The Handleman Co., in a continuation of its management-led liquidation, reported that the company lost $65.6 million, or $3.22 per diluted share on sales $91.5 million, for the fiscal quarter ended May 3.

The company's loss is largely attributed to its decision to liquidate, as it booked a $30 million goodwill impairment charge and a $17.2 million impairment of subsidiary assets and a $20.5 million loss from discontinued operations, which including its North American rackjobbing operation; its Artist To Market unit; and its UK operation, all of which have been sold or in the process of being sold.

The revenues from those operations were excluded from its financial results. For the full fiscal year ended May 3, the company lost $96.8 million, or $4.76 per diluted share, on revenues of $494.6 million.

At year's end the company reported $328.7 million in assets, including $140 million in assets held for sale; $62.55 million in accounts receivables and $29 million in inventory. Liabilities, excluding shareholder equity totaled about $187 million, including $63 million in current debt and $31 million in accounts payable; and $62.3 million in liabilities related to the sale of assets. Shareholders equity stood at $141.7 million. At mid-day, Handleman stock price stood at $2, up from the prior day close of $1.98.

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