| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014 |
|
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
289,141 |
|
|
$ |
53,199 |
|
|
$ |
342,340 |
|
Stock-based compensation expense |
|
(12,224 |
) |
|
(3,382 |
) |
|
(15,606 |
) |
Depreciation and amortization |
|
(29,762 |
) |
|
(14,172 |
) |
|
(43,934 |
) |
Breakage income from merchandise credits (a) |
|
4,962 |
|
|
— |
|
|
4,962 |
|
CPSC settlement (b) |
|
— |
|
|
(3,100 |
) |
|
(3,100 |
) |
Loss on disposition of fixed assets |
|
(19 |
) |
|
(34 |
) |
|
(53 |
) |
Operating income |
|
$ |
252,098 |
|
|
$ |
32,511 |
|
|
284,609 |
|
Total other expense, net |
|
|
|
|
|
(7,082 |
) |
Income from continuing operations before income taxes |
|
|
|
|
|
277,527 |
|
Income tax provision |
|
|
|
|
|
(104,543 |
) |
Net income |
|
|
|
|
|
$ |
172,984 |
|
(a) Results for the year ended December 31, 2014 include $5.0 million of revenue related to the reversal of certain unused merchandise credits.
(b) Results for the year ended December 31, 2014 include a $3.1 million settlement with the Consumer Product Safety Commission ("CPSC").
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013 |
|
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
261,292 |
|
|
$ |
76,574 |
|
|
$ |
337,866 |
|
Stock-based compensation expense |
|
(10,657 |
) |
|
(3,386 |
) |
|
(14,043 |
) |
Depreciation and amortization |
|
(28,372 |
) |
|
(12,217 |
) |
|
(40,589 |
) |
Asset impairment (a) |
|
— |
|
|
(3,040 |
) |
|
(3,040 |
) |
Fair value adjustment to contingent consideration obligation (a) |
|
— |
|
|
3,600 |
|
|
3,600 |
|
Loss on disposition of fixed assets |
|
(1,079 |
) |
|
(61 |
) |
|
(1,140 |
) |
Operating income |
|
$ |
221,184 |
|
|
$ |
61,470 |
|
|
282,654 |
|
Total other expense, net |
|
|
|
|
|
(6,513 |
) |
Income from continuing operations before income taxes |
|
|
|
|
|
276,141 |
|
Income tax provision |
|
|
|
|
|
(97,692 |
) |
Net income |
|
|
|
|
|
$ |
178,449 |
|
(a) Results for the year ended December 31, 2013 include fair value adjustments of $3.6 million related to a contingent consideration liability and $3.0 million for the impairment of indefinite-lived intangible assets, both related to the 2012 acquisition of Chasing Fireflies, one of the Cornerstone brands.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012 |
|
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
|
$ |
250,836 |
|
|
$ |
73,441 |
|
|
$ |
324,277 |
|
Stock-based compensation expense |
|
(11,167 |
) |
|
(7,889 |
) |
|
(19,056 |
) |
Depreciation and amortization |
|
(26,486 |
) |
|
(11,519 |
) |
|
(38,005 |
) |
Sales tax settlement |
|
— |
|
|
(7,750 |
) |
|
(7,750 |
) |
Loss on disposition of fixed assets |
|
(680 |
) |
|
(42 |
) |
|
(722 |
) |
Operating income |
|
$ |
212,503 |
|
|
$ |
46,241 |
|
|
258,744 |
|
Total other expense, net |
|
|
|
|
|
(38,874 |
) |
Income from continuing operations before income taxes |
|
|
|
|
|
219,870 |
|
Income tax provision |
|
|
|
|
|
(83,373 |
) |
Income from continuing operations |
|
|
|
|
|
136,497 |
|
Loss from discontinued operations, net of tax |
|
|
|
|
|
(5,822 |
) |
Net income |
|
|
|
|
|
$ |
130,675 |
|
(a) Results for the year ended December 31, 2012 include a $7.8 million sales tax settlement.
|
| Reconciliation of Segment Information to Consolidated |
Financial information by segment is as follows (thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2014 |
|
2013 |
|
2012 |
Net sales: |
|
|
|
|
|
|
HSN |
|
$ |
2,476,088 |
|
|
$ |
2,312,382 |
|
|
$ |
2,265,026 |
|
Cornerstone |
|
1,111,907 |
|
|
1,091,601 |
|
|
1,001,713 |
|
Total |
|
$ |
3,587,995 |
|
|
$ |
3,403,983 |
|
|
$ |
3,266,739 |
|
Identifiable assets: |
|
|
|
|
|
|
HSN |
|
$ |
1,134,685 |
|
|
$ |
1,058,573 |
|
|
$ |
1,083,714 |
|
Cornerstone |
|
297,509 |
|
|
279,350 |
|
|
248,238 |
|
Total |
|
1,432,194 |
|
|
1,337,923 |
|
|
1,331,952 |
|
Capital expenditures: |
|
|
|
|
|
|
HSN |
|
$ |
32,307 |
|
|
$ |
36,156 |
|
|
$ |
33,566 |
|
Cornerstone |
|
15,009 |
|
|
15,796 |
|
|
12,237 |
|
Total |
|
$ |
47,316 |
|
|
$ |
51,952 |
|
|
$ |
45,803 |
|
|