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HOME SHOPPING NETWORK ANNOUNCES WITHDRAWAL OF LIBERTY MEDIA OFFER AND SECOND QUARTER EARNINGS RESULTS

 ST. PETERSBURG, Fla., April 12 /PRNewswire/ -- Home Shopping Network, Inc. (NYSE: HSN), announced today that it has been advised by Liberty Media Corporation (Liberty) that Liberty has withdrawn its outstanding merger proposal to acquire all of the common stock of HSN not already owned by Liberty.
 Pursuant to Liberty's earlier merger proposal, upon consummation of the merger, holders of HSN common stock were to have received $5.50 in cash and 0.2 of a share of Liberty Class A Common for each share of HSN common stock held.
 Liberty cited recent published reports of a current grand jury investigation, pending civil litigation involving HSN and the likelihood of delays in consummating the merger as its reasons for withdrawing its merger offer. Liberty has stated that it will continue to evaluate various options with respect to its investment in HSN.
 Liberty currently owns 20 million shares of HSN's Class B common stock and 616,300 shares of its common stock. Such shares constitute approximately 65 percent of the outstanding voting control of HSN.
 Gerry Hogan, president and chief executive officer, said, "I remain confident about HSN's prospects and the recent efforts to improve its financial performance." He added, "No changes to current management are contemplated, and the recent Liberty announcement has no bearing on my confidence in HSN's potential growth or my faith in HSN's ability to compete at the top of its industry."
 In addition, HSN announced today the results for the second quarter of fiscal 1993, ending Feb. 28, 1993. Net sales decreased to $244.0 million, or 11.4 percent, in the second quarter compared with net sales of $275.5 million in the same period last year. Gross profit margin was 24.8 percent compared with 36.7 percent last year. For the second quarter of fiscal 1993, loss before extraordinary item was ($20.0) million, or ($.23) per share, compared with earnings of $7.9 million, or $.09 per share, in the comparable period last year.
 During the quarter ended Feb. 28, 1993, an additional provision of $22.7 million was made to HSN's inventory reserve. This contributed to the loss and decrease in gross profit margin for the second quarter of fiscal 1993. The increase in the reserve was made to reflect a change in management's merchandising philosophy implemented during the quarter ended Feb. 28, 1993, which will affect the type of merchandise featured on Home Shopping Club programs. As a result of analyses by management and outside retail consultants as to inventory movement and profitability, as well as an assessment of the most effective utilization of its programming time, the company is discontinuing the sale of certain types of products that do not achieve desired levels of net sales and gross profit. These types of products include items with selling prices less than $10, items with return rates in excess of product category averages and items otherwise determined to be overstocked. The additional reserve amount is net of management's estimate of the proceeds to be received for these types of products through special on-air promotions and liquidation.
 During the second quarter of fiscal 1993, HSN repurchased and had commitments to repurchase, prior to scheduled maturity, $143.3 million in long-term obligations and recognized and extraordinary after tax loss of ($6.9) million with a per share effect of ($.08). Proceeds from bank financings were used to repurchase these long-term obligations. The second quarter of fiscal 1992 did not include a significant extraordinary after tax loss from the repurchase of long-term obligations. Therefore, the net loss for the second quarter of fiscal 1993 was ($26.9) million, or ($.31) per share, compared with net earnings of $7.8 million, or $.09 per share, in the comparable period last year.
 The loss before extraordinary item for the six month period ended Feb. 28, 1993 was ($14.2) million, or ($.16) per share vs. earnings of $21.0 million, or $.24 per share, for the comparable period in fiscal 1992. The net loss for the first half of fiscal 1993 was ($21.1) million, or ($.24) per share, compared with net earnings of $20.9 million, or $.24 per share, in the same period last year. For the first six months of fiscal 1993, the extraordinary after tax loss from the repurchase of long-term obligations was ($6.9) million with a per share effect of ($.08) vs. an after tax loss of ($.1) million, with no per share effect in the comparable period in fiscal 1992.
 HOME SHOPPING NETWORK, INC.
 SECOND QUARTER AND YEAR-TO-DATE
 FINANCIAL HIGHLIGHTS (UNAUDITED)
 (IN MILLIONS, EXCEPT PER SHARE DATA)
 Three Months Ended Six Months Ended
 2/28/93 2/29/92 2/28/93 2/29/92
 Net Sales $ 244.0 $275.5 $509.8 $567.2
 Earnings (Loss) Before
 Extraordinary Item $ (20.0) $ 7.9 $(14.2) $ 21.0
 Extraordinary Item, Net (6.9) (.1) (6.9) (.1)
 Net Earnings (Loss) $ (26.9) $ 7.8 $(21.1) $ 20.9
 Earnings (Loss) Per
 Share:
 Earnings (Loss) Before
 Extraordinary Item $ (.23) $ .09 $ (.16) $ .24
 Extraordinary Item,
 Net (.08) --- (.08) ---
 Net Earnings (Loss) $ (.31) $ .09 $ (.24) $ .24
 Weighted Average
 Shares Outstanding 88,244 90,110 88,027 90,003
 -0- 4/12/93
 /CONTACT: Home Shopping Network corporate communications department, 813-572-8585, ext. 7420/
 (HSN)


CO: Home Shopping Network, Inc.; Liberty Media Corporation ST: Florida IN: REA ENT SU: ERN, TNM

JJ-JB -- FL020 -- 4917 04/12/93 16:55 EDT
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Date:Apr 12, 1993
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