Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB,
QRTEP) today reported first quarter 2024 results(1).
“Our first quarter results demonstrate the continued momentum in
our turnaround. We expanded gross margins for the fourth
consecutive quarter, increased Adjusted OIBDA over 40% as reported
for the third consecutive quarter of growth, and improved free cash
flow year-over-year for the fifth consecutive quarter," said David
Rawlinson, President and CEO of Qurate Retail. “We are successfully
delivering on our transformation initiatives to reduce costs and
improve product margins while prioritizing enhanced merchandise,
brand launches and celebrity partnerships which are hallmarks of
the QVC and HSN brands. We are focused on achieving our stated
objectives throughout 2024 and positioning the business for
sustainable future growth.
“In April, we launched our Age of Possibility campaign, where we
brought together a group of Quintessential 50 ambassadors including
Billie Jean King, Patti LaBelle, Queen Latifah, Martha Stewart and
many other inspiring women to tell their stories and celebrate our
core customer of women over 50.”
First quarter 2024 operating results:
- Qurate Retail revenue decreased 4%(2) in both US Dollars and
constant currency(3)
- Qurate Retail grew Adjusted OIBDA(4) 25%(2) in constant
currency
- Qurate Retail reported diluted EPS of $0.00
- Adjusted diluted EPS(4) of $0.04
- QxH revenue decreased 4%
- QVC International revenue decreased 3%
- In constant currency, revenue decreased 1%
- Cornerstone revenue decreased 11%
Corporate headlines:
- Repaid remaining $423 million principal outstanding of QVC’s
4.85% senior secured notes due April 2024
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended March 31, 2024 to
the same period in 2023.
FIRST
QUARTER 2024 FINANCIAL RESULTS
(amounts in millions)
1Q23
1Q24
% Change
% Change Constant Currency(a)
Revenue
QxH
$
1,601
$
1,539
(4
)%
QVC International
592
572
(3
)%
(1
)%
Cornerstone
259
231
(11
)%
Total Qurate Retail Revenue (excluding
Zulily)
2,452
2,342
(4
)%
(4
)%
Zulily(b)
192
—
NM
Total Qurate Retail Revenue (as
reported)
$
2,644
$
2,342
(11
)%
(11
)%
Operating Income (Loss)
QxH(c)
$
74
$
94
27
%
QVC International(d)
156
63
(60
)%
(57
)%
Cornerstone
(2
)
(3
)
(50
)%
Unallocated corporate cost
(9
)
(9
)
-
%
Total Qurate Retail Operating Income
(excluding Zulily)
219
145
(34
)%
(32
)%
Zulily(b)
(43
)
—
NM
Total Qurate Retail Operating Income
(as reported)
$
176
$
145
(18
)%
(15
)%
Adjusted OIBDA
QxH(c)
$
139
$
185
33
%
QVC International(d)
72
75
4
%
10
%
Cornerstone
4
6
50
%
Unallocated corporate cost
(5
)
(7
)
(40
)%
Total Qurate Retail Adjusted OIBDA
(excluding Zulily)
$
210
$
259
23
%
25
%
Zulily(b)
(31
)
—
NM
Total Qurate Retail Adjusted OIBDA (as
reported)
$
179
$
259
45
%
47
%
____________________
a)
For a definition of constant
currency financial metrics, see the accompanying schedules.
b)
Zulily, LLC (“Zulily”) was
divested on May 24, 2023.
c)
In the first quarter of 2023, QxH
incurred $21 million of net gains primarily related to Rocky Mount
fire related costs, net of recoveries and the sale of its Rocky
Mount fulfillment center. These are included in operating income
and excluded from Adjusted OIBDA. See Reconciling Schedule 2.
d)
In the first quarter of 2023, QVC
International recorded $113 million of gains related to the sale
leaseback of the UK and German fulfillment centers partially offset
by $17 million of restructuring charges. In the first quarter of
2024, QVC International recorded a $1 million gain related to the
sale leaseback of a German property. These are included in
operating income and excluded from Adjusted OIBDA. See Reconciling
Schedule 2.
FIRST
QUARTER 2024 NET INCOME AND ADJUSTED NET INCOME(4)
(amounts in millions)
1Q23
1Q24
Net income (loss)
$
20
$
(1
)
Adjusted net income (loss)(a)
$
(20
)
$
17
Basic weighted average shares outstanding
("WASO")
383
392
Potentially dilutive shares
1
1
Diluted WASO
384
393
GAAP EPS(b)
$
0.05
$
—
Adjusted EPS(a)
$
(0.05
)
$
0.04
____________________
a)
See Reconciling Schedule 3.
b)
Represents diluted net income per
share attributable to Series A and Series B common stockholders as
presented in Qurate Retail’s financial statements.
QxH
QxH revenue declined primarily due to a 4% decrease in units
shipped, partially offset by favorable returns and higher shipping
and handling revenue. QxH reported sales declines mainly in home
and apparel, partially offset by growth in accessories and
jewelry.
Operating income and Adjusted OIBDA margin(4) increased mainly
due to higher product margins and lower fulfillment (warehouse and
freight) and administrative expenses, partially offset by higher
marketing costs. Product margins increased primarily due to mix
shift to higher-margin products and lower supply chain costs.
Fulfillment favorability primarily reflected lower freight rates
and efficiencies from Project Athens initiatives. Administrative
expenses declined primarily due to lower costs for outside services
related to Project Athens. Marketing expenses increased largely due
to the normalization of the annual spend compared to the prior
year.
QVC International
US Dollar denominated results were negatively impacted by
exchange rate fluctuations due to the US Dollar strengthening 11%
against the Japanese Yen, which was partially offset by the US
Dollar weakening 5% against the British Pound and 1% against the
Euro. The financial metrics presented in this press release also
provide a comparison of the percentage change in QVC
International’s results in constant currency (where applicable) to
the comparable figures calculated in accordance with US GAAP for
the first quarter of 2024.
QVC International’s constant currency revenue declined slightly
as a 4% increase in units shipped was offset by a 5% decrease in
average selling price. QVC International reported constant currency
revenue growth in home, with declines in all other categories.
Operating income decreased primarily as a result of comparing
against $113 million of gains recognized in the prior year related
to the UK and German sale leaseback transactions.
Adjusted OIBDA margin increased mainly due to higher product
margins and lower administrative expenses. Product margins
increased primarily due to favorable returns, higher initial
margins and shipping and handling revenue. Lower administrative
expenses mainly reflected lower personnel expenses.
Cornerstone
Cornerstone revenue decreased due to continued softness in
certain categories in the home sector and for apparel at Garnet
Hill.
Operating income margin decreased primarily due to higher
depreciation related to the opening of six new retail stores and
the relocation of four stores in the past year.
Adjusted OIBDA margin increased primarily due to lower supply
chain costs, partially offset by deleverage of administrative costs
and marketing expenses.
FIRST
QUARTER 2024 SUPPLEMENTAL METRICS
(amounts in millions unless otherwise
noted)
1Q23
1Q24
% Change
% Change Constant Currency(a)
QxH
Cost of Goods Sold % of Revenue
69.0
%
65.4
%
(360
) bps
Operating Income Margin (%)(b)
4.6
%
6.1
%
150
bps
Adjusted OIBDA Margin (%)(b)
8.7
%
12.0
%
330
bps
Average Selling Price
$
53.90
$
53.60
(1
)%
Units Sold
(4
)%
Return Rate(c)
16.0
%
15.4
%
(60
) bps
eCommerce Revenue(d)
$
961
$
958
-
%
eCommerce % of Total Revenue
60.0
%
62.2
%
220
bps
Mobile % of eCommerce Revenue(e)
68.3
%
69.8
%
150
bps
LTM Total Customers(f)
8.5
8.0
(6
)%
QVC International
Cost of Goods Sold % of Revenue
64.7
%
64.0
%
(70
) bps
Operating Income Margin (%)(g)
26.4
%
11.0
%
(1,540
) bps
Adjusted OIBDA Margin (%)(g)
12.2
%
13.1
%
90
bps
Average Selling Price
(7
)%
(5
)%
Units Sold
4
%
Return Rate(c)
19.3
%
19.2
%
(10
) bps
eCommerce Revenue(d)
$
280
$
294
5
%
7
%
eCommerce % of Total Revenue
47.3
%
51.4
%
410
bps
Mobile % of eCommerce Revenue(e)
69.5
%
68.8
%
(70
) bps
LTM Total Customers(f)
4.3
4.1
(5
)%
Cornerstone
Cost of Goods Sold % of Revenue
63.8
%
59.7
%
(410
) bps
Operating Income Margin (%)
(0.8
)%
(1.3
)%
(50
) bps
Adjusted OIBDA Margin (%)
1.5
%
2.6
%
110
bps
eCommerce Revenue(d)
$
197
$
175
(11
)%
eCommerce % of Total Revenue
76.1
%
75.8
%
(30
) bps
____________________
a)
For a definition of constant
currency financial metrics, see the accompanying schedules.
b)
In the first quarter of 2023, QxH
incurred $21 million of net gains primarily related to Rocky Mount
fire related costs, net of recoveries and the sale of its Rocky
Mount fulfillment center. These are included in operating income
and excluded from Adjusted OIBDA. See Reconciling Schedule 2.
c)
Measured as returned sales over
gross shipped sales in US Dollars.
d)
Based on net revenue.
e)
Based on gross US Dollar
orders.
f)
LTM: Last twelve months.
g)
In the first quarter of 2023, QVC
International recorded $113 million of gains related to the sale
leaseback of the UK and German fulfillment centers partially offset
by $17 million of restructuring charges. In the first quarter of
2024, QVC International recorded a $1 million gain related to the
sale leaseback of a German property. These are included in
operating income and excluded from Adjusted OIBDA. See Reconciling
Schedule 2.
FOOTNOTES
1)
Qurate Retail will discuss these
headlines and other matters on Qurate Retail’s earnings conference
call that will begin at 8:30 a.m. (E.T.) on May 8, 2024. For
information regarding how to access the call, please see “Important
Notice” later in this document.
2)
Adjusted for the divestiture of
Zulily on May 24, 2023.
3)
For a definition of constant
currency financial metrics, see the accompanying schedules.
Applicable reconciliations can be found in the financial tables at
the beginning of this press release.
4)
For definitions and applicable
reconciliations of Adjusted OIBDA, Adjusted OIBDA margin, adjusted
net income and adjusted diluted EPS, see the accompanying
schedules.
NOTES
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
12/31/2023
3/31/2024
Cash and cash equivalents
(GAAP)
$
1,121
$
1,102
Debt:
QVC senior secured notes(a)
$
3,509
$
3,086
QVC senior secured bank credit
facility
857
1,295
Total Qurate Retail Group Debt
$
4,366
$
4,381
Senior notes(a)
792
792
Senior exchangeable debentures(b)
781
780
Corporate Level Debentures
1,573
1,572
Total Qurate Retail, Inc. Debt
$
5,939
$
5,953
Unamortized discount, fair market value
adjustment and deferred loan costs
(599
)
(462
)
Total Qurate Retail, Inc. Debt
(GAAP)
$
5,340
$
5,491
Other Financial Obligations:
Preferred stock(c)
$
1,270
$
1,272
QVC, Inc. leverage(d)
2.4x
2.5x
____________________
a)
Face amount of Senior Notes and
Debentures with no reduction for the unamortized discount.
b)
Face amount of Senior
Exchangeable Debentures with no adjustment for the fair market
value adjustment.
c)
Preferred Stock has an 8% coupon,
$100 per share initial liquidation preference plus accrued and
unpaid dividends and is non-voting. It is subject to mandatory
redemption on March 15, 2031. The Preferred Stock is considered a
liability for GAAP purposes, and is recorded net of capitalized
costs.
d)
As defined in QVC’s credit
agreement. A portion of expected cost savings are included in
Adjusted EBITDA for purposes of the covenant calculations under
QVC’s bank credit facility.
Cash at Qurate Retail decreased $19 million in the first quarter
as cash from operations and net borrowings were primarily offset by
capital expenditures during the period. Total debt at Qurate
Retail, Inc. increased $14 million in the first quarter as
additional borrowings under QVC’s bank credit facility more than
offset debt repayment. Qurate Retail redeemed the remaining $423
million principal outstanding of QVC’s 4.85% senior secured notes
due April 2024 in the first quarter.
QVC’s bank credit facility has $1.3 billion drawn as of March
31, 2024 with incremental availability of $1.9 billion, net of
letters of credit. QVC’s leverage ratio, as defined by the QVC
revolving credit facility, was 2.5x at quarter-end. Pursuant to the
terms of QVC’s revolving credit facility, a portion of expected
cost savings are included in operating income for purposes of QVC’s
leverage ratio for covenant calculations. QVC’s leverage ratio
increased slightly from December 31, 2023 due to certain add backs
no longer impacting the calculation, though these add backs were
largely offset by growth in Adjusted OIBDA.
As of March 31, 2024, QVC’s consolidated leverage ratio (as
calculated under QVC’s senior secured notes) was greater than 3.5x
and as a result QVC is restricted in its ability to make unlimited
dividends or other restricted payments. Dividends made by QVC to
service the principal and interest of indebtedness of its parent
entities, as well as payments made by QVC to Qurate Retail under an
intercompany tax sharing agreement in respect of certain tax
obligations of QVC and its subsidiaries, are permitted under the
bond indenture and credit agreement.
Qurate Retail is in compliance with all debt covenants as of
March 31, 2024.
Important Notice: Qurate Retail, Inc. (Nasdaq: QRTEA,
QRTEB, QRTEP) will discuss Qurate Retail’s earnings release on a
conference call which will begin at 8:30 a.m. (E.T.) on May 8,
2024. The call can be accessed by dialing (877) 704-4234 or (215)
268-9904, passcode 13742823, at least 10 minutes prior to the start
time. The call will also be broadcast live across the Internet and
archived on our website. To access the webcast go to
https://www.qurateretail.com/investors/news-events/ir-calendar.
Links to this press release and replays of the call will also be
available on Qurate Retail’s website.
This press release includes certain forward-looking statements,
including statements about business strategies and initiatives
(including Project Athens) and their expected benefits, market
potential, future financial performance and prospects and other
matters that are not historical facts. These forward-looking
statements involve many risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements, including, without limitation, possible changes
in market acceptance of new products or services, competitive
issues, regulatory matters affecting our businesses, continued
access to capital on terms acceptable to Qurate Retail, changes in
law and government regulations, the availability of investment
opportunities, general market conditions (including as a result of
future public health crises), issues impacting the global supply
chain and labor market and use of social media and influencers.
These forward-looking statements speak only as of the date of this
press release, and Qurate Retail expressly disclaims any obligation
or undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
Qurate Retail's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. Please refer to the publicly filed documents of Qurate
Retail, including the most recent Forms 10-K and 10-Q, for
additional information about Qurate Retail and about the risks and
uncertainties related to Qurate Retail's business which may affect
the statements made in this press release.
NON-GAAP FINANCIAL MEASURES
To provide investors with additional information regarding our
financial results, this press release includes a presentation of
Adjusted OIBDA, which is a non-GAAP financial measure, for Qurate
Retail, QVC (and certain of its subsidiaries), Zulily (through May
23, 2023) and Cornerstone together with a reconciliation to that
entity or such businesses’ operating income, as determined under
GAAP. Qurate Retail defines Adjusted OIBDA as operating income
(loss) plus depreciation and amortization, stock-based
compensation, and where applicable, separately identified
impairments, litigation settlements, restructuring, penalties,
acquisition-related costs, fire related costs, net (including Rocky
Mount inventory losses), and (gains) losses on sale leaseback
transactions. Further, this press release includes Adjusted OIBDA
margin, which is also a non-GAAP financial measure. Qurate Retail
defines Adjusted OIBDA margin as Adjusted OIBDA divided by
revenue.
Qurate Retail believes Adjusted OIBDA is an important indicator
of the operational strength and performance of its businesses by
identifying those items that are not directly a reflection of each
business’s performance or indicative of ongoing business trends. In
addition, this measure allows management to view operating results
and perform analytical comparisons and benchmarking between
businesses and identify strategies to improve performance. Because
Adjusted OIBDA is used as a measure of operating performance,
Qurate Retail views operating income as the most directly
comparable GAAP measure. Adjusted OIBDA is not meant to replace or
supersede operating income or any other GAAP measure, but rather to
supplement such GAAP measures in order to present investors with
the same information that Qurate Retail's management considers in
assessing the results of operations and performance of its assets.
Please see the attached schedules for applicable
reconciliations.
In addition, this press release includes references to adjusted
net income and adjusted earnings per share, which are non-GAAP
financial measures, for Qurate Retail. Qurate Retail defines
adjusted net income as net income, excluding the impact of
acquisition accounting amortization (net of deferred tax benefit),
mark-to-market adjustments on certain public debt and equity
securities, (gain) loss on sale of fixed assets and other one-time
adjustments. Qurate Retail defines adjusted earnings per share as
diluted earnings per share plus the diluted per share effects of
certain adjustments, net of tax.
Qurate Retail believes adjusted net income and adjusted earnings
per share are important indicators of financial performance due to
the impact of purchase accounting amortization, mark-to-market
adjustments and other one-time items identified in Schedule 3
below. Because adjusted net income and adjusted earnings per share
are used as measures of overall financial performance, Qurate
Retail views net income and diluted earnings per share,
respectively, as the most directly comparable GAAP measures.
Adjusted net income and adjusted earnings per share are not meant
to replace or supersede net income, diluted earnings per share or
any other GAAP measure, but rather to supplement such GAAP measures
in order to present investors with a supplemental metric of
financial performance. Please see the attached schedules for a
reconciliation of adjusted net income to net income (loss) and
adjusted earnings per share to diluted earnings per share, in each
case, calculated in accordance with GAAP for Qurate Retail
(Schedule 3).
This press release also references certain financial metrics on
a constant currency basis, which is a non-GAAP measure, for Qurate
Retail. Constant currency financial metrics, as presented herein,
are calculated by translating the current-year and prior-year
reported amounts into comparable amounts using a single foreign
exchange rate for each currency.
Qurate Retail believes constant currency financial metrics are
an important indicator of financial performance, in particular for
QVC, due to the translational impact of foreign currency
fluctuations relating to its subsidiaries in the UK, Germany, Italy
and Japan. We use constant currency financial metrics to provide a
framework to assess how our businesses performed excluding the
effects of foreign currency exchange fluctuations. Please see the
financial tables at the beginning of this press release for a
reconciliation of the impact of foreign currency fluctuations on
revenue, operating income, Adjusted OIBDA and average selling
price.
SCHEDULE 1
The following table provides a reconciliation of Qurate Retail’s
Adjusted OIBDA to its operating income (loss) calculated in
accordance with GAAP for the three months ended March 31, 2023,
June 30, 2023, September 30, 2023, December 31, 2023 and March 31,
2024, respectively.
CONSOLIDATED
OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION
(amounts in millions)
1Q23
2Q23
3Q23
4Q23
1Q24
Qurate Retail Operating Income
(Loss)
$
176
$
366
$
151
$
(103
)
$
145
Depreciation and amortization
100
104
105
98
99
Stock compensation expense
16
14
10
13
16
Restructuring, penalties and fire related
costs, net of (recoveries) (including Rocky Mount inventory
losses)(a)
—
(208
)
19
—
—
Impairment of intangible assets(b)
—
—
—
326
—
(Gains) losses on sale of assets and sale
leaseback transactions(c)
(113
)
(6
)
—
6
(1
)
Qurate Retail Adjusted OIBDA
$
179
$
270
$
285
$
340
$
259
____________________
a)
In the second quarter of 2023,
QxH recognized (i) a $209 million net gain on insurance proceeds
representing insurance proceeds received in excess of fire-related
costs and (ii) a $2 million gain on the sale of Rocky Mount in
February 2023 that was released from escrow. Additionally, in the
second quarter of 2023, Cornerstone recorded $2 million and Zulily
recorded $1 million of restructuring charges, both related to
workforce reductions. In the third quarter of 2023, QxH incurred
(i) a $2 million gain on the sale of Rocky Mount in February 2023
on proceeds released from escrow and (ii) $21 million of
restructuring, penalties and fire-related costs. These items are
included in operating income and excluded from Adjusted OIBDA.
b)
In the fourth quarter of 2023,
QxH recognized a $326 million non-cash impairment charge related to
goodwill.
c)
Includes gains related to the
sale leaseback of the UK and German fulfillment centers in the
first quarter of 2023, a gain on the sale of an intangible asset
primarily related to the sale of a channel positioning right in the
second quarter of 2023, a loss related to the sale leaseback of a
German property in the fourth quarter of 2023 and a gain related to
the sale leaseback of a German property in the first quarter of
2024.
SCHEDULE 2
The following table provides a reconciliation of Adjusted OIBDA
for QVC and Cornerstone to that entity or such businesses'
operating income (loss) calculated in accordance with GAAP for the
three months ended March 31, 2023, June 30, 2023, September 30,
2023, December 31, 2023 and March 31, 2024, respectively.
SUBSIDIARY ADJUSTED
OIBDA RECONCILIATION
(amounts in millions)
1Q23
2Q23
3Q23
4Q23
1Q24
QVC
Operating income (loss)
$
230
$
374
$
154
$
(113
)
$
157
Depreciation and amortization
89
94
98
91
92
Stock compensation
9
11
7
10
12
Restructuring, penalties and fire related
costs, net of (recoveries) (including Rocky Mount inventory
losses)
(4
)
(211
)
19
—
—
(Gains) losses on sale of assets and sale
leaseback transactions
(113
)
(6
)
—
6
(1
)
Impairment of intangible assets
—
—
—
326
—
Adjusted OIBDA
$
211
$
262
$
278
$
320
$
260
QxH Adjusted OIBDA
$
139
$
185
$
201
$
221
$
185
QVC International Adjusted
OIBDA
$
72
$
77
$
77
$
99
$
75
Cornerstone
Operating income (loss)
$
(2
)
$
15
$
4
$
18
$
(3
)
Depreciation and amortization
5
7
7
7
7
Stock compensation
1
1
—
2
2
Restructuring costs
—
2
—
—
—
Adjusted OIBDA
$
4
$
25
$
11
$
27
$
6
SCHEDULE 3
The following table provides a reconciliation of Qurate Retail’s
net income (loss) to its adjusted net income and diluted earnings
(loss) per share to adjusted earnings per share, in each case,
calculated in accordance with GAAP for the three months ended March
31, 2023, June 30, 2023, September 30, 2023, December 31, 2023 and
March 31, 2024, respectively.
ADJUSTED NET INCOME
AND ADJUSTED EPS RECONCILIATION
(amounts in millions)
1Q23
2Q23
3Q23
4Q23
1Q24
Qurate Retail Net Income (Loss)
(GAAP)
$
20
$
107
$
1
$
(273
)
$
(1
)
Purchase accounting amort., net of
deferred tax benefit(a)
17
15
14
14
14
Impairment of intangible assets, net of
tax impact
—
—
—
326
—
Restructuring, penalties and fire related
costs, net of (recoveries) and tax impact (including Rocky Mount
inventory losses)
—
(156
)
14
—
—
(Gains) losses on sale of intangible asset
and sale leaseback transactions, net of tax impact
(92
)
(5
)
—
6
(2
)
Mark-to-market adjustments, net(b)
35
26
11
14
6
Adjusted Net Income (Loss)
$
(20
)
$
(13
)
$
40
$
87
$
17
Diluted earnings (loss) per share
(GAAP)
$
0.05
$
0.28
$
—
$
(0.70
)
$
—
Total adjustments per share, net of
tax
(0.10
)
(0.31
)
0.10
0.92
0.04
Adjusted earnings (loss) per
share
$
(0.05
)
$
(0.03
)
$
0.10
$
0.22
$
0.04
____________________
a)
Add-back relates to non-cash,
non-tax deductible purchase accounting amortization from Qurate
Retail’s acquisitions of QVC, HSN, Zulily and Cornerstone, net of
book deferred tax benefit.
b)
Add-back includes realized and
unrealized gains/losses on financial instruments, net of tax.
QURATE RETAIL, INC.
CONDENSED CONSOLIDATED BALANCE
SHEET INFORMATION
(unaudited)
March 31,
December 31,
2024
2023
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
1,102
1,121
Trade and other receivables, net of
allowance for credit losses
980
1,308
Inventory, net
1,134
1,044
Other current assets
170
209
Total current assets
3,386
3,682
Property and equipment, net
496
512
Intangible assets not subject to
amortization
5,839
5,862
Intangible assets subject to amortization,
net
495
526
Operating lease right-of-use assets
629
635
Other assets, at cost, net of accumulated
amortization
136
151
Total assets
$
10,981
11,368
Liabilities and Equity
Current liabilities:
Accounts payable
789
895
Accrued liabilities
715
983
Current portion of debt
939
642
Other current liabilities
100
97
Total current liabilities
2,543
2,617
Long-term debt
4,552
4,698
Deferred income tax liabilities
1,504
1,531
Preferred stock
1,272
1,270
Operating lease liabilities
617
615
Other liabilities
142
148
Total liabilities
10,630
10,879
Equity
255
385
Non-controlling interests in equity of
subsidiaries
96
104
Total liabilities and equity
$
10,981
11,368
QURATE RETAIL, INC.
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS INFORMATION
(unaudited)
Three months ended
March 31,
2024
2023
amounts in millions
Revenue:
Total revenue, net
$
2,342
2,644
Operating costs and expenses:
Cost of goods sold (exclusive of
depreciation shown separately below)
1,511
1,809
Operating expense
180
194
Selling, general and administrative,
including stock-based compensation
408
478
Depreciation and amortization
99
100
Gain on sale of assets and leaseback
transactions
(1
)
(113
)
2,197
2,468
Operating income (loss)
145
176
Other income (expense):
Interest expense
(117
)
(94
)
Dividend and interest income
12
11
Realized and unrealized gains (losses) on
financial instruments, net
(7
)
(32
)
Other, net
(2
)
4
(114
)
(111
)
Earnings (loss) before income taxes
31
65
Income tax (expense) benefit
(23
)
(32
)
Net earnings (loss)
8
33
Less net earnings (loss) attributable to
the noncontrolling interests
9
13
Net earnings (loss) attributable to Qurate
Retail, Inc. shareholders
$
(1
)
20
QURATE RETAIL, INC.
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS INFORMATION
(unaudited)
Three months ended
March 31,
2024
2023
amounts in millions
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)
$
8
33
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
99
100
Stock-based compensation
16
16
Realized and unrealized (gains) losses on
financial instruments, net
7
32
Gain on sale of assets and sale leaseback
transactions
(1
)
(113
)
Gain on insurance proceeds, net of fire
related costs
—
(17
)
Insurance proceeds received for operating
expenses and business interruption losses
—
37
Deferred income tax expense (benefit)
(2
)
(2
)
Other, net
4
9
Changes in operating assets and
liabilities
Decrease (increase) in accounts
receivable
313
294
Decrease (increase) in inventory
(94
)
25
Decrease (increase) in prepaid expenses
and other assets
45
48
(Decrease) increase in trade accounts
payable
(101
)
(167
)
(Decrease) increase in accrued and other
liabilities
(268
)
(279
)
Net cash provided (used) by operating
activities
26
16
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(40
)
(54
)
Expenditures for television distribution
rights
(2
)
(38
)
Cash proceeds from dispositions of
investments
6
1
Proceeds from sale of fixed assets
6
198
Insurance proceeds received for fixed
asset loss
—
18
Payments for settlements of financial
instruments
—
(179
)
Proceeds from settlements of financial
instruments
—
167
Other investing activities, net
(1
)
(1
)
Net cash provided (used) by investing
activities
(31
)
112
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of debt
1,570
677
Repayments of debt
(1,555
)
(803
)
Dividends paid to noncontrolling
interest
(11
)
(12
)
Dividends paid to common shareholders
(4
)
(7
)
Indemnification agreement settlement
—
24
Other financing activities, net
(2
)
(1
)
Net cash provided (used) by financing
activities
(2
)
(122
)
Effect of foreign currency exchange rates
on cash, cash equivalents and restricted cash
(12
)
4
Net increase (decrease) in cash, cash
equivalents and restricted cash
(19
)
10
Cash, cash equivalents and restricted cash
at beginning of period
1,136
1,285
Cash, cash equivalents and restricted cash
at end period
$
1,117
1,295
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507179583/en/
Shane Kleinstein 720-875-5432
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