| Adjusted EBITDA To Operating Income (Loss) And Consolidated Net Income |
The following tables reconcile Adjusted EBITDA to operating income for HSNi’s operating segments and to HSNi’s consolidated net income (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013 |
|
Three Months Ended June 30, 2012 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
57,135 |
|
|
$ |
28,017 |
|
|
$ |
85,152 |
|
|
$ |
52,709 |
|
|
$ |
26,903 |
|
|
$ |
79,612 |
|
Stock-based compensation expense |
(2,761 |
) |
|
(784 |
) |
|
(3,545 |
) |
|
(2,752 |
) |
|
(1,898 |
) |
|
(4,650 |
) |
Depreciation and amortization |
(7,037 |
) |
|
(2,914 |
) |
|
(9,951 |
) |
|
(6,609 |
) |
|
(2,980 |
) |
|
(9,589 |
) |
Loss on disposition of fixed assets |
(357 |
) |
|
— |
|
|
(357 |
) |
|
(31 |
) |
|
— |
|
|
(31 |
) |
Operating income |
$ |
46,980 |
|
|
$ |
24,319 |
|
|
71,299 |
|
|
$ |
43,317 |
|
|
$ |
22,025 |
|
|
65,342 |
|
Total other expense, net |
|
|
|
|
(1,661 |
) |
|
|
|
|
|
(7,849 |
) |
Income from continuing operations before income taxes |
|
|
|
|
69,638 |
|
|
|
|
|
|
57,493 |
|
Income tax provision |
|
|
|
|
(26,367 |
) |
|
|
|
|
|
(21,882 |
) |
Income from continuing operations |
|
|
|
|
43,271 |
|
|
|
|
|
|
35,611 |
|
Income (loss) from discontinued operations, net of tax |
|
|
|
|
9 |
|
|
|
|
|
|
(4,864 |
) |
Net income |
|
|
|
|
$ |
43,280 |
|
|
|
|
|
|
$ |
30,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
Six Months Ended June 30, |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
116,069 |
|
|
$ |
35,925 |
|
|
$ |
151,994 |
|
|
$ |
110,031 |
|
|
$ |
35,849 |
|
|
$ |
145,880 |
|
Stock-based compensation expense |
(5,584 |
) |
|
(1,670 |
) |
|
(7,254 |
) |
|
(6,039 |
) |
|
(4,611 |
) |
|
(10,650 |
) |
Depreciation and amortization |
(13,858 |
) |
|
(6,046 |
) |
|
(19,904 |
) |
|
(13,174 |
) |
|
(5,381 |
) |
|
(18,555 |
) |
Loss on disposition of fixed assets |
(1,018 |
) |
|
(1 |
) |
|
(1,019 |
) |
|
(45 |
) |
|
(29 |
) |
|
(74 |
) |
Operating income |
$ |
95,609 |
|
|
$ |
28,208 |
|
|
123,817 |
|
|
$ |
90,773 |
|
|
$ |
25,828 |
|
|
116,601 |
|
Total other expense, net |
|
|
|
|
(3,301 |
) |
|
|
|
|
|
(15,184 |
) |
Income from continuing operations before income taxes |
|
|
|
|
120,516 |
|
|
|
|
|
|
101,417 |
|
Income tax provision |
|
|
|
|
(45,692 |
) |
|
|
|
|
|
(38,518 |
) |
Income from continuing operations |
|
|
|
|
74,824 |
|
|
|
|
|
|
62,899 |
|
Income (loss) from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
(5,982 |
) |
Net income |
|
|
|
|
$ |
74,824 |
|
|
|
|
|
|
$ |
56,917 |
|
|
| Financial Information By Segment |
The net sales for each of HSNi's reportable segments are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
Net sales: |
|
|
|
|
|
|
|
|
HSN |
|
$ |
526,181 |
|
|
$ |
501,943 |
|
|
$ |
1,076,310 |
|
|
$ |
1,043,875 |
|
Cornerstone |
|
286,425 |
|
|
265,244 |
|
|
508,947 |
|
|
461,220 |
|
Total |
|
$ |
812,606 |
|
|
$ |
767,187 |
|
|
$ |
1,585,257 |
|
|
$ |
1,505,095 |
|
|