Wednesday, February 18, 2009

hhgregg Announces Executive Changes

hhgregg Announces Executive Changes

Dennis May Promoted to President and Chief Executive Officer and Jerry Throgmartin to Become Executive Chairman Company to Commence Search for New CFO

INDIANAPOLIS, Feb 17, 2009 (BUSINESS WIRE) -- Indianapolis-based appliance and electronics retailer, hhgregg Inc. (NYSE:HGG) today announced that it will implement the Company's succession plan by naming longtime President and Chief Operating Officer Dennis L. May as the Company's new President and Chief Executive Officer, effective at the Company's Annual Meeting of Shareholders in August. Current Chief Executive Officer Jerry W. Throgmartin will become Executive Chairman of the Board and continue to play an important role in shaping the Company's vision and strategy. The Company also announced that Chief Financial Officer Donald J.B. Van der Wiel is leaving to pursue other opportunities and that it will commence a search for a new Chief Financial Officer.

"I am very pleased to announce that Dennis will assume the role of President and CEO, implementing our anticipated succession plan," said Mr. Throgmartin. "I have worked closely with Dennis for the past 10 years and have tremendous respect for his abilities and confidence in his leadership and I look forward to continue working closely with him in my new role. As a significant shareholder with a family relationship that dates to the Company's founding 55 years ago, I am transitioning to this new role secure in the belief that I can effectively work with Dennis to continue to foster our unique culture and unmatched focus on providing superior customer service, while at the same time, maintain a disciplined, strategic approach to building hhgregg into the future."

Mr. Throgmartin also stated, "I would also like to sincerely thank Don for the contributions he has made to the Company and wish him well in his future endeavors. Don was instrumental in preparing hhgregg for its initial public offering in 2007 and our successful growth as a public company. We are fortunate to be making this transition following the recent completion of a successful quarter, with a strong financial position and with a deep and experienced finance team in place."

Dennis L. May joined hhgregg in January 1999, bringing a long history of video and appliance retail experience with him. During his tenure at hhgregg, he has worked closely with Jerry W. Throgmartin while serving as the Company's Chief Operating Officer. He has played an instrumental role in helping the Company expand, adding 23 stores over the last twelve months while maintaining profitability and a dedication to customer service.

"While the current economic environment remains challenging, I am excited by the many opportunities that lie ahead," said Mr. May. "Our strong brand, unique operating platform and unparalleled commitment to customer service positions us well for the future and we are dedicated to executing a strategy that will result in long-term growth and increased shareholder value. I look forward to continue working with Jerry in his new role focused on vision and strategy and with our incredibly talented team of professionals in the field and at the home office."

The Board of Directors also announced that it will commence a search for a new CFO. In the interim, Jeremy J. Aguilar, Vice President, Controller, will handle the CFO responsibilities while Mr. May will continue to maintain the COO responsibilities.

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 108 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.

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Tuesday, February 10, 2009

hhgregg Announces 3rd Quarter Operating Results

hhgregg Announces 3rd Quarter Operating Results

3rd Quarter Highlights
Net income per diluted share increases 15.6% over the prior year to $0.52
Gross profit margins increase 90 basis points over the prior year to 31.4%
Net sales increase 6.6% compared with last year to $416.1 million
Six new stores opened during the quarter
Fiscal 2009 earnings guidance increased from a range of $0.75 to $0.90 to a range of $0.85 to $0.95 of net income per diluted share

Get the PDF of this press release here.

INDIANAPOLIS, Feb 05, 2009 (BUSINESS WIRE) -- hhgregg, Inc. (NYSE: HGG):
hhgregg, Inc. ("hhgregg" or "the Company") today reported net income of $17.1 million, or $0.52 per diluted share, for the three months ended December 31, 2008, compared to net income of $15.1 million, or $0.45 per diluted share, for the comparable prior year period. Net income for the nine months ended December 31, 2008 was $22.6 million, or $0.69 per diluted share, compared to net income of $11.1 million or $0.35 per diluted share, for the nine months ended December 31, 2007, which included a pretax loss on the early extinguishment of debt of $21.7 million, or $0.41 net loss per diluted share.

The increase in third quarter earnings was primarily attributable to a 90 basis point improvement in gross profit margins which more than offset the effect of a 13.2% comparable store sales decrease coupled with start-up investments in distribution and management infrastructure to support the new store growth in Florida.

Dennis May, President and COO of the Company, commented, "Our solid third quarter results were primarily driven by better than expected gross margins due to improved buying opportunities in a couple of key merchandise categories. Although the environment remains extremely challenging, we continue to benefit from our compelling market position, unique operating model and unmatched commitment to customer service and execution. Importantly, we closely managed our inventories and

Operating Performance Summary
(dollars in thousands, except per share amounts)
Three Months Ended
December 31,
Nine Months Ended
December 31,
(unaudited) 2008 2007 2008 2007
Net sales $ 416,106 $ 390,406 $ 1,031,823 $ 932,472
Net sales % increase 6.6 % 16.5 % 10.7 % 20.2 %
Comparable store sales % (decrease)/increase (1) (13.2) % 3.0 % (8.9) % 6.3 %
Gross profit as a % of net sales 31.4 % 30.5 % 31.0 % 30.8 %
SG&A as a % of net sales 18.7 % 18.1 % 20.8 % 20.2 %
Net advertising expense as a % of net sales 4.3 % 4.3 % 4.8 % 4.3 %
Depreciation and amortization expense as a % of net sales 0.9 % 0.8 % 1.2 % 1.0 %
Income from operations as a % of net sales 7.4 % 7.2 % 4.2 % 5.3 %
Net interest expense as a % of net sales 0.5 % 0.7 % 0.6 % 0.9 %
Loss related to early extinguishment of debt as a % of net sales -- % -- % -- % 2.3 %
Net income $ 17,120 $ 15,102 $ 22,622 $ 11,083
Net income per diluted share $ 0.52 $ 0.45 $ 0.69 $ 0.35
Net income per diluted share, as adjusted (2) $ 0.52 $ 0.45 $ 0.69 $ 0.76
Number of stores open at the end of the period 108 85
(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.

working capital during the quarter, which should allow us to fund our fiscal 2009 store expansion plans entirely through freecash flow."
Net sales for the three months ended December 31, 2008 increased 6.6% over net sales for the comparable prior year period to $416.1 million. Net sales for the nine months ended December 31, 2008 increased 10.7% to $1.03 billion compared to $932.5 million for the comparable prior year period. The increase in sales for the three and nine months ended December 31,
2008 was primarily attributable to the net addition of 23 stores during the past 12 months partially offset by a 13.2% and 8.9% decrease 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, 2008 and 2007 were as follows:

(1) Primarily consists of audio, personal electronics, mattresses, notebook computers and furniture and accessories.The Company's 13.2% and the 8.9% comparable store sales decreases for the three months and nine months ended December 31, 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 comparable store unit sales decreases during the third quarter, albeit significantly better than the appliance category average, while the higher average selling prices for these items contributed to slightly higher average selling prices for the appliances category in total.

The comparable store sales decrease for the three-month period in the video category was primarily driven by the compression in average selling prices of flat panel televisions slightly outpacing double-digit comparable store sales unitincreases. 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, increased 90 basis points for the three months ended December 31, 2008 and increased 20 basis points for the nine months ended December 31, 2008 compared with the respective prior year periods. The appliance gross profit margins exceeded the Company average as a percentage of sales during the third quarter and the year-to-date period, but the appliance category accounted for approximately three 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.

Buying opportunities in the video category, attributable in large part to supply imbalances, had a distinct positive impact on the consolidated gross profit margin rate during the third quarter and a modest positive impact for the first nine months of the year 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 margins during the third quarter and first nine months of the year when compared with the respective prior year periods.

Net advertising expense, as a percentage of net sales, decreased three basis points during the third quarter and increased 45 basis points during the nine months ended December 31, 2008 when compared with the respective comparable prior year periods. These results were achieved despite the effect of our comparable store sales decline during both periods as well as
the heavy advertising spend associated with the launch of new markets in Florida particularly during the first half of the fiscal year.

SG&A expense, as a percentage of net sales, increased 62 basis points for the three months ended December 31, 2008 and 59 basis points for the nine months ended December 31, 2008 compared to the respective prior year periods. The increases were primarily due to growth investments, totaling 30 basis points during the third quarter and 55 basis points for the first nine months, largely comprised of new store pre-opening expenses, as well as distribution and management infrastructure investments in Florida. These growth investments, and the effect of our comparable store sales decline, were partially offset by effective cost controls over general and administrative expense including a reduction in bonus expense.

Fiscal Year 2009 Guidance
Continued economic uncertainty resulting from the turmoil in the financial markets and growing unemployment has significantly impacted customer traffic patterns since the middle of September this year. Customer traffic patterns are much more volatile

Net Sales Mix Summary
Comparable Store Sales Summary
Three Months Ended
December 31, Nine Months Ended
December 31, Three Months Ended
December 31, Nine Months Ended
December 31,
2008 2007 2008 2007 2008 2007 2008 2007
Video 54 % 51 % 48 % 45 % (6.9) % 2.2 % (2.1) % 5.4 %
Appliances 28 % 31 % 37 % 40 % (21.9) % (0.7) % (15.6) % 3.9 %
Other (1) 18 % 18 % 15 % 15 % (14.6) % 13.3 % (10.5) % 17.5 %
Total 100 % 100 % 100 % 100 % (13.2) % 3.0 % (8.9) % 6.3 %
and less predictable than we have historically experienced. Consequently, despite efforts to closely manage its gross profit margins, SG&A expense and working capital position, the Company maintains a broad range of projected results for fiscal 2009. Based on a comparable store sales decline of between 7% and 11% for the fourth quarter of the fiscal year, net income
per diluted share for fiscal 2009 would range between $0.85 and $0.95 as compared with

previous net income per diluted
share guidance of $0.75 to $0.90. This would result in a comparable store sales decline of 8% to 10% for fiscal 2009 ascompared with an 8% to 12% comparable store sales decline under prior guidance. Net sales would grow between 9% and 12%for the fourth quarter of the fiscal year which would result in net sales growth of between 9% and 12% for the fiscal year as
compared with 9% and 13% in previous guidance. The Company plans to open 20 new stores during fiscal 2009, of which 18have been opened.

Capital expenditures, net of sale and leaseback proceeds, are expected to range between $24 million and$26 million for fiscal 2009 as compared with prior guidance of $29 to $31 million. The Company expects to finance these capitalexpenditures 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 do not anticipate any near term improvement inthe macro environment, we will continue to focus on what we can best control, namely, reducing expenses, carefully managing inventory and cash flow, keeping our sales force highly motivated and providing our customers with an unmatched shopping experience. Longer-term, we are confident that we are ideally suited to take advantage of the industry dynamics in terms of enhanced vendor relationships, improved real estate, and most importantly, increased market share gains. We move forward with a strong liquidity position, a powerful operating platform and a team that is energized and focused on maximizing the many opportunities that lie ahead."

Teleconference and Webcast
hhgregg will be conducting a conference call to discuss operating results for the three and nine months ended December 31, 2008, on Thursday, February 5, 2009 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 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) 718-5098. Callers should reference the hhgregg third 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 108 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.

HHGREGG, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
December 31,
2008
December 31,
2007
December 31,
2008
December 31,
2007
(In thousands, except share and per share data)
Net sales $ 416,106 $ 390,416 $ 1,031,823 $ 932,472
Cost of goods sold 285,652 271,523 712,404 645,641
Gross profit 130,454 118,893 319,419 286,831
Selling, general and administrative
expenses 77,998 70,761 214,256 188,167
Net advertising expense 17,904 16,909 49,505 40,505
Depreciation and amortization expense 3,953 3,287 12,049 9,169
Income from operations 30,599 27,936 43,609 48,990
Other expense (income):
Interest expense 1,924 2,582 5,725 8,734
Interest income (2 ) (6 ) (9 ) (45 )
Loss related to early extinguishment of
debt - - - 21,695
Total other expense 1,922 2,576 5,716 30,384
Income before income taxes 28,677 25,360 37,893 18,606
Income tax expense 11,557 10,258 15,271 7,523
Net income $ 17,120 $ 15,102 $ 22,622 $ 11,083
Net income per share
Basic $ 0.53 $ 0.47 $ 0.70 $ 0.36
Diluted $ 0.52 $ 0.45 $ 0.69 $ 0.35
Weighted average shares outstandingbasic
32,372,419 32,241,868 32,343,995 30,780,294
Weighted average shares outstandingdiluted
32,617,557 33,424,055 32,997,168 31,880,811
HHGREGG, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(As a Percentage of Net Sales)
(Unaudited)
Three Months Ended Nine Months Ended
December 31,
2008
December 31,
2007
December 31,
2008
December 31,
2007
Net sales 100.0 % 100.0 % 100.0 % 100.0 %
Cost of goods sold 68.6 69.5 69.0 69.2
Gross profit 31.4 30.5 31.0 30.8
Selling, general and administrative expenses 18.7 18.1 20.8 20.2
Net advertising expense 4.3 4.3 4.8 4.3
Depreciation and amortization expense 0.9 0.8 1.2 1.0
Certain percentage amounts do not sum due to rounding
Income from operations 7.4 7.2 4.2 5.3
Other expense (income):
Interest expense 0.5 0.7 0.6 0.9
Interest income - - - -
Loss related to early extinguishment of debt - - - 2.3
Total other expense 0.5 0.7 0.6 3.3
Income before income taxes 6.9 6.5 3.7 2.0
Income tax expense 2.8 2.6 1.5 0.8
Net income 4.1 % 3.9 % 2.2 % 1.2 %
HHGREGG, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
December
31,
2008
March 31,
2008
December
31,
2007
(In thousands, except share data)
Assets
Current assets:
Cash and cash equivalents $ 1,684 $ 1,869 $ 3,317
Accounts receivable--trade, less allowances of $912, $450 and $377, respectively 10,416 8,121 11,715
Accounts receivable--other, less allowances of $3, $35, and $74 respectively 14,314 14,263 17,786
Merchandise inventories, net 188,362 133,368 176,570
Prepaid expenses and other current assets 2,353 3,741 3,468
Deferred income taxes 4,629 2,129 2,626
Total current assets 221,758 163,491 215,482
Net property and equipment 85,924 77,794 66,223
Deferred financing costs, net 2,791 3,292 3,705
Deferred income taxes 81,289 85,012 86,169
Other 391 330 280
Total long-term assets 170,395 166,428 156,377
Total assets $ 392,153 $ 329,919 $ 371,859
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 101,546 $ 80,533 $ 116,150
Line of credit 14,798 - -
Current maturities of long term debt 681 - 1,000
Customer deposits 18,093 18,039 19,303
Accrued liabilities 42,002 36,799 47,996
Total current liabilities 177,120 135,371 184,449
Long-term liabilities:
Long-term debt, excluding current maturities 91,927 92,608 101,858
Other long-term liabilities 15,575 20,266 14,113
Total long-term liabilities 107,502 112,874 115,971
Total liabilities 284,622 248,245 300,420
Stockholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and
outstanding as of December 31, 2008, March 31, 2008 and December 31, 2007 - - -
Common stock, no par value; 105,000,000 shares authorized; 32,401,275, 32,285,267
and 32,244,267 shares issued and outstanding as of December 31, 2008, March 31,
2008, and December 31, 2007, respectively
162,080 159,149 158,539
Accumulated other comprehensive loss (1,027 ) (1,292 ) (594 )
Accumulated deficit (53,373 ) (75,995 ) (86,318 )
107,680 81,862 71,627
Note receivable for common stock (149 ) (188 ) (188 )
Total stockholders' equity 107,531 81,674 71,439
Total liabilities and stockholders' equity $ 392,153 $ 329,919 $ 371,859
HHGREGG, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
December 31, 2008 December 31, 2007
(In thousands)
Cash flows from operating activities:
Net income $ 22,622 $ 11,083
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 12,049 9,169
Amortization of deferred financing costs 501 665
Accretion of original issue discount - 188
Stock-based compensation 1,993 1,274
Excess tax benefits from stock based compensation (161 ) -
Loss on sales of property and equipment 46 25
Loss on early extinguishment of debt - 21,695
Deferred income taxes 1,029 (934 )
Changes in operating assets and liabilities:
Accounts receivable--trade (2,295 ) (1,074 )
Accounts receivable--other (51 ) (6,580 )
Merchandise inventories (54,994 ) (62,968 )
Prepaid expenses and other assets 216 381
Deposits 1,111 3,516
Accounts payable 16,256 13,521
Customer deposits 54 2,345
Other accrued liabilities 3,669 11,671
Other long-term liabilities (926 ) (1,070 )
Net cash provided by operating activities 1,119 2,907
Cash flows from investing activities:
Purchases of property and equipment (27,841 ) (25,361 )
Proceeds from sale leaseback transactions 10,035 2,300
Deposit (applied) received on sale leaseback transactions (2,858 ) 1,400
Proceeds from sales of property and equipment 58 64
Net cash used in investing activities (20,606 ) (21,597 )
Cash flows from financing activities:
Proceeds for issuance of common stock - 48,750
Transaction costs for stock issuance - (5,410 )
Proceeds from exercise of stock options 716 12
Excess tax benefits from stock based compensation 161 -
Net increase in bank overdrafts 3,527 28,642
Net borrowings on line of credit 14,798 -
Payments on notes payable - (500 )
Payment of financing costs - (2,930 )
Proceeds from issuance of term loan - 100,000
Payment related to early extinguishment of debt - (148,082 )
Other, net 100 27
Net cash provided by financing activities 19,302 20,509
Net (decrease) increase in cash and cash equivalents (185 ) 1,819
Cash and cash equivalents
Beginning of period 1,869 1,498
End of period $ 1,684 $ 3,317
(1)Computed using a blended statutory rate of 40%.
SOURCE: hhgregg, Inc.
hhgregg, Inc.
Andy Giesler, Director of Investor Relations, 317-848-8710
investorrelations@hhgregg.com
Copyright Business Wire 2009
Supplemental disclosure of cash flow information:
Interest paid $ 6,575 $ 7,728
Income taxes paid $ 12,349 $ 6,881
HHGREGG, INC. AND SUBSIDIARIES
Non-GAAP Reconciliation of Net Income, As Adjusted and
Net Income per Diluted Share, As Adjusted
(Unaudited)
Three Months Ended
December 31
Nine Months Ended
December 31,
(Amounts in thousands, except share data and per share
data) 2008 2007 2008 2007
Net income $ 17,120 $ 15,102 $ 22,622 $ 11,083
Transactional Adjustments:
Loss related to early extinguishment of debt -- --
--
21,695
Tax impact of above loss (1) -- -- -- (8,678 )
Net income, as adjusted $ 17,120 $ 15,102 $ 22,622 $ 24,100
Weighted Average Shares Outstanding - Diluted 32,617,557 33,424,055 32,997,168 31,880,811
Net income per diluted share $ 0.52 $ 0.45 $ 0.69 $ 0.35
Net income per diluted share, as adjusted $ 0.52 $ 0.45 $ 0.69 $ 0.76
HHGREGG, INC. AND SUBSIDIARIES
Store Count by Quarter for Fiscal Years 2007, 2008 and 2009
(Unaudited)
FY2007 FY2008 FY2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Beginning Store Count 67 69 72 74 77 79 80 85 91 97 103
Store Openings 2 3 2 3 2 1 5 6 6 6 6
Store Closures - - - - - - - - (1)
Ending Store Count 69 72 74 77 79 80 85 91 97 103 108

Note: hhgregg, Inc.'s fiscal year is comprised of four quarters ending June 30th, September 30th, December 31st and March
31st.