Date of Report (Date of earliest event reported) August 20, 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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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 20, 2014
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Date: August 20, 2014
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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 20, 2014
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· | Appointment of new CEO and five new directors provides new energy, industry expertise and fresh perspective to lead the Company’s evolution and growth |
· | Q2 sales increased 5% to $156.6 million and gross profit rose 9% to $60.4 million |
· | Net loss of ($4.3) million included unusual charges of $5.1 million and adjusted EBITDA grew 46% to $5.5 million |
· | Total customers increased 18% to 1.4 million over the last 12 months |
SUMMARY RESULTS AND KEY OPERATING METRICS
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||||||||||||||||||||||||
($ Millions, except average price points)
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||||||||||||||||||||||||
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Q2 '14
|
Q2 '13
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YTD
|
YTD
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||||||||||||||||||||
|
8/2/2014
|
8/3/2013
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Change
|
8/2/2014
|
8/3/2013
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Change
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||||||||||||||||||
Net Sales
|
$
|
156.6
|
$
|
148.6
|
5
|
%
|
$
|
316.3
|
$
|
299.9
|
5
|
%
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||||||||||||
Gross Profit
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$
|
60.4
|
$
|
55.7
|
9
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%
|
$
|
120.4
|
$
|
112.7
|
7
|
%
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||||||||||||
Gross Profit %
|
38.6
|
%
|
37.5
|
%
|
+110bps
|
38.1
|
%
|
37.6
|
%
|
+50bps
|
||||||||||||||
Adjusted EBITDA
|
$
|
5.5
|
$
|
3.8
|
$
|
1.7
|
$
|
11.0
|
$
|
9.6
|
$
|
1.5
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||||||||||||
|
||||||||||||||||||||||||
Adjusted Net Income/(Loss)
|
$
|
0.8
|
$
|
(0.8
|
)
|
$
|
1.6
|
$
|
2.3
|
$
|
0.2
|
$
|
2.1
|
|||||||||||
Less:
|
||||||||||||||||||||||||
Activist Shareholder Response Costs
|
$
|
(2.5
|
)
|
$
|
0.0
|
$
|
(2.5
|
)
|
$
|
(3.5
|
)
|
$
|
0.0
|
$
|
(3.5
|
)
|
||||||||
CEO Transition Costs
|
$
|
(2.6
|
)
|
$
|
0.0
|
$
|
(2.6
|
)
|
$
|
(2.6
|
)
|
$
|
0.0
|
$
|
(2.6
|
)
|
||||||||
Net Income/(Loss)
|
$
|
(4.3
|
)
|
$
|
(0.8
|
)
|
$
|
(3.5
|
)
|
$
|
(3.8
|
)
|
$
|
0.2
|
$
|
(4.1
|
)
|
|||||||
|
||||||||||||||||||||||||
Net Income/(Loss) per Share
|
$
|
(0.08
|
)
|
$
|
(0.02
|
)
|
$
|
(0.06
|
)
|
$
|
(0.08
|
)
|
$
|
0.00
|
$
|
(0.08
|
)
|
|||||||
|
||||||||||||||||||||||||
Adjusted Net Income/(Loss) per Share
|
$
|
0.01
|
$
|
(0.02
|
)
|
$
|
0.03
|
$
|
0.04
|
$
|
0.00
|
$
|
0.04
|
|||||||||||
|
||||||||||||||||||||||||
Homes (Average 000s)
|
87,522
|
86,538
|
1
|
%
|
87,267
|
85,670
|
2
|
%
|
||||||||||||||||
Net Shipped Units (000s)
|
2,110
|
1,627
|
30
|
%
|
4,023
|
3,124
|
29
|
%
|
||||||||||||||||
Average Selling Price
|
$
|
67
|
$
|
83
|
-19
|
%
|
$
|
71
|
$
|
87
|
-18
|
%
|
||||||||||||
Return Rate %
|
22.9
|
%
|
22.5
|
%
|
+40bps
|
22.6
|
%
|
22.5
|
%
|
+10bps
|
||||||||||||||
Internet Net Sales %
|
43.5
|
%
|
45.1
|
%
|
-160bps
|
44.2
|
%
|
45.7
|
%
|
-150bps
|
||||||||||||||
Total Customers - 12 Month Rolling
|
1,421,235
|
1,200,922
|
18
|
%
|
N/
|
A
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N/
|
A
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LIVE WEBCAST / REPLAY:
|
http://www.media-server.com/m/p/uc4u6pbe
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|
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TELEPHONE:
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866-515-2907; passcode 99611522
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|
August 2,
|
February 1,
|
||||||
|
2014
|
2014
|
||||||
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
20,790
|
$
|
29,177
|
||||
Restricted cash and investments
|
2,100
|
2,100
|
||||||
Accounts receivable, net
|
92,972
|
107,386
|
||||||
Inventories
|
52,332
|
51,162
|
||||||
Prepaid expenses and other
|
6,463
|
6,032
|
||||||
Total current assets
|
174,657
|
195,857
|
||||||
Property and equipment, net
|
26,619
|
24,952
|
||||||
FCC broadcasting license
|
12,000
|
12,000
|
||||||
Other assets
|
1,062
|
896
|
||||||
|
$
|
214,338
|
$
|
233,705
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||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
59,030
|
$
|
77,296
|
||||
Accrued liabilities
|
37,789
|
38,535
|
||||||
Deferred revenue
|
85
|
85
|
||||||
Total current liabilities
|
96,904
|
115,916
|
||||||
|
||||||||
|
||||||||
Capital lease liability
|
62
|
88
|
||||||
Deferred revenue
|
292
|
335
|
||||||
Deferred tax liability
|
1,551
|
1,158
|
||||||
Long term credit facility
|
38,000
|
38,000
|
||||||
Total liabilities
|
136,809
|
155,497
|
||||||
|
||||||||
Commitments and contingencies
|
||||||||
|
||||||||
Shareholders' equity:
|
||||||||
Common stock, $.01 par value, 100,000,000 shares authorized;
55,185,123 and 49,844,253 shares issued and outstanding
|
552
|
498
|
||||||
|
||||||||
Warrants to purchase common stock
|
-
|
533
|
||||||
|
||||||||
Additional paid-in capital
|
414,310
|
410,681
|
||||||
|
||||||||
Accumulated deficit
|
(337,333
|
)
|
(333,504
|
)
|
||||
Total shareholders' equity
|
77,529
|
78,208
|
||||||
|
$
|
214,338
|
$
|
233,705
|
|
For the Three Month
Periods Ended |
For the Six Month
Periods Ended |
||||||||||||||
|
August 2,
|
August 3,
|
August 2,
|
August 3,
|
||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net sales
|
$
|
156,587
|
$
|
148,564
|
$
|
316,288
|
$
|
299,918
|
||||||||
Cost of sales
|
96,152
|
92,907
|
195,847
|
187,228
|
||||||||||||
Gross profit
|
60,435
|
55,657
|
120,441
|
112,690
|
||||||||||||
Margin %
|
38.6
|
%
|
37.5
|
%
|
38.1
|
%
|
37.6
|
%
|
||||||||
Operating expense:
|
||||||||||||||||
Distribution and selling
|
50,110
|
46,542
|
99,839
|
92,794
|
||||||||||||
General and administrative
|
6,776
|
6,177
|
12,688
|
12,069
|
||||||||||||
Depreciation and amortization
|
2,163
|
3,098
|
4,431
|
6,303
|
||||||||||||
Activist shareholder response costs
|
2,473
|
-
|
3,518
|
-
|
||||||||||||
CEO transition costs
|
2,620
|
-
|
2,620
|
-
|
||||||||||||
Total operating expense
|
64,142
|
55,817
|
123,096
|
111,166
|
||||||||||||
Operating income (loss)
|
(3,707
|
)
|
(160
|
)
|
(2,655
|
)
|
1,524
|
|||||||||
|
||||||||||||||||
Other expense:
|
||||||||||||||||
Interest income
|
6
|
3
|
6
|
14
|
||||||||||||
Interest expense
|
(387
|
)
|
(348
|
)
|
(778
|
)
|
(726
|
)
|
||||||||
Total other expense
|
(381
|
)
|
(345
|
)
|
(772
|
)
|
(712
|
)
|
||||||||
|
||||||||||||||||
Income (loss) before income taxes
|
(4,088
|
)
|
(505
|
)
|
(3,427
|
)
|
812
|
|||||||||
|
||||||||||||||||
Income tax provision
|
(201
|
)
|
(294
|
)
|
(402
|
)
|
(588
|
)
|
||||||||
|
||||||||||||||||
Net income (loss)
|
$
|
(4,289
|
)
|
$
|
(799
|
)
|
$
|
(3,829
|
)
|
$
|
224
|
|||||
|
||||||||||||||||
Net income (loss) per common share
|
$
|
(0.08
|
)
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
0.00
|
|||||
|
||||||||||||||||
Net income (loss) per common share
---assuming dilution |
$
|
(0.08
|
)
|
$
|
(0.02
|
)
|
$
|
(0.08
|
)
|
$
|
0.00
|
|||||
|
||||||||||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
52,199,792
|
49,406,562
|
51,022,023
|
49,316,539
|
||||||||||||
Diluted
|
52,199,792
|
49,406,562
|
51,022,023
|
55,206,943
|
|
For the Three Month
Periods Ended |
For the Six Month
Periods Ended |
||||||||||||||
|
August 2,
|
August 3,
|
August 2,
|
August 3,
|
||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
|
||||||||||||||||
Adjusted EBITDA (000's)
|
$
|
5,528
|
$
|
3,780
|
$
|
11,042
|
$
|
9,576
|
||||||||
Less:
|
||||||||||||||||
Activist shareholder response costs
|
(2,473
|
)
|
-
|
(3,518
|
)
|
-
|
||||||||||
CEO transition costs
|
(2,620
|
)
|
-
|
(2,620
|
)
|
-
|
||||||||||
Non-cash share-based compensation
|
(1,874
|
)
|
(791
|
)
|
(2,918
|
)
|
(1,650
|
)
|
||||||||
EBITDA (as defined) (a)
|
(1,439
|
)
|
2,989
|
1,986
|
7,926
|
|||||||||||
|
||||||||||||||||
|
||||||||||||||||
A reconciliation of EBITDA to net income (loss) is as follows:
|
||||||||||||||||
|
||||||||||||||||
EBITDA (as defined) (a)
|
(1,439
|
)
|
2,989
|
1,986
|
7,926
|
|||||||||||
Adjustments:
|
||||||||||||||||
Depreciation and amortization
|
(2,268
|
)
|
(3,149
|
)
|
(4,641
|
)
|
(6,402
|
)
|
||||||||
Interest income
|
6
|
3
|
6
|
14
|
||||||||||||
Interest expense
|
(387
|
)
|
(348
|
)
|
(778
|
)
|
(726
|
)
|
||||||||
Income taxes
|
(201
|
)
|
(294
|
)
|
(402
|
)
|
(588
|
)
|
||||||||
Net income (loss)
|
$
|
(4,289
|
)
|
$
|
(799
|
)
|
$
|
(3,829
|
)
|
$
|
224
|
Contacts
|
|
Media:
|
Investors:
|
Dawn Zaremba
|
David Collins, Eric Lentini
|
ShopHQ
|
Catalyst Global LLC
|
dzaremba@shophq.com
|
vvtv@catalyst-ir.com
|
(952) 943-6043 O
|
(212) 924-9800 O | (917) 734-0339 M
|