INDIANAPOLIS (AP) – Hhgregg Inc.’s fiscal fourth-quarter earnings swelled as the electronics and appliance retailer collected $39.6 million in life insurance proceeds due to the death of executive chairman and former CEO Jerry W. Throgmartin.
Throgmartin died Jan. 22 at age 57. He served as chairman and CEO of the Indianapolis company from 2003 to 2009 and led it through a 2007 initial public offering of stock. Hhgregg said Wednesday it collected the proceeds from a “key man” life insurance policy.
Overall, the retailer earned $53.6 million, or $1.45 per share, in the three months that ended March 31. That compares to earnings of $14.6 million, or 36 cents per share, in last year’s quarter. Excluding the insurance payout and a $500,000 after-tax impairment charge, adjusted earnings were 39 cents per share.
Revenue climbed 21 percent to $613.8 million.
Analysts surveyed by FactSet expected, on average, earnings of 36 cents per share on $641.8 million in revenue. Analysts typically exclude one-time items from their estimates.
Hhgregg runs 210 stores in 16 states, including Indiana, Illinois, Maryland, New Jersey, Ohio and Pennsylvania. The company added 35 stores in the past year, and it cited that expansion as the primary reason behind sales growth. Sales at stores in operation for at least 14 months fell slightly.
The company also said market share gains in the appliance and home office categories helped its performance. Hhgregg’s selling, general and administrative expenses rose 21 percent to $127.1 million, and net advertising expense climbed 33 percent to $27.3 million.
For the full year, hhgregg earned $81.4 million, or $2.14 per share, on $2.49 billion in revenue.
It expects fiscal 2013 earnings to range between $1.12 and $1.27 per share with revenue growing 9 percent to 12 percent as it opens as many as 22 new stores. That would equate to revenue ranging from about $2.72 billi on to $2.79 billion.
Analysts expect, on average, earnings of $1.26 per share on $2.85 billion in revenue.
Company shares slipped 1 cent to $9.76 in Wednesday morning trading.