Top U.S. movie rental chain Blockbuster Inc
Its shares jumped as much as 10 percent in after-hours trade.
But the company warned that the its new loans will be expensive, and it plans to temporarily pull back on plans to spend on stores to conserve capital in tough economic times.
Blockbuster, whose share price fell 70 percent in 2008, posted a net loss of $359.7 million, or $1.89 per share, in the fourth quarter mainly due to a non-cash charge of $435 million for impairment of goodwill and other assets.
In last year's fourth quarter, Blockbuster reported a net profit of $41 million or 18 cents per share.
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 $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.
Analysts, on average, expected Blockbuster to post a profit, excluding items, of 25 cents per share, and revenue of $1.54 billion, according to Reuters Estimates.
The company's results were affected by a shorter fiscal 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 quarterly domestic same-store sales increased 4.4 percent, with a 36.5 percent jump in consumer electronics sales offsetting a 2.6 drop in rental revenue.
Blockbuster Chief Executive Officer 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 facility through September 30, 2010.
The principle amount of the facility will be reduced to $250 million, Keyes said.
Blockbuster also is working to restructure a term loan due in August, Keyes said.
He said that Blockbuster's financial statements and auditors' report likely would include reference to going concern risks until our financing is complete...
Keyes said the company expects somewhat lower revenue comparables and plans to cuts costs across all the areas of the business by over $200 million in fiscal 2009, due to what he expects to be ongoing weak economic conditions.
The company forecast fiscal 2009 adjusted earnings before interest, taxes, depreciation and amortization in the range of $305 million to $325 million, operating income between $164 million to $184 million and net income of $40 million to $60 million.
Blockbuster shares were flat at 89 cents per share 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 and Carol Bishopric)