Handleman Income Dips In Fourth Quarter

Sale of Anchor Bay contributed to decline.

The Handleman Co. reports net income of $5.7 million, or 24 cents per diluted share, on sales of $297.2 million in its fiscal fourth quarter, which ended May 1. While revenue for the quarter was up 13.8% from the $261.2 million generated in the same time frame in the previous year, net income was down nearly $2 million from $7.8 million, or 30 cents per diluted share.

The income differential was attributed to the Nov. 1 sale of the company's Anchor Bay Entertainment subsidiary. Although treated as a discontinued operation, this year it contributed a $749,000 loss, vs. after-tax income of $2.1 million last year.

For the fiscal year, the Troy, Mich.-based company reported net income of $38.8 million, or $1.57 per diluted share, on sales of $1.2 billion, vs. $27.7 million, or $1.06 per diluted share, on sales of $1.28 billion in the previous year. While sales were up for the fourth quarter, the drop in annual revenues was attributed to store closures.

Stock in Handleman closed today (June 8) up 2.6% at $22.52. The company results were released after the close of trading.