Blockbuster continues to bleed cash
How has Blockbuster lost money? Let me count the ways:
1) They posted a loss in the third quarter of $491.4 million.
2) After shuffling around some cards, namely by excluding a $347 million charge in the latest quarter for lost goodwill from former parent Viacom Inc’s purchase of Blockbuster, Blockbuster lost 24.6 million this quarter (13 cents a share).
3) How sad is it that compared to last year that doesn’t sound so bad? “For the first nine months of the year, Blockbuster lost $606 million or $3.30 per share, compared to a loss of $1.25 billion or $6.91 last year. Revenue was flat at $4.33 billion.”
Naturally, they’re selling off assets, cutting costs, and raising cash any way they can. Still…
The company said it could be forced into bankruptcy protection if a new credit agreement with lenders doesn’t become effective or if lenders recall loans because of failure to meet debt covenants — typically things like exceeding debt ratios.
Uh oh. (Link contains sfw audio)