Date of Report (Date of earliest event reported) August 15, 2012
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VALUEVISION MEDIA, INC.
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(Exact name of registrant as specified in its charter)
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Minnesota
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0-20243
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41-1673770
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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6740 Shady Oak Road,
Eden Prairie, Minnesota 55344-3433
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(Address of principal executive offices)
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(952) 943-6000
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(Registrant’s telephone number, including area code)
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Not applicable
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(Former name or former address, if changed since last report)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit Number
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Exhibit Title
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99
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Press Release dated August 15, 2012
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Date: August 15, 2012
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VALUEVISION MEDIA, INC.
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By:
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/s/ Teresa Dery
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Teresa Dery
Senior Vice President and General Counsel
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No.
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Description
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99
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Press Release dated August 15, 2012
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SUMMARY RESULTS AND KEY OPERATING METRICS
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($ Millions, except average price points)
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Three months ended
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Six months ended
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7/28/2012
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7/30/2011
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7/28/2012
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7/30/2011
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Q2 '12
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Q2 '11
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Change
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YTD
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YTD
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Change
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Net Sales
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$ | 135.2 | $ | 132.1 | 2.3 | % | $ | 271.7 | $ | 275.7 | -1.4 | % | |||||||||||||
Gross Profit
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$ | 51.7 | $ | 51.3 | 0.8 | % | $ | 102.7 | $ | 104.7 | -1.9 | % | |||||||||||||
Gross Profit %
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38.2 | % | 38.8 | % |
-60 bps
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37.8 | % | 38.0 | % |
-20bps
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EBITDA, as adjusted
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$ | 0.7 | $ | 1.1 | $ | (0.4 | ) | $ | (0.3 | ) | $ | 4.2 | $ | (4.5 | ) | ||||||||||
Loss Before Debt Extinguishment
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$ | (3.8 | ) | $ | (4.5 | ) | $ | 0.6 | $ | (12.1 | ) | $ | (7.7 | ) | $ | (4.4 | ) | ||||||||
Debt Extinguishment
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$ | - | $ | - | n/a | $ | (0.5 | ) | $ | (25.7 | ) | $ | 25.2 | ||||||||||||
Net Loss
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$ | (3.8 | ) | $ | (4.5 | ) | $ | 0.6 | $ | (12.6 | ) | $ | (33.4 | ) | $ | 20.8 | |||||||||
Homes (Average 000s)
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82,432 | 78,865 | 4.5 | % | 81,932 | 78,546 | 4.3 | % | |||||||||||||||||
Net Shipped Units (000s)
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1,239 | 1,158 | 7.0 | % | 2,584 | 2,292 | 12.7 | % | |||||||||||||||||
Average Price Point
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$ | 102 | $ | 105 | -2.9 | % | $ | 98 | $ | 111 | -11.7 | % | |||||||||||||
Return Rate %
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21.6 | % | 22.7 | % |
-110bps
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21.4 | % | 21.9 | % |
-50bps
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Internet Net Sales %
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45.4 | % | 46.1 | % |
-70bps
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45.7 | % | 45.5 | % |
+20bps
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Conference Call / Webcast:
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Today, Wednesday, August 15 at 11am ET
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WEBCAST/WEB REPLAY:
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http://www.media-server.com/m/p/8a3p5765
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TELEPHONE:
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800-599-9829; Passcode: 99060776
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Contact:
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Media Relations:
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Investors:
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Dawn Zaremba
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David Collins, Eric Lentini
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ShopNBC
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Catalyst Global LLC
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dzarembal@shopnbc.com
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vvtv@catalyst-ir.com
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(952) 943-6043
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(212) 924-9800 o
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(917) 734-0339 m
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VALUEVISION MEDIA, INC.
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AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(In thousands except share and per share data)
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July 28,
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January 28,
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2012
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2012
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 38,195 | $ | 32,957 | ||||
Restricted cash and investments
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2,100 | 2,100 | ||||||
Accounts receivable, net
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77,103 | 80,274 | ||||||
Inventories
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45,584 | 43,476 | ||||||
Prepaid expenses and other
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5,495 | 4,464 | ||||||
Total current assets
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168,477 | 163,271 | ||||||
Property and equipment, net
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26,128 | 27,992 | ||||||
FCC broadcasting license
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23,111 | 23,111 | ||||||
NBC Trademark License Agreement, net
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5,997 | 1,215 | ||||||
Other Assets
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908 | 2,871 | ||||||
$ | 224,621 | $ | 218,460 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ | 60,764 | $ | 53,437 | ||||
Accrued liabilities
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34,557 | 37,842 | ||||||
Deferred revenue
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86 | 85 | ||||||
Total current liabilities
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95,407 | 91,364 | ||||||
Deferred revenue
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463 | 507 | ||||||
Term Loan
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- | 25,000 | ||||||
Long Term Credit Facility
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38,000 | - | ||||||
Total liabilities
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133,870 | 116,871 | ||||||
Commitments and Contingencies
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Shareholders' equity:
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Common stock, $.01 par value, 100,000,000 shares authorized;
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48,925,021 and 48,560,205 shares issued and outstanding
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489 | 486 | ||||||
Warrants to purchase 6,007,372 shares of common stock
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567 | 567 | ||||||
Additional paid-in capital
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405,592 | 403,849 | ||||||
Accumulated deficit
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(315,897 | ) | (303,313 | ) | ||||
Total shareholders' equity
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90,751 | 101,589 | ||||||
$ | 224,621 | $ | 218,460 |
VALUEVISION MEDIA, INC.
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AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except share and per share data)
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(Unaudited)
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For the Three Month Periods Ended | For the Six Month Periods Ended | |||||||||||||||
July 28,
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July 30,
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July 28,
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July 30,
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2012
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2011
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2012
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2011
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Net sales
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$ | 135,179 | $ | 132,137 | $ | 271,728 | $ | 275,670 | ||||||||
Cost of sales
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83,499 | 80,869 | 169,016 | 171,010 | ||||||||||||
Gross profit
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51,680 | 51,268 | 102,712 | 104,660 | ||||||||||||
Margin %
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38.2 | % | 38.8 | % | 37.8 | % | 38.0 | % | ||||||||
Operating expense:
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Distribution and selling
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47,181 | 46,313 | 95,546 | 92,789 | ||||||||||||
General and administrative
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4,537 | 5,408 | 9,204 | 9,972 | ||||||||||||
Depreciation and amortization
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3,424 | 3,086 | 6,852 | 6,068 | ||||||||||||
Total operating expense
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55,142 | 54,807 | 111,602 | 108,829 | ||||||||||||
Operating loss
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(3,462 | ) | (3,539 | ) | (8,890 | ) | (4,169 | ) | ||||||||
Other expense:
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Interest income
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4 | 44 | 4 | 44 | ||||||||||||
Interest expense
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(384 | ) | (944 | ) | (3,192 | ) | (3,546 | ) | ||||||||
Loss on debt extinguishment
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- | - | (500 | ) | (25,679 | ) | ||||||||||
Total other expense
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(380 | ) | (900 | ) | (3,688 | ) | (29,181 | ) | ||||||||
Loss before income taxes
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(3,842 | ) | (4,439 | ) | (12,578 | ) | (33,350 | ) | ||||||||
Income tax provision
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(3 | ) | (17 | ) | (6 | ) | (36 | ) | ||||||||
Net loss
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$ | (3,845 | ) | $ | (4,456 | ) | $ | (12,584 | ) | $ | (33,386 | ) | ||||
Net loss per common share
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$ | (0.08 | ) | $ | (0.09 | ) | $ | (0.26 | ) | $ | (0.75 | ) | ||||
Net loss per common share
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---assuming dilution
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$ | (0.08 | ) | $ | (0.09 | ) | $ | (0.26 | ) | $ | (0.75 | ) | ||||
Weighted average number of
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common shares outstanding:
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Basic
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48,853,619 | 48,131,218 | 48,745,892 | 44,393,198 | ||||||||||||
Diluted
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48,853,619 | 48,131,218 | 48,745,892 | 44,393,198 |
VALUEVISION MEDIA, INC.
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AND SUBSIDIARIES
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Reconciliation of Adjusted EBITDA to Net Loss:
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For the Three Month Periods Ended
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For the Six Month Periods Ended
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July 28,
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July 30,
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July 28,
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July 30,
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2012
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2011
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2012
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2011
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Adjusted EBITDA (000's)
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$ | 698 | $ | 1,096 | $ | (261 | ) | $ | 4,214 | |||||||
Less:
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Loss on debt extinguishment
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- | - | (500 | ) | (25,679 | ) | ||||||||||
Non-cash share-based compensation
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(686 | ) | (1,479 | ) | (1,677 | ) | (2,175 | ) | ||||||||
EBITDA (as defined) (a)
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12 | (383 | ) | (2,438 | ) | (23,640 | ) | |||||||||
A reconciliation of EBITDA to net loss is as follows:
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EBITDA (as defined) (a)
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12 | (383 | ) | (2,438 | ) | (23,640 | ) | |||||||||
Adjustments:
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Depreciation and amortization
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(3,474 | ) | (3,156 | ) | (6,952 | ) | (6,208 | ) | ||||||||
Interest income
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4 | 44 | 4 | 44 | ||||||||||||
Interest expense
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(384 | ) | (944 | ) | (3,192 | ) | (3,546 | ) | ||||||||
Income taxes
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(3 | ) | (17 | ) | (6 | ) | (36 | ) | ||||||||
Net loss
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$ | (3,845 | ) | $ | (4,456 | ) | $ | (12,584 | ) | $ | (33,386 | ) |