-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GD+7qxDFIZpls6vkbq8Ws8xCPhBV5KH7bgyf0Hfuvg9UHvmp5HqclbwoWCJ9pQPc sH88B6J2DoRPndbpMOJqIA== 0000950134-05-017079.txt : 20050901 0000950134-05-017079.hdr.sgml : 20050901 20050901173013 ACCESSION NUMBER: 0000950134-05-017079 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050831 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050901 DATE AS OF CHANGE: 20050901 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VALUEVISION MEDIA INC CENTRAL INDEX KEY: 0000870826 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 411673770 STATE OF INCORPORATION: MN FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20243 FILM NUMBER: 051065559 BUSINESS ADDRESS: STREET 1: 6740 SHADY OAK RD CITY: MINNEAPOLIS STATE: MN ZIP: 55344-3433 BUSINESS PHONE: 6129475200 MAIL ADDRESS: STREET 1: 6740 SHADY OAK RAOD CITY: EDEN PRAIRIE STATE: MN ZIP: 55344-3433 FORMER COMPANY: FORMER CONFORMED NAME: VALUEVISION INTERNATIONAL INC DATE OF NAME CHANGE: 19930328 8-K 1 c98216e8vk.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 AUGUST 31, 2005 ------------------------------------------------------ Date of report (Date of earliest event reported) VALUEVISION MEDIA, INC. -------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) MINNESOTA 0-20243 41-1673770 - ------------------------ ------------------------ ------------------- (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 6740 SHADY OAK ROAD EDEN PRAIRIE, MINNESOTA 55344-3433 - ---------------------------------------- ----------------- (Address of principal executive offices) (Zip Code) Telephone Number: (952) 943-6000 ----------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On August 31, 2005, we issued a press release discussing our results of operations and financial condition for our second fiscal quarter and six fiscal months ended July 30, 2005. A copy of the press release is furnished as Exhibit 99 hereto. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99 Press Release dated August 31, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 31, 2005 VALUEVISION MEDIA, INC. By Nathan E. Fagre ---------------------------------- Nathan E. Fagre Senior Vice President and General Counsel EXHIBIT INDEX
No. Description Manner of Filing - --- ----------- ---------------- 99 Press Release dated August 31, 2005.......................................... Furnished Electronically
EX-99 2 c98216exv99.txt PRESS RELEASE EXHIBIT 99 VALUEVISION MEDIA ANNOUNCES RECORD FINANCIAL RESULTS FOR SECOND QUARTER 2005 SECOND QUARTER RESULTS IN LINE WITH AUGUST 9TH EARNINGS PRE-RELEASE. ValueVision Media today announced financial results for its second quarter ended July 30, 2005. Consolidated net sales for the second quarter were a record $172 million, up 6% vs. prior year. Net sales from the core TV and Internet business were $167 million, up 8% vs. prior year. Consolidated net loss was $1.2 million in the second quarter and EBITDA, as defined below, was a positive $2.4 million vs. a $3.2 million loss a year ago. EBITDA DEFINED The Company defines EBITDA as net income (loss) for the respective periods excluding depreciation and amortization expense, interest income (expense), and income taxes. Management views EBITDA as an important alternative operating performance measure because it is commonly used by analysts and institutional investors in analyzing the financial performance of companies in the broadcast and television home shopping sectors. However, EBITDA should not be construed as an alternative to operating income (loss) or to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) and should not be construed as a measure of liquidity. EBITDA, as presented, may not be comparable to similarly entitled measures reported by other companies. Management uses EBITDA to evaluate operating performance and as a measure of performance for incentive compensation purposes. ABOUT VALUEVISION MEDIA, INC Founded in 1990, ValueVision Media is an integrated direct marketing company that sells its products directly to consumers through television, the Internet, and direct mail. For more information, please visit www.valuevisionmedia.com or 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. ### VALUEVISION MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data)
JULY, 30 JANUARY 31, 2005 2005 -------------------- ------------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 57,003 $ 62,640 Short-term investments 33,790 37,941 Accounts receivable, net 83,386 79,405 Inventories 67,869 54,903 Prepaid expenses and other 5,760 5,635 -------------------- ------------------ Total current assets 247,808 240,524 PROPERTY AND EQUIPMENT, NET 48,639 52,725 FCC BROADCASTING LICENSE 31,943 31,943 NBC TRADEMARK LICENSE AGREEMENT, NET 17,074 18,687 CABLE DISTRIBUTION AND MARKETING AGREEMENT, NET 3,102 3,550 OTHER INTANGIBLE ASSETS, NET - 68 OTHER ASSETS 3,058 2,799 -------------------- ------------------ $ 351,624 $ 350,296 ==================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 59,194 $ 48,012 Accrued liabilities 42,996 41,062 -------------------- ------------------ Total current liabilities 102,190 89,074 LONG-TERM CAPITAL LEASE OBLIGATIONS 1,099 1,380 SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK, $.01 PAR VALUE, 5,339,500 SHARES AUTHORIZED; 5,339,500 SHARES ISSUED AND OUTSTANDING 43,174 43,030 Shareholders' equity: Common stock, $.01 par value, 100,000,000 shares authorized; 37,104,374 and 37,043,912 shares issued and outstanding 371 370 Warrants to purchase 7,630,583 shares of common stock 46,683 46,683 Additional paid-in capital 264,100 264,005 Deferred compensation (246) (353) Accumulated deficit (105,747) (93,893) -------------------- ------------------ Total shareholders' equity 205,161 216,812 -------------------- ------------------ $ 351,624 $ 350,296 ==================== ==================
VALUEVISION MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited)
FOR THE THREE MONTH FOR THE SIX MONTH PERIODS ENDED PERIODS ENDED ------------------------------- ------------------------------- JULY 30, JULY 31, JULY 30, JULY 31, 2005 2004 2005 2004 ------------- ------------- --------------- ------------ NET SALES $ 171,668 $ 161,478 $ 327,831 $ 320,675 COST OF SALES 111,147 107,578 214,927 213,691 ------------- ------------- -------------- ------------ Gross profit 60,521 53,900 112,904 106,984 ------------- ------------- -------------- ------------ OPERATING EXPENSE: Distribution and selling 51,766 52,275 102,911 103,077 General and administrative 6,394 5,107 13,004 10,782 Depreciation and amortization 5,102 4,918 10,393 9,702 Asset impairments - - 400 - Employee termination costs - - 528 - ------------- ------------- -------------- ------------ Total operating expense 63,262 62,300 127,236 123,561 ------------- ------------- -------------- ------------ OPERATING LOSS (2,741) (8,400) (14,332) (16,577) ------------- ------------- -------------- ------------ OTHER INCOME: Other income (expense) (256) 250 (1) 250 Interest income 738 322 1,384 596 ------------- ------------- -------------- ------------ Total other income 482 572 1,383 846 ------------- ------------- -------------- ------------ LOSS BEFORE INCOME TAXES (2,259) (7,828) (12,949) (15,731) Equity in income of affiliates 275 - 275 - Income tax benefit 826 - 820 - ------------- ------------- -------------- ------------ NET LOSS (1,158) (7,828) (11,854) (15,731) ACCRETION OF REDEEMABLE PREFERRED STOCK (71) (71) (143) (142) ------------- ------------- -------------- ------------ NET LOSS AVAILABLE TO COMMON SHAREHOLDERS $ (1,229) $ (7,899) $ (11,997) $ (15,873) ============= ============= ============== ============ NET LOSS PER COMMON SHARE $ (0.03) $ (0.21) $ (0.32) $ (0.43) ============= ============= ============== ============ NET LOSS PER COMMON SHARE ---ASSUMING DILUTION $ (0.03) $ (0.21) $ (0.32) $ (0.43) ============= ============= ============== ============ Weighted average number of common shares outstanding: Basic 37,102,001 36,809,884 37,089,737 36,725,181 ============= ============= ============== ============ Diluted 37,102,001 36,809,884 37,089,737 36,725,181 ============= ============= ============== ============
RECONCILIATION OF EBITDA TO NET LOSS:
SIX MONTH SIX MONTH SECOND QUARTER SECOND QUARTER PERIOD ENDED PERIOD ENDED 30-JUL-05 31-JUL-04 30-JUL-05 31-JUL-04 --------- --------- --------- --------- EBITDA (AS DEFINED) (000'S) (A) $ 2,380 $ (3,232) $ (3,665) $ (6,625) ======================== =========================== A reconciliation of EBITDA to net loss is as follows: EBITDA, as presented $ 2,380 $ (3,232) $ (3,665) $ (6,625) Adjustments: Depreciation and amortization (5,102) (4,918) (10,393) (9,702) Interest income 738 322 1,384 596 Income taxes 826 - 820 - ------------------------ --------------------------- Net loss $ (1,158) $ (7,828) $ (11,854) $ (15,731) ======================== ===========================
(a) EBITDA as defined for this statistical presentation represents net income (loss) for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. Previous to the second quarter of fiscal 2004, management defined EBITDA as operating income (loss) excluding depreciation and amortization expense, other non-operating income (expense) and income taxes. The change was made to conform to the more common definition of EBITDA. Management views EBITDA as an important alternative operating performance measure because it is commonly used by analysts and institutional investors in analyzing the financial performance of companies in the broadcast and television home shopping sectors. However, EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) and should not be construed as a measure of liquidity. EBITDA, as presented, may not be comparable to similarly entitled measures reported by other companies. Management uses EBITDA to evaluate operating performance and as a measure of performance for incentive compensation purposes. VALUE VISION MEDIA, INC. KEY PERFORMANCE METRICS* (Unaudited)
---------------------------------------- ---------------------------------- Q2 YTD FOR THE THREE MONTHS ENDING FOR THE SIX MONTHS ENDING ---------------------------------------- ----------------------------------- 7/30/2005 7/31/2004 % 7/30/2005 7/31/2004 % --------- --------- - --------- --------- - PROGRAM DISTRIBUTION - -------------------- Cable FTE's 37,990 36,192 5% 37,759 36,046 5% Satellite FTE's 23,956 20,942 14% 23,616 20,544 15% ------------- ------------- --- ------------- ------------- --- Total FTE's (Average 000's) 61,946 57,134 8% 61,374 56,590 8% Net Sales per FTE (Annualized) $ 10.78 $ 10.83 0% $ 10.39 $ 10.81 -4% Active Customers - 12 month rolling 773,210 753,453 3% n/a n/a % New Customers - 12 month rolling 58% 62% n/a n/a % Reactivated & Retained - 12 month rolling 42% 38% n/a n/a Customer Penetration - 12 month rolling 1.2% 1.3% n/a n/a PRODUCT MIX - ----------- Jewelry 57% 67% 56% 67% Apparel 4% 3% 5% 4% Health & Beauty 4% 3% 4% 3% Computer & Electronics 23% 15% 22% 14% Fitness 0% 1% 1% 1% Home 12% 11% 12% 11% Shipped Units (000's) 1,159 1,233 -6% 2,355 2,549 -8% Average Price Point - shipped units $ 205 $ 186 10% $ 194 $ 177 10% -------------------------------------- ------------------------------------
*Includes ShopNBC TV and ShopNBC.com only. -----END PRIVACY-ENHANCED MESSAGE-----