Hastings Entertainment is a regional retail chain that sells books, music, movies, and video games. It also rents movies and video games and buys used books, music, movies and video games for resale.
The current CEO and President of Hastings Entertainment is John Marmaduke, son of founder Sam Marmaduke.
The company was founded in 1968 as a retailing division of Western Merchandisers, Inc., a books and music wholesaler. There are currently 149 stores in 21 states, predominantly based in smaller communities. Hastings Entertainment is headquartered in Amarillo, Texas.
Hastings's sister company, Western Merchandisers, became a subsidiary of Wal-Mart Stores Inc in 1990. In 1994, Wal-Mart sold Western Merchandisers to Anderson News Corporation and now operates as Anderson Merchandisers.
In 2010, Hastings opened up a sports equipment retailer called Sun Adventure Sport in Amarillo.
Hastings Entertainment, Inc. (Hastings) is a multimedia entertainment retailer. The Company operates entertainment superstores that buy, sell, trade and rent various home entertainment products, including books, music, software, periodicals, movies on digital versatile disc (DVD) and Blu-Ray, video games, video game consoles and electronics. It also offers consumables and trends products, such as apparel, t-shirts, action figures, posters, greeting cards and seasonal merchandise. As of March 31, 2010, it operated 147 superstores principally in medium-sized markets located in 20 states, primarily in the Western and Midwestern United States. The Company also operates a multimedia entertainment e-commerce Website offering a selection of books, software, video games, movies on DVD and Blu-Ray, music, trends, and electronics.
The Company’s stores average approximately 24,000 square feet of sales space, with its new stores generally ranging in size from 20,000 to 30,000 square feet of sales space. Its stores offer customers an extensive product assortment customized for a specific site. It designs its stores to provide an easy-to-shop, open store atmosphere by offering major product categories in a store-within-a-store format. The Company fills Internet orders for new and used product placed at and Amazon Marketplace through its goShip program, which allows it to ship product to customers directly from store inventories. The goShip system allows the Company to list the selected stores’ inventory on and Amazon Marketplace. As of March 31, 2010, it had 135 stores participating in goShip. As of March 31, 2010, it had 75 Hardback Coffee Cafes serving gourmet coffee and pastries, 37 of which allow the customer to place drive-thru orders. Stores without Hardback Coffee Cafes have incorporated other amenities, such as comfortable chairs for reading, soft drinks and snacks, video game auditioning stations, interactive information kiosks, children’s reading areas and in-store promotional events.
In the wake of Marmaduke's decision to forgo stewarding both companies, Wal-Mart sold Western Merchandisers to Anderson News Corp., one of the country's largest distributors of consumer magazines. The divestiture was completed in August 1994, giving Hastings the freedom to pursue its own path. The chain, at this critical juncture in its history, comprised 95 stores spread throughout 13 states in the Southwest and the Rockies. Together, the stores generated approximately $300 million in revenue a year. With all his attention focused on this enterprise for the first time in years, Marmaduke faced a fundamental, pressing problem as he severed ties with Western Merchandisers (renamed Anderson Merchandisers). Hastings lacked sufficient infrastructure to support its existing operations and future expansion, having shared centralized functions with Western Merchandisers. To resolve this dilemma, Marmaduke organized a new purchasing staff, spent roughly $3 million to develop a management information system, and replaced other services and support previously provided by Western Merchandisers. Undaunted by this essential undertaking, Marmaduke concurrently announced expansion plans, targeting markets in Missouri and Nebraska as sites for future Hastings stores. Immediate plans called for the establishment of 20 new stores in 1995, as well as the expansion of 12 existing stores. The success of this initial expansion and the trouble-free separation from Western Merchandising instilled confidence for more ambitious expansion to follow.
Independence Fans 1990s Expansion
As Hastings pushed forward into secondary markets with limited competition--"running to daylight," as Marmaduke described it--the company did so in a low-cost manner, continuing to embrace Sam Marmaduke's focus on keeping operating costs to a minimum. Instead of buying property or constructing new stores, the company expanded by taking on shorter-term leases on vacant buildings. The strategy increased flexibility, allowing the company to move from one location to another with greater ease, and it reduced the capital required for expansion. Following this mode of expansion, Hastings fleshed out its presence in the western half of the United States during the mid-1990s, establishing nearly a dozen new stores a year. All expansion was financed internally, using the profits gleaned from existing stores. Between 1995 and 1997, Hastings opened 23 new stores, giving the chain 114 stores scattered among 15 states. Some units measured as much as 47,000 square feet, generally the stores located in areas with populations in excess of 250,000, but most averaged between 20,000 square feet and 25,000 square feet, representative of the typical, small-town Hastings store.
In 1997 Marmaduke accelerated Hastings's expansion plans for the remainder of the 1990s. He announced plans to double the chain's size to 200 by 2000, with immediate plans calling for the establishment of 20 units in 1998--the most in one year in the company's history. As this expansion program was laid out, the company also began an extensive remodeling program scheduled to renovate all existing Hastings stores during the ensuing two years. For the resources to implement his expansion plans, Marmaduke turned to Wall Street through an initial public offering (IPO) of stock in June 1998. Although he had previously vowed to keep Hastings a private company, the financial demands of his proposed expansion campaign could not be met without a substantial infusion of cash. The IPO netted the company $36 million, with Hastings's stock debuting on the NASDAQ exchange at $13 per share. Although less than the $14 to $16 per share debut for which the company had hoped, the IPO set the stage for aggressive expansion for the previously low-profile company. Management had identified 500 potential sites for new Hastings stores in small- to medium-sized markets.
Following the IPO, Hastings immediately began opening new units, providing evidence that the company's future would be filled with frenetic expansion activity. Five new stores were opened in a five-week period, giving the company 129 stores in 18 states by late 1998. Another 20 stores were slated to open in 1999, as the company extended the boundaries of its operating territory. In May 1999, Hastings launched a new electronic-commerce Web site on the Internet featuring more than ten million new and used multimedia products. The launch of , which was supported by a national advertising campaign, and the company's expansion plans suggested Hastings's future financial growth would far eclipse the rate of growth achieved during the company's first 30 years of business. Marmaduke, it appeared, was intent on transforming Hastings from a regional competitor into a national force. Whether Hastings could successfully make this leap was to be determined in the decade ahead, as the company pursued small markets with a large inventory of entertainment products.
Principal Subsidiaries: Hastings Properties, Inc.; Hastings Internet, Inc.; Hastings College Stores, Inc.
OVERALL
Beta: 0.69
Market Cap (Mil.): $40.33
Shares Outstanding (Mil.): 8.68
Annual Dividend: --
Yield (%): --
FINANCIALS
HAST.O Industry Sector
P/E (TTM): 26.68 4.84 17.74
EPS (TTM): -75.49 -- --
ROI: 1.15 5.16 1.52
ROE: 1.60 6.24 2.36
Statistics:
Public Company
Incorporated: 1968 as Hastings Books and Music, Inc.
Employees: 5,3330
Sales: $398.7 million (1999)
Stock Exchanges: NASDAQ
Ticker Symbol: HAST
NAIC: 451211 Book Stores; 45122 Prerecorded Tape, Compact Disc & Record Stores; 44312 Computer & Software Stores
Name Age Since Current Position
Marmaduke, John 64 1993 Chairman of the Board, President, Chief Executive Officer
Crow, Dan 64 2000 Chief Financial Officer, Vice President - Finance
Van Ongevalle, Alan 43 2009 Executive Vice President - Merchandising
Ball, Kevin 54 2004 Vice President - Marketing
McConnell, Philip 48 2006 Vice President - Divisional Merchandise Manager
Hintz, John 46 2007 Vice President - Information Technology
Fuentes, Victor 44 2007 Vice President - Divisional Merchandise Manager
Voth, Scott 49 2011 Vice President - Stores
Shrader, Jeffrey 60 1992 Lead Director
Lansdale, Daryl 70 2001 Independent Director
Lieff, Ann 59 2001 Independent Director
Marrs, Frank 66 2003 Independent Director
Gurr, Danny 53 2005 Independent Director
Address:
3601 Plains Boulevard, Suite 1
Amarillo, Texas 79102
U.S.A.
The current CEO and President of Hastings Entertainment is John Marmaduke, son of founder Sam Marmaduke.
The company was founded in 1968 as a retailing division of Western Merchandisers, Inc., a books and music wholesaler. There are currently 149 stores in 21 states, predominantly based in smaller communities. Hastings Entertainment is headquartered in Amarillo, Texas.
Hastings's sister company, Western Merchandisers, became a subsidiary of Wal-Mart Stores Inc in 1990. In 1994, Wal-Mart sold Western Merchandisers to Anderson News Corporation and now operates as Anderson Merchandisers.
In 2010, Hastings opened up a sports equipment retailer called Sun Adventure Sport in Amarillo.
Hastings Entertainment, Inc. (Hastings) is a multimedia entertainment retailer. The Company operates entertainment superstores that buy, sell, trade and rent various home entertainment products, including books, music, software, periodicals, movies on digital versatile disc (DVD) and Blu-Ray, video games, video game consoles and electronics. It also offers consumables and trends products, such as apparel, t-shirts, action figures, posters, greeting cards and seasonal merchandise. As of March 31, 2010, it operated 147 superstores principally in medium-sized markets located in 20 states, primarily in the Western and Midwestern United States. The Company also operates a multimedia entertainment e-commerce Website offering a selection of books, software, video games, movies on DVD and Blu-Ray, music, trends, and electronics.
The Company’s stores average approximately 24,000 square feet of sales space, with its new stores generally ranging in size from 20,000 to 30,000 square feet of sales space. Its stores offer customers an extensive product assortment customized for a specific site. It designs its stores to provide an easy-to-shop, open store atmosphere by offering major product categories in a store-within-a-store format. The Company fills Internet orders for new and used product placed at and Amazon Marketplace through its goShip program, which allows it to ship product to customers directly from store inventories. The goShip system allows the Company to list the selected stores’ inventory on and Amazon Marketplace. As of March 31, 2010, it had 135 stores participating in goShip. As of March 31, 2010, it had 75 Hardback Coffee Cafes serving gourmet coffee and pastries, 37 of which allow the customer to place drive-thru orders. Stores without Hardback Coffee Cafes have incorporated other amenities, such as comfortable chairs for reading, soft drinks and snacks, video game auditioning stations, interactive information kiosks, children’s reading areas and in-store promotional events.
In the wake of Marmaduke's decision to forgo stewarding both companies, Wal-Mart sold Western Merchandisers to Anderson News Corp., one of the country's largest distributors of consumer magazines. The divestiture was completed in August 1994, giving Hastings the freedom to pursue its own path. The chain, at this critical juncture in its history, comprised 95 stores spread throughout 13 states in the Southwest and the Rockies. Together, the stores generated approximately $300 million in revenue a year. With all his attention focused on this enterprise for the first time in years, Marmaduke faced a fundamental, pressing problem as he severed ties with Western Merchandisers (renamed Anderson Merchandisers). Hastings lacked sufficient infrastructure to support its existing operations and future expansion, having shared centralized functions with Western Merchandisers. To resolve this dilemma, Marmaduke organized a new purchasing staff, spent roughly $3 million to develop a management information system, and replaced other services and support previously provided by Western Merchandisers. Undaunted by this essential undertaking, Marmaduke concurrently announced expansion plans, targeting markets in Missouri and Nebraska as sites for future Hastings stores. Immediate plans called for the establishment of 20 new stores in 1995, as well as the expansion of 12 existing stores. The success of this initial expansion and the trouble-free separation from Western Merchandising instilled confidence for more ambitious expansion to follow.
Independence Fans 1990s Expansion
As Hastings pushed forward into secondary markets with limited competition--"running to daylight," as Marmaduke described it--the company did so in a low-cost manner, continuing to embrace Sam Marmaduke's focus on keeping operating costs to a minimum. Instead of buying property or constructing new stores, the company expanded by taking on shorter-term leases on vacant buildings. The strategy increased flexibility, allowing the company to move from one location to another with greater ease, and it reduced the capital required for expansion. Following this mode of expansion, Hastings fleshed out its presence in the western half of the United States during the mid-1990s, establishing nearly a dozen new stores a year. All expansion was financed internally, using the profits gleaned from existing stores. Between 1995 and 1997, Hastings opened 23 new stores, giving the chain 114 stores scattered among 15 states. Some units measured as much as 47,000 square feet, generally the stores located in areas with populations in excess of 250,000, but most averaged between 20,000 square feet and 25,000 square feet, representative of the typical, small-town Hastings store.
In 1997 Marmaduke accelerated Hastings's expansion plans for the remainder of the 1990s. He announced plans to double the chain's size to 200 by 2000, with immediate plans calling for the establishment of 20 units in 1998--the most in one year in the company's history. As this expansion program was laid out, the company also began an extensive remodeling program scheduled to renovate all existing Hastings stores during the ensuing two years. For the resources to implement his expansion plans, Marmaduke turned to Wall Street through an initial public offering (IPO) of stock in June 1998. Although he had previously vowed to keep Hastings a private company, the financial demands of his proposed expansion campaign could not be met without a substantial infusion of cash. The IPO netted the company $36 million, with Hastings's stock debuting on the NASDAQ exchange at $13 per share. Although less than the $14 to $16 per share debut for which the company had hoped, the IPO set the stage for aggressive expansion for the previously low-profile company. Management had identified 500 potential sites for new Hastings stores in small- to medium-sized markets.
Following the IPO, Hastings immediately began opening new units, providing evidence that the company's future would be filled with frenetic expansion activity. Five new stores were opened in a five-week period, giving the company 129 stores in 18 states by late 1998. Another 20 stores were slated to open in 1999, as the company extended the boundaries of its operating territory. In May 1999, Hastings launched a new electronic-commerce Web site on the Internet featuring more than ten million new and used multimedia products. The launch of , which was supported by a national advertising campaign, and the company's expansion plans suggested Hastings's future financial growth would far eclipse the rate of growth achieved during the company's first 30 years of business. Marmaduke, it appeared, was intent on transforming Hastings from a regional competitor into a national force. Whether Hastings could successfully make this leap was to be determined in the decade ahead, as the company pursued small markets with a large inventory of entertainment products.
Principal Subsidiaries: Hastings Properties, Inc.; Hastings Internet, Inc.; Hastings College Stores, Inc.
OVERALL
Beta: 0.69
Market Cap (Mil.): $40.33
Shares Outstanding (Mil.): 8.68
Annual Dividend: --
Yield (%): --
FINANCIALS
HAST.O Industry Sector
P/E (TTM): 26.68 4.84 17.74
EPS (TTM): -75.49 -- --
ROI: 1.15 5.16 1.52
ROE: 1.60 6.24 2.36
Statistics:
Public Company
Incorporated: 1968 as Hastings Books and Music, Inc.
Employees: 5,3330
Sales: $398.7 million (1999)
Stock Exchanges: NASDAQ
Ticker Symbol: HAST
NAIC: 451211 Book Stores; 45122 Prerecorded Tape, Compact Disc & Record Stores; 44312 Computer & Software Stores
Name Age Since Current Position
Marmaduke, John 64 1993 Chairman of the Board, President, Chief Executive Officer
Crow, Dan 64 2000 Chief Financial Officer, Vice President - Finance
Van Ongevalle, Alan 43 2009 Executive Vice President - Merchandising
Ball, Kevin 54 2004 Vice President - Marketing
McConnell, Philip 48 2006 Vice President - Divisional Merchandise Manager
Hintz, John 46 2007 Vice President - Information Technology
Fuentes, Victor 44 2007 Vice President - Divisional Merchandise Manager
Voth, Scott 49 2011 Vice President - Stores
Shrader, Jeffrey 60 1992 Lead Director
Lansdale, Daryl 70 2001 Independent Director
Lieff, Ann 59 2001 Independent Director
Marrs, Frank 66 2003 Independent Director
Gurr, Danny 53 2005 Independent Director
Address:
3601 Plains Boulevard, Suite 1
Amarillo, Texas 79102
U.S.A.