Movie Gallery Inc. (Dothan, Ala.) has announced that its wholly owned subsidiary, Movie Gallery Canada Inc. (Calgary), has extended its offer to purchase all of the outstanding common shares of VHQ Entertainment Inc. (Red Deer, Alta.).
The stock tender offer is now open for acceptance until May 16, 2005.
Movie Gallery Canada operates more than 200 stores. VHQ operates about 60.
Also, parent company Movie Gallery announced a 1.5 percent increase in same-store revenues for its first quarter of 2005.
“We are pleased to have achieved a 1.5 percent increase in same-store revenues for the quarter, especially in light of the difficult comparison to a positive 2 percent comp in last year’s first quarter,” said chairman, president and ceo Joe Malugen. “Our same-store sales comps in the quarter were positively impacted by an increase in previously-viewed sales, which results in a slightly lower overall rental margin.
“We also added a net total of 61 stores during the quarter, with 62 new stores, 18 acquired stores and 19 store closures,” he added. “As a result, at quarter end, we had a total of 2543 stores throughout North America, with 2,330 stores in the United States, 206 stores in Canada, and seven stores in Mexico.”
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