Printer Friendly

QVC NETWORK REPORTS FIRST QUARTER RESULTS

 WEST CHESTER, Pa., May 19 /PRNewswire/ -- QVC Network, Inc. (NASDAQ: QVCN) today reported a 17.2 percent increase in net revenue and a 53.3 percent increase in income before an extraordinary item and the cumulative effect of a change in accounting principle for the first quarter ended April 30, 1993, compared to the same period last year.
 Net revenue for the first quarter of 1993 was $273.2 million, compared to $233.2 million in the prior year. Operating income for the quarter increased 21.4 percent to $32.4 million from $26.7 million in the prior year's first quarter. Income before cumulative effect of change in accounting principle was $17.6 million, or $.36 per share, in the current year compared to income before extraordinary item in the prior year of $11.5 million, or $.29 per share. The weighted average common and common equivalent shares outstanding was 49.6 million in the first quarter of 1993 compared to 43.0 million last year.
 In the first quarter of 1993, the company changed its method of accounting for income taxes as required by Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS 109). Prior years' financial statements were not restated as permitted under the accounting standard. The cumulative effect of adopting SFAS 109 in the first quarter increased net income by $4.0 million, or $.08 per share. The extraordinary item in 1992 of $348,000, or $.01 per share, resulted from the accelerated repayment of long-term debt which, in turn, required the accelerated write-off of debt placement fees.
 Net income (after the cumulative effect of change in accounting for income taxes in 1993 and after the extraordinary charge in 1992) was $21.6 million, or $.44 per share, in 1993 compared to $11.1 million, or $.28 per share, in the prior year.
 Barry Diller, chairman and chief executive officer, said, "These results are satisfactory and in line with expectations. In context, though, and in contrast to the general flatness of the retail sector in the first quarter, these figures reflect the real and consistent growth of QVC and electronic retailing."
 QVC, the nation's largest cable shopping channel, is transmitted live, 24 hours a day, seven days a week and currently reaches more than 45 million cable homes and 3 million homes with satellite dishes.
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Results of Operations
 (Unaudited, in thousands, except per-share data)
 Three months ended April 30 1993 1992
 Net revenue $273,232 $233,168
 Cost of goods sold 159,459 132,814
 Gross profit 113,773 100,354
 Operating expenses:
 Variable costs 40,130 36,081
 General and administrative 30,570 26,153
 Depreciation 3,966 3,939
 Amortization of intangible
 assets 6,680 7,468
 Total 81,346 73,641
 Operating income 32,427 26,713
 Interest income (expense), net 2,119 (3,796)
 Income before income taxes,
 extraordinary item and cumulative
 effect of change in accounting
 principle 34,546 22,917
 Income tax provision (16,925) (11,425)
 Income before extraordinary item
 and cumulative effect of change
 in accounting principle 17,621 11,492
 Extraordinary item -- loss on
 extinguishment of debt,
 net of tax benefit --- (348)
 Cumulative effect of change in
 accounting for income taxes 3,990 ---
 Net income 21,611 11,144
 Income per share:
 Income before extraordinary item
 and cumulative effect of change
 in accounting principle $.36 $.29
 Extraordinary item, net of
 tax benefit --- (.01)
 Cumulative effect of change in
 accounting for income taxes .08 ---
 Net income .44 .28
 Weighted average number of common
 and common equivalent shares 49,556 43,049
 QVC NETWORK, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (Unaudited; In thousands)
 April 30 1993 1992
 Assets:
 Current assets $274,019 $203,359
 Property, plant and equipment, net 72,975 71,958
 Intangibles and other assets, net 389,580 420,232
 Total assets 736,574 695,549
 Liabilities and shareholders' equity:
 Current liabilities 214,838 214,763
 Long-term debt 7,456 129,310
 Shareholders' equity 514,280 351,476
 Total liabilities and shareholders' equity 736,574 695,549
 /delval/
 -0- 5/19/93
 /CONTACT: Michael Rourke of QVC, 215-429-8303/
 (QVCN)


CO: QVC Network, Inc. ST: Pennsylvania IN: ENT SU: ERN

MK-MP -- PH006 -- 0164 05/19/93 09:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 19, 1993
Words:710
Previous Article:CITY HOLDING COMPANY ANNOUNCES DIVIDEND
Next Article:SUN NAMES VICE PRESIDENTS
Topics:


Related Articles
QVC NETWORK REPORTS 1991 REVENUES; CABLE SHOPPING RETAILER SHOWS 13 PERCENT INCREASE FOR FOURTH QUARTER
QVC NETWORK REPORTS 1991 EARNINGS OF $.61 PER SHARE VS. 1990 LOSS OF $.98 PER SHARE
QVC REPORTS STRONG GAINS IN FIRST QUARTER
QVC PROPOSES TO MERGE WITH HOME SHOPPING NETWORK, INC.
DENTO-MED SIGNS DIRECT TO RETAIL AS EXCLUSIVE DISTRIBUTOR TO QVC NETWORK FOR NEW FAMILY OF MOISTURIZING SKIN CARE PRODUCTS
QVC REPORTS SECOND QUARTER RESULTS
QVC REPORTS THIRD QUARTER
QVC ANNOUNCES MAJOR CORPORATE REORGANIZATION
QVC'S EXCLUSIVE LEGACY LEGWEAR LINE BY KAYSER-ROTH IS A GREAT SUCCESS; OVER 13,000 PACKAGES SOLD IN 24 HOURS
L. L. KNICKERBOCKER RECEIVES REPORT OF $2 MILLION IN SALES OF MARIE OSMOND DOLLS FROM QVC NETWORK'S FOUR HOUR SHOW

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters