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Thursday, Mar 28, 2024

Guitar Center Income Drops 29 Percent

Net income dropped in the second quarter for Guitar Center Inc. due to costs related to a proposed merger with a private investment firm. The Westlake Village-based retailer reported a net income of $9.6 million, or $0.32 per diluted share, on revenues of $518.9 million for the period ending June 30. That is a 29 percent decrease from the net income of $13.4 million, or $0.47 per diluted share, on revenues of $458 million for the same period in 2006. In June, the company announced a merger with affiliates of Bain Capital Partners LLC, a private investment firm. Expenses related to that merger were $1.7 million after-tax, or $0.06 per diluted share. Excluding the merger costs, the company’s net income would have been $0.37 per diluted share. The merger is expected to be completed in the fourth quarter.

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