Movie Gallery said same-store revenue for its first quarter ended...

for first-quarter pro forma earnings per diluted share to 33-35? from previous range of 26-28?. Company also said it expected first quarter earnings per diluted share of 32-35?. Movie Gallery plans to announce actual results for first quarter May 10. Chain also said Thurs. it had reached agreement to resolve class action lawsuits involving its extended viewing fees. Under settlement, class members will receive one of 3 coupon packages, depending upon amount of extended viewing fees they had paid in past, company said. However, Movie Gallery will continue to charge customers extended viewing fees. CEO Joseph Malugen said: “We believe the agreement is fair and is of mutual benefit to both Movie Gallery and its valued customers. We believe that our extended viewing fee policy is in no way improper and is a valid component of our rental pricing structure. Nevertheless, after considering the time and resources that must be expended to defend multiple cases, we determined that it was in the best interest of our company and our customers to resolve these cases through agreement. This agreement provides value to our customers and allows our management team to focus on our business.” Chain said its agreement was “very similar to the terms of settlement reached in extended viewing fee class action cases involving certain of its competitors within the last year.” Movie Gallery said it would provide eligible customers with coupons with values of $9-$16 that could be used toward movie or game rentals or purchases at Movie Gallery and affiliated stores nationwide. Chain said agreement received preliminary court approval April 19, but was subject to fairness hearing currently scheduled for Nov. 22. If final approval is received, coupons will be issued and will be redeemable Jan. 30-June 30, 2003, it said. Company also announced it was revising its membership agreement to clarify its extended viewing fee policy and was changing its pricing structure on certain of its product offerings. Starting May 27, extended viewing period for all product offerings will match initial viewing period, it said: “As a result, when customers keep a movie or game beyond the initial viewing period, they will automatically re-rent that item for the same price and for another period of the same duration.” Malugen said change in rental policy was result of various market factors, including policies in effect at other nationwide video specialty retailers. He said: “We believe this pricing structure is easier for our customers to understand and is consistent with current competitive practices.”