| 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 March 31, 2014 |
|
Three Months Ended March 31, 2013 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
59,142 |
|
|
$ |
615 |
|
|
$ |
59,757 |
|
|
$ |
58,934 |
|
|
$ |
7,906 |
|
|
$ |
66,840 |
|
Stock-based compensation expense |
(3,145 |
) |
|
(881 |
) |
|
(4,026 |
) |
|
(2,823 |
) |
|
(886 |
) |
|
(3,709 |
) |
Depreciation and amortization |
(7,436 |
) |
|
(3,320 |
) |
|
(10,756 |
) |
|
(6,821 |
) |
|
(3,131 |
) |
|
(9,952 |
) |
CPSC settlement (a) |
— |
|
|
(3,100 |
) |
|
(3,100 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on disposition of fixed assets |
— |
|
|
(7 |
) |
|
(7 |
) |
|
(661 |
) |
|
— |
|
|
(661 |
) |
Operating income |
$ |
48,561 |
|
|
$ |
(6,693 |
) |
|
41,868 |
|
|
$ |
48,629 |
|
|
$ |
3,889 |
|
|
52,518 |
|
Total other expense, net |
|
|
|
|
(1,699 |
) |
|
|
|
|
|
(1,640 |
) |
Income from continuing operations before income taxes |
|
|
|
|
40,169 |
|
|
|
|
|
|
50,878 |
|
Income tax provision |
|
|
|
|
(15,987 |
) |
|
|
|
|
|
(19,325 |
) |
Income from continuing operations |
|
|
|
|
24,182 |
|
|
|
|
|
|
31,553 |
|
Loss from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
(9 |
) |
Net income |
|
|
|
|
$ |
24,182 |
|
|
|
|
|
|
$ |
31,544 |
|
(a) The company reached a $3.1 million tentative settlement related to a civil penalty assessed by the Consumer Product Safety Commission. For further discussion, see Note 12-Commitments and Contingencies. |
|
| Financial Information By Segment |
The net sales for each of HSNi's reportable segments are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2014 |
|
2013 |
Net sales: |
|
|
|
|
HSN |
|
$ |
544,487 |
|
|
$ |
550,129 |
|
Cornerstone |
|
232,933 |
|
|
222,522 |
|
Total |
|
$ |
777,420 |
|
|
$ |
772,651 |
|
|