Guitar Center Earnings Dip on Payout

Earnings at Guitar Center dipped slightly in the first quarter of 2006 due to retirement payments to its former CFO. Westlake Village-based Guitar Center reported net income of $15.7 million or $0.60 per share for the first quarter, down from $15.9 million or $0.62 per share in the prior year period. Excluding the payments to Bruce Ross, who retired as CFO in March, Guitar Center would have earned $18.6 million or $0.65 per share. Revenues for the first quarter rose nearly 19 percent to $470.7 million compared to $396.4 million in the prior year period. Comparable store sales for the first quarter rose 6.3 percent. Ross was replaced by Erick Mason.