ShopNBC Announces Preliminary First Quarter Fiscal 2008 Results
May 12 2008 - 3:15PM
Marketwired
MINNEAPOLIS, MN , a 24-hour TV shopping network, today announced
preliminary results for its first fiscal quarter ended May 3,
2008.
Based on preliminary estimates, first quarter revenues are
expected to be approximately $156 million, a 17% decrease compared
with revenues of $188 million in the first quarter of 2007. EBITDA,
as adjusted, is expected to be a loss of approximately ($12)
million compared with a loss of ($1) million in the year-ago
period. Estimated net loss for Q1 is expected to be approximately
($18) million vs. net income for the same quarter last year of $34
million, driven by a $40 million gain on the sale of the Company's
equity interest in Polo.com. Included in the 2008 first quarter
results is a non-cash inventory impairment charge of $3.8
million.
"Our results in the first quarter were disappointing and
considerably below expectations," said John Buck, ShopNBC's
Executive Chairman of the Board. "Like many other retailers, we
continued to face a difficult consumer economy and a slowdown in
discretionary spending. We also began shifting away from consumer
electronics, a category which drives top-line sales, but typically
results in one-time customers who contribute less to long-term
success. This mix change accounted for 4% of the decline in our
sales. In addition, to reduce inventory levels of high-ticket
jewelry items, we took aggressive clearance markdowns at the end of
the first quarter, which reduced margins."
The Company noted that in the first quarter:
-- It further bolstered its senior management team by adding three
industry veterans with over 50 years of combined experience in TV shopping
who oversee key areas of the business: Glenn Leidahl as COO; Terry Curtis
as SVP of Customer Analytics and Sales Planning; and John Gunder as SVP of
Media and On-Air Sales.
-- It reduced operating expenses by 9% versus last year's first quarter,
driving savings through lower headcount and reduced marketing spend.
-- It maintained a strong balance sheet, with approximately $85 million
in cash and securities.
-- ShopNBC.com continued to increase its relative size of total Company
sales, representing 33% of revenue compared with 28% in the first quarter
last year.
In March, Rene Aiu joined the Company as President and CEO. She
brings over 22 years of experience in TV shopping and e-commerce,
both in the U.S. and internationally.
Ms. Aiu commented: "ShopNBC has tremendous underlying assets,
including national cable distribution in over 70 million homes, a
loyal customer base, an asset-rich balance sheet, and a strategic
relationship with NBC Universal. Our goal is to reposition this
business to deliver long-term shareholder value by returning to a
focus on the basics that make home shopping companies thrive.
"We will:
-- Make changes to achieve a more balanced merchandise mix accompanied by
appropriate price point adjustments, which will in turn help us improve
margins.
-- Expand our core customer base, and encourage frequent, repeat
business.
-- Return the business to being item-focused and driven by higher-unit
volume sales of fewer SKUs. We also are working with our product vendors to
improve our gross margins while providing unique products.
-- Manage costs aggressively so the Company can reach profitability at a
lower revenue base.
-- Continue our focus on expanding our promising e-commerce business and
identifying other innovative sales channels.
-- Strengthen our strategic relationship with GE/NBC Universal to
leverage the marketing power and operational scale of our largest
shareholder.
"Lastly, by working with our partners at NBC Universal, I
believe that we will be successful in renegotiating our cable
distribution agreements, solidifying our presence in homes
nationwide."
ShopNBC's preliminary first fiscal quarter results of 2008 are
subject to review by the Company as well as its independent
auditors. The Company's final results for the fiscal first quarter
will be released later this month.
Conference Call Information
The Company has scheduled a conference call at 11 a.m. EDT / 10
a.m. CDT on May 13, 2008, to discuss the preliminary results for
the fiscal first quarter. To participate, please dial
1-800-857-9866 (pass code SHOPNBC) five to ten minutes prior to the
start time. A replay of the call will be available for 30 days. To
access the replay, please dial 1-800-925-2388 (pass code SHOPNBC.)
You may also participate via live audio stream by logging on to
https://e-meetings.verizonbusiness.com. To access the audio stream,
please use conference number 4635615 (pass code SHOPNBC.) A
rebroadcast of the audio stream will be available using the same
access information for 30 days after the initial broadcast.
EBITDA and EBITDA, as adjusted
The Company defines EBITDA as net income (loss) from continuing
operations for the respective periods excluding depreciation and
amortization expense, interest income (expense) and income taxes.
The Company defines EBITDA, as adjusted, as EBITDA excluding
non-recurring non-operating gains (losses) and equity in income of
Ralph Lauren Media, LLC; non-recurring restructuring and CEO
transition costs; and non-cash share-based payment expense.
Management has included the term EBITDA, as adjusted, in order to
adequately assess the operating performance of the Company's "core"
television and Internet businesses and in order to maintain
comparability to its analyst's coverage and financial guidance.
Management believes that EBITDA, as adjusted, allows investors to
make a more meaningful comparison between our core business
operating results over different periods of time with those of
other similar small cap, higher growth companies. In addition,
management uses EBITDA, as adjusted, as a metric measure to
evaluate operating performance under its management and executive
incentive compensation programs. EBITDA, as adjusted, should not be
construed as an alternative to operating income (loss) or to cash
flows from operating activities as determined in accordance with
GAAP and should not be construed as a measure of liquidity. EBITDA,
as adjusted, may not be comparable to similarly entitled measures
reported by other companies.
About ShopNBC
ShopNBC reaches 70 million homes in the United States via cable
affiliates and satellite: Dish Network channel 228 and Direct TV
channel 316. ShopNBC.com is recognized as a top e-commerce site.
ShopNBC is owned and operated by ValueVision Media (NASDAQ: VVTV).
For more information, please visit www.ShopNBC.com.
Forward-Looking Information
This release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current
expectations and are accordingly subject to uncertainty and changes
in circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors,
including (but not limited to): consumer spending and debt levels;
interest rates; competitive pressures on sales, pricing and gross
profit margins; the level of cable distribution for the Company's
programming and the fees associated therewith; the success of the
Company's e-commerce and rebranding initiatives; the performance of
its equity investments; the success of its strategic alliances and
relationships; the ability of the Company to manage its operating
expenses successfully; risks associated with acquisitions; changes
in governmental or regulatory requirements; litigation or
governmental proceedings affecting the Company's operations; and
the ability of the Company to obtain and retain key executives and
employees. More detailed information about those factors is set
forth in the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form 8-K.
The Company is under no obligation (and expressly disclaims any
such obligation to) update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
CONTACT: Frank Elsenbast Chief Financial Officer
952-943-6262
Evolv Technologies (NASDAQ:EVLV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Evolv Technologies (NASDAQ:EVLV)
Historical Stock Chart
From Jul 2023 to Jul 2024