| 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 September 30, 2013 |
|
Three Months Ended September 30, 2012 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
57,136 |
|
|
$ |
17,426 |
|
|
$ |
74,562 |
|
|
$ |
56,790 |
|
|
$ |
14,969 |
|
|
$ |
71,759 |
|
Stock-based compensation expense |
(2,128 |
) |
|
(896 |
) |
|
(3,024 |
) |
|
(2,771 |
) |
|
(1,857 |
) |
|
(4,628 |
) |
Depreciation and amortization |
(7,368 |
) |
|
(3,034 |
) |
|
(10,402 |
) |
|
(6,665 |
) |
|
(3,029 |
) |
|
(9,694 |
) |
Sales tax settlement |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,750 |
) |
|
(7,750 |
) |
Loss on disposition of fixed assets |
(10 |
) |
|
(41 |
) |
|
(51 |
) |
|
(374 |
) |
|
(1 |
) |
|
(375 |
) |
Operating income |
$ |
47,630 |
|
|
$ |
13,455 |
|
|
61,085 |
|
|
$ |
46,980 |
|
|
$ |
2,332 |
|
|
49,312 |
|
Total other expense, net |
|
|
|
|
(1,625 |
) |
|
|
|
|
|
(21,988 |
) |
Income from continuing operations before income taxes |
|
|
|
|
59,460 |
|
|
|
|
|
|
27,324 |
|
Income tax provision |
|
|
|
|
(17,408 |
) |
|
|
|
|
|
(9,766 |
) |
Income from continuing operations |
|
|
|
|
42,052 |
|
|
|
|
|
|
17,558 |
|
Income from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
128 |
|
Net income |
|
|
|
|
$ |
42,052 |
|
|
|
|
|
|
$ |
17,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013 |
|
Nine Months Ended September 30, 2012 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
173,205 |
|
|
$ |
53,350 |
|
|
$ |
226,555 |
|
|
$ |
166,821 |
|
|
$ |
50,819 |
|
|
$ |
217,640 |
|
Stock-based compensation expense |
(7,712 |
) |
|
(2,567 |
) |
|
(10,279 |
) |
|
(8,810 |
) |
|
(6,468 |
) |
|
(15,278 |
) |
Depreciation and amortization |
(21,226 |
) |
|
(9,079 |
) |
|
(30,305 |
) |
|
(19,839 |
) |
|
(8,411 |
) |
|
(28,250 |
) |
Sales tax settlement |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(7,750 |
) |
|
(7,750 |
) |
Loss on disposition of fixed assets |
(1,028 |
) |
|
(41 |
) |
|
(1,069 |
) |
|
(418 |
) |
|
(31 |
) |
|
(449 |
) |
Operating income |
$ |
143,239 |
|
|
$ |
41,663 |
|
|
184,902 |
|
|
$ |
137,754 |
|
|
$ |
28,159 |
|
|
165,913 |
|
Total other expense, net |
|
|
|
|
(4,928 |
) |
|
|
|
|
|
(37,172 |
) |
Income from continuing operations before income taxes |
|
|
|
|
179,974 |
|
|
|
|
|
|
128,741 |
|
Income tax provision |
|
|
|
|
(63,098 |
) |
|
|
|
|
|
(48,284 |
) |
Income from continuing operations |
|
|
|
|
116,876 |
|
|
|
|
|
|
80,457 |
|
Loss from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
(5,854 |
) |
Net income |
|
|
|
|
$ |
116,876 |
|
|
|
|
|
|
$ |
74,603 |
|
|
| Financial Information By Segment |
The net sales for each of HSNi's reportable segments are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
Net sales: |
|
|
|
|
|
|
|
|
HSN |
|
$ |
538,639 |
|
|
$ |
537,393 |
|
|
$ |
1,614,949 |
|
|
$ |
1,581,268 |
|
Cornerstone |
|
260,251 |
|
|
241,376 |
|
|
769,198 |
|
|
702,596 |
|
Total |
|
$ |
798,890 |
|
|
$ |
778,769 |
|
|
$ |
2,384,147 |
|
|
$ |
2,283,864 |
|
|