Date of Report (Date of earliest event reported) March 5, 2014
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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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x
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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 March 5, 2014
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Date: March 5, 2014
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VALUEVISION MEDIA, INC.
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By:
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/s/ Teresa Dery | |
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 March 5, 2014
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Actual
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Pro Forma *
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Pro Forma
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Actual
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Actual
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Pro Forma *
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Pro Forma
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Actual
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Q4 '13
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Q4 '12
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Change
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Q4 '12
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FY '13
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FY '12
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Change
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FY '12
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2/1/2014
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2/2/2013
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2/1/2014
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2/2/2013
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13 Weeks
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13 Weeks
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13 Weeks
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14 Weeks
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52 Weeks
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52 Weeks
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52 Weeks
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53 Weeks
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Net Sales
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$ | 193 | $ | 165 | 17 | % | $ | 177 | $ | 640 | $ | 574 | 12 | % | $ | 587 | ||||||||||||||||
Gross Profit
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$ | 62 | $ | 55 | 14 | % | $ | 59 | $ | 230 | $ | 208 | 10 | % | $ | 212 | ||||||||||||||||
Gross Profit %
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32.1 | % | 33.2 | % |
-110bps
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33.2 | % | 35.9 | % | 36.3 | % |
-40bps
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36.2 | % | ||||||||||||||||||
Adjusted EBITDA
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$ | 5 | $ | 4 | 23 | % | $ | 4 | $ | 18 | $ | 4 | 329 | % | $ | 4 | ||||||||||||||||
Adjusted Net Income/(Loss)
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$ | 0 | $ | (0 | ) | $ | 1 | $ | (0 | ) | $ | (0 | ) | $ | (16 | ) | $ | 16 | $ | (16 | ) | |||||||||||
Less:
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||||||||||||||||||||||||||||||||
FCC License Impairment
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- | (11 | ) | $ | 11 | $ | (11 | ) | $ | - | $ | (11 | ) | $ | 11 | $ | (11 | ) | ||||||||||||||
Debt Extinguishment
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- | - | $ | - | $ | - | $ | - | $ | (1 | ) | $ | 1 | $ | (1 | ) | ||||||||||||||||
Activist Shareholder Response Costs
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(2 | ) | - | $ | (2 | ) | $ | - | $ | (2 | ) | $ | - | $ | (2 | ) | $ | - | ||||||||||||||
Net Income/(Loss)
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(2 | ) | (11 | ) | $ | 10 | $ | (11 | ) | $ | (3 | ) | $ | (28 | ) | $ | 25 | $ | (28 | ) | ||||||||||||
Net Income/(Loss) per Share
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$ | (0.03 | ) | $ | (0.23 | ) | $ | 0.20 | $ | (0.23 | ) | $ | (0.05 | ) | $ | (0.56 | ) | $ | 0.51 | $ | (0.57 | ) | ||||||||||
Adjusted Net Income/(Loss) per Share
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$ | 0.00 | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.33 | ) | $ | 0.32 | $ | (0.33 | ) | |||||||||||
Homes (Average 000s)
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86,669 | 83,900 | 3 | % | 83,914 | 86,120 | 82,757 | 4 | % | 82,761 | ||||||||||||||||||||||
Net Shipped Units (000s)
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2,363 | 1,637 | 44 | % | 1,763 | 7,152 | 5,494 | 30 | % | 5,620 | ||||||||||||||||||||||
Average Price Point
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$ | 74 | $ | 92 | -20 | % | $ | 92 | $ | 81 | $ | 96 | -16 | % | $ | 96 | ||||||||||||||||
Return Rate %
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21.5 | % | 22.1 | % |
-60bps
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22.1 | % | 22.3 | % | 22.1 | % |
+20bps
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22.1 | % | ||||||||||||||||||
Internet Net Sales %
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47.0 | % | 46.3 | % |
+70bps
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46.3 | % | 46.4 | % | 45.7 | % |
+70bps
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45.7 | % | ||||||||||||||||||
Total Customers - 12 Month Rolling
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N/A | N/A | N/A | N/A | 1,357,328 | 1,131,989 | 20 | % | 1,147,508 | |||||||||||||||||||||||
*Q4'12 pro forma results were calculated by dividing actual Q4'12 results by 14 and by multiplying the quotients by 13. The 52-week pro formas were calculated by adding the Q4 13-week pro formas to the previously reported fiscal year-to-date Q3’12 results of operations.
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VALUEVISION MEDIA, INC.
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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February 1,
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February 2,
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2014
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2013
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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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$ | 29,177 | $ | 26,477 | ||||
Restricted cash and investments
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2,100 | 2,100 | ||||||
Accounts receivable, net
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107,386 | 98,360 | ||||||
Inventories
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51,162 | 37,155 | ||||||
Prepaid expenses and other
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6,032 | 6,620 | ||||||
Total current assets
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195,857 | 170,712 | ||||||
Property and equipment, net
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24,952 | 24,665 | ||||||
FCC broadcasting license
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12,000 | 12,000 | ||||||
NBC trademark license agreement, net
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- | 3,997 | ||||||
Other assets
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896 | 725 | ||||||
$ | 233,705 | $ | 212,099 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ | 77,296 | $ | 65,719 | ||||
Accrued liabilities
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38,535 | 30,596 | ||||||
Deferred revenue
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85 | 85 | ||||||
Total current liabilities
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115,916 | 96,400 | ||||||
Capital lease liability
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88 | - | ||||||
Deferred revenue
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335 | 420 | ||||||
Deferred tax liability
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1,158 | - | ||||||
Long term credit facility
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38,000 | 38,000 | ||||||
Total liabilities
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155,497 | 134,820 | ||||||
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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49,844,253 and 49,139,361 shares issued and outstanding
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498 | 491 | ||||||
Warrants to purchase 6,000,000 shares of common stock
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533 | 533 | ||||||
Additional paid-in capital
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410,681 | 407,244 | ||||||
Accumulated deficit
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(333,504 | ) | (330,989 | ) | ||||
Total shareholders' equity
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78,208 | 77,279 | ||||||
$ | 233,705 | $ | 212,099 |
For the Three Month Periods Ended |
For the Twelve Month Periods Ended |
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February 1,
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February 2,
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February 1,
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February 2,
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2014
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2013
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2014
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2013
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Net sales
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$ | 193,253 | $ | 177,500 | $ | 640,489 | $ | 586,820 | ||||||||
Cost of sales
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131,154 | 118,630 | 410,465 | 374,448 | ||||||||||||
Gross profit
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62,099 | 58,870 | 230,024 | 212,372 | ||||||||||||
Margin %
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32.1 | % | 33.2 | % | 35.9 | % | 36.2 | % | ||||||||
Operating expense:
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Distribution and selling
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52,218 | 50,729 | 191,695 | 193,037 | ||||||||||||
General and administrative
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7,777 | 4,851 | 25,932 | 18,297 | ||||||||||||
Depreciation and amortization
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2,978 | 3,198 | 12,320 | 13,224 | ||||||||||||
FCC license impairment
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- | 11,111 | - | 11,111 | ||||||||||||
Total operating expense
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62,973 | 69,889 | 229,947 | 235,669 | ||||||||||||
Operating income (loss)
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(874 | ) | (11,019 | ) | 77 | (23,297 | ) | |||||||||
Other expense:
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Interest income
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1 | - | 18 | 11 | ||||||||||||
Interest expense
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(356 | ) | (399 | ) | (1,437 | ) | (3,970 | ) | ||||||||
Gain on sale of assets
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- | - | - | 100 | ||||||||||||
Loss on debt extinguishment
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- | - | - | (500 | ) | |||||||||||
Total other expense
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(355 | ) | (399 | ) | (1,419 | ) | (4,359 | ) | ||||||||
Loss before income taxes
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(1,229 | ) | (11,418 | ) | (1,342 | ) | (27,656 | ) | ||||||||
Income tax provision
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(293 | ) | - | (1,173 | ) | (20 | ) | |||||||||
Net loss
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$ | (1,522 | ) | $ | (11,418 | ) | $ | (2,515 | ) | $ | (27,676 | ) | ||||
Net loss per common share
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$ | (0.03 | ) | $ | (0.23 | ) | $ | (0.05 | ) | $ | (0.57 | ) | ||||
Net loss per common share
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---assuming dilution
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$ | (0.03 | ) | $ | (0.23 | ) | $ | (0.05 | ) | $ | (0.57 | ) | ||||
Weighted average number of
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common shares outstanding:
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Basic
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49,781,629 | 49,076,122 | 49,504,892 | 48,874,842 | ||||||||||||
Diluted
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49,781,629 | 49,076,122 | 49,504,892 | 48,874,842 |
For the Three Month
Periods Ended
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For the Twelve Month
Periods Ended
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February 1,
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February 2,
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February 1,
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February 2,
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2014
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2013
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2014
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2013
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Adjusted EBITDA (000's)
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$ | 4,842 | $ | 4,194 | $ | 18,012 | $ | 4,494 | ||||||||
Less:
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Activist shareholder response costs
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(1,789 | ) | - | (2,133 | ) | - | ||||||||||
FCC license impairment
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- | (11,111 | ) | - | (11,111 | ) | ||||||||||
Debt extinguishment
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- | - | - | (500 | ) | |||||||||||
Gain on sale of assets
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- | - | - | 100 | ||||||||||||
Non-cash share-based compensation
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(849 | ) | (854 | ) | (3,217 | ) | (3,257 | ) | ||||||||
EBITDA (as defined) (a)
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2,204 | (7,771 | ) | 12,662 | (10,274 | ) | ||||||||||
A reconciliation of EBITDA to net loss is as follows:
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EBITDA (as defined) (a)
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2,204 | (7,771 | ) | 12,662 | (10,274 | ) | ||||||||||
Adjustments:
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Depreciation and amortization
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(3,078 | ) | (3,248 | ) | (12,585 | ) | (13,423 | ) | ||||||||
Interest income
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1 | - | 18 | 11 | ||||||||||||
Interest expense
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(356 | ) | (399 | ) | (1,437 | ) | (3,970 | ) | ||||||||
Income taxes
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(293 | ) | - | (1,173 | ) | (20 | ) | |||||||||
Net loss
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$ | (1,522 | ) | $ | (11,418 | ) | $ | (2,515 | ) | $ | (27,676 | ) |
Media:
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Investors:
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Dawn Zaremba
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David Collins, Eric Lentini
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ShopHQ
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Catalyst Global LLC
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dzaremba@shophq.com
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vvtv@catalyst-ir.com
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(952) 943-6043 O
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(212) 924-9800 O | (917) 734-0339 M
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