Printer Friendly

QVC NETWORK REPORTS 1991 EARNINGS OF $.61 PER SHARE VS. 1990 LOSS OF $.98 PER SHARE

 QVC NETWORK REPORTS 1991 EARNINGS OF $.61 PER SHARE
 VS. 1990 LOSS OF $.98 PER SHARE
 WEST CHESTER, Pa., March 9 /PRNewswire/ -- QVC Network, Inc. (NASDAQ: QVCN) today reported that for the 1991 fiscal year, ended Jan. 31, 1992, its net income prior to an extraordinary item was $21.7 million, or $.68 per share.
 After the extraordinary item, net income was $19.6 million, or $.61 per share, compared to a net loss of $17 million, or $.98 per share, for the prior year. For 1991, the weighted average number of common and common equivalent shares outstanding was 32 million; for 1990, it was 17.4 million.
 Consolidated net revenues increased 19 percent to $921.8 million from $776 million in the prior year. QVC's net revenues exclude shipping and handling charges and also are net of merchandise returns.
 The average gross profit margin for 1991 was 42 percent compared to 38.2 percent for 1990. Total gross profit increased 31 percent to $387.2 million, compared to $296.1 million for the prior year.
 Operating income for 1991 more than doubled to $84.4 million, or 9.2 percent of revenues, compared to $29.4 million, or 3.8 percent of revenues in 1990.
 Operating cash flow (income before interest, taxes, depreciation and amortization) rose 73 percent to $131.1 million in 1991, compared to $75.7 million in the prior year.
 Pre-tax income for 1991 was $52.9 million, compared to a loss of $17 million in 1990. In 1991, pre-tax income was subject to an income tax provision of $31.2 million and a $2.1 million extraordinary item. The extraordinary item resulted from the accelerated repayment of long- term debt which in turn required the accelerated write-off of debt placement fees.
 As a result of the net income generated in 1991 combined with a public offering and debt conversion, shareholders' equity increased from $208.8 million at the end of 1990 fiscal year to $325.8 million a year later. During the same period, long-term debt (including current maturities) decreased from $399.9 million to $202.2 million. QVC's debt-to-equity ratio thus changed dramatically in one year from 192 percent to 62 percent, the company said.
 For the fourth quarter, net revenues were $281.7 million, 12.6 percent over last year's fourth-quarter revenues of $250 million. The average gross profit margin was 42 percent compared to 37.8 percent a year ago. Total gross profit for the quarter was $118.3 million, compared to $94.6 million in the fourth quarter of fiscal 1990. Operating income was $29.1 million compared to $21.1 million in the year-earlier fourth quarter. Operating cash flow totaled $40.6 million compared to $33 million in the fourth quarter of the prior year. Pre- tax income for the fourth quarter more than doubled to $24.1 million, compared to $9 million in the same period a year ago. In the fourth quarter of 1991, pre-tax income was subject to an income tax provision of $14.2 million and a $900,000 extraordinary item. Net income for the fourth quarter in 1991 and 1990 was $9 million, or $.25 per share in 1991 based on 36.3 million shares, compared to $.30 per share in 1990 based on 29.9 million shares.
 QVC Chairman Joseph M. Segel said, "The recessionary environment has not affected QVC as much as it has affected traditional retailers. By providing a more convenient and more enjoyable way to shop, QVC has continued to attract more than 100,000 new customers every month. Over the past 12 months, more than 3 million television viewers made at least one purchase from QVC. Since QVC launched its televised shopping network a little over five years ago, the total number of customers who have purchased 50 or more times has grown to over 200,000, and more than 1 million customers have purchased 10 or more times. Additionally, the average dollar amount of purchases per repeat customer has continued to grow and is now around $480 per year."
 Segel further noted that in regard to jewelry, the company's largest product category, QVC has continued to experience excellent demand. He said, "The jewelry business is alive and well -- at least at QVC. We have made jewelry more interesting to consumers by developing celebrity jewelry collections that are personally presented on QVC by glamorous stars such as Joan Rivers, Joan Collins, Morgan Fairchild, Carol Channing, Angie Dickinson and Loni Anderson. More than a million people bought jewelry from QVC in 1991, and our jewelry sales are now close to half-a-billion dollars a year. On March 1, for example, we devoted a full 24-hour day to silver jewelry and it resulted in our largest order volume ever -- 340,000 phone orders in one day."
 The QVC cable shopping channel is now received by 42 million cable subscribers and 3 million satellite dish owners, representing nearly 50 percent of all homes in the United States with TV sets.
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per-share data)
 Fourth quarter Fiscal Year
 1991 1990 1991 1990
 Periods ended Jan. 31 1992 1991 1992 1991
 Net revenues $281,660 $250,043 $921,804 $776,029
 Cost of goods sold 163,350 155,445 534,650 479,899
 Gross profit 118,310 94,598 387,154 296,130
 Operating expenses:
 Customer service and
 commissions 44,587 38,834 145,348 125,823
 General and
 administrative 33,161 22,792 110,747 94,609
 Depreciation 4,159 4,153 16,679 16,229
 Amortization of
 intangible assets 7,334 7,708 29,983 30,086
 Total 89,241 73,487 302,757 266,747
 Operating income 29,069 21,111 84,397 29,383
 Interest expense, net (4,929) (12,146) (31,499) (46,368)
 Income (loss) before
 taxes and before
 extraordinary item 24,140 8,965 52,898 (16,985)
 Provision for income
 taxes (14,245) --- (31,165) ---
 Income (loss) before
 extraordinary item 9,895 8,965 21,733 (16,985)
 Extraordinary item:
 loss on write-off of
 debt placement fees,
 net of tax benefit (868) --- (2,108) ---
 Net income (loss) 9,027 8,965 19,625 (16,985)
 Income (loss) per common share:
 Income (loss) before
 extraordinary item $.27 $.30 $.68 ($.98)
 Extraordinary item, net (.02) --- (.07) ---
 Net income (loss)
 per share .25 .30 .61 (.98)
 Weighted number of
 common and common
 equivalent shares 36,271 29,920 31,959 17,380
 There was no income tax provision for the three months or fiscal year ended Jan. 31, 1991, because of the net loss for the 1990 fiscal year.
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 1991 1990
 As of Jan. 31 1992 1991
 Assets:
 Current assets $216,977 $188,097
 Property, plant and equipment, net 68,949 83,460
 Intangibles and other assets, net 428,613 468,626
 Total assets 714,539 740,183
 Liabilities and shareholder's equity:
 Current liabilities 236,292 164,715
 Long-term debt 152,461 366,688
 Shareholders' equity 325,786 208,780
 Total liabilities and shareholders' equity 714,539 740,183
 /delval/
 -0- 3/9/92
 /CONTACT: Joseph M. Segel, chairman of QVC, 215-430-1020/
 (QVCN) CO: QVC Network, Inc. ST: Pennsylvania IN: ENT SU: ERN


LJ-MP -- PH008 -- 6269 03/09/92 09:57 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 9, 1992
Words:1222
Previous Article:NATIONAL TECHTEAM, INC. ANNOUNCES NATIONAL CONTRACT AWARD FROM LORAL CORPORATION
Next Article:VICORP RESTAURANTS REPORTS RECORD OPERATING EARNINGS
Topics:


Related Articles
QVC REPORTS THIRD QUARTER RESULTS
ENVIRONMENTAL ELEMENTS ANNOUNCES THIRD QUARTER EARNINGS
BETZ LABORATORIES HAS RECORD YEAR
USLIFE REPORTS 15 PERCENT INCREASES IN BOTH FOURTH QUARTER AND YEAR END RESULTS
CAMBRIDGE BIOTECH REPORTS 1991 RESULTS OF $0.02 PER SHARE FOR YEAR
QUEST MEDICAL INC. PRE-TAX OPERATING EARNINGS RISE TO $424,000 FOR THE FOURTH QUARTER FROM $17,000 LAST YEAR AS REVENUE INCREASES 81 PERCENT
THE LOEWEN GROUP INC. ANNOUNCES 1991 FINANCIAL RESULTS
QVC REPORTS STRONG GAINS IN FIRST QUARTER
SOUTHWEST NATIONAL CORPORATION ISSUES PRELIMINARY EARNINGS RESULTS
QVC REPORTS 1992 EARNINGS OF $1.24 PER SHARE VS. 1991 OF $.61 PER SHARE

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters