Hhgregg Q4 profit surges on insurance payout
Indianapolis -- Hhgregg Inc.'s fiscal fourth-quarter earnings jumped as the chain collected $39.6 million in life insurance proceeds due to the death of executive chairman and former CEO Jerry W. Throgmartin.
Throgmartin, who died Jan. 22 at age 57, served as chairman and CEO of Hhgregg from 2003 to 2009 and led it through a 2007 initial public offering of stock. Hhgregg said Wednesday it collected the proceeds from a "key man" life insurance policy.
Overall, the chain earned $53.6 million in the three months that ended March 31, up from $14.6 million in the year-ago period. Revenue rose 21% to $613.8 million. Same-store sales edged down slightly.
Hhgregg added 35 stores in the past year, and it cited that expansion as the primary reason behind sales growth.