- Company Achieves Solid Results from Fulfillment Divisions - - Media Segment Impacted by Challenging Advertising Environment -
BONITA SPRINGS, Fla., Sept. 4 /PRNewswire-FirstCall/ -- Source Interlink
Companies, Inc. (Nasdaq: SORC), one of the largest publishers of magazines and
online content for enthusiast audiences and a leading distributor of DVDs,
CDs, magazines, video games and books, today announced financial results for
the fiscal 2009 second quarter ending July 31, 2008. Adjusted income from
continuing operations for the fiscal 2009 second quarter totaled $5.4 million,
or $0.10 per diluted share, up 14.1 percent over the prior year.
Adjusted Results* GAAP Results
($ in millions) ($ in millions)
2Q092Q08 % Change 2Q092Q08 % Change
Revenue $577.5 $434.1 33.0% $576.7 $434.1 32.8%
Periodical
Fulfillment 251.7238.95.3%251.7238.9 5.3%
DVD/CD Fulfillment 207.8195.26.5%207.8195.2 6.5%
Source Interlink
Media 125.4- - 124.5--
Eliminations (7.4) - - (7.4) --
Operating Income $32.9$10.4 217.5%$14.6 $6.6121.8%
Income from continuing
operations $5.4 $4.7 14.1% $(15.9)$2.4 (752.1)%
EPS - Diluted $0.10$0.09 11.1% $(0.30) $0.04 (850.0)%
Adjusted Results* GAAP Results
($ in millions) ($ in millions)
1H09 1H08 % Change 1H09 1H08 % Change
Revenue $1,192.7 $909.6 31.1% $1,191.0 $909.6 30.9%
Periodical
Fulfillment 521.2483.57.8%521.2483.5 7.8%
DVD/CD Fulfillment 436.4426.02.4%436.4426.0 2.4%
Source Interlink
Media 249.5- - 247.9--
Eliminations (14.4) - - (14.4) --
Operating Income $69.9$22.5 210.2% $(236.6) $15.4 (1635.3)%
Income from continuing
operations$15.0 $9.9 51.3% $(296.7)$5.7 (5348.5)%
EPS - Diluted $0.29$0.19 52.6% $(5.67) $0.11 (5254.5)%
* Please see "Financial Highlights" section of this press release for
definition and reconciliation of non-GAAP financial measures.
"We achieved solid results in our fulfillment businesses during the second
quarter, driven by market share growth and the continued benefits of our
consolidation and cost reduction efforts, however, our media business was
significantly impacted by a challenging advertising environment and some
softness at the newsstand," said Michael R. Duckworth, Chairman of Source
Interlink. "Despite the economy, our strategies remain intact. We are focused
on building scale in fulfillment, expanding our digital platform in
publishing, and lowering our cost structure across the organization. As we
work toward these goals, our business fundamentals remain strong and we expect
to see improved performance once the economy returns to a more normalized
level of activity."
Financial Highlights
Adjusted income from continuing operations for the fiscal 2009 second
quarter totaled $5.4 million, or $0.10 per diluted share. Adjusted revenue
totaled $577.5 million. Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) for the quarter totaled $40.8 million,
a 196.8% increase over the same period last year. Adjusted operating income
for the second quarter totaled $32.9 million, an increase of 217.5% over the
prior year quarter. Adjusted operating margins increased to 5.7% from 2.4%.
GAAP loss from continuing operations for the fiscal 2009 second quarter
totaled ($15.9) million, or ($0.30) per diluted share, compared to a fiscal
2008 second quarter income of $2.4 million, or $0.04 per diluted share.
GAAP revenue for fiscal 2009 second quarter increased $142.6 million or
32.8% to $576.7 million compared to the prior year total GAAP revenue of
$434.1 million. The increase in revenue year-over-year is due, in large part,
to the acquisition of the Source Interlink Media Segment ("SIM" or "Media") on
August 1, 2007.
Adjusted income from continuing operations for the six month period ending
July 31, 2008 totaled $15.0 million, or $0.29 per diluted share, on total
revenue of $1,192.7 million. Adjusted EBITDA for the six month period totaled
$85.2 million, a 185.2% increase over last year. GAAP income from continuing
operations for the six month period ended July 31, 2008 decreased $302.4
million to a loss of ($296.7) million or ($5.67) per diluted share as compared
to income of $5.7 million or $0.11 per diluted share for the same period last
year. GAAP revenue in the current six month period increased $281.4 million or
30.9% to $1,191.0 million compared to prior year first half total revenue of
$909.6 million.
The reported GAAP loss from continuing operations in the first half of
fiscal year 2009 includes a non-cash impairment charge of $270.8 million, or
$5.18 per share, for goodwill and indefinite-lived trade names related to
certain reporting units of the Media Segment. This impairment charge was a
result of our fiscal year 2009 FAS 142 first quarter impairment analysis. This
determination was based largely on management's projections regarding the
revenues and profitability of the Media Segment as well as the effects of the
recent credit market changes, the continued economic downturn and the related
effects on advertising and consumer discretionary spending. The charge was
measured on the basis of comparison of estimated fair values with
corresponding book values and relates primarily to goodwill and trade names
recorded in connection with our acquisition of SIM. These fair values were
determined in accordance with Company policy as well as FAS 142 and other
relevant guidance.
The Company uses both Generally Accepted Accounting Principles (GAAP), and
non-GAAP or adjusted financial measures, to evaluate and report the results of
its business. A reconciliation of the non-GAAP financial measures to the
comparable GAAP financial measure is available on the Company's home page at
http://www.sourceinterlink.com by selecting "Reconciliation of Non-GAAP
Financial Measures."
The Company provides non-GAAP or adjusted financial information in order
to provide meaningful supplemental information regarding its operational
performance and to enhance investors' overall understanding of the Company's
current financial performance and prospects for the future. The Company
believes that investors benefit from seeing its results "through the eyes" of
management in addition to the GAAP presentation. Management measures Segment
and enterprise performance using measures such as those disclosed in this
release. This information facilitates management's internal comparisons to the
Company's historical operating results.
Non-GAAP or adjusted information allows for greater transparency to
supplemental information used by management in its financial and operational
decision making. This information is not in accordance with or an alternative
for, GAAP in the United States. It excludes items, such as amortization of
acquired intangible assets, impairment charges, charges incurred to
consolidate and integrate distribution facilities of recently acquired
businesses and non-cash stock-based compensation that may have a material
effect on the Company's net income and net income per share calculated in
accordance with GAAP. Management monitors these items to ensure that expenses
are in line with expectations and that its GAAP results are correctly stated,
but does not use them to measure the ongoing operating performance of the
Company. The non-GAAP or adjusted information provided by the Company may be
different from the non-GAAP or adjusted information provided by other
companies.
GAAP and adjusted earnings per share were calculated on 52.4 million and
52.3 million diluted shares outstanding in the fiscal 2008 and 2009 second
quarters, respectively.
See table below for reconciliation of GAAP financial results to adjusted
amounts for the three month period and six month period ended July 31, 2008.
Adjusted Income from Continuing Operations was calculated utilizing a tax rate
of 3 percent and 40 percent for the three and six months ended July 31, 2008
and July 31, 2007, respectively.
Q2 2009
Operating Income
DVD Periodical Income
and CD Fulfill- from
Fulfill- ment Shared Consoli- Continuing
(in thousands) Media ment Services Services dated Operations
GAAP $15.0 $2.4 $2.2 $(5.0) $14.6$(15.9)
Adjustments:
Amortization
of acquired
intangibles 8.91.1 1.5 -11.5 11.5
Stock compensation
expense - --0.1 0.1 0.1
Deferred revenue 0.8 -- - 0.8 0.8
Integration and
relocation
expenses 0.01.2-0.1 1.3 1.3
Write off of
acquisition
related assets - - 4.6 - 4.6 4.6
Minority interest
/ accretion of
A.com liability - -- - - 0.6
Amortization of
Bridge Facility
fees- -- - - 1.4
Write off of
deferred financing
fees- -- - - 1.0
Difference between
GAAP and Adjusted
tax rate- -- - - (0.2)
Adjusted $24.8 $4.7 $8.3 $(4.8) $32.9 $5.4
DVD Periodical
and CD Fulfill-
Fulfill- ment Shared Consoli-
(in thousands) Media ment Services Services dated
Adjusted
operating
income$24.8 $4.7 $8.3 $(4.8) $32.9
Depreciation and
other amortization 3.22.2 1.60.9 7.9
Other income
(expense) - - 0.1 (0.1) 0.0
Adjusted EBITDA$27.9 $7.0$10.0 $(4.0) $40.8
Q2 2008
Operating Income
DVD Periodical Income
and CD Fulfill- from
Fulfill- ment Shared Consoli- Continuing
(in thousands) Media ment Services Services dated Operations
GAAP $- $3.9 $6.9$(4.1) $6.6 $2.4
Adjustments:
Amortization of
acquired
intangibles -2.6 1.4 - 3.9 2.4
Disposal of land,
building and
equipment, net - -(0.2) -(0.2) (0.1)
Adjusted $- $6.4 $8.1$(4.1)$10.4 $4.7
CD
and DVD Magazine
Fulfill- Fulfill- Shared Consoli-
(in thousands) Media ment ment Services dated
Adjusted operating
income $- $6.4 $8.1 $(4.1) $10.4
Depreciation and
other amortization-1.6 1.1 0.5 3.3
Other income
(expense) - - 0.1 (0.0) 0.1
Adjusted EBITDA $- $8.0 $9.3 $(3.6) $13.8
6 Months 2009
Operating Income
DVD Periodical Income
and CD Fulfill- from
Fulfill- ment Shared Consoli- Continuing
(in thousands) Media ment Services Services dated Operations
GAAP $(245.1) $8.2$12.0$(11.7) $(236.6) $(296.7)
Adjustments:
Amortization
of acquired
intangibles 18.22.2 2.9 - 23.3 23.3
Stock
compensation
expense - -- 0.1 0.1 0.1
Deferred revenue 1.7 -- - 1.7 1.7
Integration,
consolidation
and relocation
expenses 2.01.4 0.5 0.1 4.0 4.0
Writeoff of
goodwill and
tradename
intangibles 270.8 -- -270.8 270.8
Write off of
acquisition
related assets - - 4.6 1.9 6.5 6.5
Minority interest
/ accretion of
A.com liability - -- -- 1.0
Amortization of
Bridge Facility
fees- -- -- 3.7
Write off of
deferred
financing fees - -- -- 1.0
Difference between
GAAP and Adjusted
tax rate- -- -- (0.5)
Adjusted $47.6 $11.8$19.9 $(9.5) $69.9 $15.0
DVD Periodical
and CD Fulfill-
Fulfill- ment Shared Consoli-
(in thousands) Media ment Services Services dated
Adjusted
operating
income$47.6 $11.8$19.9 $(9.5) $69.9
Depreciation
and other
amortization6.14.4 3.5 1.7 15.7
Other income
(expense) - - (0.2) (0.2)(0.4)
Adjusted EBITDA$53.7 $16.3$23.2 $(8.0) $85.2
6 Months 2008
Operating Income
DVD Periodical Income
and CD Fulfill- from
Fulfill- ment Shared Consoli- Continuing
(in thousands) Media ment Services Services dated Operations
GAAP $- $10.5$13.9 $(8.9) $15.4 $5.7
Adjustments:
Amortization of
acquired
intangibles -4.4 2.7 - 7.1 4.3
Losses (gains) on
disposal of fixed
assets - - (0.2)- (0.2) (0.1)
Stock compensation
expense - -- 0.179 0.2 0.1
Adjusted $- $14.9$16.4 $(8.8) $22.5 $9.9
DVD Periodical
and CD Fulfill-
Fulfill- ment Shared Consoli-
(in thousands) Media ment Services Services dated
Adjusted operating
income $- $14.9$16.4 $(8.8) $22.5
Depreciation and
other amortization-3.8 2.3 1.1 7.2
Other income - - 0.2 0.0 0.2
Adjusted EBITDA $- $18.7$18.8 $(7.6) $29.9
The table below reports free cash flow results on a comparative basis for
the three month and six month periods ended July 31 for fiscal years 2008 and
2009. Free cash flow is comprised of cash flow from operations on a GAAP
basis, which includes changes in working capital, the net claiming activity
relating to our RDA Advance Pay Program, less capital expenditures.
Free Cash Flow
Three Months ended Six Months ended
July 31, July 31,
2008200720082007
Cash provided by (used in)
operating activities $24.5$2.6 $12.0$9.5
Net claiming activity $(1.8) $7.6$0.3 $11.9
Capital expenditures $(10.4) $(5.4) $(19.0) $(9.4)
Free cash flow $12.3$4.8 $(6.6) $12.0
Segment Results
Source Interlink Media Segment - Source Interlink Media, formerly
Enthusiast Media, was acquired on August 1, 2007. Results provided for prior
periods are for comparative purposes only.
For the three months ended July 31, 2008, the Company's Media Segment
reported adjusted revenue of $125.4 million, adjusted EBITDA of $27.9 million,
gross margin of 72.7% and adjusted operating income of $24.8 million for the
second quarter. For comparative purposes only, revenue for the second quarter
of last year was $143.7 million, adjusted EBITDA was $35.2 million and gross
margin was 66.1%. The primary driver of the decrease in revenue and EBITDA
relates to the weakness in the print advertising markets, particularly in the
automotive and marine groups. Advertising revenue was down approximately
$13.8 million or 16.7%.
For the six month period ended July 31, 2008, the Media Segment reported
adjusted revenue of $249.5 million, adjusted EBITDA of $53.7 million, gross
margin of 72.9% and adjusted operating income of $47.7 million. For
comparative purposes only, revenue for the six month period last year was
$278.2 million, adjusted EBITDA was $65.7 million and gross margin was 66.4%.
Periodical Fulfillment Services Segment - For the three months ended July
31, 2008, the Company's Periodical Fulfillment Services Segment, which
includes segments previously referred to as Magazine Fulfillment and In-Store
Services Segments, reported GAAP revenue of $251.7 million compared with
$238.9 million in the prior year second quarter, an increase of approximately
5.3%. GAAP gross profit margins remained consistent, decreasing slightly from
23.8% in the prior year period to 23.5% in the current period. Adjusted
operating income increased 1.9% to $8.3 million in the fiscal 2009 second
quarter. Adjusted EBITDA for the Segment during the second quarter was $10.0
million, an increase of $0.7 million or 7.0% as compared to the prior year
second quarter. The increased profitability is related primarily to increased
sales for the quarter coupled with continued cost savings recognized from the
distribution center consolidation project.
For the six month period ended July 31, 2008, the Periodical Fulfillment
Services Segment reported GAAP revenue of $521.2 million compared with $483.5
million in the prior year six month period, an increase of approximately 7.8%.
GAAP gross profit margins remained consistent, decreasing slightly from 24.1%
in the prior year period to 23.8% in the current period. Adjusted operating
income increased 21.8% to $19.9 million in the fiscal 2009 six month period.
Adjusted EBITDA for the Segment during the six month period was $23.2 million,
an increase of $4.4 million or 23.4% as compared to the prior year period.
DVD and CD Fulfillment Segment - For the three months ended July 31, 2008,
the DVD and CD Fulfillment Segment reported GAAP revenue of $207.8 million,
gross margin of 17.4% and adjusted operating income of $4.7 million for the
second quarter. Adjusted EBITDA for the quarter was $7.0 million, a decrease
of 13.5% compared to the prior year quarter. Sales of DVDs increased 13.5% to
$102.7 million, and CD revenue remained flat at approximately $100 million.
Adjusted operating margins decreased from 3.3% in the prior year second
quarter to 2.3% in the current year period. Gross profit margins for the
second quarter decreased to 17.4% from 18.7%. The decreases are primarily
related to new customers carrying lower gross margins and increases in freight
and distribution costs in the quarter.
For the six month period ended July 31, 2008, the DVD and CD Fulfillment
Segment reported GAAP revenue of $436.4 million, gross margin of 17.2% and
adjusted operating income of $11.8 million. Adjusted EBITDA for the period was
$16.3 million, a decrease of 12.9% compared to the prior year six month
period. Sales of DVDs increased 2.4% to $214.3 million, and CD revenue
increased 1.2% to $211.2 million. Adjusted operating margins decreased from
3.5% in the prior year period to 2.7% in the current year period. Gross profit
margins for the six month period decreased to 17.2% from 18.0%.
Shared Services Segment - The Shared Services Segment consists of
corporate and shared overhead functions associated with the individual
operating Segments. The adjusted EBITDA loss attributed to Shared Services
increased to ($4.0) million from ($3.6) million in the prior year.
For the six month period ended July 31, 2008, the Shared Services Segment
adjusted EBITDA loss increased to ($8.0) million from ($7.6) million in the
prior year.
Fiscal 2009 Second Quarter Conference Call
Source Interlink Companies, Inc. will host a teleconference to discuss its
fiscal 2009 second quarter on Thursday, September 4, 2008 at 4:30 p.m. Eastern
Time. To access the teleconference, please dial 877-323-2090 (U.S. callers)
and 416-695-9753 (Int'l callers), referencing Source Interlink Companies, ten
minutes prior to the start time. The teleconference will also be available via
live webcast on the Company's Web site atwww.sourceinterlink.com. A slide
presentation, titled "Fiscal 2009 Second Quarter Financial Presentation," that
corresponds with the financial portion of management's presentation of 2009
results has been posted on the Company's Web site. You can find the
presentation by going to the Investor Relations homepage and by selecting
"Corporate Materials." A replay of the conference call will be available
through Thursday, September 11, 2008. It can be accessed by dialing 800-408-
3053 (U.S. callers) or 416-695-5800 (Int'l callers), passcode 3268929. The
webcast will also be archived on www.sourceinterlink.comfor 30 days.
About Source Interlink Companies, Inc.
Source Interlink Companies, Inc. (Nasdaq: SORC), a media and marketing
services company, is one of the largest publishers of magazines and online
content for enthusiast audiences and is also a leading distributor of home
entertainment products, including DVDs, music CDs, magazines, video games,
books, and related items. Source Interlink serves over 100,000 retail store
locations throughout North America. Supply chain relationships include
consumer goods advertisers, subscribers, movie studios, record labels,
magazine and newspaper publishers, confectionary companies and manufacturers
of general merchandise.
The Company's fully integrated businesses and activities include:
-- Publishing more than 75 magazines, providing enthusiast media content
including television and radio programs, over 100 events, 90 related
Web sites and 400 branded products for automobile, marine, equine,
outdoor sports, home tech and daytime television
-- Distribution and fulfillment of entertainment products to major retail
chains throughout North America and directly to consumers of
entertainment products ordered through the Internet
-- Import and export of periodicals to more than 100 markets worldwide
-- Managing product selection and placement of impulse items at checkout
counters
-- Processing and collection of rebate claims and management of
point-of-purchase sales data
-- Design, manufacture and installation of wire fixtures and displays in
major retail chains
-- Licensing of children's and family-friendly home entertainment
products
For more information, please visit the Company's Web site at
http://www.sourceinterlink.com.
This press release contains certain "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S.
Private Securities Litigation Reform Act of 1995, including statements
relating to, among other things, future business plans, strategies and
financial position, working capital and capital expenditure needs, growth
opportunities, and any statements of belief and any statements of assumptions
underlying any of the foregoing.
These forward-looking statements reflect Source Interlink's current views
about future events and are subject to risks, uncertainties, assumptions and
changes in circumstances that may cause future events, achievements or results
to differ materially from those expressed by the forward-looking statements.
Factors that could cause actual results to differ include: (i) adverse trends
in advertising spending; (ii) interest rate volatility and the consequences of
significantly increased debt obligations (iii) price volatility in fuel,
paper and other raw materials used in our businesses; (iv) market acceptance
of and continuing retail demand for physical copies of magazines, books, DVDs,
CDs and other home entertainment products; (v) our ability to realize
additional operating efficiencies, cost savings and other benefits from recent
acquisitions, (iii) an evolving market for entertainment media, (vi) the
ability to obtain product in sufficient quantities; (vii) adverse changes in
general economic or market conditions; (viii) the ability to attract and
retain employees; (ix) intense competition in the marketplace and (x) other
events and other important factors disclosed previously and from time to time
in Source Interlink's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K/A filed with the Securities and
Exchange Commission on May 30, 2008.
Source Interlink does not intend to, and disclaims any duty or obligation
to, update or revise any forward-looking statements or industry information
set forth in this press release to reflect new information, future events or
otherwise.
SOURCE INTERLINK COMPANIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
July 31,July 31,
2008 2007 2008 2007
Revenues, net:
Distribution$442,734 $419,778 $930,528 $880,479
Advertising 63,178 -124,636 -
Circulation 31,228 - 61,389 -
Manufacturing 11,135 6,855 19,76414,009
Claiming and information 2,937 3,254 6,699 6,280
Other 25,462 4,259 48,019 8,784
Total revenues, net576,674 434,146 1,191,035 909,552
Cost of goods sold 391,291 340,657811,513 716,569
Gross profit 185,38393,489379,522 192,983
Distribution, circulation and
fulfillment54,87840,473109,88183,031
Selling, general and
administrative expenses92,06039,285188,69180,560
Depreciation and amortization 17,878 6,986 36,10213,822
Integration, consolidation and
relocation expense 1,340 151 4,048 163
Write off of acquisition related
assets 4,603 - 6,503 -
Impairment of goodwill and
intangible assets - -270,847 -
Operating income (loss) 14,624 6,594 (236,550) 15,407
Other expense:
Interest expense (28,971) (2,894) (57,981) (6,461)
Interest income 114 238272 278
Write off of deferred financing
fees (1,048)- (1,048)-
Other (expense) income:6 128 (405) 199
Total other expense(29,899) (2,528) (59,162) (5,984)
(Loss) income from continuing
operations, before income taxes (15,275)4,066 (295,712)9,423
Income tax expense -(1,627) -(3,769)
Minority interest in income of
subsidiary (630)- (1,036)-
(Loss) income from continuing
operations(15,905)2,439 (296,748)5,654
Loss from discontinued
operations, net of taxes- (222) -(1,608)
Net (loss) income $(15,905) $2,217 $(296,748) $4,046
(Loss) earnings per share - Basic
Continuing operations $(0.30)$0.04 $(5.67)$0.11
Discontinued operations- - - (0.03)
Total $(0.30)$0.04 $(5.67)$0.08
(Loss) earnings per share -
Diluted
Continuing operations $(0.30)$0.04 $(5.67)$0.11
Discontinued operations- - - (0.03)
Total $(0.30)$0.04 $(5.67)$0.08
Weighted average shares
outstanding - Basic52,32152,304 52,32152,216
Weighted average shares
outstanding - Diluted 52,32152,441 52,32152,538
SOURCE INTERLINK COMPANIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, January 31,
2008 2008
(unaudited)
Assets
Current assets
Cash$6,305 $35,650
Trade receivables, net 144,322 183,475
Purchased claims receivable 14,07814,412
Inventories284,144 290,507
Deferred tax asset 22,92823,107
Other 22,38220,679
Total current assets 494,159 567,830
Property, plants and equipment 167,404 150,612
Less accumulated depreciation and
amortization(55,623) (42,708)
Net property, plants and equipment 111,781 107,904
Other assets
Goodwill, net 875,170 1,069,835
Intangibles, net 540,135 637,082
Other 60,91953,354
Total other assets 1,476,224 1,760,271
Total assets$2,082,164$2,436,005
SOURCE INTERLINK COMPANIES, INC.
CONSOLIDATED BALANCE SHEETS (concluded)
(in thousands)
July 31, January 31,
2008 2008
(unaudited)
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable (net of allowance
for returns of $166,824 and $174,751
at July 31, 2008 and January 31,
2008, respectively) $329,912 $372,429
Accrued expenses 107,420 123,973
Deferred revenue80,28279,918
Current portion of obligations under
capital leases 1,359 1,406
Current maturities of debt 14,16115,369
Total current liabilities533,134 593,095
Deferred tax liability 8,543 8,944
Obligations under capital leases,
less current portion 1,131 1,826
Debt, less current maturities 1,401,972 1,359,210
Other 16,49832,429
Total liabilities 1,961,278 1,995,504
Minority interest -25,978
Commitments and contingencies
Stockholders' equity
Contributed capital:
Preferred stock, $0.01 par (2,000
shares authorized; none issued) - -
Common stock, $0.01 par (100,000
shares authorized; 52,321 shares
issued and outstanding at July 31,
2008 and January 31, 2008) 523 523
Additional paid-in-capital 476,974 476,099
Total contributed capital 477,497 476,622
Accumulated deficit (362,407) (65,659)
Accumulated other comprehensive
income 5,796 3,560
Total stockholders' equity 120,886 414,523
Total liabilities and stockholders'
equity $2,082,164$2,436,005
SOURCE Source Interlink Companies, Inc.
