| 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, 2016 |
|
Three Months Ended June 30, 2015 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
66,280 |
|
|
$ |
16,121 |
|
|
$ |
82,401 |
|
|
$ |
68,194 |
|
|
$ |
21,831 |
|
|
$ |
90,025 |
|
Stock-based compensation expense |
(3,867 |
) |
|
(1,217 |
) |
|
(5,084 |
) |
|
(3,617 |
) |
|
(1,151 |
) |
|
(4,768 |
) |
Depreciation and amortization |
(7,275 |
) |
|
(3,426 |
) |
|
(10,701 |
) |
|
(7,590 |
) |
|
(3,495 |
) |
|
(11,085 |
) |
Distribution center closure (a) |
— |
|
|
— |
|
|
— |
|
|
(3,032 |
) |
|
— |
|
|
(3,032 |
) |
Asset impairment (b) |
— |
|
|
(20,400 |
) |
|
(20,400 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on disposition of fixed assets |
— |
|
|
(2 |
) |
|
(2 |
) |
|
(430 |
) |
|
(7 |
) |
|
(437 |
) |
Operating income |
$ |
55,138 |
|
|
$ |
(8,924 |
) |
|
46,214 |
|
|
$ |
53,525 |
|
|
$ |
17,178 |
|
|
70,703 |
|
Total other expense, net |
|
|
|
|
(3,840 |
) |
|
|
|
|
|
(3,880 |
) |
Income before income taxes |
|
|
|
|
42,374 |
|
|
|
|
|
|
66,823 |
|
Income tax provision |
|
|
|
|
(15,929 |
) |
|
|
|
|
|
(25,191 |
) |
Net income |
|
|
|
|
$ |
26,445 |
|
|
|
|
|
|
$ |
41,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the second quarter of 2015, HSN recorded a $3.0 million charge associated with the planned closure of one of its distribution centers as part of its supply chain optimization initiative. See Note 13 for further information. |
(b) In the second quarter of 2016, Cornerstone recorded a non-cash impairment charge of $20.4 million associated with the assets held for sale. See Note 14 for further information. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016 |
|
Six Months Ended June 30, 2015 |
|
HSN |
|
Cornerstone |
|
Total |
|
HSN |
|
Cornerstone |
|
Total |
Adjusted EBITDA |
$ |
126,971 |
|
|
$ |
21,163 |
|
|
$ |
148,134 |
|
|
$ |
134,384 |
|
|
$ |
28,791 |
|
|
$ |
163,175 |
|
Stock-based compensation expense |
(7,906 |
) |
|
(2,554 |
) |
|
(10,460 |
) |
|
(7,226 |
) |
|
(2,198 |
) |
|
(9,424 |
) |
Depreciation and amortization |
(14,278 |
) |
|
(6,949 |
) |
|
(21,227 |
) |
|
(15,008 |
) |
|
(7,326 |
) |
|
(22,334 |
) |
Distribution center closure (a) |
— |
|
|
— |
|
|
— |
|
|
(3,032 |
) |
|
— |
|
|
(3,032 |
) |
Asset impairment (b) |
— |
|
|
(20,400 |
) |
|
(20,400 |
) |
|
— |
|
|
— |
|
|
— |
|
Loss on disposition of fixed assets |
(4 |
) |
|
— |
|
|
(4 |
) |
|
(665 |
) |
|
(8 |
) |
|
(673 |
) |
Operating income |
$ |
104,783 |
|
|
$ |
(8,740 |
) |
|
96,043 |
|
|
$ |
108,453 |
|
|
$ |
19,259 |
|
|
127,712 |
|
Total other expense, net |
|
|
|
|
(7,987 |
) |
|
|
|
|
|
(7,177 |
) |
Income before income taxes |
|
|
|
|
88,056 |
|
|
|
|
|
|
120,535 |
|
Income tax provision |
|
|
|
|
(33,026 |
) |
|
|
|
|
|
(45,214 |
) |
Net income |
|
|
|
|
$ |
55,030 |
|
|
|
|
|
|
$ |
75,321 |
|
(a) In the second quarter of 2015, HSN recorded a $3.0 million charge associated with the planned closure of one of its distribution centers as part of its supply chain optimization initiative. See Note 13 for further information. |
(b) In the second quarter of 2016, Cornerstone recorded a non-cash impairment charge of $20.4 million associated with the assets held for sale. See Note 14 for further information. |
|
| Financial Information By Segment |
The net sales for each of HSNi's reportable segments are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net sales: |
|
|
|
|
|
|
|
|
HSN |
|
$ |
557,163 |
|
|
$ |
572,304 |
|
|
$ |
1,135,547 |
|
|
$ |
1,172,796 |
|
Cornerstone |
|
297,145 |
|
|
313,338 |
|
|
535,527 |
|
|
554,733 |
|
Total |
|
$ |
854,308 |
|
|
$ |
885,642 |
|
|
$ |
1,671,074 |
|
|
$ |
1,727,529 |
|
|