DALLAS, April 6 /PRNewswire-FirstCall/ -- Blockbuster
Inc. (NYSE: BBI, BBI.B) today announced new agreements with
Twentieth Century Fox Home Entertainment LLC and Sony Pictures Home
Entertainment Inc. These new agreements, along with the
previously-announced agreement with Warner Home Video, will provide
day-and-date availability of movies for Blockbuster's store and
by-mail channels. Additionally, these studios will provide
new enhanced payment terms to Blockbuster in exchange for a first
lien on Blockbuster Canada Co.'s assets. Blockbuster Canada
will continue with business as usual by providing high-quality home
entertainment to its customers.
"These important steps with three of the leading movie studios
will continue a steady supply of top-rated movies for Blockbuster
customers," said Tom Casey,
Blockbuster Inc. Executive Vice President and Chief Financial
Officer. "These positive signs of studio support are part of
our overall recapitalization effort to drive top-line performance
while reducing debt and operating costs at Blockbuster. This
affirms our strong and collaborative business relations with these
critical vendors."
The new payment terms help Blockbuster continue the
recapitalization initiatives already underway. Management has
previously announced a number of concurrent efforts to recapitalize
the company and assure its long-term growth and success.
Blockbuster will continue to rationalize its U.S. store portfolio
and aggressively manage working capital. Additionally,
Blockbuster has implemented a plan that cuts operating costs by
$200 million this year to preserve
cash and further improve liquidity. Blockbuster is also in
discussions with advisors for its bondholders related to debt
recapitalization.
"We will continue to offer our customers all types of
innovations as the leading multi-channel provider of entertainment
including the recently announced agreement with Warner Bros. Home
Entertainment Inc. for immediate availability of new titles, the
addition of BLOCKBUSTER On Demand® for select Samsung 2010 Blu-ray
Players, HDTVs, and Blu-ray Home Theater Systems, and the addition
of BLOCKBUSTER On Demand for smart phones launched recently on
T-Mobile's HTC HD2," said Casey.
Forward Looking Statement
This press release contains "forward looking statements" – that
is, statements related to future, not past, events. In this
context, forward looking statements often address our expected
future business and financial performance, and often contain words
such as "expect," "intend," "plan," "believe," "seek," or
"will." Forward looking statements by their nature address
matters that are, to different degrees, uncertain. For us,
particular uncertainties that could adversely or positively affect
our future results include, among others, from time to time: (i)
whether our operating results continue to decline and whether we
are able to generate sufficient cash flows to meet our liquidity
needs; (ii) whether we will have sufficient cash flows from
operating activities and cash on hand to service our indebtedness
and finance the ongoing obligations of our business; (iii) whether
we are able to execute our transformational strategies; (iv)
whether we are able to execute proposed strategies to recapitalize
or restructure our balance sheet; and (v) other factors, as
described in our filings with the Securities and Exchange
Commission, including the factors discussed under the heading "Risk
Factors" in our annual report on Form 10-K for the year ended
January 3, 2010 and under the heading
"Disclosure Regarding Forward-Looking Information" in our quarterly
reports on Form 10-Q. This cautionary statement is provided
pursuant to Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These uncertainties may
cause our actual future results to be materially different than
those expressed in our forward looking statements. We do not
undertake to update our forward looking statements except as
required by law.
About Blockbuster Inc.
Blockbuster Inc. is a leading global provider of rental and
retail movie and game entertainment. The company provides customers
with convenient access to media entertainment anywhere, any way
they want it - whether in-store, by-mail, through vending kiosks or
digitally to their homes and mobile devices. With a highly
recognized brand and a library of more than 125,000 movie and game
titles, Blockbuster leverages its multichannel presence to serve
nearly 47 million global customers annually. The company may be
accessed worldwide at www.blockbuster.com.
SOURCE Blockbuster Inc.
