Posts Tagged ‘CEO’

HSN CEO Mindy Grossman Made $5.6 Million Last Year

March 26, 2013

There’s nothing that delights a financial reporter more than seeing that a public company such as HSN has filed a proxy statement. That’s because these documents include executive compensation.

We usually read them and weep, regretting our decision to go into journalism instead of becoming a corporate bigwig like Mindy Grossman.

HSN CEO Mindy Grossman

HSN CEO Mindy Grossman

HSN’s CEO last year received total compensation of $5,628,679, actually a drop down from her 2011 comp of $6,179,244, according to a filing Monday with the Securities and Exchange Commission.

http://www.hsni.com/secfiling.cfm?filingid=1193125-13-123709

Grossman, 55, in 2012 received a base salary of $1.2 million, the same as the prior year. But her “non-equity incentive plan compensation” dropped to $1,140,000 from $1.8 million in 2011.

Grossman also received $288,667 in other compensation, which included $286,345 in relocation expenses.

Judy Schmeling, HSN’s chief financial officer, also took a small haircut on her pay.

Last year she received $1,601,332 in executive compensation, with a $650,000 base salary, up from $575,000 in 2011. Her non-equity incentive plan comp also declined, to $561,314 from $835,993.

Not too shabby, girlfriends.

HSN To Report Third Quarter Results Nov. 3

October 14, 2010

HSN will release its third quarter results Nov. 3 at 8 a.m., before the market opens, the home shopping network said Thursday.

CEO Mindy Grossman and Judy Schmeling, executive vice president and chief financial officer, will hold a conference call at 9 a.m. to review the results. Going forward, HSN will host its earnings conference call at 9 a.m. following the release of its quarterly results.

There will also be a simultaneous audio webcast available via the company’s website at http://www.hsni.com.

A replay of the conference call can be accessed Nov. 17 by dialing 800-642-1687 or 706-645-9291, plus the passcode 17713726 and will also be hosted on the company’s website for a limited time.

HSN CEO Mindy Grossman Saw Compensation Halved In 2009, To $4.1 Million From $8 Million

April 9, 2010

Mindy Grossman

HSN CEO Mindy Grossman saw her compensation cut in half in 2009, but don’t feel too sorry for her.

She made $4.1 million last year, which we could manage to live on, compared with $8 million the prior year, according to the home shopping network’s proxy statement.

Executive compensation is on page 35.

Last year go-getter Grossman’s base salary was the same as in 2008, a cool $1 million. And she got a tidy bonus in 2009, $1.9 million, almost four times her $500,000 bonus in 2008.

But Grossman didn’t get any stock awards last year, and she got 1.3 million in stock awards in 2008.

She also tallied 1 million stock appreciation rights and option awards last year, only a fifth of the 5 million she received in 2008.

Nike vet Grossman also received $96,500 in other compensation, including $86,000 for housing and $7,400 for a car.

Judy Schmeling

HSN chief financial officer and executive vice president Judy Schmeling did better than Grossman, in that her compensation in 2009 was about even with 2008. She got $1,049,993, just a hair less than her $1,101,111 in 2008.

Schmeling’s salary was $500,000 last year, versus $420,000 in 2008. Her 2009 bonus was almost triple her bonus in 2008, $444,500 versus $150,000. Then there was various stock rights.

Barbara Lynne Ronon, HSN’s executive vice president of merchandising, saw her compensation increase in 2009, to $996,149 from $783,551. Ronon’s base pay was $475,000 in 2009 and 2008.

But her bonus in 2009 was $410,400, a huge increase from $90,000 in 2008.

HSN To Participate At Telsey Advisory Group’s Consumer Conference

April 7, 2010

HSN will take part in the Telsey Advisory Group’s 2nd Annual Consumer Conference in New York City April 15, the home shopping network said Tuesday.

HSN CEO Mindy Grossman and chief financial officer Judy Schmeling will be meeting with investors throughout the day.

Next Time We’ll Take Our No Doz Before Listening To A ShopNBC Earnings Call

March 16, 2010

Keith, liven it up, hah?

We were good soldiers Tuesday and listened to a replay of ShopNBC’s fourth-quarter conference call to see if we’d hear any juicy tips about the company’s plans.

Well, we’re sorry to report that the call with analysts was about as bland as they come.

In fact, and we are not joking, we dropped the phone twice when we nodded off in the middle of the replay. ShopNBC CEO Keith Stewart and new president Bob Ayd were among those on the call.

ShopNBC Sees 7.4 Percent Revenue Gain In Fourth Quarter, But Sales For Fiscal 2009 Were Off 7 Percent

March 16, 2010

ShopNBC, trying to mount a turnaround, saw its net revenue increase 7.4 percent in the fiscal fourth quarter, while it reduced its losses to $8.8 million from $43.8 milllion in the prior year, the company reported Tuesday.

“The fourth quarter proved to be another positive step toward achieving sustained growth and profitability,” ShopNBC CEO Keith Stewart said in a canned statement.

“We surpassed the 1 million customer mark,” he said. “Leading indicators across all fronts continued to trend in the right direction with our Internet business achieving industry-leading e-commerce sales penetration of 39 percent. As our merchandising strategies continue to take form and be well-received by the customer, we remain excited about the broadening appeal of our business.”

For the fourth quarter ended Jan. 30, the home shopping network’s revenue was $155.3 million, a 7.4 gain from the same period last year. The company’s e-commerce sales penetration was 39 percent of total sales in the quarter, up 690 basis points versus last year.

EBITDA, as adjusted, was a loss of $1.3 million compared to an EBITDA, as adjusted, loss of $15.1 million in the year-ago period. The net loss for the fourth quarter was $8.8 million compared to a net loss of $43.8 million for the same quarter last year.

Net sales for fiscal 2009 were $528 million, a decrease of 7 percent versus the previous year. The company’s e-commerce sales penetration for the full year was 33.7 percent, up 170 basis points versus last year.

Full year EBITDA loss, as adjusted, was $19.4 million, compared to an EBITDA, as adjusted, loss of $51.4 million last year. For the fiscal year, the company is reporting a net loss of $42.0 million compared to a net loss of $97.8 million in the prior year.

Customer trends continued to improve with new and active customers up 38 percent and 32 percent, respectively, in the fourth quarter vs. the same period last year. For the full year, new and active customers were up 63 percent and 36 percent respectively.

Return rates for the quarter were 19 percent versus 26 percent the year-ago quarter, reflecting improvements in delivery time, customer service, product quality, and lower price points. For the full year, return rates were 21 percent versus 31 percent in the previous year.

For the quarter, the gross profit margin was 32.4 percent, 350 basis points higher compared to last year, driven by merchandise rate improvements in several key categories and favorable mix change.

For the full year, the gross profit margin was 32.9 percent, up 70 basis points from the year-ago period.

The fourth quarter net-average selling price was strategically lowered to $96 versus $139 in the year-ago period. For the full year, the net average selling price was lowered to $108 versus $176 in the previous year.

In the quarter, net shipped units increased by 54 percent as lower price points and new merchandise drove increased customer activity. Net shipped units for the full year were up 47% versus prior year.

Fourth-quarter operating expenses decreased $17.4 million year-over-year or 23 percent. For the full year, operating expenses decreased $56.3 million year-over-year or 21 percent versus the prior-year period.

“I am encouraged by the continued progress made throughout the year to improve ShopNBC’s performance. While we are not
providing guidance for 2010, we have clearly defined initiatives in place to further drive sustained sales growth, increased margins, and predictable performance. With a lean cost-structure, I remain confident in our 2010 plans and execution capabilities to deliver on the expectations of the shareholders.”

HSN Names Rob Solomon Executive Vice President Of Operations

March 12, 2010

HSN has promoted Rob Solomon to the post of executive vice president of operations. He will also be a member of HSN’s executive committee, reporting directly to HSN CEO Mindy Grossman.

In his new position, Solomon will be responsible for overseeing sales and services, fulfillment, IT, supply chain operations and quality control.

Solomon joined HSN as senior vice president of customer care in 2004. Under his direction, HSN established new standards in the industry for a flexible workforce through its innovative Work-at-Home program, which eliminated HSN’s need for offshore call centers and greatly improved the overall customer experience.

“Rob has been instrumental in raising customer service levels at our customer sales and service centers. Under his leadership, last year HSN ranked No. 7 out of the Top 10 retailers – the highest ranking ever for the company – in customer service, according to the 2009 Annual NRF Foundation/American Express Customer’s Choice Survey,” Grossman said in a canned statement. “Providing exemplary customer service remains a top priority for HSN, and we look forward to further enhancing our world class consumer experience.”

Prior to joining HSN, Solomon worked at Ticketmaster, serving as executive vice president of contact centers and retail locations. He was responsible for the integration of call center operations for TicketMaster’s diverse businesses. Before being appointed executive vice president in 2000, Solomon was the company’s vice president of call center operations, where he was responsible for 13 U.S. call centers with over 3,000 teleservice representation.

Solomon also held senior positions with Electronic Processing Source and Continental Guest Services in New York.

He graduated with a Bachelor of Science Management degree from Pepperdine University.

HSN CEO Mindy Grossman Pooh-Poohs Talk Of Merger With QVC, Says The Home Shopping Nets Aren’t Two Peas In A Pod

March 3, 2010

HSN CEO Mindy Grossman Wednesday downplayed the possibility that her home shopping network and rival QVC will be merged, saying they are each unique businesses without much synergy. MMMMM, not sure we buy that.

During a fourth-quarter conference call, Grossman was asked about the possible plans that Liberty Media, QVC’s parent, might have for HSN. The Liberty Media unit Liberty Interactive owns a 33 percent stake in HSN. There’s a standstill on that stake that expires in a few months, one analyst said. You tell us what a standstill is.

Anyway, Grossman didn’t duck the question, although we find it hard to argue that merging two shopping channels wouldn’t create some kind of benefits and synergy — not that we would want to see it.

Liberty has two directors on HSN’s board, according to Grossman.

“Other than that, we don’t have a relationship per se with Liberty, so we can’t tell you what they’re thinking or not thinking prior to the standstill,” she said on the conference call. “It really is up to them and our board if they were to choose to even accept such an offer. So I can’t really speak for what they may or may not do.”

Grossman poured water on the notion that HSN and QVC are so similar that there would be many benefits to combining their operations into one monster home shopping network.

“In terms of the synergies, I think that we’ve said before that we are two very distinct businesses,” Grossman said. “You’re going to have to continue to run them as very distinct platforms. And so there’s not as much synergies as I think that some people believe that there might be. So it really comes down to our performance overall, and both companies.”

HSN Posts Record Fourth Quarter, With 12 Percent Spike In Net Sales

March 3, 2010

HSN CEO Mindy Grossman

Boosted by growth in the electronics, fitness and fashion categories, HSN’s net sales increased 12 percent to a record $611.8 million in the fourth quarter, the home shopping network reported Wednesday.

For 2009, HSN’s net sales were up 3 percent, to $2 billion from $1.96 billion in the prior year.

HSNi’s net sales, which include the HSN network and Cornerstone, in the fourth quarter increased 8 percent to $838.7 million from $778.5 million in the prior year. HSN’s net sales increased 12 percent to $611.8 million, the highest quarterly sales volume in its 32-year history. Cornerstone’s net sales decreased 2 percent to $226.9 million, an improvement compared to the year-to-date decline in net sales of 19 percent through the end of the third quarter.

HSNi’s adjusted EBITDA increased 78 percent $88 million from $49.3 million in the prior year as a result of the 8 percent increase in net sales, an improvement in gross profit margin of 180 basis points and a reduction in operating expenses, excluding non-cash charges, of $3.1 million.

HSNi’s adjusted earnings per share were 74 cents compared to 36 cents in the prior year, an increase of 105 percent. GAAP diluted EPS was 68 cents per share compared to a loss of $38.29 per share last year. The prior-year results included non-cash asset impairment charges of $2.9 billion to reduce the carrying value of goodwill and intangible assets. The asset impairment charges on an after-tax basis were $2.2 billion.

“We are thrilled to report that EPS more than doubled on the strength of record-breaking sales at HSN and a significant improvement in operating performance at Cornerstone,” HSN Inc. CEO Mindy Grossman said in a press release.

“HSN generated a 12 percent increase in sales to $612 million, the highest quarterly sales volume in our 32-year history, and reported sales growth in every division,” Grossman said. “In addition, our continued focus on driving a multi-channel experience resulted in sales growth on HSN.com of more than 22 percent, with e-commerce sales penetration now reaching a high of 32 percent.”

HSN.com net sales grew 22 percent over the prior year and now represent 32.3 percent of HSN’s total net sales, up from 29.6 percent in the prior year.

All product divisions had strong sales performance in the quarter, led by significant increases in electronics, fitness and fashion. Shipped units increased 9 percent and the average price point increased 5 percent due to product mix and less promotional activity.

For HSN and Cornerstone gross profit increased $31.9 million, or 18 percent, to $205.4 million and gross profit margin improved 180 basis points to 33.6 percent compared to 31.8 percent in the prior year. The significant improvement in gross profit was due to less promotional activity and lower procurement costs.

Gross profit margin also benefited from a reduction in inventory reserves due to lower aged inventory levels. Inventories decreased 11 percent, or $24.9 million, compared to the same period last year.

For HSN alone adjusted EBITDA increased 39 percent to $75.5 million as a result of the significant increase in gross profit, partially offset by an increase in operating expenses. The increase in operating expenses was primarily attributable to the effect of a favorable accrual adjustment of approximately $5 million recorded in the prior year for distribution cost liabilities and compensation expense related to performance driven incentives.

For HSN alone operating income was $65.2 million compared to an operating loss of $2.4 billion in the prior year. Operating loss in the prior year included non-cash impairment charges of $2.4 billion related to the write-down of goodwill and intangible assets.

“On a consolidated basis, HSNi delivered an impressive performance: a sales increase of 8 percent, an improvement in gross profit margin of 180 basis points, a reduction in operating expenses and a significant increase in EBITDA of 78 percent,” Grossman said. “These results clearly demonstrate our continued ability to leverage the unique aspects of our business model to drive long-term value for our shareholders.”

ShopNBC CFO Elsenbast Resigns To Join New Company, McGrath Named Interim CFO

February 23, 2010

ShopNBC senior vice president and chief financial officer Frank Elsenbast resigned Monday, and is leaving the network to accept a chief financial officer position at another public company, officials said Tuesday.

The executive search firm Spencer Stuart will begin looking immediately for a replacement for Elsenbast, who will remain with
ShopNBC for an interim period to ensure an orderly transition in responsibilities. ShopNBC’s press release didn’t disclose where Elsenbast was going.

ShopNBC's interim CFO Bill McGrath

ShopNBC has appointed Bill McGrath, 52, ShopNBC’s vice president of quality assurance and former vice president of finance and global sourcing of QVC, as interim CFO. McGrath will assume financial management functions until a new chief financial officer is named.

“I have enjoyed my time at ShopNBC,” Elsenbast said in a canned statement. “I have been fortunate to work with a wonderful group of people, and I wish everyone all the best for continued success.”

McGrath joined ShopNBC Jan. 7. Most recently, McGrath served as vice president of global sourcing operations and finance at QVC. During his tenure at QVC, he also served as vice president corporate quality assurance and quality control, vice president merchandise operations and inventory control, vice president of market research and sales analysis, and director financial planning and analysis.

Prior to QVC, McGrath served at Subaru of America as assistant corporate controller and Arthur Andersen as senior auditor. He earned an MBA in Finance from Drexel University and a BS in Accounting from St. Joseph’s University. McGrath is also certified as a CPA and CMA.

According to an 8-K filed Tuesday by ShopNBC, McGrath old compensation terms of will remain in effect while he is serving as interim chief financial officer. He received a signing bonus of $20,000, and his current annualized base salary is $175,000. He also received stock options to purchase 45,000 shares of common stock at an exercise price of $4.97, equal to the closing fair market value per share as of the date of grant. The options vest in equal installments over three years and are exercisable for a period of 10 years from the date of grant.

“Frank has been a valued partner as CFO during his tenure and played an important role since joining the company in 2000,” ShopNBC CEO Keith Stewart said in a prepared statement. “I’d like to thank him for his dedicated service and many contributions to ShopNBC. We wish him well in his future endeavors.”