A Tough Day at the Movies

Movie Gallery Inc. (Dothan, Ala.) posted a third-quarter loss that nearly tripled the loss from a year earlier. The movie rental retailer said it was weighed down by charges for store closings, the revamping of the company and other items.

The company also said it had enough cash and credit available for its working capital needs.

Movie Gallery lost $36.1 million in the quarter ended Oct. 1, 2006. A year earlier, it has lost $12.5 million loss in the same period.

Revenue rose 1.8 percent in the quarter. Same-store sales fell 0.4 percent. A 3 percent same-store revenue increase at Movie Gallery stores was offset by a decrease of 1.9 percent for its Hollywood Video stores.

In November 2006, the company said it had been notified by NASDAQ that it was out of compliance with listing requirements because of a delayed quarterly filing. Yesterday, however, it said it had filed its report and was in full compliance with NASDAQ rules.