| 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, 2014 |
|
Three Months Ended September 30, 2013 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
66,730 |
|
|
$ |
14,255 |
|
|
$ |
80,985 |
|
|
$ |
57,136 |
|
|
$ |
17,426 |
|
|
$ |
74,562 |
|
Stock-based compensation expense |
(3,086 |
) |
|
(795 |
) |
|
(3,881 |
) |
|
(2,128 |
) |
|
(896 |
) |
|
(3,024 |
) |
Depreciation and amortization |
(7,477 |
) |
|
(3,678 |
) |
|
(11,155 |
) |
|
(7,368 |
) |
|
(3,034 |
) |
|
(10,402 |
) |
Gain (loss) on disposition of fixed assets |
5 |
|
|
14 |
|
|
19 |
|
|
(10 |
) |
|
(41 |
) |
|
(51 |
) |
Operating income |
$ |
56,172 |
|
|
$ |
9,796 |
|
|
65,968 |
|
|
$ |
47,630 |
|
|
$ |
13,455 |
|
|
61,085 |
|
Total other expense, net |
|
|
|
|
(1,833 |
) |
|
|
|
|
|
(1,625 |
) |
Income before income taxes |
|
|
|
|
64,135 |
|
|
|
|
|
|
59,460 |
|
Income tax provision |
|
|
|
|
(24,604 |
) |
|
|
|
|
|
(17,408 |
) |
Net income |
|
|
|
|
$ |
39,531 |
|
|
|
|
|
|
$ |
42,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014 |
|
Nine Months Ended September 30, 2013 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
188,530 |
|
|
$ |
34,305 |
|
|
$ |
222,835 |
|
|
$ |
173,205 |
|
|
$ |
53,350 |
|
|
$ |
226,555 |
|
Stock-based compensation expense |
(9,283 |
) |
|
(2,408 |
) |
|
(11,691 |
) |
|
(7,712 |
) |
|
(2,567 |
) |
|
(10,279 |
) |
Depreciation and amortization |
(22,337 |
) |
|
(10,377 |
) |
|
(32,714 |
) |
|
(21,226 |
) |
|
(9,079 |
) |
|
(30,305 |
) |
CPSC settlement (a) |
— |
|
|
(3,100 |
) |
|
(3,100 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on disposition of fixed assets |
(100 |
) |
|
(27 |
) |
|
(127 |
) |
|
(1,028 |
) |
|
(41 |
) |
|
(1,069 |
) |
Operating income |
$ |
156,810 |
|
|
$ |
18,393 |
|
|
175,203 |
|
|
$ |
143,239 |
|
|
$ |
41,663 |
|
|
184,902 |
|
Total other expense, net |
|
|
|
|
(5,343 |
) |
|
|
|
|
|
(4,928 |
) |
Income before income taxes |
|
|
|
|
169,860 |
|
|
|
|
|
|
179,974 |
|
Income tax provision |
|
|
|
|
(65,207 |
) |
|
|
|
|
|
(63,098 |
) |
Net income |
|
|
|
|
$ |
104,653 |
|
|
|
|
|
|
$ |
116,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Results for the nine months ended September 30, 2014 include 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Net sales: |
|
|
|
|
|
|
|
|
HSN |
|
$ |
578,297 |
|
|
$ |
538,639 |
|
|
$ |
1,679,271 |
|
|
$ |
1,614,949 |
|
Cornerstone |
|
259,180 |
|
|
260,251 |
|
|
790,830 |
|
|
769,198 |
|
Total |
|
$ |
837,477 |
|
|
$ |
798,890 |
|
|
$ |
2,470,101 |
|
|
$ |
2,384,147 |
|
|