expense, as a percentage of sales, decreased 0.1% to 4.3% for the nine months ended December 31, 2007 from 4.4% for the nine months ended December 31, 2006. The decrease was primarily attributable to an increase in vendor support of our promotional campaigns.

Other expense increased to $30.4 million for the nine months ended December 31, 2007 from $13.1 million for the nine months ended December 31, 2006. This increase was largely due to a loss on early extinguishment of debt of $21.7 million primarily arising from the debt refinancing completed in July 2007. This increase was partially offset by a decrease of approximately $4.9 million in net interest expense due to a reduction in debt outstanding following the refinancing.
hhgregg will be conducting a conference call to discuss operating results for the three and nine months ended December 31, 2007, on Thursday, February 14, 2008 at 9:00 a.m. (Eastern Time). Interested investors and other parties may listen to a simultaneous web cast of the conference call by logging onto hhgregg's website at www.hhgregg.com. The on-line replay will be available for a limited time immediately following the call. The call can also be accessed live over the phone by dialing (877) 604-9670. Callers should reference the hhgregg earnings call.
Attached is a reconciliation of non-GAAP measures used in this earnings release including net income to net income, as adjusted, and diluted net income per share to diluted net income per share, as adjusted. Additional non-GAAP financial measures to be discussed in the hhgregg investor earnings call, including net income, as adjusted, diluted net income per share, as adjusted, and adjusted EBITDA (earnings before net interest expense, income tax expense, depreciation and amortization) can be found at www.hhgregg.com on the investor relations page.
FY 2008 Guidance Update
The Company believes that diluted net income per share will come in at the high end of the existing earnings guidance range of $0.95 to $1.03, adjusted to exclude a $0.41 loss on the early extinguishment of debt. The Company is also tightening its comparable store sales growth expectations to range from 4.0% to 5.0% for fiscal 2008, or the mid-point of its prior guidance of 3.5% to 5.5%. Accordingly, net sales for fiscal 2008 are now expected to increase between 17% and 19% over fiscal 2007. The Company plans to open 7 stores during the fourth quarter for a total of 15 new units during fiscal 2008. The Company expects that fiscal 2008 capital expenditures, net of sales and leaseback proceeds, will range between $31 million and $33 million as compared with prior guidance of $26 million to $28 million primarily due to increases in planned system, remodeling and distribution expenditures.

About hhgregg
hhgregg is a specialty retailer of consumer electronics, home appliances, mattresses and related services operating under the names hhgregg(R) and Fine Lines(R). hhgregg currently operates 85 stores in Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee.

Safe Harbor Statement
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of hhgregg, Inc. are forward-looking statements.

hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg's expectations are: competition in existing, adjacent and new metropolitan markets; changes in consumer preferences; its ability to effectively manage and monitor its operations, costs and service quality; its reliance on a small number of suppliers; rapid inflation or deflation in core product prices; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on the Company's key management personnel and its ability to attract and retain qualified sale's personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; the effect of general and regional economic and employment conditions on its net sales; fluctuation in seasonal demand; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to locate suitable new store sites; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; the effect of a disruption at the Company's central distribution centers; changes in cost for print, radio and television advertising; and changes in trade regulations, currency fluctuations and prevailing interest rates.
Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the "Risk Factors" section in the Company's prospectus filed pursuant to Rule 424(b)(4) with the SEC on July 20, 2007. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)

Three Months Ended Nine Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
(In thousands, except share data)
Net sales $390,416 $335,101 $932,472 $776,067
Cost of goods sold 271,523 235,527 645,641 538,134
------------ ------------ ------------ ------------
Gross
profit 118,893 99,574 286,831 237,933
Selling, general
and
administrative
expenses 74,048 62,582 197,336 168,526
Net advertising
expense 16,909 14,198 40,505 34,202
------------ ------------ ------------ ------------
Income from
operations 27,936 22,794 48,990 35,205
------------ ------------ ------------ ------------
Other expense
(income):
Interest
expense 2,582 4,471 8,734 13,624
Interest income (6) (51) (45) (66)
Loss (gain)
related to
early
extinguishment
of debt - (145) 21,695 (440)
------------ ------------ ------------ ------------
Total other
expense 2,576 4,275 30,384 13,118
------------ ------------ ------------ ------------
Income before
income taxes 25,360 18,519 18,606 22,087
Income tax expense 10,258 7,653 7,523 9,072
------------ ------------ ------------ ------------
Net income $15,102 $10,866 $11,083 $13,015
============ ============ ============ ============
Basic net income
per share $0.47 $0.38 $0.36 $0.46
Diluted net income
per share $0.45 $0.37 $0.35 $0.45
Weighted average
shares
outstanding--
Basic 32,241,868 28,491,600 30,780,294 28,498,473
Weighted average
shares
outstanding--
Diluted 33,424,055 29,186,475 31,880,811 29,193,348

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(AS A PERCENTAGE OF NET SALES)
(UNAUDITED)

Three Months Ended Nine Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 69.5 70.3 69.2 69.3
------------ ------------ ------------ ------------
Gross
profit 30.5 29.7 30.8 30.7
Selling, general
and administrative
expenses 19.0 18.7 21.2 21.7
Net advertising
expense 4.3 4.2 4.3 4.4
------------ ------------ ------------ ------------
Income from
operations 7.2 6.8 5.3 4.5
------------ ------------ ------------ ------------
Other expense
(income):
Interest expense 0.7 1.3 0.9 1.8
Interest income - - - -
Loss (gain)
related to
early
extinguishment
of debt - - 2.3 (0.1)
------------ ------------ ------------ ------------
Total other
expense 0.7 1.3 3.3 1.7
------------ ------------ ------------ ------------
Income before
income taxes 6.5 5.5 2.0 2.8
Income tax expense 2.6 2.3 0.8 1.2
------------ ------------ ------------ ------------
Net income 3.9% 3.2% 1.2% 1.7%
============ ============ ============ ============
Certain percentage amounts do not sum due to rounding

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

December 31, March 31, December 31,
2007 2007 2006
------------- ---------- ------------
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents $3,317 $1,498 $3,219
Accounts receivable - trade,
less allowances of $377, $409
and $617, respectively 11,715 10,641 22,091
Accounts receivable - other,
less allowances of $74, $16
and $72, respectively 17,786 11,203 13,971
Merchandise inventories 176,570 113,602 128,634
Prepaid expenses and other
current assets 3,468 7,239 4,333
Deferred income taxes 2,626 1,574 1,882
------------- ---------- ------------
Total current assets 215,482 145,757 174,130
------------- ---------- ------------
Net property and equipment 66,223 52,129 52,250
Deferred financing costs, net 3,705 6,342 7,933
Deferred income taxes 86,169 85,891 87,208
Other 280 406 1,059
------------- ---------- ------------
156,377 144,768 148,450
------------- ---------- ------------
Total assets $371,859 $290,525 $322,580
============= ========== ============

LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:

Accounts payable $116,150 $73,973 $79,311
Current maturities of long-term
debt 1,000 - -
Customer deposits 19,303 16,958 18,560
Accrued liabilities 47,996 36,325 39,896
------------- ---------- ------------
Total current
liabilities 184,449 127,256 137,767
------------- ---------- ------------
Long-term liabilities:
Long-term debt, net of current
maturities 101,858 134,459 163,122
Other long-term liabilities 14,113 12,517 13,827
------------- ---------- ------------
Total long-term
liabilities 115,971 146,976 176,949
------------- ---------- ------------
Total liabilities 300,420 274,232 314,716
------------- ---------- ------------
Stockholders' equity:
Preferred stock; no par value;
10,000,000 shares authorized;
no shares issued and
outstanding as of December 31,
2007, March 31, 2007 and
December 31, 2006 - - -
Common stock; no par value;
52,500,000 shares authorized;
32,244,267, 28,491,600 and
28,491,600 shares issued and
outstanding as of December 31,
2007, March 31, 2007 and
December 31, 2006,
respectively 158,539 113,909 113,823
Other comprehensive loss (594) - -
Accumulated deficit (86,318) (97,401) (105,744)
------------- ---------- ------------
71,627 16,508 8,079
Note receivable for common
stock (188) (215) (215)
------------- ---------- ------------
Total stockholders'
equity 71,439 16,293 7,864
------------- ---------- ------------
Total liabilities and
stockholders' equity $371,859 $290,525 $322,580
============= ========== ============

HHGREGG, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Nine Months Ended
-------------------------
December 31, December 31,
2007 2006
------------ ------------
(In thousands)
Operating activities:
Net income $11,083 $13,015
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 9,169 8,981
Amortization of deferred financing costs 665 1,158
Accretion of original issue discount 188 380
Stock-based compensation 1,274 104
Loss on disposal of assets 25 76
Loss (gain) on early extinguishment of
debt 21,695 (440)
Deferred income taxes (934) 8,992
Changes in operating assets and
liabilities:
Accounts receivable - trade (1,074) (15,067)
Accounts receivable - other (6,580) (5,162)
Merchandise inventories (62,968) (29,827)
Prepaid expenses and other assets 381 401
Deposits 3,516 2,088
Accounts payable - third parties - (1,462)
Accounts payable - vendors 13,521 25,405
Customer deposits 2,345 3,648
Other accrued liabilities 11,671 7,947
Other long-term liabilities (1,070) 3,488
------------ ------------
Net cash provided by operating
activities 2,907 23,725
------------ ------------
Investing activities:
Purchases of property and equipment (25,361) (13,190)
Proceeds from sale and leaseback
transaction 2,300 2,725
Deposit on future sale and leaseback
transaction 1,400 1,854
Proceeds from sales of property and
equipment 64 197
------------ ------------
Net cash used in investing
activities (21,597) (8,414)
------------ ------------
Financing activities:
Proceeds from issuance of common stock 48,750 -
Transaction costs for stock issuance (5,410) -
Repurchase of stock previously issued - (105)
Payments received on notes receivable for
issuance of common stock 27 4
Proceeds from exercise of stock options 12 -
Net increase in bank overdrafts 28,642 38
Payment on notes payable (500) -
Payment of financing costs (2,930) -
Proceeds from issuance of term loan 100,000 -
Payment for early debt extinguishment (148,082) (14,330)
------------ ------------
Net cash provided by (used in)
financing activities 20,509 (14,393)
------------ ------------
Net increase in cash and cash equivalents 1,819 918
Cash and cash equivalents:
Beginning of period 1,498 2,301
------------ ------------
End of period $3,317 $3,219
============ ============
Supplemental disclosure of cash flow
information:
Interest paid $7,728 $8,730
Income taxes paid 6,881 92

HHGREGG, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF NET INCOME, AS ADJUSTED AND
DILUTED NET INCOME PER SHARE, AS ADJUSTED
(UNAUDITED)

Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- -----------------------
(Amounts in thousands,
except share data) 2007 2006 2007 2006
---------- ----------- ----------- -----------
Net income as reported $15,102 $10,866 $11,083 $13,015
Transactional
Adjustments:
(Gain) / loss
related to early
extinguishment of
debt - (145) 21,695 (440)
Tax impact of effect
of early
extinguishment of
debt (1) - 58 (8,678) 176
---------- ----------- ----------- -----------
Net income, as adjusted $15,102 $10,779 $24,100 $12,751
Weighted Average Shares
Outstanding - Diluted 33,424,055 29,186,475 31,880,811 29,193,348
Diluted net income per
share $0.45 $0.37 $0.35 $0.45
Diluted net income per
share, as adjusted $0.45 $0.37 $0.76 $0.44
------------------------
(1) Computed using a blended statutory rate of 40%.

SOURCE: hhgregg, Inc.

View more press releases at ir.hhgregg.com