Posts Tagged ‘ValueVision Media’

Call Us Crazy, But If ShopNBC’s Sales Jumped 15 Percent, How Come Losses More Than Doubled?

May 12, 2011

ValueVision Media, aka ShopNBC, posted a whopping 15 percent increases in its first-quarter net sales, to $143.5 million from $125 million, the home shopping network reported Wednesday.

That’s the good news. The bad news was that unless our eyes are deceiving us, ShopNBC’s net loss in the quarter was $28.9 million, more than double the loss in the year-ago period. But the operating loss was only $630,000, versus $9.1 million a year ago.

ShopNBC also reported that: Adjusted EBITDA increased by $7.4 million to $3.1 million; gross margin rose to 37.2 percent versus 36.6 percent in the year-ago quarter; and Internet-sales penetration increased to 44.9 percent.

“ValueVision started fiscal 2011 with another quarter of solid progress across our multichannel business, led by strong sales and margin growth and our third consecutive quarter of positive adjusted EBITDA,” ShopNBC CEO Keith Stewart said in a canned statement. “In addition to strong merchandising and operational execution, we also strengthened our capital structure and enhanced our financial flexibility through the early redemption of our 12 percent preferred stock with proceeds from the sale of 9.5 million common shares.”

Apparently not knowing when to stop when he’s ahead, Stewart added, “We also continued to build our talent pool across key areas of the company, adding four proven interactive retail veterans to our team. Annette Repasch, a multichannel retailing executive of 25 years, joined us to oversee merchandising strategy and product development for Jewelry & Watches, Health & Beauty, and Fashion & Accessories. We also added three industry veteran
strategic advisors to focus on major IT, process engineering, merchandising and customer service initiatives. The ShopNBC team is key to our future, and we are executing on an exciting road map to drive improved performance.

“Plans for the remainder of this year are centered around an impressive line-up of new product, top brands, and compelling
promotions to drive new and active customer growth. We will also be focused on further increasing our Internet sales penetration toward 50 percent as well as refinancing our long-term debt with lower interest rates.”

The first-quarter net sales reflected strong performances across the Jewelry & Watches and Home & Electronics categories, in addition to solid momentum in the Health & Beauty segment. Fashion &

Accessories is still early in its repositioning, though it achieved some well-received first-quarter brand launches, according to ShopNBC.

Strong customer response to higher-priced items, including big-screen TVs, mattresses and certain jewelry offerings contributed to a slight uptick in average selling price in the quarter, as well as a more modest increase in units shipped and an expected increase in return rates.

ShopNBC president Bob Ayd chimed in.

“Q1 saw a continuation of the trends that drove strong Q4 results and provide our business with a more balanced and resilient platform,” he said. “In addition, we had more merchandise variety across key product categories and saw benefits from several national brand introductions, including Simmons mattresses, Sur La Table kitchenware, and Anne Klein fashion accessories. This ever-expanding array of quality products and unique offers helped drive customer activity and sales gains in Q1.”

Yada, yada…

“Looking ahead in 2011, we can’t help but be optimistic. We have a more established and robust business, strong senior leadership, a growing base of popular products and brands, a healthy balance sheet, and a growing track record of success. All of these factors are proving beneficial in our efforts to both delight our customers as well as to attract exciting new vendors and product exclusives.”

ShopNBC To Report First-Quarter Earnings May 11

April 21, 2011

ValueVision Media, dba ShopNBC, will release its first-quarter financial results before the market opens May 11, the company said Thursday.

The home shopping network will host a conference call and simultaneous webcast at 11 a.m.

Participating in the call will be CEO Keith Stewart, President Bob Ayd and Chief Financial Officer Bill McGrath.

Both the call and webcast are open to the general public.

Will It Accept ValuePays? ShopNBC To Garner $48.3 Million From Stock Offering

March 30, 2011

ValueVision Media, better known as ShopNBC, has priced its stock offering and will be netting $48.3 million from the sale, according to documents filed Wednesday with federal regulators.

ShopNBC is offering 8.3 million shares of its common stock at $6.25 a share to the public.

In connection with the offering, ShopNBC has also granted to the underwriters a 30-day option to purchase up to 1.2 million additional shares of common stock from the home shopping network to cover any over-allotments.

Net proceeds from the offering are expected to be used to redeem the outstanding Series B preferred stock held by GE Capital Equity Investments, to the extent there are net proceeds remaining, for working capital and general corporate purposes, which may include capital expenditures.

The offering is expected to settle and close April 4, subject to customary closing conditions.

Piper Jaffray & Co. is acting as sole book-running manager, and Dougherty & Co. and Feltl and Company are acting as co-managers in the offering.

ShopNBC, Sans Host Jim Skelton, Floats Stock Offering

March 30, 2011

ValueVision Media, better known as ShoopNBC, said Tuesday that it intends to offer shares of its common stock in an underwritten public offering pursuant to an effective shelf registration statement.

Net proceeds from the offering are expected to be used to redeem the outstanding Series B Preferred Stock held by GE Capital Equity Investments, and, to the extent there are net proceeds remaining, for working capital and general corporate purposes, which may include capital expenditures.

Piper Jaffray & Co. is acting as sole book-running manager, and Dougherty & Co. and Feltl and Co. are acting as co-managers in the offering.

The offering is being conducted pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission.

Happy St. Patrick’s Day: ShopNBC Sees 15.2 Percent Jump In Fourth Quarter

March 17, 2011

ShopNBC saw its net sales rise 15.2 percent in the fourth quarter, to $178.8 million, the home shopping network reported Thursday, with net sales for 2010 up 6.5 percent, to $562.3 million.

In the fourth quarter adjusted EBITDA for ShopNBC (i.e. ValueVision Media) increased to $8 million versus a loss of $1.3 million in the year-ago quarter. Adjusted EBITDA for the full year improved to a positive $2.4 million versus a loss of $19.4 million.

In the fourth quarter ShopNBC’s net shipped units increased 4.3 percent, while new customers rose 10.9 percent. Active customers saw a 12 percent increase on a 12-month rolling basis.

ShopNBC honcho Keith Stewart

Here’s the corporate line:

“Continued merchandising improvements and operating discipline yielded another quarter of double digit sales gains and gross margin improvement, with an over $9 million improvement in Adjusted EBITDA in Q4 2010 versus last year,” said Keith Stewart, CEO of ValueVision Media.

“Our full-year performance highlights progress in each of our key operating metrics, including new and active customers, Internet sales penetration, gross margin, net units shipped and a strategic reduction in average price point. These improvements yielded a 6.5 percent gain in net sales and improved Adjusted EBITDA by $21.8 million to a positive $2.4 million and highlight growing consumer acceptance of the value and convenience of our interactive shopping offerings.”

Continued Stewart, “Having markedly improved the business over the past two years under a new management team and committed employee base, we are now turning our full attention to driving top-line growth through a more diversified base of merchandise categories and broader product selection. While we believe in the growth potential of the business, we do expect some quarterly variability in our operating performance as we diversify our merchandise mix and test and launch new products, as well as from seasonal factors.”

ShopNBC president Bob Ayd also piped up.

“Areas of opportunity for 2011 include our Jewelry & Watches and Health & Beauty businesses where new product assortments have been achieving strong customer response while generating attractive margins. Home & Electronics should play an important role in revenue and new customer growth as we expand merchandise offerings in both hard and soft home categories. Fashion & Accessories remains a small but attractive business that we expect will scale over time. Importantly, our growth objectives are now being supported by a stronger working capital position that resulted from the equity and debt financings completed in Q4. This incremental capital gives us greater flexibility in our merchandising strategies as well as in managing inventory and customer payment terms to maximize revenue and profitability.”

ShopNBC To Report Fourth-Quarter Earnings On St. Patricks Day, Our Parents’ 60th Anniversary

March 2, 2011

Bob Ayd

Isn’t this special, for those of us of Irish descent?

ShopNBC will announce its fourth-quarter results March 17 — St. Patty’s Day, which just happens to be our mom and dad’s 60th wedding anniversay — at 11:00 a.m.

ShopNBC, also known as ValueVision Media, will release its fiscal 2010 fourth quarter and full year results before the market
opens, and will host a conference call and simultaneous webcast at 11 a.m. ET.

CEO Keith Stewart, president Bob Ayd and CFO Bill McGrath will participate in the call. We hope covering this call doesn’t put a damper on our celebrating (St. Paddy’s and Ida and Jim’s anniversary).

Both the call and webcast are open to the general public.

WEBCAST/WEB REPLAY: https://e-meetings.verizonbusiness.com. Conference number 1548956 (passcode: SHOPNBC; archived for 30 days)

TELEPHONE: 800-988-9672 (passcode: SHOPNBC; keypad: 7467622)

ShopNBC Seems Apprehensive About Comcast, Its New Big Stockholder

February 23, 2011

ShopNBC, looking to float a $75 million stock offering, sure sounds wary about its newest large shareholder Comcast.

In a filing with the Securities and Exchange Commission Wednesday, ValueVision Media i.e. ShopNBC said that Comcast could block some of its future plans and could opt not to renew a license deal that lets the home shopping network use “NBC” in its name.

Comcast inherited a 17 percent stake in ShopNBC when it acquired NBC Universal.

We have to run to our day job, but here are some of the comments in the S-3 filing:

NBCU, of which a controlling interest is now owned by Comcast, and GE Equity have the ability to exert significant influence over us and have the right to disapprove of certain actions by us.

As a result of their equity ownership in our company, NBCU, of which a controlling interest is now owned by Comcast, and GE Equity together are currently our largest shareholder and have the ability to exert significant influence over actions requiring shareholder approval, including the election of directors, adoption of equity-based compensation plans and approval of mergers or other significant corporate events.

Through the provisions in the shareholder agreement and certificate of designation for the preferred stock, NBCU and GE Equity also have the right to block us from taking certain actions. On June 9, 2010 we registered for sale all of the outstanding shares of common stock owned by NBCU, however, on June 24, 2010, NBCU decided not to sell the shares registered in that registration statement due to prevailing prices.

This registration statement has not been withdrawn and NBCU may decide to sell its shares pursuant to that registration statement in the future. The interests of NBCU and GE Equity may differ from the interests of our other shareholders, and they may block us from taking actions that might otherwise be in the interests of our other shareholders.

Our directors, executive officers and principal shareholders will continue to have substantial control over us and could delay or prevent a change in corporate control.

Our directors, executive officers and holders of more than 5 percent of our common stock, together with their affiliates, beneficially own, in the aggregate, over 38 percent of our outstanding common stock. As a result, these shareholders, acting together, would have the ability to control the outcome of matters submitted to our shareholders for approval, including the election of directors and any merger, consolidation or sale of all or substantially all of our assets.

In addition, these shareholders, acting together, would have the ability to control the management and affairs of our company. Accordingly, this concentration of ownership might harm the market price of our common stock by:

• delaying, deferring or preventing a change in corporate control;

• impeding a merger, consolidation, takeover or other business combination involving us; or

• discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us.

As to the NBC name, the SEC filing says:

Expiration of the NBCU branding license would require us to pursue a new branding strategy that may not be successful.

We have branded our television home shopping network and internet site as ShopNBC and ShopNBC.com, respectively, under an exclusive, worldwide licensing agreement with NBCU for the use of NBC trademarks, service marks and domain names that continues until May 2012 or May 2013 if a one-year extension is agreed to by both NBCU and us.

We do not have the right to automatic renewal at the end of the license term, and consequently may choose or be required to pursue a new branding strategy in the next 10 months which may not be as successful as the NBC brand with current or potential customers. NBCU also has the right to terminate the license prior to the end of the license term in certain circumstances, including without limitation in the event of a breach by us of the terms of the license agreement or upon certain changes of control.

ValueVision Media, Namely ShopNBC, To Present at Sidoti Micro-Cap Conference

December 27, 2010

ValueVision Media, which we know as ShopNBC, will do a presentation at the Sidoti & Co. Micro-Cap Conference Jan. 10, the company said Monday.

CEO Keith Stewart and chief financial officer Bill McGrath will do the dog-and-pony show at the Grand Hyatt Hotel in New York City.

ShopNBC’s presentation will be at 2:50 p.m. ET. Management will also be available earlier in the day for one-on-one meetings (anyone want to meet Keith and Bill?).

A copy of the home shopping networks’ presentation slides will be available on the Investor Relation section of its website at http://www.ShopNBC.com/IR.

Financially Ailing ShopNBC Looking To Raise Up To $75 Million In Stock Offering

July 26, 2010

Financially strapped ShopNBC is looking to potentially raise $75 million through a stock sale.

ValueVision Media, parent of the No. 3 home shopping network, filed a so-called “shelf registration,” or S-3 form, Monday with the Securities and Exchange Commission for the stock offering. ShopNBC declined to comment.

But in its filing the company said that if it doesn’t stem its losses, “We could reduce our operating cash resources to the point where we will not have sufficient liquidity to meet the ongoing cash commitments and obligations to continue operating.”

Through a shelf registration, a company can fulfill certain SEC-mandated registration-related procedures before offering shares to the public, which permits the company to go to market more quickly when they are ready to do the public offering. The company essentially puts stock shares “on a shelf” in case it needs to raise capital for any reason.
We have a history of losses and a high fixed cost operating base and may not be able to achieve or maintain profitable operations in the future.

In its filing, ShopNBC said it had operating losses of about $41.2 million, $88.5 million and $23.1 million in the years ended January 30, 2010 (“fiscal 2009”), January 31, 2009 (“fiscal 2008”) and February 2, 2008 (“fiscal 2007”), respectively.

It also reported a net loss of $42 in fiscal 2009 and a net loss in fiscal 2008 of $97.8 million.

“While we reported net income of $22.5 million in fiscal 2007, this was due to the $40.2 million pre-tax gain we recorded on the sale of our equity interest in Ralph Lauren Media, LLC, operator of the polo.com website,” the S-3 filing said. “There is no assurance that we will be able to achieve or maintain profitable operations in future fiscal years.”

ShopNBC said it has high fixed costs, primarily driven by fixed fees on the merchandise it sells to cable and satellite operators in exchange for distribution.

“In order to operate on a profitable basis, we must reach and maintain sufficient annual sales revenues to cover our high fixed cost base and/or negotiate a reduction in this cost structure,” the filing said. “If our sales levels are not sufficient to cover our operating expenses, our ability to reduce operating expenses in the near term will be limited by the fixed cost base. In that case, our earnings, cash balance and growth prospects could be materially and adversely affected.”

ShopNBC reported that it has limited unrestricted cash to fund its operations, $20.9 million as of May 1, 2010 (with an additional $4.9 million of cash that is restricted and used to secure letters of credit and similar arrangements).

“We expect to use our cash to fund any further operating losses, to finance our working capital requirements and to make necessary capital expenditures in order to operate our business,” the filing said. “We also have significant future commitments for our cash, primarily payments for our cable and satellite program distribution obligations and redemption of our Series B Preferred Stock. If our vendors or service providers were to demand a shift from our current payment terms to upfront prepayments or require cash reserves, this will have a significant adverse impact.”

It appears that ShopNBC’s shareholder GE Capital Equity will have to approve the offering, according to an 8-K that the network filed with the SEC in June.

“On June 10, 2010, our board of directors authorized the filing of a shelf registration statement on Form S-3 with the Securities and Exchange Commission covering the sale by our company of up to $75,000,000 of securities, including common stock, preferred stock, warrants, units and stock purchase contracts,” the company said in that filing. “Our shareholders agreement with GE Capital Equity Investments, Inc. (“GE Equity”) and NBC Universal, Inc. require the consent of GE Equity in order for our company to issue new equity securities and to incur indebtedness above certain thresholds, and there can be no assurance that we would receive such consent if we made a request.”

ShopNBC’s largest shareholder, NBC Universal, back on June 24 decided not to sell its 6,452,194 shares in the home shopping network “due to prevailing prices.”

NBC Universal Shelves Plan To Sell Stake In ShopNBC

June 24, 2010

NBC Universal, citing the low price of the stock, has dropped its plan to sell its 20 percent stake in ShopNBC, the home shopping network said Thursday.

In May NBCU, one of ShopNBC’s largest shareholders, said it planned to sell its 20 percent stake in the the network.

In a press release Thursday, ShopNBC said that NBCU “has decided not to pursue its offering of 6,452,194 common shares in the company at this time due to prevailing prices.”

The stock of ValueVision Media, ShopNBC’s parent, was trading at about $1.95 Thursday morning, with the company’s 52-week high being $5.27.

NBCU is one of the company’s largest shareholders.