QVC REPORTS STRONG GAINS IN FIRST QUARTER
QVC REPORTS STRONG GAINS IN FIRST QUARTER WEST CHESTER, Pa., May 20 /PRNewswire/ -- QVC Network, Inc.
(NASDAQ: QVCN) today reported a 21.3 percent increase in net revenue and a 460 percent increase in earnings per share for the first quarter ended April 30, 1992, compared to the same period in the prior year.
Net revenue for the first quarter was $233.2 million, compared to $192.2 million for last year's first quarter. QVC's net revenue is net of returns and also excludes shipping and handling charges. Income before an extraordinary item was $11.5 million, or $.29 per share. After the extraordinary item, net income was $11.1 million, or $.28 per share, compared to $1.4 million, or $.05 per share, for the year-earlier period. The extraordinary item resulted from the accelerated repayment of long-term debt which, in turn, required the accelerated write-off of debt placement fees. The number of common and common equivalent shares outstanding was 43 million for the first quarter this year, compared to 29.9 million for the same period last year. QVC's average gross margin for the first quarter rose to 43 percent from 40.4 percent. Total gross profit increased 29.1 percent to $100.4 million, compared to $77.7 million in the year-earlier period. Operating income for the quarter rose to $26.7 million from $15.4 million in the prior year's first quarter. Net interest expense decreased to $3.8 million, compared to $9.7 million in the same period last year. During the quarter, QVC further reduced its total indebtedness by $30.2 million. At the end of the quarter, long-term debt, including $42.7 million of current maturities, was reduced to $172 million, compared to $385.3 million, including $36.9 million of current maturities, at the end of April in the prior year. Shareholders' equity increased to $351.5 million, compared to $216 million at the same time last year. QVC NETWORK, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited; in thousands, except per-share data) Three months ended April 30 1992 1991 Net revenue $233,168 $192,169 Cost of goods sold 132,814 114,450 Gross profit 100,354 77,719 Operating expenses: Variable costs 36,081 29,158 General and administrative 26,153 21,329 Depreciation 3,939 4,232 Amortization of intangible assets 7,468 7,559 Total 73,641 62,278 Operating income 26,713 15,441 Interest expense, net (3,796) (9,708) Income before income taxes and extraordinary item 22,917 5,733 Income tax provision (11,425) (4,300) Income before extraordinary item 11,492 1,433 Extraordinary item -- loss on extinguishment of debt, net of tax benefit of $285 (348) --- Net income 11,144 1,433 Income per share: Income before extraordinary item $.29 $.05 Extraordinary item, net of tax benefit (.01) --- Net income .28 .05 Weighted average number of common and common equivalent shares 43,049 29,921 QVC NETWORK, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited; in thousands) April 30 1992 1991 Assets: Current assets $203,359 $196,356 Property, plant and equipment, net 71,958 71,342 Intangibles and other assets, net 420,232 460,869 Total assets 695,549 728,567 Liabilities and shareholders' equity: Current liabilities 214,763 164,132 Long-term debt 129,310 348,422 Shareholders' equity 351,476 216,013 Total liabilities and shareholders' equity 695,549 728,567 -0- 5/20/92 delval /CONTACT: William F. Costello of QVC, 215-430-8938/ (QVCN) CO: QVC Network, Inc. ST: Pennsylvania IN: ENT SU: ERN
MP-MK -- PH004 -- 2201 05/20/92 09:13 EDT
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|Date:||May 20, 1992|
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