Posts Tagged ‘Bob Rosenblatt’

Evine Now Really Is The Invicta Network

May 7, 2019

We were on vaca in AZ when this blockbuster news broke about Evine. Home shoppers have often joked that Evine is the Invicta Network, but little did they know that it was actually going to happen.

Last week financially struggling Evine announced that a group of investors — including Eyal Lalo, CEO of Invicta Watch Group and Tim Peterman, former Evine COO and CFO — were buying $6 million of the network’s stock.

As part of the deal Invicta, a huge Evine vendor, has committed to invest an additional $25 million in product for the home shopping channel.

Peterman was also named Evine’s CEO.

There were a host of other changes detailed in the press release is below.

As former QVC host Steve Bryant pondered, it looks like Invicta got a real steal on Evine. Steve pointed out that there’s been talk that Amazon is looking to have a home shopping channel, and buying Evine would have given them a great base — distribution deals in place already, etc. And we are sure Jeff Bezos has a couple of million dollars he could have spent to buy Evine — that’s chump change to him.

Now we don’t know if you can expect to see even more Invicta watch segments on Evine, but we have the sneaking suspicion that you will.

Evine Secures Multi-Million Dollar Strategic Investment & Exclusivity Commitment from The Invicta Watch Group; Tim Peterman Returns as CEO
05/02/2019
Eyal Lalo, CEO of The Invicta Watch Group, joins Evine’s Board as Vice Chairman; Bob Rosenblatt remains on the Evine Board.

MINNEAPOLIS, May 02, 2019 (GLOBE NEWSWIRE) — Evine Live Inc. (NASDAQ:EVLV), a multiplatform interactive video and digital commerce company (evine.com), today announced as a part of its ongoing strategic alternatives review, the execution of several agreements with its largest and most tenured vendor, The Invicta Watch Group (“IWG”). Effective immediately, Evine has:

Sold $6 million of common stock at $0.75 per share, which was priced at a 97% premium to Evine’s closing stock price on the day prior to signing the purchase agreement, to investors (“Investors”) that include, among others, Eyal Lalo, CEO of IWG and Tim Peterman. The investors will also receive five-year warrants to purchase an aggregate of 3.5 million shares of common stock with an exercise price of $1.50 per share, a 295% premium to Evine’s closing stock price on the day prior to signing the purchase agreement;
Secured a $5 million increase in its vendor line for IWG’s family of brands, subject to adjustment from time to time;
Secured IWG’s commitment to invest an additional $25 million in product for Evine in 2019;
Secured a 5-year TV retailing exclusivity commitment from IWG;
Appointed Eyal Lalo, CEO of IWG, as Evine’s Vice Chairman, which is a board role designed to work closely with the CEO in the operations of the business;
Appointed Tim Peterman, Evine’s former COO & CFO, as its new CEO;
Appointed Michael Friedman, a long standing IWG partner, to Evine’s board; and
Announced that Bob Rosenblatt, Evine’s former CEO, will remain on Evine’s Board, where he will assist in the transition and continue to contribute to Evine’s strategy as a Board member.

Bob Rosenblatt, former CEO of Evine, said, “It is exciting to have Tim back to lead Evine on its continuing journey to profitability while utilizing his strong experience and relationships in interactive media and eCommerce to help us chart a compelling growth strategy. In addition, Eyal’s financial commitment as an investor and his leadership as Vice Chairman will help us accelerate our brand building opportunities and strengthen our balance sheet. I couldn’t be more excited as a board member and shareholder to have Tim and Eyal helping lead our organization into its next chapter.”

Tim Peterman, CEO of Evine, said, “I look forward to working with Bob and his team during a collaborative transition. We have a great company today, and I believe we have a very bright future. As Bob knows, our vision for the company remains fundamentally unchanged; I look forward to working with the team and the Board on new growth strategies and expect to have further details on such strategies in the near term.”

Eyal Lalo, Vice Chairman of Evine, said, “Fostering an entrepreneurial, fast-moving culture in which leaders and employees work to produce amazing results will be an important strategic priority for us. Tim and I look forward to playing a more active role in Evine’s future.”

In addition to Eyal Lalo and Michael Friedman joining the Board, Thomas Beers and Mark Holdsworth have resigned from the Board, effective today.

Landel Hobbs, Chairman of Evine, added, “Deepening our relationship with IWG adds value for both the company and its shareholders, especially as Evine continues to chart its course in the role of interactive video commerce in the future of retail, entertainment and media. In addition, Tim’s strong experience and relationships in interactive media and eCommerce will help us continue to chart a compelling growth strategy and the deep expertise that Eyal brings to the Board will further enhance our strategies and execution. On behalf of Evine and the Board, I would also like to express my deep gratitude to Bob Rosenblatt for his leadership during the last three years—we have been made stronger through his work and look forward to his continuing contributions as a member of the Board. Similarly, I extend our thanks to Thomas Beers and Mark Holdsworth for their dedicated and valuable service on our Board.”

Evine will grant performance stock units representing 680,000 shares of Evine common stock to Mr. Peterman on May 2, 2019, that were approved by the human resources and compensation committee of its Board as a material inducement to employment. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4). The performance stock unit grant shall vest one-third upon the one year anniversary of the grant date, one-third when the per-share closing price of Evine’s common stock reaches or exceeds an average trading price of $2 for 20 consecutive trading days and Mr. Peterman has been continuously employed for at least one year from the grant date, and the remaining shares when the per-share closing price of Evine’s common stock reaches or exceeds an average trading price of $4 for 20 consecutive trading days and Mr. Peterman has been continuously employed for at least two years after the grant date, and shall otherwise be subject to the terms and conditions of the applicable award agreement.

Advertisements

Evine’s Sales Slip 1% In Third Quarter

November 22, 2017

Not a great third quarter for Evine this year, especially when someone is stalking the company.

The home shopping network posted net sales of $150 million, a roughly 1 percent decrease year-over-year. Management estimates net sales would have increased 1 percent when excluding the estimated $3 million negative sales impact from Hurricanes Harvey and Irma during the quarter.

Evine suffered a net loss of $1.1 million, and an adjusted EBITDA of $3.8 million, a 49 percent improvement year-over-year.

“I am very proud of our Q3 operating results,” CEO Bob Rosenblatt said in a canned statement.

“As our stakeholders know, this is the very beginning of what we call Year Two, the phase in our strategic plan that is focused on delivering revenue and free cash-flow growth. In Year One, we fixed our merchandising mix and significantly improved our balance sheet and profitability. This coming year our plan is to begin scaling our enterprise. In addition, boosted by our recent sale of our Boston television station, we are positioned to deliver positive EPS [earnings per share] for the fiscal year, which would be the first time we have accomplished this since fiscal 2007.”

He added, “We believe our strategy of a thoughtful transition over time into an interactive digital commerce company will drive sustainable revenue growth, EPS growth and multiple expansion growth that will combine to drive significant shareholder value. Specifically, longer term we seek to build and operate multiplatform digital commerce experiences using proprietary technologies that monetize multiple business models.”

The top-performing category in the third quarter was beauty, which rose 10 percent year-over-year. Fashion, home and consumer electronics also increased.

The return rate for the quarter was 19.1 percent, an improvement of 140 basis points year-over-year.

Gross profit as a percentage of sales increased 150 basis points to 38.1 percent year-over-year, driven primarily by improved rates. Gross profit dollars increased 3 percent to $57.3 million. Operating expense remained flat at $58 million.

As of the end of October total cash was $23 million, compared to $22 million at the end of the second quarter. Evine also had an additional $13 million of unused availability on its revolving credit facility with PNC Bank, which gave it total liquidity of about $36 million as of the end of the third quarter.

As previously announced Evine agreed to sell its television station, WWDP, serving the Boston market, for an aggregate of $13.5 million. The transaction includes two agreements with unrelated parties.

The first agreement closed in the third quarter and resulted in the initial receipt of a $2.5 million cash payment. That cash was used to pay down an equal amount of our loan with GACP.

The transaction resulted in an $833,000 net tax benefit related to the reversal of a deferred tax liability that was partially offset by a $221,000 loss related to the early debt extinguishment.

Got that?

The second agreement is expected to close in the fourth quarter following satisfaction of customary closing conditions, including Federal Communications Commission approval.

The financial impact of this transaction, including the complete pay-down of the remaining $3.6 million loan with GACP, is expected to include a $3 million positive impact to net income in the fourth quarter.

“We continue to expect fourth-quarter revenue growth in the mid- to high-single digits,” the network said in a press release Tuesday.

Evine’s Beekman Boys Do Laundry

September 4, 2017

We’re watching the presentation on this and we like what we see.

Evine Expands on the Success of Beekman 1802 with the Exclusive Launch of Beekman 1802 Happy Place Cleaning Products
08/31/2017
The September 3 & 4 debut features effective, non-toxic cleaning solutions from the Beekman Boys

MINNEAPOLIS, Aug. 31, 2017 (GLOBE NEWSWIRE) — Evine Live Inc. (“Evine”) (NASDAQ:EVLV), a multiplatform video commerce company (evine.com), today announced that Beekman 1802 Happy Place will debut its farm-to-home cleaning line on September 3 and 4. Expanding on the success of Beekman 1802 bath and body line at Evine, the new collection will feature cleaning items made from plant-based ingredients and goat’s milk. Formulated and bottled in the U.S., Beekman 1802 Happy Place products are designed to provide safer and more natural options to cleaning.

“Josh and Brent take their role as a good neighbor to heart and care about helping others create healthier homes,” said Bob Rosenblatt, Chief Executive Officer at Evine. “Beekman 1802 bath and body is one of our most popular brands at Evine and one that our customers absolutely love. I’m excited they are expanding their lifestyle brand at Evine and bringing to our customers cleaning products to help them tackle household chores in a more natural way.”

“Our society has become accustomed to using chemical-heavy cleaners, so we decided to create a unique line that would make doing everyday chores safer by using eco-friendly ingredients free of unnecessary elements,” said Josh Kilmer-Purcell, co-owner of Beekman 1802. “We passionately believe that cleaning more naturally makes your home a happy place. We cannot wait for our neighbors at Evine to experience first-hand these healthy, all-natural cleaners made with goat’s milk and farm-fresh botanicals.”

Beekman 1802 Happy Place will debut on Evine September 3 at 11:00pm ET and September 4 at 2:00am ET, 7:00am ET and 10:00am ET. The collection will feature exclusive products including laundry soap made with goat’s milk, dryer balls, goat’s milk stain sticks, multi-surface cleaning concentrate and a Happy Place door mat. Each item will be lightly scented with sweetgrass, a best-selling fragrance within the Beekman 1802 bath and body line and known for its crisp, soft smell and ability to bring forth positive energy.

Evine Sells Boston TV Station For $13.5 Million

September 4, 2017

Bet you didn’t know that Evine owned a TV station. Well, it won’t for much longer.

Last week the home shopping network announced that it was selling WWDP in Boston for an aggregate of $13.5 million in a series of two transactions.

“This deal further strengthens our balance sheet and gives us additional flexibility to grow our digital commerce company,” Evine CEO Bob Rosenblatt said in a canned statement.

“After reducing our high-interest debt by $9.5 million in the first half of the year, this sale of a non-strategic asset allows us to retire the remaining $6.2 million of high-interest debt and deploy the remaining cash for initiatives we choose with the highest expected shareholder return.”

The deal includes two agreements with unrelated parties and is expected to close in the fourth quarter or first quarter of next year following satisfaction of customary closing conditions, including Federal Communications Commission approval.

Curiously enough, Evine’s press release didn’t say who was buying the TV station. We had to go to the company’s 8-K to find that. Looks like it was WRRN.

Here it is:

On August 28, 2017, we entered into a Channel Sharing and Facilities Agreement (the “Channel Sharing Agreement”) with NRJ Boston OpCo, LLC and NRJ TV Boston License Co., LLC (collectively, “ NRJ ”) to allow NRJ to operate its local Boston television station on one-third of the spectrum used in the operation of the Station in perpetuity.

The total consideration payable to our company under the Channel Sharing Agreement is $3.5 million, with $2.5 million being payable upon grant of a required construction permit by the Federal Communications Commission and the balance being payable upon the closing of a sale of substantially all of the assets used by us in the operation of the Station or the transfer of the equipment necessary for channel sharing among our company and NRJ to a newly formed entity.

On August 28, 2017, we also agreed to sell substantially all of the assets primarily related to the Station to affiliates of WRNN-TV Associates Limited Partnership (“ Buyers”) pursuant to an Asset Purchase Agreement.

The purchase price for the Station’s assets is $10.0 million in cash, subject to an escrow hold-back of $1.0 million, which is payable to our company when the Station is being carried by certain designated carriers at or following the closing of the transaction.

The escrow hold-back is payable back to the Buyers in monthly installments beginning approximately 14 months after the closing if the Station is not being carried by certain designated carriers.

The purchase agreement includes customary representations, warranties, covenants and indemnification obligations of the parties. The sale of assets pursuant to the purchase agreement is expected to close in the fourth quarter of fiscal 2017 or the first quarter of fiscal 2018 following receipt of specified regulatory approvals from the FCC and satisfaction of the other closing conditions in the purchase agreement.

We plan to use the proceeds received from the transactions to pay in full the remaining amounts due under our term loan with GACP Finance Co., LLC, with the remaining proceeds used for general working capital purposes.

The closing of the transactions are expected to have a $3.5 million to $4.5 million nonrecurring benefit to our net income that may be spread over multiple quarters in fiscal 2017 and fiscal 2018, which includes the reversal of a deferred tax liability, the recognition of a potential gain on the sale of the Station assets and the subsequent extinguishment of high-interest debt.

According to the press release, “The financial impact of this transaction is expected to cross multiple quarters and is contingent on the timing of the close and completion of certain transaction related contingencies.”

Evine Bringing Paula Deen To State Fair

August 24, 2017

Evine may be No. 3 in the home shopping world, but it tries harder.

The network will be broadcasting live from the Minnesota State Fair, a 12-day event that attracts nearly 2 million visitors annually. Evine, of course, is based in that cold state.

On the fair’s first day, today Thursday, the telecast will include Southern cuisine queen Paula Deen, John O’Hurley (J. Peterman from Seinfeld), as well as Akos “The Solutionist” Jankura, a problem-solving expert.

“Simply put, the Minnesota State Fair is one of the biggest – and best – fairs in the U.S. and we couldn’t be more excited to be the first retailer of our kind to broadcast live from such an event,” Evine CEO Bob Rosenblatt said in a canned statement.

“The ‘Great Minnesota Get-Together’ is the perfect opportunity to bring the Evine experience to our Minnesota neighbors and have a chance to meet new friends of Evine as well.”

Fair-goers can watch “Paula Deen’s Kitchen,” a two-hour show that will broadcast live to Evine’s homes. She “will demonstrate how to whip up fair-food with ease, and with less fat, using her air fryer and other signature kitchen items,” according to Evine’s press release.

In addition to having a chance to be part of the live audience, fair attendees will have an opportunity to meet Deen and get a photo or autograph at 3 p.m.

“Being from the South, I’m no stranger to a good ol’ fair,” Deen said in her canned statement. “I’ve heard the Minnesota State Fair is truly in a league of its own and I am excited to be a part of one of the greatest get-togethers in the country. I can’t wait to try some classic fair foods, test my hand at carving a butter princess, cook up my favorite dishes, and get to meet all of the wonderful people at the Evine stage.”

Following Deen, at 3 p.m. “Pet Shoppe with John O’Hurley” will broadcast live and present pet-care products. As with Deen, fans will get a chance to meet O’Hurley starting at noon.

The final live broadcast hour of the day will feature Akos “The Solutionist.” He will be live at 5 p.m.

Viewers are also invited to watch a Facebook Live show featuring Deen at 2:30 p.m. and a YouTube Live show covering an “Evine Found at the Fair” product search at 6 p.m. Fair-goers will also have opportunities to win prizes, take photos and meet some of Evine’s hosts.

Evine 2Q Sales Down 5 Percent, To $149 Million

August 24, 2017

Evine became the third home shopping network to see its sales drop in the second quarter, with them dipping roughly 5 percent to $149 million, the company said Wednesday.

Evine also has a net loss of $2 million, flat year-over-year, and with adjusted EBITDA of $3.5 million.

http://s21.q4cdn.com/129019908/files/doc_presentations/2017/q2/Evine-Earnings-Presentation-F17-Q2.pdf

QVC’s parent, Liberty Interactive Corp., already reported reported that the No. 1 home shopping network saw its second-quarter revenue drop 4 percent, to $1.37 billion. And HSN suffered a 4 percent drop in its second-quarter sales, to $532.2 million.

“This second quarter is the final quarter of expected revenue decline, which was related to the year-long re-balancing of our consumer-electronics mix of business that began in April of last year,” Evine CEO Bob Rosenblatt said in a canned statement.

“This re-balancing was an important step to position our merchandising offering for long-term profitable growth and we accomplished it while again delivering on our quarterly EPS [earnings per share] guidance.”

Rosenblatt then crowed about some launches that the network has coming up.

“When we combine this progress with the launch of more than 10 million high-definition homes and the launch of our high-definition signal in September, we believe the second half of fiscal 2017 is positioned well to deliver solid, profitable growth,” he said.

Evine’s top-performing category in the quarter was home, which increased 9 percent year-over-year.

Consumer electronics, which declined again as a result of management’s reduction of lower-margin merchandise, declined 8 percent. The so-called “wearables” group decreased collectively by 8 percent, driven by continued pressure in watches.

The return rate for the quarter was 19 percent, an improvement of 70 basis points year-over-year.

Gross profit as a percentage of sales decreased 20 basis points to 38 percent year-over-year, driven primarily by mix pressure from the home category. Gross profit dollars decreased 6 percent to $56.5 million year-over-year.

Operating expense decreased $3.1 million to $57 million, a 5 percent decrease, driven by reduced distribution and selling expenses.

“It is clear that there is a sea change occurring throughout the retail landscape,” Rosenblatt said.

“All retailers, be it online or those with a significant bricks-and-mortar presence, continue to try to find better and differentiated ways to connect with the consumer. We believe interactive video commerce messaged to the consumer, based on the delivery platform used, whether that be through social, or traditional eCommerce, in concert with the data and predictive analytics available, marks the next significant growth curve,” he said.

“When I look out two to three years from now,there will be two types of retailers: Those whose models are based on price, selling commoditized products available on multiple platforms, and those whose models are based on product exclusivity and the customer experience. Our goal is to be a leader in the latter category.”

“Interactive video is the cornerstone of our digital commerce company that is driving business opportunities in all digital platforms and business models, from mobile to social, from laptop to television, and from merchandising business models to web service business models. We plan to do this while engaging with all types of customers, from millennials to baby boomers and to both women and men. A significant portion of the population will continue to purchase product from a curated assortment that facilitates the opportunity of discovery. We believe interactive video commerce at scale, an expertise we have continued to refine over many years, gives us an unfair advantage in delivering that experience.”

Evine To Report 2Q Results Aug. 23

August 4, 2017

Evine will release its second-quarter earnings Aug. 23 before the market opens at roughly 6 a.m. CEO Bob Rosenblatt and Chief Financial Officer Tim Peterman will hold a conference call at 8:30 a.m. to review the results.

Those interested in participating in the conference call should dial 1-877-407-9039 or 1-201-689-8470 (international) at least five minutes prior to the call.

There will be a simultaneous audio webcast available at the following link:

http://event.on24.com/wcc/r/1400380/564716D174B109733474197672B07CA3

A replay of the conference call will also be hosted on the company’s website for a limited time.

Evine Promotes Peterman To COO/CFO

June 9, 2017

Evine has promoted Tim Peterman to chief operating officer/ chief financial officer. He has served as CFO for the network since 2015.

Peterman joined Evine as CFO in 2015.

Prior to Evine, he spent 25 years in operations, interactive media and financial management for public companies such as Scripps Networks Interactive Inc., InteractiveCorp, Synacor and Sinclair Broadcast Group.

Peterman has a Bachelor of Science degree in accounting from the University of Kentucky and is a CPA who began his career at KPMG in Chicago.

“Tim’s contributions over the past two years have helped Evine create a solid foundation for profitable growth in the future,” Evine CEO Bob Rosenblatt said in a canned statement.

“His disciplined approach to strengthening our agendas in content distribution, customer solutions and fulfillment will further enhance our customer experience, and his focus on the balance sheet will pave the way for continued profitability improvement. By naming Tim as our Chief Operating Officer/Chief Financial Officer, we are investing in the future of Evine.”

Evine’s Sales Drop 6% in 1Q, To $156 Million

May 24, 2017

Evine saw its first-quarter net sales drop like a stone, down 6.3 percent, to $156 million versus the year-ago building, the network said Tuesday.

The company also posted a net loss of $3.2 million, and adjusted EBITDA of $3.1 million.

“As expected, it was a tough retail environment so I’m pleased that our teams were able to deliver on our revenue and EPS (earnings per share) guidance to our stakeholders,” Evine CEO Bob Rosenblatt said in a canned statement.

“This is the fourth quarter in a row we have improved our bottom line profitability. We are more passionate than ever that our discipline around the interactive video commerce fundamentals is positioning our company well for continued improvement in profitability throughout the year.”

And that’s not all:

Rosenblatt continued, “Our 2017 growth strategy remains focused on building proprietary and exclusive brands as well as using our national multi-platform distribution to showcase lesser known compelling brands that cannot replicate our kind of reach in today’s retail landscape. Our team finds the brands and helps tell their stories in a way only interactive video commerce can do.”

This is it:

“It is clear the traditional department-store retail strategy of offering everything to everyone has been disrupted by technology, which allows for narrow-casting of personal shopping capabilities to consumers,” Rosenblatt said. “We believe our growth strategy positions us to become the platform for the next generation of personalized e-commerce.”

Wearable categories, which include jewelry and watches; fashion and accessories; and beauty, decreased in sales by 5 percent year-over-year, which was primarily driven by the watches category.

The top-performing category in the quarter was fashion, which increased 8 percent year-over-year.

Consumer electronics, which continues to decline “as a result of management’s proactive reduction of lower margin merchandise in this category,” decreased by 45 percent year-over-year.

The return rate for the quarter was 18.8 percent, an improvement of 40 basis points year-over-year.

Gross profit as a percentage of sales decreased 80 basis points to 36 percent year-over-year, driven primarily by rate and mix pressures from the watches category.

Operating expense decreased $8.1 million year-over-year to $56.9 million, a 12 percent decrease, driven by reduced selling and distribution expenses, reduced management transition costs and other reductions from profit-improvement initiatives.

Things aren’t looking too much better for the second quarter.

“We expect revenues to decline 3 percent to 5 percent, which reflects management’s continued rebalancing of the Company’s merchandising mix to reduce low-margin consumer electronics that began back in Q2 of 2016,” Evine said.

Evine Honcho Made $2.7 Million In Comp Last Year

May 5, 2017

It’s proxy statement time at Evine, where CEO Bob Rosenblatt racked up $2.7 million in executive compensation last year, according to a filing with the Securities and Exchange Commission.

He earned a $640,000 base salary, had $1.4 million in stock awards and $421,000 in option awards, and $239,000 in other compensation, with half of that for commuting expenses.

EVP and CFO Timothy Peterman received $617,000 in comp last year, less than the $729,000 he got the prior year.

Nicole Ostoya, EVP and chief marketing officer, got a tidy $707,000.

The home shopping network’s former and failed CEO, Mark Bozek, had $793,000 in executive comp last year, versus $1.7 million in 2015.