Top U.S. movie rental chain Blockbuster Inc
The company posted a net loss of $359.7 million, or $1.89 per share, in the fourth quarter from a net profit of $41 million, or 18 cents per share, a year earlier.
But the company's report of a larger quarterly profit excluding items and news Blockbuster has resolved problems with a majority of its creditors sent its shares up 10 percent in after-hours trading.
Excluding impairments, stock-based compensation expenses and costs associated with lease terminations and severance, Blockbuster posted a profit of $80.4 million, or 40 cents per share, compared with adjusted income of $57.8 million, or 26 cents per share, in 2007.
Total revenues fell 12 percent to $1.38 billion from $1.57 billion a year earlier.
The company said its results were affected by a shorter fiscal year of 52 weeks versus 53 weeks last year, by a decline in rental revenues, negative foreign currency exchange rates and a smaller store base.
In a preliminary report this month, Blockbuster said fourth-quarter domestic same-store sales increased 4.4 percent and it exceeded its forecast for 2008 EBITDA -- a key measure of financial health -- of $300 million to $315 million.
While Blockbuster this month said it has no plans to file for bankruptcy, the company has hired lawyers to help it raise capital and refinance debt as it faces mounting competitive threats from Internet-based video and rival Netflix Inc
On Thursday, Blockbuster CEO Jim Keyes said the company reached agreements with JPMorgan Chase Bank and two of the largest lenders under its existing revolving credit facility to amend and extend the credit line through September 30, 2010.
The commitments from those lenders represent 65 percent of the expected aggregate principle amount of the extended revolving credit facility, Keyes said.
Keyes also said the company's financial statements and auditors' report would likely include reference to going concern risks until the financing is complete and its liquidity is assured.
Blockbuster shares rose 10 cents to 98 cents in after-hours trading after closing up 7.2 percent on the New York Stock Exchange on Thursday.
(Reporting by Gina Keating; Editing by Andre Grenon)