Posts Tagged ‘William McGrath’

Evine Live Discloses Severance Packages For Terminated Executives

May 28, 2015

Evine Live revealed the details of its severance agreements with several key executives who were terminated in a filing with federal regulators Wednesday.

Here is what the No. 3 home shopping network said in its 10-Q:

On March 26, 2015, the Company announced the termination and departure of three executive officers, namely its Chief Financial Officer, its Senior Vice President and General Counsel and President. In addition, during the first quarter of fiscal 2015, the Company also announced the hiring of a new Chief Financial Officer and a new Chief Merchandising Officer.

In conjunction with these executive changes as well as other management terminations made during the first quarter of fiscal 2015, the Company recorded charges to income for the three months ended May 2, 2015, of $2,590,000, which relates primarily to severance payments to be made as a result of the executive officer terminations and other direct costs associated with the Company’s 2015 executive and management transition.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=10300629&DSEQ=&SEQ=&SQDESC=

That’s a lot of greenbacks. But let’s break it down.

According to the filing, George Ayd, who we believe is known as Bob Ayd, was terminated as president effective on March 26. His package was a lump sum payment of $746,267, with an additional severance consideration of $256,968.

There is also a 12-month non-compete clause in his exit deal.

As for ex-CFO William McGrath, his severance was $576,800, with an additional $175,936 on top of that. He also gets reimbursed for rent expenses in Minnesota for two months, in a total amount not to exceed $3,010.

Past and Present Evine Live CEOs Received $2 Million-Plus Last Year

May 9, 2015

There were some really sweet comp packages handed out last year at Evine Live, to the new managers that took over and the old team that was ousted, according to company filings with federal regulators.

Former CEO Keith Stewart, whose regime was overthrown by dissident shareholders, received executive compensation of $2.8 million last year. Stewart walked away with severance of $2.5 million paid in fiscal 2014.

He was terminated effective June 21, according to the proxy statement that Evine Live filed with the Securities and Exchange Commission.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=10262692&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=&subsid=41

Stewart’s comp was more than the man who led the revolt against him, Mark Bozek. He got a cool $2 million last year, which included a signing bonus of $125,000 and annual incentive compensation of $382,000 earned under his employment contract.

Bozek also collected $115,000 in relocation expenses.

William McGrath was executive vice president and CFO until he was canned in March. He saw his comp drop to $462,000 from $992,000 in 2013.

Two other executives who were terminated last year walked off with more than $1 million each in executive comp. Former Chief Operating Officer Carol Steinberg got $1.4 million, up from $1.3 million in 2013. And ex-Chief Merchandising Officer Annette Repasch received $1.1 million, versus $921,000 in 2013.

Management Bloodbath Hits Evine Live

March 28, 2015

Evine Live had a bloody week. Formerly known as ShopHQ, the home shopping network has done some spring cleaning, sweeping out many members of the former management team — including the president.

http://finance.yahoo.com/news/evine-live-inc-announces-executive-205500666.html;_ylt=A0LEV790zhZVLxsAiJ4nnIlQ

First, the network appointed Tim Peterman its executive vice president and chief financial officer, replacing Bill McGrath.

Peterman’s resume includes stints at Synacor, E.W. Scripps Co., IAC and Tribune Co. He will report to Mark Bozek, CEO of Evine Live Inc.

Bob Ayd gone

Bob Ayd

“Tim’s extensive experience in finance, retail and media makes him the ideal executive to drive Evine Live’s performance going forward,” Evine Live Chairman Bob Rosenblatt said in a canned statement. “We are confident that his proven ability to execute will be a tremendous asset as we continue to drive efficiencies and gain momentum with our strategy.”

But here is the blockbuster buried in the press release: “The company continues to transition its approach in all areas of the business, Evine Live is consolidating leadership and announced it is eliminating President Bob Ayd’s position.”

Wow!

Another casualty was Teresa Dery, senior vice president and general counsel. Her interim replacement is Chief Strategy Officer Russell Nuce.

And here is Bozek’s “don’t-let-the-door-slap-you-in-the-ass” quote:

“We appreciate the contributions Bob, Bill and Teresa have made to the company and wish them all the best in their future endeavors,” he said. “We believe that our new leadership structure will allow us to be more nimble in all areas of the business and further cement a strong foundation for long term growth and profitability.”

Evine Live Sees 4 Percent Sales Gain In Fourth Quarter

March 19, 2015

Newly christened Evine Live, formerly ShopHQ, posted a 4 percent increase in sales in the fourth quarter, up to $201 million.

The company Wednesday reported adjusted net income of $3.7 million, a rise over $3.4 million in the year-ago period.

Mark Bozek

Mark Bozek

For fiscal 2014, the home shopping channel racked up sales of $675 million, up 5 percent over fiscal 2013.

http://shophq.mwnewsroom.com/CMSPages/GetFile.aspx?nodeguid=f3ec1979-067f-4618-ac64-a01860e8b8c4&lang=en-US

“Our fourth quarter results were solid,and we are pleased with the progress we have made in strengthening the organization and repositioning to a digital commerce company,” CEO Mark Bozek said in a canned statement.

“Most importantly, at this early stage we have created a high level of enthusiasm and competitiveness that has not existed at this company in a long time,” he said. “We have begun a range of brand partnerships and digital commerce initiatives that we believe will help drive long-term sustainable growth in sales and profitability. We look forward to hosting an investor day at our headquarters on May 28th, where we will share more on our progress.”

William McGrath, EVP & CFO of EVINE Live, also chimed in.

“Our adjusted EBITDA margin of 3.4 percent for fiscal 2014, reflected a 60 basis point annual improvement. We are committed to continuing to improve our profitability levels and to enhance our liquidity. At the end of the quarter, we had $21.9 million in cash, including restricted cash. On March 6th, we increased our revolving credit facility with PNC by an additional $15 million. This expansion provides the company with greater flexibility and liquidity to support future growth.”

ShopHQ Records 5 Percent Sales Hike, To $156.6 Million

August 21, 2014

ShopHQ, recently under new management, posted second-quarter net sales of $156.6 million, up 5 percent compared with the year-ago period, the No. 3 home shopping network said Wednesday. The Minnesota-based channel has new offices in Manhattan now, by the way.

http://shophq.mwnewsroom.com/press-releases/valuevision-reports-second-quarter-2014-results-nasdaq-vvtv-1138859

ShopHQ’s growth in the second quarter was greater than QVC’s, but less than HSN’s. Industry leader QVS saw a 3 percent jump in revenue, to $1.4 billion. HSN’s net sales rose 6 percent, to $556.5 million.

ShopHQ CEO Mark Bozek

ShopHQ CEO Mark Bozek

ShopHQ’s quarter was boosted by strong performances in the fashion and accessories, beauty, and health and fitness categories.

The CEO who replaced Keith Stewart, HSN vet Mark Bozek, had this to say.

“The company delivered solid second-quarter results with strong growth in total customer counts and increased order volume on mobile devices,” Bozek said in a canned statement.

“I am excited to be leading the company into a new phase of growth while working alongside our newly formed board and a dedicated and re-energized employee base.”

At ShopHQ gross profit dollars increased 9 percent to $60.4 million, as gross profit as a percent of sales for the quarter improved to 38.6 percent, compared to 37.5 percent a year ago.

Adjusted EBITDA increased to $5.5 million in the second quarter versus $3.8 million last year, driven by the company’s sales and gross profit improvements.

Adjusted net income was $800,000, or one cent a share, compared to an adjusted net loss of $800,000 in the second quarter last year.

“Our commerce platforms, led by our reach into 87 million TV homes in the U.S., are unique assets that provide us with tremendous potential,” Bozek said. “Driving growth will largely be centered around attracting and building a diverse portfolio of proprietary brands and products with the goal of growing our customer base.”

“We will be focused on supporting the growth of these proprietary brands with immersive, personality-driven programming that is designed to drive greater engagement and social commerce on all our platforms,” ShopHQ’s new honcho said.

“Our process is all about an evolution of the business — not a revolution,” Bozek said. “Our recently established office in New York City should aid us in all these efforts. I plan to elaborate more on our new vision for the company in the coming months, as we begin to execute on our strategy of a more fully leveraged multichannel commerce platform.”

Chief Financial Officer and Executive Vice President William McGrath, who seemed to have escaped the ax under the new regime, had this to say.

“We ended the quarter with $23 million in cash and restricted cash compared to $27 million at the end of Q1’14,” McGrath said. “Net use of cash includes $5 million in working capital and $3 million in capital expenditures, partially offset by Adjusted EBITDA of $6 million in the quarter.”

ShopHQ Sees 6 Percent Sales Gain In First Quarter

May 21, 2014

This may not be good news for ShopHQ’s dissident shareholders: The No. 3 home shopping network had a pretty good first quarter.

ShopHQ’s net sales in the first quarter rose 6 percent to $160 million, boosted by strong customer demand in fashion, accessories and beauty, health & fitness.

That compares to the 1 percent increase that QVC saw, to $1.3 billion, and the 1 percent dip that HSN experienced, to $544.5 million.

You can see ShopHQ’s slide show for Wall Street analysts on this link:

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9612961&DSEQ=&SEQ=&SQDESC=

Gross profit dollars increased 5 percent to $60 million in the quarter, while gross profit as a percent of sales remained strong at 37.6 percent, compared to 37.7 percent in the year-ago period.

ShopHQ’s adjusted EBITDA was $6 million, flat compared to a year ago, as the company’s sales and gross profit improvements were offset by investments in channel positioning within TV distribution costs.

In addition, net shipped unit volume increased 28 percent over the same quarter last year, resulting in higher variable costs to support this growth.

ShopHQ’s first-quarter adjusted net income was $2 million, or three cents a share. That compares to the year-ago period’s adjusted net income of $1 million, or two cents a share.

In its press release, the network said that its strategic focus on building its ShopHQ customer base yielded solid gains, as total customers purchasing over the last 12 months rose 22 percent to a record 1.4 million.

Customer growth was driven by the company’s ongoing focus of broadening its merchandise offerings as well as strategically lowering its average price point, which decreased to $76 in the quarter compared to $93 in the same quarter last year, according to the release.

These changes support continued customer growth and increased purchase frequency, which rose 9 percent in the quarter over the same period last year, the statement said.

“We are pleased with our Q1 results, which marked the 8th consecutive quarter of sales growth and positive adjusted EBITDA,” ShopHQ CEO Keith Stewart said in a canned statement.

“We continue to make progress in growing revenue and gross profit while repositioning our product assortment,” he said. “Our success in achieving increased customer growth and a lower average price point at strong margins accelerated throughout Q1 and should provide us with positive momentum for the second quarter.”

Stewart’s lieutenant also had a few words.

“Our balance sheet condition remains strong,” EVP & CFO William McGrath said.

“We ended the first quarter with $27 million in cash and restricted cash compared to $31 million at the beginning of the year. Net use of cash includes $5 million in working capital and $3 million in capital expenditures partially offset by the Company’s positive adjusted EBITDA results in the quarter. In February, we increased our PNC credit facility from $50 million to $75 million. This $25 million increase will facilitate the 2014 expansion of our warehouse distribution facility to support anticipated growth.”

ShopHQ Posts 17 Percent Fourth-Quarter Sales Gain

March 7, 2014

It looks like ShopHQ finally had a strong quarter, much to the chagrin of its dissident shareholders.

The channel’s fourth-quarter net sales last year rose 17 percent over the prior-year period, to $193 million from $165 million, the No. 3 home shopping network reported Thursday.

For the full year 2013, ShopHQ’s net sales jumped 12 percent to $640 million from $574 million in 2012.

That’s more growth than QVC and HSN posted for the quarter, but of course, a lot less dough.

QVC posted a 6 percent gain in revenue in the fourth quarter, to $1.9 billion, and was up 5 percent, to $5.8 billion, for last year. HSN reported a 2 percent gain in net sales in the fourth quarter, to $697.4 million. For the full year 2013, HSN’s net sales were up 2 percent, to $2.31 billion.

“Our fourth-quarter performance marked our seventh consecutive quarter of sales growth and positive Adjusted EBITDA,” ShopHQ CEO Keith Stewart said in a canned statement.

“Our continued diversification of product mix resulted in strong sales growth across a much broader customer base,” he said. “We expanded our product assortment, improved our channel positions and continued to focus on the customer experience. These efforts drove record new customer counts in the quarter. With our rebranding to ShopHQ complete and more customers shopping with us than ever before, we believe we are well positioned for fiscal 2014.”

We wonder how this will play for The Clinton Group, which is trying to oust Stewart and many of ShopHQ’s board members.

The network’s sales were driven by strong performances in the categories of home & consumer electronics, fashion & accessories, and beauty, health & and fitness. ShopHQ, whose corporate name is ValueVision Media, saw its gross profit increase 14 percent in the fourth quarter, and as a percent of sales, it was 32.1 percent compared to 33.2 percent in the prior year.

Adjusted EBITDA improved to $5 million in the fourth quarter versus $4 million a year ago.

Adjusted net income for the quarter was $300,000, or breakeven per share, compared to an adjusted net loss of $300,000 in the year-ago quarter.

Net shipped units increased by 44 percent to a record 2.4 million from 1.6 million in the same quarter last year, reflecting a broader merchandise mix and a 20 percent decline in the average price point to $74 from $92.

Total customers purchasing over the last 12 months rose 20 percent to a record 1.4 million from 1.1 million in the prior year.

“The growth in customers reflects a broader merchandise mix at lower price points,” ShopHQ said in a press release. “In addition, the size of the total customer base who purchased during the three months of Q4’13 increased 30 percent versus last year’s same period.”

For the full year 2-13, adjusted EBITDA was $18 million for the full year 2013 versus $4 million last year. Adjusted net loss for the year was $400,000 compared to an adjusted net loss of $16 million in the prior year.

“Our balance sheet position is strong,” ShopHQ Chief Financial Officer William McGrath said in his canned statement. “We ended the year with $31 million in cash and restricted cash, an increase of $3 million from the start of fiscal year 2013. During the fourth quarter, we also expanded the size of our total credit facility with PNC Bank from $50 million to $75 million. The additional liquidity better positions us to support future growth as we evaluate options to increase our warehouse distribution capacity in 2014.”

ShopNBC, i.e. ShopHQ, Posts 10 Percent Sales Jump, To $149 Million

August 22, 2013

ShopNBC, or should we say ShopHQ, had a strong second quarter, seeing net sales jump 10 percent to $149 million, the home shopping network reported Wednesday.

The revenue growth was driven primarily by strong results in the fashion & accessories and home & consumer electronics categories, the network said.

QVC has already reported that it had a 3 percent increase in revenue, to $1.3 billion, in the second quarter. HSN’s net sales rose 5 percent, to $526.2 million.

“Second-quarter results showed strong top line growth and our fifth consecutive quarter of positive Adjusted EBITDA,” ShopHQ Keith Stewart said in a canned statement. “We continued to make progress in broadening our product offerings as well as accelerated new and retained customer growth. Our rebranding to ShopHQ, your shopping headquarters, is progressing well and our customers are responding positively.”

Adjusted EBITDA improved to $4 million in the quarter versus $1 million in the year-ago period, reflecting higher sales and lower TV distribution costs.

The network, AKA ValueVision Media, has also diminished some of its red ink, reporting a net loss of $1 million compared to a net loss of $4 million a yea ago.

Year to date, ShopHQ posted net sales up 10 percent to $300 million, adjusted EBITDA of $10 million, and net income of $200,000.

Total customers purchasing over the last 12 months rose 11 percent to 1.2 million, reflecting a broader mix of merchandise at lower average price points, improved customer experience, and the benefits of expanded TV distribution.

The size of the total customer base that purchased during the second quarter increased 22 percent versus the same period last year.

Net shipped units rose 31 percent to 1.6 million, reflecting continued diversification of the network’s merchandise mix and a 19 percent decline in the average price point.

Internet-sales penetration remained strong at 45 percent. Mobile net sales grew 56 percent, increasing to 23 percent of Internet sales compared to 16 percent in the year-ago period.

“Our balance sheet condition remains strong,” ShopHQ Chief Financial Officer William McGrath said.

“We ended the second quarter with a cash balance, including restricted cash, of $35 million. Major cash expenditures in the quarter included the final payment under our trademark license agreement with NBCUniversal of $2.8 million as well as $2.5 million in capital expenditures. ValueVision continues to maintain $12 million in undrawn availability under its $50 million credit facility with PNC. This availability further strengthens our balance sheet condition.”

ShopNBC’s Sales Rise 11 Percent In First Quarter, To $151.4 Million

May 23, 2013

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.”

ShopNBC Posts $27.7 Million Loss In Fiscal 2012

March 8, 2013

ShopNBC can’t seem to stop bleeding red ink: It posted a $27.7 million net loss in fiscal 2012.

We were too busy at our day job to write them up Wednesday, when the home shopping released its fourth quarter and fiscal 2012 earnings.

In a nutshell, during the fourth quarter ShopNBC hit net sales of $177.5 million, adjusted EBITDA of $4.2 million and a net loss of $11.4 million. For the full fiscal year, the company posted net sales of $586.8 million, adjusted EBITDA of $4.5 million and a net loss of $27.7 million. The loss is actually an improvement, since the network lost $48.1 million in 2011. But all we can recall about this home shopping network is its years of losses.

“I am encouraged by our performance this quarter and believe we have made further progress toward our goals,” ShopNBC CEO Keith Stewart said in a canned statement.

“We overcame the adverse impact of Superstorm Sandy on our business in the first few weeks of Q4’12 to post solid net sales growth for the quarter. We also achieved continued improvements in both new and active customer counts versus last year, providing further evidence that our customer service, engagement and retention initiatives are resonating with our customers.”

ShopNBC’s results compare to QVC’s 3 percent increase in net revenue to $5.6 billion last year, and HSN’s 5 percent gain to $2.27 billion in net sales.

Here is where things get a little tricky with ShopNBC’s earnings, because fiscal 2012 had an extra week than fiscal 2011.

“Because ValueVision follows a 4-5-4 retail calendar, every five to six years the company has an extra week of operations, and this occurred in fiscal 2012,” the network said in a press release.

“Therefore, Q4’12 and full-year periods have 14 and 53 weeks, respectively, as compared to the same periods last year of 13 and 52 weeks. To facilitate more meaningful comparisons with fiscal 2011 results, ValueVision is presenting in the table below pro forma results for Q4 and fiscal 2012, reflecting current period results on an equivalent 13- and 52-week basis.

Q4’12 pro forma results were calculated by dividing actual Q4’12 results by 14 and by multiplying the quotients by 13. The 52-week pro formas were calculated by adding the Q4 13-week pro formas to the previously reported fiscal year-to-date Q3 results of operations.”

That said, the company’s fourth quarter pro forma net sales rose 11.7 percent to $164.8 million over the prior-year quarter. Sales growth was achieved by a significant rebound in the consumer electronics category and by solid performances in the home and beauty segments.

Pro forma adjusted EBITDA improved to a positive $3.9 million in the fourth quarter versus loss of $2.7 million last year, reflecting higher sales and lower distribution costs.

Pro forma net shipped units rose 11.6 percent to 1.6 million in the fourth quarter, reflecting the benefit of continued improvements to the company’s merchandise mix as well as a modest decline in average price points. Internet net Sales increased 160 bps to 46.3 percent versus the year-ago quarter, principally driven by growth in mobile transaction volume compared to last year.

For full 2012, pro forma net sales grew 2.8 percent to $574.1 million, while pro forma adjusted EBITDA for the year improved to $4.2 million compared to $1 million in 2011. ShopNBC also increased its distribution footprint to 84 million homes at year-end 2012 and began calendar 2013 with two channels of exposure in 70 percent of its homes.

“With the start of 2013, we are benefiting from reduced TV distribution costs negotiated last year and improved channel positioning,” Stewart said. “Overall, we feel our fourth-quarter performance is another step forward toward realizing the full potential of our business.”

ShopNBC Chief Financial Officer William McGrath had his canned statement,too.

“(ShopNBC) ended the year with $28 million in cash and restricted cash versus $32 million at the end of Q3’12,” he said. “The net use of cash in the quarter was primarily due to the increase in accounts receivable, reflecting higher Q4 sales. We anticipate the collection of these accounts receivable will provide positive cash flow in Q1’13.”