Exhibit 99.2

As Bob mentioned, EBITDA was a positive $36,000 in the quarter versus an EBITDA loss of $7.8 million last year, which is the best first-quarter performance on EBITDA since 2005.

Our gross margin rate for the quarter increased 380 basis points to 36.7% of sales from 32.9% last year. The increase in gross profit as a percentage of sales was due to higher margin rates across all our product categories and the leveraging of our distribution and freight costs due to the closing of a distribution facility in Carson, California, last year.

SG&A expenses were $48.3 million, a reduction of 18.6% on a total sales decline of 16%, resulting in a decrease as a percentage of sales to 36.7% this year from 37.9% last year. The decrease in SG&A was driven by the closing of underperforming stores and continued focus on effective expense management.

Net interest expense was $832,000 in the quarter, versus $688,000 last year. The increase is primarily due to the amortization of commitment fees related to the three-year extension we signed in April of 2010. In addition, interest expense also increased due to a 55-basis point increase in our unused loan commitment fee.

The Company did not require any borrowings under its line of credit during this year’s first quarter, and we ended the quarter without any borrowings outstanding under the line of credit and a cash balance of $29.7 million compared to $21.3 million last year.

Year-over-year, we have lowered our inventory by $35 million, and our quarter-end inventory position was $218 million versus last year’s $251 million. On a per-square-foot basis, this is $74 a foot versus $69 a foot last year.

During the quarter, we closed 17 stores in and opened one new store. We ended the quarter with 444 stores and 3 million square feet in operation versus last year’s 544 stores and 3.6 million square feet.

Now, I will turn it back over to Bob.

As we discussed in our year-end call, 2011 is a year for us to improve our performance on a per-store basis through capitalizing on the foundation that we have built to deliver better value to our customers, control expenses, and drive additional bottom-line contribution. At that time, we committed to aggressively seizing opportunities to improve our operating results, evaluating all aspects of our business by challenging each and every component of our business to improve and become more efficient, while at the same time, we are committed to investing in people, technology, and merchandise to support our future.

While working to improve our results, we continue to focus on the management of inventory and cash to provide the needed capital as we work through our transition. We made progress on achieving these initiatives in the first quarter.

The 2% comp decrease was encouraging because of the tough comparisons from last year’s first quarter. We were able to partially offset a decline in our largest category, video, which was up against two blockbuster releases with comp increases in our video and music core catalog, coupled with strong comp increases in both electronics and trend. Combined electronics and trend now represent 16% of our business as compared to 13% last year.

Our gross margin as a percentage of sales improved significantly over last year as we improved our margin rate across all categories. We continue to streamline operations, improve processes, and reduce expenses, as demonstrated by the continual leveraging of our SG&A expenses during the first quarter. We have made significant progress in the first quarter, but we still have a lot to accomplish this year. We’re moving in the right direction and look forward to the remainder of 2011.

Now, Duranda, I would like to open up the call for any questions.