Hastings Entertainment, Inc. Reports Results for the Third Quarter of Fiscal 2013

 Hastings Entertainment, Inc. Reports Results for the Third Quarter of Fiscal
                                     2013

PR Newswire

AMARILLO, Texas, Nov. 25, 2013

AMARILLO, Texas, Nov. 25, 2013 /PRNewswire/ --Hastings Entertainment, Inc.
(NASDAQ: HAST), a leading multimedia entertainment retailer, today reported
results for the three and nine months ended October 31, 2013. Net loss was
approximately $6.2 million, or $0.76 per diluted share, for the three months
ended October 31, 2013 compared to a net loss of approximately $8.0 million,
or $0.98 per diluted share, for the three months ended October 31, 2012. Net
loss was approximately $12.5 million, or $1.54 per diluted share, for the nine
months ended October 31, 2013 compared to net loss of $10.5 million, or $1.28
per diluted share, for the nine months ended October 31, 2012.

"As we have previously disclosed, one of our strategic initiatives is the
introduction of new product categories which includes consumer electronics,
music electronics and accessories, vinyl, hobby, recreation and lifestyle and
tablets," said John H. Marmaduke, Chief Executive Officer and Chairman. "The
majority of these products are included in our Electronics category which had
a comparable sales increase of 12.2% for the third quarter of fiscal 2013
which is on top of a 16.7% comparable sales increase for the third quarter of
fiscal 2012. Several of the remaining new categories are included in our
Trends department which had an 11.9% increase for the third quarter of fiscal
2013 which is on top of a 6.6% increase for the third quarter of fiscal 2012.
This was driven by the stores that were reset during fiscal 2012 and
thirty-nine stores reset by the end of September for the current nine month
period. The Electronic and Trends departments in these reset stores had
significant increases in revenueswhen compared to the rest of our superstores
that have not had a reset. We are greatly encouraged by the performance of
these new products.Revenues for Music, Books and Rental continue to be
impacted by the popularity of digital delivery, rental kiosks and subscription
based services. Book revenues continue to be impacted by the decline in sales
of the Fifty Shades trilogy. I am pleased with the performance of our Rental
Comps for the third quarter of fiscal 2013. With a relatively strong release
schedule combined with certain initiatives we have taken to increase Rental
revenues, our Rental Movie Comps only decreased 3.0% which compares to a
decrease of 7.8% for the first six months of fiscal 2013. We also saw an 8.6%
increase in Video Game sales for the third quarter of fiscal 2013 which was
driven by the strong release of Grand Theft Auto V."

"In order to reduce our SG&A expenses in light of our lower revenue base, we
underwent a restructuring of our corporate store support center which included
staff reduction, department consolidation and the termination of four of our
eight corporate officers. The total cost of this restructuring was
approximately $1.4 million which we recognized during the first quarter of
fiscal 2013. Additionally, we have closed ten underperforming stores thus far
in fiscal 2013. For the nine months ended October 31, 2013 we have reduced
selling, general and administrative expenses by approximately $8.2 million
excluding the restructuring charge.

"During the third quarter of fiscal 2013 we began to see momentum in our total
revenue comps with a decrease of 2.2% which compares to 4.7% for the third
quarter of fiscal 2012. Additionally, with the current and expected future
success of our new product categories, along with the expected launch of new
game consoles in the fourth quarter of our current fiscal year as well as an
expected stronger release schedule for games and movies, we are encouraged
with our earnings prospects for the fourth quarter of fiscal 2013."

Financial Results for the Third Quarter of Fiscal Year 2013

Revenues. Total revenues for the third quarter decreased approximately $6.6
million, or 6.6%, to $94.7 million compared to $101.3 million for the third
quarter of fiscal 2012. As of October 31, 2013, we operated 10 fewer Hastings
superstores, as compared to October 31, 2012. The following is a summary of
our revenues results (dollars in thousands):



                 Three Months Ended October 31,
                 2013                 2012                 Increase/(Decrease)
                           Percent              Percent
                 Revenues  Of Total   Revenues  Of Total   Dollar     Percent
Merchandise    $ 82,472    87.1%    $ 87,908    86.8%    $ (5,436)    -6.2%
Revenue
Rental Revenue   12,106    12.8%      13,325    13.1%      (1,219)    -9.1%
Gift Card
Breakage         94        0.1%       87        0.1%       7          8.0%

 Revenue
 Total     $ 94,672    100.0%   $ 101,320   100.0%   $ (6,648)    -6.6%
Revenues

Comparable-store revenues ("Comp")
 Total          -2.2%
 Merchandise    -1.9%
 Rental         -4.2%

Below is a summary of the Comp results for our major merchandise categories:

              Three Months Ended October 31,
              2013          2012
Electronics   12.2%         16.7%
Trends        11.9%         6.6%
Video Games   8.6%          -20.8%
Movies        1.5%          0.4%
Consumables   0.0%          1.2%
Hardback Café -1.0%         15.2%
Books         -11.7%        -1.4%
Music         -14.4%        -14.1%

Electronics Comps increased 12.2% for the quarter primarily due to increased
sales in hardware categories, such as televisions, speaker systems, tablets
and tablet accessories, home entertainment, gadgets and turntables. Wireless
accessories experienced strong sales growth due to multiple iPhone models
releasing this quarter. Strong growth was also realized in expanding
categories such as connected TV, home security and app enhanced accessories.
Trends Comps increased 11.9% for the quarter primarily due to increased sales
in action figures, barware, licensed and branded products, and recreational
and lifestyle products. Licensed and branded products for which we
experienced strong sales during the quarter were Minecraft and Duck Dynasty.
The Trends department also includes recreation and lifestyles products whose
growth was driven by the addition of hobby products to reset stores as well as
growth in the existing categories of skateboards, disc golf, exercise
accessories and airsoft products. Video Games Comps increased 8.6% during the
quarter due to a strong release schedule primarily led by the release of Grand
Theft Auto V. Movies Comps increased 1.5% for the quarter primarily due to
increased sales of Blu-ray movies, DVD boxed-sets and used DVDs, partially
offset by a decrease in previously viewed films. Consumables Comps were flat
for the quarter primarily due to increased sales of seasonal candies offset by
a decrease in fountain drinks. Hardback Café Comps decreased 1.0% for the
quarter primarily due to the closing of five Hardback Cafés which operated in
comp stores. Book Comps decreased 11.7% for the quarter due to a weaker
release schedule for new books and a decrease in trade paperback sales, as
compared to the third quarter of fiscal 2012, which included strong sales from
the Fifty Shades trilogy. Music Comps decreased 14.4% primarily due to a
significant reduction in retail space in the 45 stores that were reset in
fiscal 2013 as well as the increasing popularity of digital delivery.

Rental Comps decreased 4.2% for the third quarter, primarily resulting from
fewer rentals of traditional DVDs and video games, partially offset by an
increase in rentals of Blu-ray movies. Rental Movie Comps decreased only 3.0%
for the quarter primarily due to a stronger release schedule. We continue to
be affected by competition from rental kiosks and subscription-based rental
services. Rental Video Game Comps, which continue to be affected by the
longevity of the current console cycle, decreased 14.9%.

Gross Profit – Merchandise. For the third quarter, total merchandise gross
profit dollars decreased approximately $1.2 million, or 4.4%, to $26.1 million
from $27.3 million for the same period in the prior year, primarily due to a
decrease in revenue, partially offset by increased margin rates. The decrease
in revenue was primarily attributed to operating fewer superstores this
quarter compared to the same quarter in the prior year. As a percentage of
total merchandise revenue, merchandise gross profit increased to 31.6% for the
quarter compared to 31.1% for the same quarter in the prior year, primarily
due to lower freight expense, lower expense to return products and slightly
lower shrinkage.

Gross Profit – Rental. For the third quarter, total rental gross profit
dollars decreased approximately $1.0 million, or 11.4%, to $7.8 million from
$8.8 million for the same period in the prior year, primarily due to a
decrease in revenue partially attributed to operating fewer superstores this
quarter compared to the same quarter in the prior year. As a percentage of
total rental revenue, rental gross profit decreased to 64.2% for the quarter
compared to 66.4% for the same quarter in the prior year, primarily due to an
increase in revenues under revenue sharing agreements which generally have
lower margins when compared to traditional agreements, partially offset by a
decrease in shrink expense.

Selling, General and Administrative Expenses ("SG&A"). As a percentage of
total revenue, SG&A decreased to 42.6% for the third quarter compared to 43.4%
for the same quarter in the prior year. SG&A decreased approximately $3.7
million during the quarter, or 8.4%, to $40.3 million compared to $44.0
million for the same quarter last year. The decrease results primarily from a
$1.3 million reduction in store labor expense, a decrease of $0.9 million in
corporate salary expense due to lower bonus payouts and the restructuring that
took place in the first quarter of fiscal 2013, a $0.7 million decrease in
depreciation expense, a decrease of $0.3 million in store maintenance and a
decrease of $0.2 million in store advertising. The decrease in depreciation
expense and, to a certain extent, the decrease in store labor expense, are
primarily a result of operating fewer superstores this quarter compared to the
same period in the prior year. These reductions were partially offset by a
$0.2 million increase in store reset expenses.

Interest Expense. For both the third quarter of fiscal 2013 and fiscal 2012,
interest expense was approximately $0.3 million. The average rate of interest
charged for the third quarter decreased to 2.4% compared to 2.5% for the same
period in the prior year.

Income Tax Expense. During the three months ended October 31, 2013, the
Company recorded a discrete tax benefit of approximately $0.5 million from the
recognition of a tax position due to a change in state administrative
practices. No discrete items were recorded during the three months ended
October 31, 2012. Primarily as a result of this discrete tax benefit, the
effective tax rate for the third quarter was (6.4%).

Financial Results for the Nine Months Ended October 31, 2013

Revenues. Total revenues for the nine months ended October 31, 2013 decreased
approximately $21.3 million, or 6.6%, to $299.6 million compared to $320.9
million for the nine months ended October 31, 2012. The following is a summary
of our revenues results (dollars in thousands):



                   Nine Months Ended October 31,
                   2013                 2012                 Decrease
                             Percent              Percent
                   Revenues  Of Total   Revenues  Of Total   Dollar    Percent
Merchandise      $ 260,067   86.8%    $ 276,741   86.2%    $ (16,674)  -6.0%
Revenue
Rental Revenue     39,223    13.1%      44,238    13.8%      (5,015)   -11.3%
Gift Card
Breakage           291       0.1%       (119)     0.0%       410       NM

 Revenue
 Total       $ 299,581   100.0%   $ 320,860   100.0%   $ (21,279)  -6.6%
Revenues



Comparable-store revenues ("Comp")
 Total          -4.5%
 Merchandise    -3.9%
 Rental         -8.0%

Below is a summary of the Comp results for our major merchandise categories:

              Nine Months Ended October 31,
              2013          2012
Electronics   12.7%         11.9%
Trends        9.9%          9.7%
Hardback Café 3.0%          10.9%
Movies        2.6%          -1.5%
Consumables   -3.2%         2.6%
Video Games   -10.9%        -21.8%
Books         -11.8%        -0.3%
Music         -12.9%        -12.0%

Electronics Comps increased 12.7% for the period primarily due to increased
sales in hardware categories, such as televisions, Blu-ray and DVD players,
speaker docks, tablets and tablet accessories, turntables and wireless
accessories. Strong growth was also realized in expanding categories such as
connected TV, home security and app enhanced accessories. Trends Comps
increased 9.9% for the period primarily due to increased sales in action
figures, barware, licensed and branded products and recreational and lifestyle
products. Licensed and branded products for which we experienced strong sales
during the period were Doctor Who, Walking Dead and Star Wars. The Trends
department also includes recreation and lifestyles products whose growth was
driven by the addition of hobby products, pet accessories and outdoor
accessories to reset stores as well as the growth in the existing categories
of skateboards, disc golf, exercise accessories and airsoft products.
Hardback Café Comps increased 3.0% for the period primarily due to increased
sales of iced and hot specialty café drinks and drink add-ons such as extra
flavor, whipped cream, soy, etc. Movies Comps increased 2.6% for the period
primarily due to increased sales of new and used Blu-ray movies, DVD
boxed-sets and new and used DVDs, partially offset by a decrease in previously
viewed DVDs. Consumables Comps decreased 3.2% for the period primarily due to
decreased sales of popcorn, candies and soft drinks. Video Games Comps
decreased 10.9% during the period primarily due to lower sales of new and used
video games, partially offset by the strong release of Grand Theft Auto V.
Book Comps decreased 11.8% for the period primarily due to a weaker release
schedule for new books and a decrease in trade paperback and hardback sales as
compared to fiscal 2012, which included strong sales from the Fifty Shades and
Hunger Games trilogies. Music Comps decreased 12.9% for the period primarily
due to lower sales of new and used CDs and the increasing popularity of
digital delivery, partially offset by an increase in new vinyl album sales.

Rental Comps decreased 8.0% during the period primarily due to fewer rentals
of traditional DVDs and video games, partially offset by an increase in
rentals of Blu-ray movies. Rental Movie Comps decreased 6.6% primarily due to
competition from rental kiosks and subscription-based services. Rental Video
Game Comps, which continue to be affected by the longevity of the current
console cycle, decreased 20.2%.

Gross Profit – Merchandise. For the nine months ended October 31, 2013, total
merchandise gross profit dollars decreased approximately $6.1 million, or
6.8%, to $83.5 million from $89.6 million for the same period in the prior
year, primarily due to a decrease in revenue which is partially attributed to
operating fewer superstores this period compared to the same period in the
prior year. As a percentage of total merchandise revenue, merchandise gross
profit decreased to 32.1% for the current nine months, compared to 32.4% for
the same nine month period in the prior year, primarily due to a shift in mix
of revenues by category, partially offset by lower freight and shrink
expenses.

Gross Profit – Rental. For the nine months ended October 31, 2013, total
rental gross profit dollars decreased approximately $3.7 million, or 12.7%, to
$25.5 million from $29.2 million for the same period in the prior year
primarily due to a decrease in revenue which is partially attributed to
operating fewer superstores for the same period in the prior year. As a
percentage of total rental revenue, rental gross profit decreased to 65.1% for
the current nine month period compared to 66.0% for the same nine month period
in the prior year, primarily due to an increase in revenues under revenue
sharing agreements which generally have lower margins when compared to
traditional agreements. The rate decrease is partially offset by a decrease
in depreciation and shrink expense.

Selling, General and Administrative Expenses ("SG&A"). As a percentage of
total revenue, SG&A increased to 40.5% for the nine months ended October 31,
2013 compared to 40.0% for the same period in the prior year primarily due to
deleveraging resulting from lower revenues. SG&A decreased approximately $6.8
million, or 5.3%, to $121.5 million compared to $128.3 million for the same
period last year. The decrease results primarily from a $2.4 million reduction
in store labor expense, a decrease of $1.7 million in corporate salary expense
due to lower bonus payouts and the restructuring that took place in the first
quarter of fiscal 2013, a $1.6 million decrease in depreciation expense, a
decrease of $0.9 million in advertising expense, a decrease of $0.4 million in
store supplies, and a decrease of $0.3 million in store utilities. The
decrease in depreciation expense and, to a certain extent, the decrease in
store labor, store supplies and store utility expenses, are primarily a result
of operating fewer superstores during this current period this quarter
compared to the same nine month period in the prior year. These reductions
were partially offset by a $0.3 million increase in store reset expenses and a
$0.2 million increase in store maintenance expense.

Interest Expense. For the nine months ending October 31, 2013 and 2012
interest expense was approximately $0.9 million, as interest rates for both
periods averaged 2.5%.

Income Tax Expense. During the nine months ended October 31, 2013, the
Company recorded a discrete tax benefit of approximately $0.5 million from the
recognition of a tax position due to a change in state administrative
practices. No discrete items were recorded during the nine months ended
October 31, 2012.

As the Company has a net operating loss and a net deferred tax asset, which
has been offset by a full valuation allowance at the end of fiscal 2011, there
is no tax liability, with the exception of Texas state income tax which is
based primarily on gross margin. The effective tax rate for the current nine
months is (2.4%) which is a function of the Texas state income tax combined
with the discrete tax benefit mentioned above. The valuation allowance is
approximately $15.2 million as of October 31, 2013. We reassess the valuation
allowance quarterly, and if future evidence allows for a partial or full
release of the valuation allowance, a tax benefit will be recorded
accordingly.

Store Activity

Since September 10, 2013, when we last reported store activity, we have the
following activity to report:

  oStore closed in Walla Walla, WA in September
  oStore closed in Canyon, TX in October

Safe Harbor Statement

This press release contains "forward-looking statements." Hastings
Entertainment, Inc. is including this statement for the express purpose of
availing itself of the protections of the safe harbor provided by the Private
Securities Litigation Reform Act of 1995 with respect to all such
forward-looking statements. These forward-looking statements are based on
currently available information and represent the beliefs of the management of
the Company. These statements are subject to risks and uncertainties that
could cause actual results to differ materially. These risks include, but are
not limited to, consumer appeal of our existing and planned product offerings,
and the related impact of competitor pricing and product offerings; overall
industry performance and the accuracy of our estimates and judgments regarding
trends; our ability to obtain favorable terms from suppliers; our ability to
respond to changing consumer preferences, including with respect to new
technologies and alternative methods of content delivery, and to effectively
adjust our offerings if and as necessary; the application and impact of future
accounting policies or interpretations of existing accounting policies;
unanticipated adverse litigation results or effects; the effects of a
continued deterioration in economic conditions in the U.S. or the markets in
which we operate our stores; the effect of inclement weather on the ability of
consumers to reach our stores; and other factors which may be outside of the
company's control. We undertake no obligation to affirm, publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Please refer to the company's annual, quarterly,
and periodic reports on file with the Securities and Exchange Commission for a
more detailed discussion of these and other risks that could cause results to
differ materially.

About Hastings

Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia
entertainment retailer that combines the sale of new and used books, videos,
video games and CDs, and trends and consumer electronics merchandise, with the
rental of videos and video games in a superstore format. We currently operate
127 superstores, averaging approximately 24,000 square feet, primarily in
medium-sized markets throughout the United States. We also operate three
concept stores, Sun Adventure Sports, with locations in Amarillo, Texas and
Lubbock, Texas, and TRADESMART, in Littleton, Colorado.

We operate www.goHastings.com, an e-commerce Internet web site that makes
available to our customers new and used entertainment products and unique,
contemporary gifts and toys. The site features exceptional product and pricing
offers. The Investor Relations section of our web site contains press
releases, a link to request financial and other literature and access to our
filings with the Securities and Exchange Commission.



Consolidated Balance Sheets

(Dollars in thousands)
                                       October 31,   October 31,   January 31,
                                       2013          2012          2013
                                       (unaudited)   (unaudited)
Assets
Current assets
 Cash and cash equivalents         $ 3,555       $ 3,455       $ 3,730
 Merchandise inventories, net        165,120       166,941       145,337
 Deferred income taxes               —             —             —
 Prepaid expenses and other          10,631        9,720         10,427
current assets
 Total current assets          179,306       180,116       159,494
Rental assets, net                     10,696        12,314        11,353
Property and equipment, net            30,106        34,450        32,099
Deferred income taxes                  —             —             —
Intangible assets, net                 244           244           244
Other assets                           602           2,222         2,792
Total assets                         $ 220,954     $ 229,346     $ 205,982
Liabilities and shareholders' equity
Current liabilities
 Trade accounts payable            $ 70,137      $ 74,510      $ 54,928
 Accrued expenses and other          28,359        27,431        27,396
current liabilities
 Total current liabilities     98,496        101,941       82,324
Long-term debt, excluding current      55,430        43,513        41,805
maturities
Deferred income taxes                  58            47            50
Other liabilities                      5,337         8,052         7,828
Shareholders' equity
 Preferred stock                     —             —             —
 Common stock                        119           119           119
 Additional paid-in capital          36,356        36,658        36,375
 Retained earnings                   46,126        60,488        58,642
 Accumulated other comprehensive     368           194           247
income
 Treasury stock, at cost             (21,336)      (21,666)      (21,408)
 Total shareholders' equity    61,633        75,793        73,975
Total liabilities and shareholders'  $ 220,954     $ 229,346     $ 205,982
equity



Consolidated Statements of Operations

(In thousands, except per share data)
                         Three months ended          Nine months ended
                         October 31,                 October 31,
                         2013          2012          2013          2012
                         (unaudited)   (unaudited)   (unaudited)   (unaudited)
Merchandise revenue    $ 82,472      $ 87,908      $ 260,067     $ 276,741
Rental revenue           12,106        13,325        39,223        44,238
Gift card breakage       94            87            291           (119)
revenue
 Total revenues        94,672        101,320       299,581       320,860

                         56,398        60,571        176,527       187,150
Merchandise cost of
revenue
Rental cost of revenue   4,333         4,482         13,703        15,035
 Total cost of         60,731        65,053        190,230       202,185
revenues

                         33,941        36,267        109,351       118,675
 Gross profit


Selling, general and     40,337        43,957        121,471       128,282
administrative
expenses

                         (6,396)       (7,690)       (12,120)      (9,607)
 Operating loss


Other income
(expense):
 Interest expense,     (343)         (301)         (938)         (871)
net
 Other, net            109           34            232           129

                         (6,630)       (7,957)       (12,826)      (10,349)
 Loss before income
taxes

                         (422)         42            (310)         174
Income tax expense
(benefit)

                       $ (6,208)     $ (7,999)     $ (12,516)    $ (10,523)
 Net loss

                       $ (0.76)      $ (0.98)      $ (1.54)      $ (1.28)
Basic loss per share

                       $ (0.76)      $ (0.98)      $ (1.54)      $ (1.28)
Diluted loss per share




Weighted-average
common shares

 outstanding:
 Basic               8,143         8,165         8,142         8,214
 Dilutive effect     —             —             —             —
of stock awards
 Diluted             8,143         8,165         8,142         8,214





Consolidated Statements of Cash Flows

(Dollars in thousands)
                                                 Nine Months Ended October 31,
                                                 2013             2012
                                                 (unaudited)      (unaudited)
Cash flows from operating activities:
Net loss                                      $ (12,516)      $  (10,523)
Adjustments to reconcile net loss to net

 cash provided by (used in) operations:
 Rental asset depreciation expense           2,865            4,466
 Purchases of rental assets                  (5,982)          (8,350)
 Property and equipment depreciation         9,667            11,374
expense
 Deferred income taxes                       8                5
 Loss on rental assets lost, stolen and      370              605
defective
 Loss on disposal of other assets            111              182
 Non-cash stock-based compensation           123              539


 Changes in operating assets and liabilities:
 Merchandise inventories, net                (16,378)         (11,977)
 Prepaid expenses and other current assets   1,708            5,509
 Trade accounts payable                      16,028           21,034
 Accrued expenses and other current          (644)            1,282
liabilities
 Other assets and liabilities, net           (486)            (392)
 Net cash provided by (used in)           (5,126)          13,754
operating activities


Cash flows from investing activities:
 Purchases of property and equipment          (7,786)          (6,557)
 Net cash used in investing activities    (7,786)          (6,557)


Cash flows from financing activities:
 Net borrowings (repayments) under            13,626           (9,766)
revolving credit facility
 Purchase of treasury stock                   (128)            (357)
 Change in cash overdraft                     (819)            2,209
 Proceeds from exercise of stock options      58               —
 Net cash provided by (used in)           12,737           (7,914)
financing activities

                                                 (175)            (717)
Net decrease in cash

                                                 3,730            4,172
Cash at beginning of period

                                               $ 3,555         $  3,455
Cash at end of period



Balance Sheet and Other Ratios ( A )

(Dollars in thousands, except per share amounts)
                                               October 31,   October 31,

                                               2013          2012
Merchandise inventories, net                 $ 165,120     $ 166,941
Inventory turns, trailing 12 months ( B )      1.79          1.84

                                             $ 55,430      $ 43,513
Long-term debt
Long-term debt to total capitalization ( C )   47.4%         36.5%

                                             $ 61,633      $ 75,793
Book value ( D )

                                             $ 7.57        $ 9.23
Book value per share ( E )



                          Three Months Ended        Nine Months Ended
                          October 31,               October 31,
                          2013       2012           2013          2012
Comparable-store revenues
( F ):
 Total                  -2.2%      -4.7%          -4.5%         -5.1%
 Merchandise            -1.9%      -3.1%          -3.9%         -3.5%
 Rental                 -4.2%      -13.7%         -8.0%         -14.0%



( A ) Calculations may differ in the method employed from similarly titled
      measures used by other companies.
      Calculated as merchandise cost of goods sold for the period's trailing
( B ) twelve months divided by average merchandise inventory over the same
      period.
( C ) Defined as long-term debt divided by long-term debt plus total
      shareholders' equity (book value).
( D ) Defined as total shareholders' equity.
      Defined as total shareholders' equity divided by weighted average
( E ) diluted shares outstanding for the nine months ended October 31, 2013
      and 2012, respectively.
      Stores included in the comparable-store revenues calculation are those
      stores that have been open for a minimum of 60 weeks. Also included are
( F ) stores that are remodeled or relocated during the comparable period.
      Sales via the internet and gift card breakage revenues are not included
      and closed stores are removed from each comparable period for the
      purpose of calculating comparable-store revenues.

SOURCE Hastings Entertainment, Inc.

Website: http://www.gohastings.com
Contact: Dan Crow, Vice President and Chief Financial Officer, (806) 677-1422,
www.goHastings.com
 
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