| 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, 2014 |
|
Three Months Ended June 30, 2013 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
62,657 |
|
|
$ |
19,435 |
|
|
$ |
82,092 |
|
|
$ |
57,135 |
|
|
$ |
28,017 |
|
|
$ |
85,152 |
|
Stock-based compensation expense |
(3,053 |
) |
|
(731 |
) |
|
(3,784 |
) |
|
(2,761 |
) |
|
(784 |
) |
|
(3,545 |
) |
Depreciation and amortization |
(7,423 |
) |
|
(3,380 |
) |
|
(10,803 |
) |
|
(7,037 |
) |
|
(2,914 |
) |
|
(9,951 |
) |
Loss on disposition of fixed assets |
(104 |
) |
|
(34 |
) |
|
(138 |
) |
|
(357 |
) |
|
— |
|
|
(357 |
) |
Operating income |
$ |
52,077 |
|
|
$ |
15,290 |
|
|
67,367 |
|
|
$ |
46,980 |
|
|
$ |
24,319 |
|
|
71,299 |
|
Total other expense, net |
|
|
|
|
(1,810 |
) |
|
|
|
|
|
(1,661 |
) |
Income from continuing operations before income taxes |
|
|
|
|
65,557 |
|
|
|
|
|
|
69,638 |
|
Income tax provision |
|
|
|
|
(24,617 |
) |
|
|
|
|
|
(26,367 |
) |
Income from continuing operations |
|
|
|
|
40,940 |
|
|
|
|
|
|
43,271 |
|
Income from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
9 |
|
Net income |
|
|
|
|
$ |
40,940 |
|
|
|
|
|
|
$ |
43,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2014 |
|
Six Months Ended June 30, 2013 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
121,799 |
|
|
$ |
20,051 |
|
|
$ |
141,850 |
|
|
$ |
116,069 |
|
|
$ |
35,925 |
|
|
$ |
151,994 |
|
Stock-based compensation expense |
(6,197 |
) |
|
(1,613 |
) |
|
(7,810 |
) |
|
(5,584 |
) |
|
(1,670 |
) |
|
(7,254 |
) |
Depreciation and amortization |
(14,860 |
) |
|
(6,699 |
) |
|
(21,559 |
) |
|
(13,858 |
) |
|
(6,046 |
) |
|
(19,904 |
) |
CPSC settlement (a) |
— |
|
|
(3,100 |
) |
|
(3,100 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on disposition of fixed assets |
(104 |
) |
|
(42 |
) |
|
(146 |
) |
|
(1,018 |
) |
|
(1 |
) |
|
(1,019 |
) |
Operating income |
$ |
100,638 |
|
|
$ |
8,597 |
|
|
109,235 |
|
|
$ |
95,609 |
|
|
$ |
28,208 |
|
|
123,817 |
|
Total other expense, net |
|
|
|
|
(3,509 |
) |
|
|
|
|
|
(3,301 |
) |
Income from continuing operations before income taxes |
|
|
|
|
105,726 |
|
|
|
|
|
|
120,516 |
|
Income tax provision |
|
|
|
|
(40,604 |
) |
|
|
|
|
|
(45,692 |
) |
Income from continuing operations |
|
|
|
|
65,122 |
|
|
|
|
|
|
74,824 |
|
Income from discontinued operations, net of tax |
|
|
|
|
— |
|
|
|
|
|
|
— |
|
Net income |
|
|
|
|
$ |
65,122 |
|
|
|
|
|
|
$ |
74,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The company reached a $3.1 million 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):
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|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Net sales: |
|
|
|
|
|
|
|
|
HSN |
|
$ |
556,488 |
|
|
$ |
526,181 |
|
|
$ |
1,100,975 |
|
|
$ |
1,076,310 |
|
Cornerstone |
|
298,716 |
|
|
286,425 |
|
|
531,649 |
|
|
508,947 |
|
Total |
|
$ |
855,204 |
|
|
$ |
812,606 |
|
|
$ |
1,632,624 |
|
|
$ |
1,585,257 |
|
|