Evine Live Inc. (“Evine”) (NASDAQ:EVLV) today announced results for
the fourth quarter ended January 28, 2017. The company posted net
income for the quarter of $2.0 million, a 207% improvement
year-over-year, and adjusted EBITDA of $6.4 million, a 31%
improvement year-over-year.
Net sales in the fourth quarter were $191
million, a $21 million or 9.9% decrease year-over-year driven by a
$21 million reduction in low contribution margin consumer
electronics, which includes management’s proactive $15 million
reduction of low margin hoverboard sales. Excluding the effect of
hoverboard sales, fourth quarter net sales declined 3.2%.
Gross profit as a percentage of sales increased 260 basis points to
34.0% compared to 31.4% in the fourth quarter of last year.
“This is the fourth quarter in a row that we
have expanded our gross margin rate, improved our cash position and
grew our Adjusted EBITDA on a year-over-year basis. I’m very
proud of our team and these results, particularly in light of the
challenging macro retail environment. As previously noted, we
continue to be on a different journey from our closest competitors.
Our strategy to rebalance our merchandising mix and implement
expense discipline has positioned us well for an exciting
2017.”
Fiscal Year 2016 Fourth Quarter
Highlights
- Net sales were $191 million, a 9.9% decrease
year-over-year.
- Gross profit as a percentage of sales increased 260 basis
points to 34.0%.
- Net income was $2.0 million, a 207% improvement
year-over-year.
- Adjusted EBITDA was $6.4 million, a 31% improvement
year-over-year.
- EPS was $0.03, a 200% improvement year-over-year.
- Total Cash, including restricted cash, was $33 million, a 168%
improvement year-over-year.
Rosenblatt continued, “Looking to 2017, we
believe this will be another strong year of building shareholder
value. Our merchandising plan will remain focused on
delivering a balanced assortment of profitable proprietary,
exclusive and name brand products. We will continue to work
hard to engage our customers more intelligently by leveraging the
use of predictive analytics and interactive marketing to drive
personalization and relevancy to each experience.”
“And equally important, we will continue to find
new methods, territories and technologies to distribute our video
commerce programming beyond the television screen. This will
include growing our revenues in social, mobile, online, and
Over-the-Top platforms like Amazon Firestick, Apple TV and Roku,
and also exploring thoughtful bricks and mortar retailing
partnerships that leverage our video commerce expertise to build a
bridge between traditional retail and e-Commerce.”
SUMMARY RESULTS AND KEY OPERATING
METRICS |
|
($ Millions, except average price points and
EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016 01/28/2017 |
|
Q4 2015 01/30/2016 |
|
Change |
|
YTD 2016 01/28/2017 |
|
YTD 2015 01/30/2016 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
$ |
190.5 |
|
|
$ |
211.5 |
|
|
(9.9 |
%) |
|
$ |
666.2 |
|
|
$ |
693.3 |
|
|
(3.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin % |
|
|
34.0 |
% |
|
|
31.4 |
% |
|
260 bps |
|
|
36.3 |
% |
|
|
34.4 |
% |
|
190 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
6.4 |
|
|
$ |
4.9 |
|
|
31 |
% |
|
$ |
16.2 |
|
|
$ |
9.2 |
|
|
76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) |
|
$ |
2.0 |
|
|
$ |
0.7 |
|
|
207 |
% |
|
$ |
(8.7 |
) |
|
$ |
(12.3 |
) |
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
200 |
% |
|
$ |
(0.15 |
) |
|
$ |
(0.22 |
) |
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Shipped Units (000s) |
|
|
3,132 |
|
|
|
2,907 |
|
|
8 |
% |
|
|
10,263 |
|
|
|
9,853 |
|
|
4 |
% |
|
|
Average
Selling Price (ASP) |
|
$ |
54 |
|
|
$ |
66 |
|
|
(18 |
%) |
|
$ |
57 |
|
|
$ |
64 |
|
|
(11 |
%) |
|
|
Return
Rate % |
|
|
18.4 |
% |
|
|
18.9 |
% |
|
(50 bps) |
|
|
19.4 |
% |
|
|
19.8 |
% |
|
(40 bps) |
|
|
Digital
Net Sales % |
|
|
51.9 |
% |
|
|
49.7 |
% |
|
220 bps |
|
|
49.5 |
% |
|
|
46.9 |
% |
|
260 bps |
|
|
Total Customers - 12 Month Rolling (000s) |
|
1,429 |
|
|
|
1,436 |
|
|
(0 |
%) |
|
|
N/A |
|
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Net
Merchandise Sales by Category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jewelry
& Watches |
|
|
38 |
% |
|
|
35 |
% |
|
|
|
|
41 |
% |
|
|
39 |
% |
|
|
|
|
Home
& Consumer Electronics |
|
|
31 |
% |
|
|
39 |
% |
|
|
|
|
25 |
% |
|
|
31 |
% |
|
|
|
|
Beauty |
|
|
17 |
% |
|
|
13 |
% |
|
|
|
|
16 |
% |
|
|
14 |
% |
|
|
|
|
Fashion
& Accessories |
|
|
14 |
% |
|
|
13 |
% |
|
|
|
|
18 |
% |
|
|
16 |
% |
|
|
|
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2016 Results
- Wearable categories, which include Jewelry & Watches,
Fashion & Accessories, and Beauty, posted solid revenue
performance, and together grew by 2%. However, this growth
was more than offset by a 55% decline in the Consumer Electronics
category, of which more than two-thirds of the decline was related
to not repeating the low margin hoverboard sales from last
year.
- Return rate for the quarter was 18.4%, an improvement of 50
basis points year-over-year
- Gross profit as a percentage of sales increased 260 basis
points to 34.0%, driven by our merchandising mix shift initiatives.
Gross profit dollars decreased 2.4% to $64.8 million.
- Net income was $2.0 million, a 207% improvement year-over-year
and Adjusted EBITDA increased 31% to $6.4 million. These
improvements in profitability were the result of initiatives to
rebalance the merchandising mix and decrease operating expenses
that resulted in a 6% operating expense reduction of $3.7 million
year-over-year, driven primarily by lower content distribution
costs.
- EPS for the fiscal 2016 fourth quarter improved to $0.03, which
includes $0.1 million in distribution facility consolidation and
technology upgrade costs. EPS for the fiscal 2015 fourth quarter
was $0.01, which included $0.1 million in distribution facility
consolidation and technology upgrade costs.
Full Year 2016 Results
- Wearable categories, which include Jewelry & Watches,
Fashion & Accessories, and Beauty, performed consistently
throughout the year, and posted solid revenue performance, growing
by 2%. Beauty had the strongest revenue growth within the
wearables categories at 8%. This growth in wearables was
offset by a 53% decline in the Consumer Electronics category.
- Return rate for the year was 19.4%, an improvement of 40 basis
points year-over-year.
- Gross profit as a percentage of sales increased 190 basis
points to 36.3%, driven by our merchandising mix shift
initiatives. Gross profit dollars increased 1.3% to $241.5
million.
- Net loss was $8.7 million, a 29% improvement year-over-year and
the Adjusted EBITDA increased 76% to $16.2 million. These
improvements in profitability were the result of initiatives to
rebalance the merchandising mix and decrease operating
expenses.
- EPS for the fiscal year was ($0.15), which includes $4.4
million, or ($0.07) of executive and management transition costs,
and $0.7 million, or ($0.01) of distribution facility consolidation
and technology upgrade costs. EPS for fiscal 2015 was ($0.22),
which included $3.5 million, or ($0.06) of executive and management
transition costs and $1.3 million, or ($0.02) of distribution
facility consolidation and technology upgrade costs.
Liquidity and Capital
Resources
As of January 28, 2017, total cash, including
restricted cash, was $33.1 million, compared to $12.3 million at
the end of the fourth quarter of fiscal 2015. The Company also
had an additional $19.8 million of unused availability on its
revolving credit facility with PNC Bank at the end of the fourth
quarter 2016.
After the fourth quarter end, on January 30,
2017, as previously announced, the Company agreed to purchase a
block of 4,400,000 shares of its common stock, representing
approximately 6.7% of shares outstanding, for
approximately $4.9 million or $1.12 per share
in a private transaction with NBCUniversal Media, LLC, a
subsidiary of Comcast
Corporation (“Comcast”)(NASDAQ:CMCSA). The Company used
cash on hand to buy back the shares.
Also after the fourth quarter end and continuing
the Company’s strategy of strengthening its balance sheet, on March
21, 2017 the Company paid down $9.5 million, or approximately 60%,
of its Great American Capital Partners (GACP) high interest term
loan. The Company used a combination of cash on hand and its
lower interest PNC Credit Facility to fund this pay down the GACP
debt.
2017 Outlook
The following details relate to our expected
performance for the first quarter and full year of fiscal 2017:
For First Quarter: We expect
revenues to decline 6% to 9%, which reflects our continued
rebalancing of our merchandising mix to reduce low margin consumer
electronics that began back in the second quarter of 2016. We
also expect to incur approximately $1.6 million in one-time charges
related primarily to the early pay down of GACP debt. From a
bottom-line perspective, we expect to post an improvement in net
income and EPS as compared to prior year’s first quarter
results.
For Full Year: We expect
sales growth in the low single digits for fiscal 2017. We
should show sequential improvement in each quarter so that revenues
will be down low to mid-single digits in the first half of the year
and show growth in the mid-single digits in the second half of the
year. We expect adjusted EBITDA to be in the $18 to $22
million range, which would be growth of 11% to 36% year over
year. Our fiscal year expectations include a 53rd week in
fiscal 2017.
Conference Call
A conference call and webcast to discuss the
Company's fourth quarter earnings will be held at 8:30 a.m. Eastern
Time on Wednesday, March 22, 2017:
WEBCAST LINK:
http://event.on24.com/wcc/r/1282713/98B01DB2607F20329275F010EA22A090
TELEPHONE:
1-877-407-9039
(domestic) or 201-689-8470 (international)
Please visit www.evine.com/ir for more
investor information and to review an updated investor deck.
About Evine Live Inc.Evine Live
Inc. (NASDAQ:EVLV) operates Evine, a multiplatform video commerce
company that offers a compelling mix of proprietary and name brands
directly to consumers in an engaging and informative shopping
experience via television, online and mobile. Evine reaches more
than 87 million cable and satellite television homes 24 hours a day
with entertaining content in a comprehensive digital shopping
experience.
Please visit www.evine.com/ir for more
investor information.
EVINE Live
Inc. |
|
AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 28, |
|
January 30, |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash |
|
|
$ |
32,647 |
|
|
$ |
11,897 |
|
|
|
Restricted cash and investments |
|
|
|
450 |
|
|
|
450 |
|
|
|
Accounts receivable, net |
|
|
|
99,062 |
|
|
|
114,949 |
|
|
|
Inventories |
|
|
|
70,192 |
|
|
|
65,840 |
|
|
|
Prepaid expenses and other |
|
|
|
5,510 |
|
|
|
5,913 |
|
|
|
|
Total current assets |
|
|
|
207,861 |
|
|
|
199,049 |
|
|
Property and equipment, net |
|
|
|
52,715 |
|
|
|
52,629 |
|
|
FCC
broadcasting license |
|
|
|
12,000 |
|
|
|
12,000 |
|
|
Other assets |
|
|
|
2,204 |
|
|
|
1,819 |
|
|
|
|
|
|
|
|
$ |
274,780 |
|
|
$ |
265,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
65,796 |
|
|
$ |
77,779 |
|
|
|
Accrued liabilities |
|
|
|
37,858 |
|
|
|
35,342 |
|
|
|
Current portion of long term credit facilities |
|
|
3,242 |
|
|
|
2,143 |
|
|
|
Deferred revenue |
|
|
|
85 |
|
|
|
85 |
|
|
|
|
Total current liabilities |
|
|
|
106,981 |
|
|
|
115,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities |
|
|
|
428 |
|
|
|
164 |
|
|
Deferred tax liability |
|
|
|
3,522 |
|
|
|
2,734 |
|
|
Long term credit facilities |
|
|
|
82,146 |
|
|
|
70,271 |
|
|
|
|
Total liabilities |
|
|
|
193,077 |
|
|
|
188,518 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 400,000 shares
authorized; |
|
|
|
|
|
|
zero shares issued and outstanding |
|
|
- |
|
|
|
- |
|
|
|
Common stock, $.01 par value, 100,000,000 shares
authorized; |
|
|
|
|
|
|
65,192,314 and 57,170,245 shares issued and outstanding |
|
652 |
|
|
|
571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
|
436,962 |
|
|
|
423,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated deficit |
|
|
|
(355,911 |
) |
|
|
(347,166 |
) |
|
|
Total shareholders' equity |
|
|
|
81,703 |
|
|
|
76,979 |
|
|
|
|
|
|
|
$ |
274,780 |
|
|
$ |
265,497 |
|
|
EVINE Live
Inc. |
|
|
AND
SUBSIDIARIES |
|
|
CONSOLIDATED STATEMENTS
OF OPERATIONS |
|
|
(Unaudited) |
|
|
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Periods
Ended |
|
For the Twelve-Month Periods
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 28, |
|
January 30, |
|
January 28, |
|
January 30, |
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Net
sales |
$ |
190,518 |
|
|
$ |
211,542 |
|
|
$ |
666,213 |
|
|
$ |
693,312 |
|
|
|
Cost of sales |
|
125,698 |
|
|
|
145,133 |
|
|
|
424,686 |
|
|
|
454,832 |
|
|
|
|
|
|
Gross profit |
|
64,820 |
|
|
|
66,409 |
|
|
|
241,527 |
|
|
|
238,480 |
|
|
|
|
|
|
Margin % |
|
34.0 |
% |
|
|
31.4 |
% |
|
|
36.3 |
% |
|
|
34.4 |
% |
|
|
Operating expense: |
|
|
|
|
|
|
|
|
|
|
Distribution and selling |
|
52,839 |
|
|
|
56,134 |
|
|
|
207,030 |
|
|
|
209,328 |
|
|
|
|
General and administrative |
|
6,049 |
|
|
|
6,442 |
|
|
|
23,386 |
|
|
|
24,520 |
|
|
|
|
Depreciation and amortization |
|
2,016 |
|
|
|
2,105 |
|
|
|
8,041 |
|
|
|
8,474 |
|
|
|
|
Executive and management transition costs |
|
- |
|
|
|
- |
|
|
|
4,411 |
|
|
|
3,549 |
|
|
|
|
Distribution facility consolidation and technology upgrade
costs |
|
147 |
|
|
|
81 |
|
|
|
677 |
|
|
|
1,347 |
|
|
|
|
|
Total operating expense |
|
61,051 |
|
|
|
64,762 |
|
|
|
243,545 |
|
|
|
247,218 |
|
|
|
Operating income
(loss) |
|
3,769 |
|
|
|
1,647 |
|
|
|
(2,018 |
) |
|
|
(8,738 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
. |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
4 |
|
|
|
2 |
|
|
|
11 |
|
|
|
8 |
|
|
|
|
Interest expense |
|
(1,540 |
) |
|
|
(763 |
) |
|
|
(5,937 |
) |
|
|
(2,720 |
) |
|
|
|
|
Total other expense |
|
(1,536 |
) |
|
|
(761 |
) |
|
|
(5,926 |
) |
|
|
(2,712 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
2,233 |
|
|
|
886 |
|
|
|
(7,944 |
) |
|
|
(11,450 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
(186 |
) |
|
|
(219 |
) |
|
|
(801 |
) |
|
|
(834 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
$ |
2,047 |
|
|
$ |
667 |
|
|
$ |
(8,745 |
) |
|
$ |
(12,284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per common share |
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
(0.15 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
---assuming dilution |
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
(0.15 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of |
|
|
|
|
|
|
|
|
|
common
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
64,185,333 |
|
|
|
57,158,427 |
|
|
|
59,784,594 |
|
|
|
57,004,321 |
|
|
|
|
|
|
Diluted |
|
64,491,508 |
|
|
|
57,158,427 |
|
|
|
59,784,594 |
|
|
|
57,004,321 |
|
|
|
EVINE Live Inc. |
|
AND SUBSIDIARIES |
|
Reconciliation of Adjusted EBITDA to Net
Income (Loss): |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month
Periods Ended |
|
For the Twelve-Month
Periods Ended |
|
|
|
|
|
|
|
|
|
|
|
January 28, |
January 30, |
|
January 28, |
January 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(000's) |
|
$ |
6,436 |
|
$ |
4,926 |
|
|
$ |
16,225 |
|
$ |
9,206 |
|
|
Less: |
|
|
|
|
|
|
|
Executive
and management transition costs |
|
|
- |
|
|
- |
|
|
|
(4,411 |
) |
|
(3,549 |
) |
|
Distribution facility consolidation and technology upgrade
costs |
|
(147 |
) |
|
(81 |
) |
|
|
(677 |
) |
|
(1,347 |
) |
|
Shareholder Rights Plan costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(446 |
) |
|
Non-cash
share-based compensation |
|
|
(514 |
) |
|
(136 |
) |
|
|
(1,946 |
) |
|
(2,275 |
) |
|
EBITDA (as
defined) |
|
|
5,775 |
|
|
4,709 |
|
|
|
9,191 |
|
|
1,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
EBITDA to net income (loss) is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(as defined) |
|
|
5,775 |
|
|
4,709 |
|
|
|
9,191 |
|
|
1,589 |
|
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
(2,006 |
) |
|
(3,062 |
) |
|
|
(11,209 |
) |
|
(10,327 |
) |
|
Interest
income |
|
|
4 |
|
|
2 |
|
|
|
11 |
|
|
8 |
|
|
Interest
expense |
|
|
(1,540 |
) |
|
(763 |
) |
|
|
(5,937 |
) |
|
(2,720 |
) |
|
Income
taxes |
|
|
(186 |
) |
|
(219 |
) |
|
|
(801 |
) |
|
(834 |
) |
|
Net Income (loss) |
|
$ |
2,047 |
|
$ |
667 |
|
|
$ |
(8,745 |
) |
$ |
(12,284 |
) |
|
Adjusted EBITDA
EBITDA represents net income (loss) for the
respective periods excluding depreciation and amortization expense,
interest income (expense) and income taxes. The Company defines
Adjusted EBITDA as EBITDA excluding non-operating gains (losses);
executive and management transition costs; distribution facility
consolidation and technology upgrade costs; Shareholder Rights Plan
costs and non-cash share-based compensation expense. The Company
has included the term “Adjusted EBITDA” in our EBITDA
reconciliation in order to adequately assess the operating
performance of our television and online businesses and in order to
maintain comparability to our analyst's coverage and financial
guidance, when given. Management believes that the term Adjusted
EBITDA allows investors to make a more meaningful comparison
between our business operating results over different periods of
time with those of other similar companies. In addition, management
uses Adjusted EBITDA as a metric to evaluate operating performance
under the Company’s management and executive incentive compensation
programs. Adjusted EBITDA should not be construed as an alternative
to operating income (loss), net income (loss) or to cash flows from
operating activities as determined in accordance with generally
accepted accounting principles and should not be construed as a
measure of liquidity. Adjusted EBITDA may not be comparable to
similarly entitled measures reported by other companies. The
Company has included a reconciliation of Adjusted EBITDA to net
income (loss), the most directly comparable GAAP financial measure,
in this release.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This document may contain certain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements may be
identified by words such as anticipate, believe, estimate, expect,
intend, predict, hope, should, plan, will or similar expressions.
Any statements contained herein that are not statements of
historical fact may be deemed forward-looking statements. These
statements are based on management's current expectations and
accordingly are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors,
including (but not limited to): consumer preferences, spending and
debt levels; the general economic and credit environment; interest
rates; seasonal variations in consumer purchasing activities; the
ability to achieve the most effective product category mixes to
maximize sales and margin objectives; competitive pressures on
sales; pricing and gross sales margins; the level of cable and
satellite distribution for our programming and the associated fees
or estimated cost savings from contract renegotiations; our ability
to establish and maintain acceptable commercial terms with
third-party vendors and other third parties with whom we have
contractual relationships, and to successfully manage key vendor
relationships and develop key partnerships and proprietary and
exclusive brands; our ability to manage our operating expenses
successfully and our working capital levels; our ability to remain
compliant with our credit facilities covenants; customer acceptance
of our branding strategy and our repositioning as a digital
commerce company; the market demand for television station sales;
changes to our management and information systems infrastructure;
challenges to our data and information security; changes in
governmental or regulatory requirements; including without
limitation, regulations of the Federal Communications Commission
and Federal Trade Commission, and adverse outcomes from regulatory
proceedings; litigation or governmental proceedings affecting our
operations; significant public events that are difficult to
predict, or other significant television-covering events causing an
interruption of television coverage or that directly compete with
the viewership of our programming; our ability to obtain and retain
key executives and employees; our ability to attract new customers
and retain existing customers; changes in shipping costs; our
ability to offer new or innovative products and customer acceptance
of the same; changes in customer viewing habits of television
programming; and the risks identified under “Risk Factors” in our
recently filed Form 10-K and any additional risk factors identified
in our periodic reports since the date of such Form 10-K. More
detailed information about those factors is set forth in our
filings with the Securities and Exchange Commission, including our
annual report on Form 10-K, quarterly reports on Form 10-Q, and
current reports on Form 8-K. You are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date of this announcement. We are under no obligation (and
expressly disclaim any such obligation) to update or alter our
forward-looking statements whether as a result of new information,
future events or otherwise.
Contacts
Media:
Dawn Zaremba
press@evine.com
(952) 943-6043
Investors:
Michael Porter
mporter@evine.com
(952) 943-6517
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