I don't see this as a negative or a positive. I see it as a reflection of the already lousy fundamentals in the business.
The reality is that Blockbuster has burned through $267 million in cash through the end of the second quarter and it appears that they are still burning cash to date.
That Movie Gallery data point that came out last night was very ominous. It implies that for the third quarter of '05, Blockbuster could be in violation of its debt covenant again,
For guidance it's not so bad. They are looking for low double-digit percentage growth in EBITDA. We were expecting a little higher than that. We were looking for (earnings of) 16 cents.
