Entertainment Gaming Asia Inc. (NYSE Amex:EGT) ("Entertainment Gaming Asia" or "the Company"), a leading provider of electronic gaming machines (EGMs) on a participation basis to the Pan-Asian gaming industry, today reported operating results for the first quarter ended March 31, 2011 and reviewed recent corporate progress.

Architectural rendering of Dreamworld Casino Kampot (Photo: Business Wire)

 

Highlights:

• Net income was $692,000 or $0.01 per share for the first quarter of 2011 compared to a net loss of $1.7 million or a $0.01 loss per share for the first quarter of 2010.
• Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $3.0 million for the first quarter of 2011 compared to $1.3 million for the first quarter of 2010.
• Total net revenue from EGMs on participation for the first quarter of 2011 was a record high $4.2 million, an increase of 47% from the first quarter of 2010.
• Average consolidated win per unit per day (WUD) for the first quarter of 2011 was a record high of $134, an increase of 25% from the first quarter of 2010.
• As of May 1, 2011, total installed EGM seats in operation were 1,515 in seven venues, comprised of five venues in the Philippines with a total of 792 seats and two venues in Cambodia with a total of 723 seats.
  • On April 30, 2011, one under-performing venue in the Philippines with 121 EGM seats was closed providing the Company the opportunity to redeploy these assets to higher-performing venues.
• Cash selling, general and administrative (SG&A) expense was $1.1 million for the first quarter of 2011, a decrease of 22% from the first quarter of 2010.
• Cash balance of $12.5 million as of March 31, 2011.
• The Company is making progress on the development of its casino project in the Kampot province of Cambodia near the Vietnam border with construction to begin in June 2011 with expected completion of the initial phase by the end of 2011.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "I am pleased to report strong operating results for our first quarter of 2011. We achieved record EGM participation revenue and consolidated average net win which along with strict cost control resulted in the generation of meaningful adjusted EBITDA and positive GAAP earnings. With a sound base of solid recurring cash flow and a growing cash position, which has reached approximately $13 million as of May 6, 2011, we are well positioned to expand our business model and execute on our casino development plans within emerging gaming markets in the Indo-China region."

Q1 2011 Financial Review

Beginning in the fiscal year 2011, the Company reclassified its reporting segments to include: "gaming", which consists of its gaming machine participation and future casino operations; and "other products," which consolidates the previously reported "table game products" and "non-gaming products" segments. All new reporting segment information has been applied retrospectively to all periods presented.

Entertainment Gaming Asia's first quarter of 2011 consolidated revenue was $6.2 million, an increase of 43% compared to $4.4 million in the first quarter of 2010 due to strong improvement in the Company's gaming participation operations and increasing sales in the Company's other products division.

Revenue from EGMs on participation was $4.2 million in the first quarter of 2011, an increase of 47% compared to $2.8 million in the first quarter of 2010. The increase reflected improved consolidated average WUD and higher installed base of EGMs.

Cash SG&A expense was $1.1 million in the first quarter of 2011, a decrease of 22% compared to $1.4 million in the first quarter of 2010 due to the Company's strict cost control efforts.

Based on the Company's solid revenue performance and strict cost controls, Entertainment Gaming Asia reported adjusted EBITDA of $3.0 million for the first quarter of 2011, up 128% from $1.3 million for the first quarter of 2010.

Entertainment Gaming Asia reported net income of $692,000, or $0.01 per share, on a weighted average diluted share count of approximately 119 million shares for the first quarter of 2011. This compared to a net loss of $1.7 million, or a $0.01 loss per share, on a weighted average diluted share count of approximately 115.0 million shares for the first quarter of 2010.

Kampot Project Update

On March 8, 2011, the Company announced its plans to develop and operate a casino in the Kampot province of Cambodia strategically located near the Vietnam border. The casino, which will be named Dreamworld Casino Kampot, is initially intended to include up to 14 table games and 25 EGM seats. The Company has received the gaming license and subject to the remaining government approval, the initial phase is expected to begin construction in June of this year and be completed by the end of 2011.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, concluded, "We are making progress in executing our strategic growth initiatives to develop and operate regional casinos under our "Dreamworld" brand in the Indo-China region. We believe our Kampot project is a strategic step in achieving this objective as it provides the potential for near-term earnings and long-term growth while further establishing our footprint and the "Dreamworld" brand in our target markets."

"Based on our current cash flow generation, growing cash position, and ability to pace project development in phases, we believe we are well positioned to pursue additional casino development projects. We remain in active negotiations on potential new projects in the region to selectively build a solid pipeline of opportunities to achieve our goal of becoming a leading regional casino operator in the growing markets of Indo China."

Entertainment Gaming Asia is hosting a conference call and simultaneous webcast at 8:30 a.m. ET today, May 16, 2011, both of which are open to the general public. The conference call number is 800/909-4804 or 212/231-2903. Questions and answers will be reserved for call-in analysts and investors. Interested parties may also access the live call on the Internet at www.EGT-Group.com. Please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the call can be accessed for thirty days on the Internet at www.EGT-Group.com

About Entertainment Gaming Asia Inc.

Entertainment Gaming Asia Inc. (NYSE Amex: EGT) is a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry. The Company secures long-term contracts to provide electronic gaming machines and related systems to premier hotels and other well-located gaming venues in Asia. The Company retains ownership of the gaming machines and systems and receives recurring daily or monthly fees based on an agreed upon percentage of the net gaming win per machine and provides on-site maintenance. Entertainment Gaming Asia Inc. is also engaged in the development of casinos in Indo China where intends to own and operate casino resorts under the "Dreamworld" brand. For more information please visit www.EGT-Group.com.

Forward Looking Statements

This press release contains forward-looking statements concerning Entertainment Gaming Asia within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the expansion of the Company's participation business model, the timeline and working capital requirements for the Kampot casino project, the near-term earnings of the Kampot casino project, growth of the gaming industry in the Indo-China region and the Company's ability to secure new casino projects and fund those projects as well. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to Entertainment Gaming Asia's ability to place gaming machines at significant levels and generate the expected amount of net win from the gaming machines placed, obtain the gaming license and building permits for the casino projects on a timely basis or at all, identify, procure successfully develop additional casino projects in the Indo-China region, acquire additional capital as and when needed and those other risks set forth in Entertainment Gaming Asia's annual report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 30, 2011 and subsequently filed quarterly reports on Form 10-Q. Entertainment Gaming Asia cautions readers not to place undue reliance on any forward-looking statements. Entertainment Gaming Asia does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

- financial tables follow -

As a result of the Quasi-Reorganization, consolidated statements of operations for the three-month periods ended March 31, 2011 and March 31, 2010 are not comparable. The statements of operations for the three-month period ended March 31, 2011 reflect depreciation and amortization of the assets using the basis from the Quasi-reorganization, and the statements of operations for the three-month period ended March 31, 2010 are prepared on the Company's historical basis of accounting. As such, operations for periods prior to December 31, 2010 are labeled as being under the "old basis," which is defined as accounting policies and estimates prior to the adoption of the Quasi-reorganization.

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, stock-based compensation, and other non-cash operating income and expenses. Adjusted EBITDA is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA as a measure of the operating performance of its segments and to compare the operating performance of its operations with those of its competitors. The Company also presents Adjusted EBITDA because it is used by some investors as a way to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA as a supplement to financial measures in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA should not be considered as an alternative to operating income/(loss) as an indicator of the Company's performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income/(loss), Adjusted EBITDA does not include depreciation or interest expense and, therefore, does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income, net income/(loss), cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA. Entertainment Gaming Asia's calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6724373&lang=en

Diesen Artikel ...

Entertainment Gaming Asia Inc. (NYSE Amex: EGT) ("Entertainment Gaming Asia" or "the Company"), a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry, today announced it entered into a new casino development project in the Pailin province of northwestern Cambodia near the Thailand border (the "Pailin Project"). This casino project represents a strategic step in the Company's growth plans to become the leading owner and operator of regional casinos in emerging gaming markets in Asia's Indo-China region.

The Pailin Project will be owned by a joint venture company (the "JVC") incorporated in Cambodia for the sole purpose of operating the casino. The shareholders of the JVC are Entertainment Gaming Asia and a local partner, which respectively hold 67% and 33% interest in the JVC but will share 55% and 45%, respectively of the profits generated from the operations.

The initial phase of the Pailin Project will consist of a casino operated under the Company's "Dreamworld" brand with an estimated 23 table games and 40 electronic gaming machine seats. The initial phase is expected to open in the second quarter of 2012, subject to the timely issuance of the required gaming license and construction permits.

The initial phase of the casino will be constructed on land owned by the local partner and will be approximately 15,000 square feet (1,420 square meters) in size. The local partner also owns the adjacent land, which the JVC could potentially use at a future date in order for it to develop additional phases of the Pailin Project. Such additional phases are intended to include expanded casino operations and complementary facilities such as hotel rooms, a spa and other entertainment amenities and could expand the footprint of the project to over 170,000 square feet (approximately 16,000 square meters).

Dreamworld Casino Pailin will be one of five existing casinos in the area and the closest to the immigration border checkpoint. Located on a growing trade route with solid infrastructure between Cambodia and Thailand (approximately four hours from Phnom Penh and three hours from Bangkok by car), the casino will cater to mass market and premium players from the major nearby cities in the region.

Under the terms of the agreement, the JVC will apply for its own casino license and the local partner will lease to the JVC the land for a period of 20 years for an annual fee of $1.00. The Company will fund the development, construction and operation of the casino on the land. Entertainment Gaming Asia will have exclusive management rights and control over the development and operation of the casino, and management and voting control over the JVC. The initial project term is 20 years with renewal options. Development of the casino is subject to the JVC's receipt of the required gaming license and relevant construction permits.

Capital expenditures for the initial phase of the Pailin Project, which principally include the development and construction of the facility and the gaming equipment, are projected to be approximately $2.0 million. The capital expenditures for the initial phase will be funded by the Company's internal cash resources.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, "We are making solid progress in implementing our new growth strategy of owning and operating regional casinos in emerging gaming markets in the Indo-China region. We believe this strategic new project near the Thailand border offers significant potential for long-term growth and expands our footprint and the "Dreamworld" brand in our target markets. In addition, we remain in active negotiations on additional gaming projects in the region to achieve our growth objectives."

About Entertainment Gaming Asia Inc.

Entertainment Gaming Asia Inc. (NYSE Amex: EGT) is a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry. The Company secures long-term contracts to provide electronic gaming machines and related systems to premier hotels and other well-located gaming venues in Asia. The Company retains ownership of the gaming machines and systems and receives recurring daily or monthly fees based on an agreed upon percentage of the net gaming win per machine and provides on-site maintenance. Entertainment Gaming Asia Inc. is also engaged in the development of casinos in Indo China where intends to own and operate casino resorts under the "Dreamworld" brand. For more information please visit www.EGT-Group.com.

Forward Looking Statements

This press release contains forward-looking statements concerning Entertainment Gaming Asia within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the expansion of the Company's participation business model, the timeline and working capital requirements for the Pailin casino project, the near-term earnings of the Pailin casino project, growth of the gaming industry in the Indo-China region and the Company's ability to secure new casino projects and fund those projects as well. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to Entertainment Gaming Asia's ability to place gaming machines at significant levels and generate the expected amount of net win from the gaming machines placed, obtain the gaming license and building permits for the casino projects on a timely basis or at all, identify, procure successfully develop additional casino projects in the Indo-China region, acquire additional capital as and when needed and those other risks set forth in Entertainment Gaming Asia's annual report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 30, 2011 and subsequently filed quarterly reports on Form 10-Q. Entertainment Gaming Asia cautions readers not to place undue reliance on any forward-looking statements. Entertainment Gaming Asia does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Diesen Artikel ...

Entertainment of Sunday, 15 May 2011

Source: myhiworld.com

Lynx Entertainment would very soon threaten a legal action against former label member, Asem, if their demands were not met in the coming week, myhiworld.com EXCLUSIVE! gathers.

The Achimota-based music outfit, which ended its management/production contract with the artiste, is demanding a 40% share of GHC35,000 Asem received from Globacom as the second and final installment of his contract fee for the two-year deal, the "No More Kpayor" rapper signed with the telecom company.

In June 2009, Nana Wiafe Mensah Asante a.k.a Asem was one of sixteen Ghanaian showbiz personalities (including actors and actresses) who signed endorsement deals with yet-to-commence-operation telecom company, Globacom, own by Nigerian Business Conglomerate, Mike Adenuga.

This deal occurred when he was signed on Richie's Lynx Entertainment. Asem entered an agreement with Lynx Entertainment giving them 40% of all and very income they received on his behalf, a reliable source close to Asem told Hi Newspaper. This included businesses dealt with Glo.

Meanwhile on March 8th, 2011, a statement signed by Albert Mensah (General Manager of Lynx Entertainment) was released announcing that Asem had been "dropped" from the label. Asem later confirmed to Hi Newspaper in an interview, that he and Lynx Entertainment had indeed abrogated their contract, 8 months to its completion.

However, just two months to end the Glo contract, Asem has received the second part of his Glo money and Lynx Entertainment is demanding its 40% share (that is GHC14,000).

For their argument for demanding the share, Lynx Entertainment reportedly argued that the Glo contract was signed when Asem's deal with the label was still good, hence still entitled to their share whether he is still with them or not.

At the time of going to press, Asem was purported to have refused giving any portion of the final payment to Lynx.

According to a source within Asem's new label, Wobeda Ntem Records, Asem's says, "Since you said you have disowned me why do you wang anything of or frm me now? Asem would not give the money to Lynx because his deal was prematurely abrogated as officially reported by Lynx.

Asem confirmed that his team has received calls from Lynx demanding said money. "We are yet to know if it would turn into a legal tussle", Asem told Hi Newspaper.

Meanwhile, the General Manager of Lynx Entertainment, Albert Mensah, who is almost always economical of info when needed by the press, would not confirm or deny the story when Hi called him on Tuesday.

Symbol	Price	Change
HAST	4.99	0.00

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Press Release Source: Hastings Entertainment, Inc. On Monday May 16, 2011, 7:30 am

AMARILLO, Texas, May 16, 2011 /PRNewswire/ -- Hastings Entertainment, Inc. (NASDAQ:HAST - News), a leading multimedia entertainment retailer, today reported results for the three months ended April 30, 2011.  Net earnings were approximately $0.4 million, or $0.05 per diluted share, for the first quarter of fiscal 2011 compared to net earnings of approximately $1.0 million, or $0.11 per diluted share, for the first quarter of fiscal 2010.  

Operating income was approximately $1.0 million for the first quarter of fiscal 2011 compared to approximately $1.5 million for the first quarter of fiscal 2010.  Adjusted operating income, which excludes gift card breakage revenue and stock compensation expense, was approximately $1.1 million for the first quarter of fiscal 2011 compared to approximately $1.5 million in the first quarter of fiscal 2010.  Earnings before interest, taxes, property and equipment depreciation expense and amortization ("EBITDA") was approximately $5.1 for the first quarter of fiscal 2011 compared to approximately $5.9 million for the first quarter of fiscal 2010.  Adjusted EBITDA, which excludes gift card breakage revenue and stock compensation expense, was approximately $5.3 for the first quarter of fiscal 2011 compared to approximately $5.8 million for the first quarter of fiscal 2010.  Reconciliations of non-GAAP financial measures to comparable GAAP financial measures are included in the tables following the financial statements in this release.

"We faced a challenging quarter primarily due to a poor slate of new releases for movies and books," said John H. Marmaduke, Chief Executive Officer and Chairman.  "Specifically, the box office value of movies that came to Blu-ray and DVD during the quarter was down approximately 25% compared to the first quarter of fiscal 2010, which directly impacted our sale and rental of movies.  The release of Avatar, The Twilight Saga: New Moon, and The Blind Side during the first quarter of fiscal 2010, with no strong comparable releases in 2011, was a big driver of the decline in box office value.  Book sales were impacted by a 22% decrease in new release content, which we define as those titles for which we purchase more than 1,000 copies, during the current quarter as compared to the same period in the prior year.  Additionally, increasing prices of gasoline and groceries impacted consumer discretionary spending thereby reducing store traffic during the quarter.  We continued to focus on controlling our costs.  We reduced selling, general and administrative expenses by $1.7 million, or 3.7%, for the first quarter as compared to the first quarter of fiscal 2010.  Additionally, we continue to focus on maintaining a strong balance sheet.  We reduced debt by $5.3 million during the quarter, and merchandise inventories were approximately $4.5 million less than a year ago."

"I am excited to announce that we are currently working on an initiative that will allow us to begin selling electronic books via our website, www.goHastings.com, which we estimate will be available by the end of the third quarter of fiscal 2011.  Consumers will be able to access www.goHastings.com to shop for electronic books as well as any other entertainment needs through an application preloaded onto an electronic book reader or downloaded to existing mobile devices.  The completion of this initiative will help us drive additional revenues, and, more importantly, it will position www.goHastings.com for any future digital entertainment, including movies and games, in addition to our existing digital music offerings.  We expect that selling electronic books on our website will compliment sales of physical books in our stores.  Our flexible multimedia store model and seamless selection of new and used products paired with the offerings on www.goHastings.com, including digital delivery of entertainment, makes Hastings a sustainable retailer, and we expect future market share growth as many of our competitors continue to shut their doors."

Financial Results for the First Quarter of Fiscal Year 2011

Revenues.  Total revenues for the first quarter decreased approximately $5.0 million, or 3.8%, to $124.1 million compared to $129.1 million for the first quarter of fiscal 2010.  As of April 30, 2011, we operated one less superstore, as compared to April 30, 2010, and operated one concept store, Sun Adventure Sports, which opened during July 2010.  The following is a summary of our revenues results (dollars in thousands):

Below is a summary of the Comp results for our major merchandise categories:

Trends Comps increased 11.9% for the quarter primarily driven by increased sales of new and used comics, apparel, "As Seen on TV" products including Pillow Pets, and strong sales of shaped rubber bands and collectible card games, such as Magic: The Gathering.  The increase in new and used comic sales is primarily due to an expanded comic footprint in 126 stores.  Key drivers in the apparel category included hats, jewelry, and bags.  Hardback Cafe Comps increased 5.2% due to increased sales of specialty cafe drinks.  Video Game Comps increased 2.5% primarily due to increased sales of video game consoles, used video games for the Microsoft XBOX 360, Nintendo Wii, and Sony Playstation 3, new and used video gaming accessories and new Microsoft XBOX 360 video games.  These increases were partially offset by lower sales of new Sony Playstation 3 and Nintendo Wii video games.  Sales of new Nintendo Wii games were impacted by low allocations of Nintendo first party titles.  Music Comps increased 1.3% for the quarter due to increased sales of new CD's partially offset by lower sales of used CDs.  Sales of new music, which have been in decline for several years, were up 4.6% for the first quarter.  Electronics Comps decreased 1.9% for the quarter resulting from lower sales of Blu-ray players and recordable media, partially offset by increased sales of iPods and MP3 players and increased sales of PC Accessories.  Sales of Blu-ray players were negatively impacted by a lower average selling price during the current quarter as compared to the same period in the prior year.  Consumables Comps decreased 6.0% for the quarter primarily driven by lower sales of fountain drinks and bottled drinks.  Movies Comps decreased 6.5% for the quarter primarily due to lower sales of new DVDs, partially offset by increased sales of new and used DVD boxed set and used Blu-ray movies.  Movie sales were negatively impacted by a 25% drop in box office value of movies that came to Blu-ray and DVD during the first quarter as compared to the same period in the prior year.   Our top three selling movies during the current quarter generated approximately 54% less revenue than the top three selling movies during the comparable period in the prior year.  Books Comps decreased 9.1% for the quarter primarily due to lower sales of new and used mass market books, trade paperbacks and hardbacks.  Sales of new books, which decreased 8.6% for the quarter, were impacted by several books that were made into movies during the first quarter of fiscal 2010.  The movie tie-ins helped drive sales of related books.  Some titles with movie tie-ins during the first three months of fiscal 2010 included Rick Riordan's Percy Jackson and the Olympians series, and Dear John and The Last Song by Nicholas Sparks.  There were no comparable strong movie tie-ins during the current quarter.  Sales of new books were also impacted by a weaker slate of new book releases as compared to the same period in the prior year and the increasing popularity of electronic book readers.  Sales of used books, which decreased 19.6% for the quarter, were also impacted by the weaker slate of new book release which in turn led to a less favorable inventory of used titles.  These decreases were partially offset by increased sales of value books, which increased 8.7% for the period.

Rental Comps decreased 5.8% for the quarter, primarily due to fewer rentals of DVDs and books on CD partially offset by increased rentals of games and Blu-ray movies.  Rental Video Comps decreased 7.0% for the quarter and units rented decreased 9.0%.  Rental Video Comps sales were negatively impacted by fewer titles released in the $20 million to $80 million gross box office range, which typically represent our best renters.  Rental Video Game Comps increased 7.7% and units rented increased 2.8%.  We are currently exiting the Book on CD category of our rental business.

Gross Profit – Merchandise.  For the first quarter, total merchandise gross profit dollars decreased approximately $1.4 million, or 4.2%, to $32.3 million from $33.7 million for the same period in the prior year, primarily due to lower revenues.  As a percentage of total merchandise revenue, merchandise gross profit decreased to 31.0% for the quarter compared to 31.2% for the same period in the prior year, resulting primarily from increased costs to return products partially offset by lower shrinkage expense.  The decrease in shrinkage expense is a direct result of our comprehensive store audit program that assesses store level execution and controls designed to reduce shrink, with a strong focus on our high-shrinkage stores.

Gross Profit – Rental.  For the first quarter, total rental gross profit dollars decreased approximately $0.9 million, or 6.9%, to $12.2 million from $13.1 million for the same period in the prior year, primarily due to lower revenues.  As a percentage of total rental revenue, rental gross profit decreased to 62.7% for the quarter compared to 62.9% for the same period in the prior year.

Selling, General and Administrative Expenses ("SG&A").  As a percentage of total revenue, SG&A remained consistent for the first quarter at 35.2%.  SG&A decreased approximately $1.7 million during the quarter, or 3.7%, to $43.7 million compared to $45.4 million for the same quarter last year.  The primary drivers of the decrease in total SG&A included a decrease of approximately $0.8 million in store advertising expense, a decrease of approximately $0.3 million in store labor costs, and a decrease of approximately $0.2 million in depreciation expense.

Interest Expense.  For the first quarter, interest expense increased approximately $0.1 million, or 100%, to $0.2 million, compared to $0.1 million for the same period in the prior year, primarily as a result of higher interest rates incurred under our Amended and Restated Loan and Security Agreement partially offset by lower average debt levels outstanding during the quarter.  The average rate of interest charged for the quarter increased to 2.6% compared to 1.9% for the same period in the prior year.

Income Tax Expense.  During the three months ended April 30, 2010, the Company recorded a discrete tax benefit of approximately $0.2 million related to amended state returns resulting from an Internal Revenue Service audit of the Company's previously filed Federal tax returns.  No discrete tax items were recorded during the three months ended April 30, 2011.  Primarily as a result of this discrete tax benefit, the effective tax rate for the first quarter of fiscal 2011 increased to 47.1% compared to 28.3% for the first quarter of fiscal 2010.

Stock Repurchase

On September 18, 2001, we announced a stock repurchase program of up to $5.0 million of our common stock.  As of April 30, 2011, the Board of Directors had approved increases in the program totaling $32.5 million.  During the first quarter of fiscal 2011, we purchased a total of 129,400 shares of common stock at a cost of $653,598, or $5.05 per share.  As of April 30, 2011, a total of 4,808,040 shares had been repurchased under the program at a cost of approximately $29.9 million, for an average cost of approximately $6.22 per share.  As of April 30, 2011 a total of $7.6 million remained available under the stock repurchase program.

Store Activity

Since March 21, 2011, which was the last date we reported store activity, we have the following activity to report.

• Store opened in Nampa, Idaho on April 18, 2011.  This store is our fifth in the Boise area and contains 20,201 selling square footage.

Fiscal Year 2011 Guidance

"Results for the quarter fell short of our internal forecast, which is the basis for our guidance," said Dan Crow, Vice President and Chief Financial Officer.  "Based on certain promotional initiatives we are taking to drive revenues and our continued focus on costs, which were less than our internal forecast, we expect to make up the shortfall during the remaining three quarters.  Consequently, we are reaffirming our guidance of net earnings per share ranging from $0.22 to $0.37 for the full fiscal year ending January 31, 2012."

Safe Harbor Statement

This press release contains "forward-looking statements."  Hastings Entertainment, Inc. is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.  These forward-looking statements are based on currently available information and represent the beliefs of the management of the Company.  These statements are subject to risks and uncertainties that could cause actual results to differ materially.  These risks include, but are not limited to, consumer appeal of our existing and planned product offerings, and the related impact of competitor pricing and product offerings; overall industry performance and the accuracy of our estimates and judgments regarding trends; our ability to obtain favorable terms from suppliers; our ability to respond to changing consumer preferences, including with respect to new technologies and alternative methods of content delivery, and to effectively adjust our offerings if and as necessary; the application and impact of future accounting policies or interpretations of existing accounting policies; unanticipated adverse litigation results or effects; the effects of a continued deterioration in economic conditions in the U.S. or the markets in which we operate our stores; the effect of inclement weather on the ability of consumers to reach our stores; and other factors which may be outside of the company's control.  We undertake no obligation to affirm, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  Please refer to the company's annual, quarterly, and periodic reports on file with the Securities and Exchange Commission for a more detailed discussion of these and other risks that could cause results to differ materially.

About Hastings

Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and CDs, and trends and consumer electronics merchandise, with the rental of videos and video games in a superstore format.  We currently operate 146 superstores, averaging approximately 24,000 square feet, primarily in medium-sized markets throughout the United States.  We also operate a concept store, Sun Adventure Sports, in Amarillo, Texas.

We also operate www.goHastings.com, an e-commerce Internet web site that makes available to our customers new and used entertainment products and unique, contemporary gifts and toys.  The site features exceptional product and pricing offers.  The Investor Relations section of our web site contains press releases, a link to request financial and other literature and access to our filings with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

The Company is providing free cash flow, EBITDA, adjusted EBITDA, and adjusted operating income (loss) as supplemental non-GAAP financial measures regarding the Company's operational performance.  The Company evaluates its historical and prospective financial performance, and its performance relative to its competitors, by using such non-GAAP financial measures.  Specifically, management uses these items to further its own understanding of the Company's core operating performance, which management believes represents the Company's performance in the ordinary, ongoing and customary course of its operations.  Therefore, management excludes from core operating performance those items, such as those relating to restructuring, investing, stock-based compensation expense and non-cash activities that management does not believe are reflective of such ordinary, ongoing and customary activities.

The Company believes that providing this information to its investors, in addition to the presentation of GAAP financial measures, allows investors to see the Company's financial results "through the eyes" of management.  The Company further believes that providing this information allows investors to both better understand the Company's financial performance and to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

Free Cash Flow

Management defines free cash flow as net cash provided by operating activities for the period less purchases of property, equipment and improvements during the period.  Purchases of property, equipment and improvements during the period are netted with any proceeds received from insurance on casualty loss that are directly related to the reinvestment of new capital expenditures.   The following table reconciles net cash provided by operating activities, a GAAP financial measure, to free cash flow, a non-GAAP financial measure (in thousands):

EBITDA and Adjusted EBITDA

EBITDA is defined as net income (loss) before interest expense (net), income tax expense (benefit), property and equipment depreciation expense and amortization.  Adjusted EBITDA, as presented herein, is EBITDA excluding gift card breakage revenue, stock-based compensation expense and store asset impairments.  The following table reconciles net income (loss), a GAAP financial measure, to EBITDA and adjusted EBITDA, non-GAAP financial measures (in thousands):

Adjusted Operating Income (Loss)

Adjusted operating income (loss) is defined as operating income (loss) excluding gift card breakage revenue, stock based compensation expense and store asset impairments.  The following table reconciles operating income (loss), a GAAP financial measure, to adjusted operating income (loss), a non-GAAP financial measure (in thousands):

Free cash flow, EBITDA, adjusted EBITDA, and adjusted operating income (loss) are considered non-GAAP financial measures under the SEC's Regulation G and therefore should not be considered in isolation of, or as a substitute for, net income (loss), operating income (loss), cash flow from operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP.  The financial measures of non-GAAP free cash flow, EBITDA, adjusted EBITDA, and adjusted operating income (loss) may vary among other companies.  Therefore, our free cash flow, EBITDA, adjusted EBITDA, and adjusted operating income (loss) may not be comparable to similarly titled measures used by other companies.  

PENAMPANG, 16 MAY, 2011: Barisan Nasional have to reach a consensus over members switching parties among the coalition, said United Pasok Momogun Kadazandusun Murut Oranisation (Upko) president Tan Sri Bernard Dompok.

He said in Sabah, BN component parties had been admitting members from other coalition partners and even Umno had accepted members of Upko, Parti Bersatu Sabah and other parties.

"This issue was discussed by BN before but it had not been resolved. There had been individuals, who left a party and joined another later," he told reporters after handing over 1Malaysia laptops for students in the Penampang parliamentary constituency here today.

In another breath, Dompok said the matter ought to be studied on case by case basis.

He was commenting on Sabah Umno liaison committee secretary Datuk Seri Yahya Hussin's claim that a component party had been encouraging Umno members in Sembulan to join the party.

Subsequently, Putatan Upko division issued a statement that the party rejected membership applications from Umno members.

Putatan Upko information chief Nordin W. Ibrahim said Upko divisional leaders would double check membership applications and would reject those identified as Umno members.

The ties between Umno and Upko is said to be strained over a tussle for candidacy of the Putatan parliamentary seat, currently held by Datuk Marcus Mojigoh from Upko, for the 13th general election.

- Bernama

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