| Adjusted EBITDA to Operating Income (Loss) and Consolidated Net Income |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended June 30, 2011 |
|
|
Three Months Ended June 30, 2010 |
|
| |
|
HSN |
|
|
Cornerstone |
|
|
Total |
|
|
HSN |
|
|
Cornerstone |
|
|
Total |
|
|
Adjusted EBITDA
|
|
$ |
51,624 |
|
|
$ |
24,425 |
|
|
$ |
76,049 |
|
|
$ |
45,064 |
|
|
$ |
18,489 |
|
|
$ |
63,553 |
|
|
Stock-based compensation expense
|
|
|
(3,781 |
) |
|
|
(3,174 |
) |
|
|
(6,955 |
) |
|
|
(2,771 |
) |
|
|
(2,196 |
) |
|
|
(4,967 |
) |
|
Depreciation and amortization of intangible assets
|
|
|
(6,976 |
) |
|
|
(2,225 |
) |
|
|
(9,201 |
) |
|
|
(7,403 |
) |
|
|
(2,348 |
) |
|
|
(9,751 |
) |
|
(Loss) gain on disposition of fixed assets
|
|
|
(52 |
) |
|
|
5 |
|
|
|
(47 |
) |
|
|
(426 |
) |
|
|
(59 |
) |
|
|
(485 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$ |
40,815 |
|
|
$ |
19,031 |
|
|
|
59,846 |
|
|
$ |
34,464 |
|
|
$ |
13,886 |
|
|
|
48,350 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
(7,814 |
) |
|
|
|
|
|
|
|
|
|
|
(8,061 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
52,032 |
|
|
|
|
|
|
|
|
|
|
|
40,289 |
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
(20,065 |
) |
|
|
|
|
|
|
|
|
|
|
(15,583 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
$ |
31,967 |
|
|
|
|
|
|
|
|
|
|
$ |
24,706 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
Six Months Ended June 30, 2011 |
|
|
Six Months Ended June 30, 2010 |
|
| |
|
HSN |
|
|
Cornerstone |
|
|
Total |
|
|
HSN |
|
|
Cornerstone |
|
|
Total |
|
|
Adjusted EBITDA
|
|
$ |
103,822 |
|
|
$ |
29,505 |
|
|
$ |
133,327 |
|
|
$ |
95,378 |
|
|
$ |
19,967 |
|
|
$ |
115,345 |
|
|
Stock-based compensation expense
|
|
|
(7,958 |
) |
|
|
(5,324 |
) |
|
|
(13,282 |
) |
|
|
(6,042 |
) |
|
|
(3,268 |
) |
|
|
(9,310 |
) |
|
Depreciation and amortization of intangible assets
|
|
|
(14,174 |
) |
|
|
(4,431 |
) |
|
|
(18,605 |
) |
|
|
(15,149 |
) |
|
|
(4,553 |
) |
|
|
(19,702 |
) |
|
Loss on disposition of fixed assets
|
|
|
(106 |
) |
|
|
(199 |
) |
|
|
(305 |
) |
|
|
(428 |
) |
|
|
(60 |
) |
|
|
(488 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$ |
81,584 |
|
|
$ |
19,551 |
|
|
|
101,135 |
|
|
$ |
73,759 |
|
|
$ |
12,086 |
|
|
|
85,845 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
(15,773 |
) |
|
|
|
|
|
|
|
|
|
|
(16,370 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
85,362 |
|
|
|
|
|
|
|
|
|
|
|
69,475 |
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
(33,115 |
) |
|
|
|
|
|
|
|
|
|
|
(27,116 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
$ |
52,247 |
|
|
|
|
|
|
|
|
|
|
$ |
42,359 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales of Reportable Segments |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
| |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
HSN
|
|
$ |
481,994 |
|
|
$ |
466,411 |
|
|
$ |
1,008,168 |
|
|
$ |
985,330 |
|
|
Cornerstone
|
|
|
264,945 |
|
|
|
223,581 |
|
|
|
462,753 |
|
|
|
387,875 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
746,939 |
|
|
$ |
689,992 |
|
|
$ |
1,470,921 |
|
|
$ |
1,373,205 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|