Wow, it looks like ShopNBC actually had a good quarter.
The home shopping network Wednesday reported first-quarter sales of $154.4 million, up 11 percent from the year-ago quarter. The company’s adjusted EBITDA was $5.8 million, and net income was $1 million.
That net income isn’t much, but a year ago ShopNBC had a loss.
Earlier this month, HSN reported that its sales saw a 2 percent uptick in the first quarter, to $550.1 million, versus the year-ago period.
ShopNBC’s sales growth was driven by significant improvement in the home & consumer electronics category and strong results in the fashion & accessories category, according to ShopNBC.
Adjusted EBITDA improved to $5.8 million versus an adjusted EBITDA loss of $1 million for the same quarter last year, reflecting improved sales and lower TV distribution costs. The home shopping network which is changing its name to ShopHQ, reported net income of $1.0 million, or two cents a share, compared to a year-ago net loss of $8.7 million, or 18 cents a share.
Net shipped units increased 12 percent to nearly 1.5 million, reflecting continued improvements in the company’s merchandise mix and a modest decline in average price points.
Internet sales penetration increased 30 basis points to 46.2 percent. Mobile transaction volume represented 23 percent of Internet sales compared to 13 percent a year ago.
“We have extended our positive momentum from 2012 with continued improvement in our product diversity, customer growth and customer service metrics,” ShopNBC CEO Keith Stewart said in a canned statement. “Although we are encouraged by this performance, there is still plenty of work ahead of us. Key areas of focus remain executing our merchandising strategy, enhancing the customer experience, and improving the efficiency of our operations.”
We should say so!
“We strengthened our balance sheet during the first quarter,” ShopNBC Executive Vice President and Chief Financial Officer William McGrath said. “ValueVision’s (i.e. ShopNBC) cash balance, including restricted cash, increased by $7 million to $36 million in Q1’13. The change in our cash position reflects positive EBITDA results and the seasonal timing of cash receipts from fourth quarter receivables, partially offset by increased inventory investments in the period.”
His final comment: “Earlier this month, we expanded our PNC line of credit to $50 million from $40 million, and extended the term through May 2, 2018. The additional $10 million in undrawn availability under the expanded facility improves liquidity and supports continued investment in the growth of our business.”