Qurate Retail, Inc. Reports Fourth Quarter and Year End 2023 Financial Results
- None.
- None.
Insights
The reported financial results of Qurate Retail indicate a mixed performance, with a notable decrease in revenue but an increase in Adjusted OIBDA in the fourth quarter. The reduction in revenue across QxH, QVC International and Cornerstone segments suggests a challenging retail environment, possibly due to decreased consumer spending or increased competition. However, the substantial growth in Adjusted OIBDA, especially the over 70% increase in the fourth quarter, points to effective cost management and operational efficiency improvements.
From a financial standpoint, the reduction of debt by $956 million in 2023, coupled with the redemption notice for the remaining outstanding QVC 4.85% senior secured notes, reflects a strong focus on improving the balance sheet. This strategy is likely to be welcomed by investors as it can lead to lower interest expenses and a more robust financial position in the long run. The divestiture of Zulily is also a strategic move that could streamline operations and focus on core business segments.
The increase in free cash flow generation and the reduction in debt levels are positive signals for the company's financial health. However, the reported diluted EPS losses for Q4 and the full year raise concerns about profitability and may affect investor sentiment. It's important to note that non-cash impairment charges have significantly impacted operating income, which is a factor to consider when assessing the company's performance.
The retail market has been experiencing a dynamic shift with the rise of e-commerce and changing consumer behaviors. Qurate Retail's results reflect these industry trends, with the increase in eCommerce revenue as a percentage of total revenue across its segments. This highlights the importance of a strong online presence in the current retail landscape. The increase in mobile percentage of eCommerce revenue also suggests an ongoing consumer shift towards shopping via mobile devices.
Another aspect to consider is the product mix and pricing strategy. The report indicates a shift towards higher-margin products and fewer clearance items, which contributed to improved product margins. This strategic shift could be a response to the competitive pressures in the retail sector and the need to maintain profitability amidst softening demand.
Qurate Retail's international segment's performance, particularly the flat revenue in constant currency for Q4, suggests resilience in the face of currency fluctuations. This performance could be indicative of a stable international customer base and the potential for growth in these markets, despite the overall decline in units shipped.
The proactive debt management demonstrated by Qurate Retail, including the significant reduction in the principal amount of debt and the redemption of senior secured notes, is a prudent approach in the current economic climate. The company's debt profile is an essential factor for credit rating agencies and debt investors. By reducing leverage, Qurate Retail may improve its creditworthiness and potentially lower its cost of capital.
It's also worth examining the timing of the debt redemption and the potential impact on the company's interest coverage ratio. The reduction in interest expenses due to debt repayment can lead to an improved interest coverage ratio, which is a key metric for assessing a company's financial stability and its ability to meet debt obligations from operating earnings.
Moreover, the company's cash and cash equivalents position remains robust, providing liquidity to navigate market uncertainties. The balance between maintaining sufficient liquidity and reducing debt is crucial, especially when facing a potential economic downturn or further market volatility.
“2023 was a transformational year for Qurate Retail. We executed better on multiple fronts including merchandising, pricing strategy and inventory management, and these efforts yielded significant, positive results in the operational health and financial performance of the business,” said David Rawlinson, President and CEO of Qurate Retail. “We increased free cash flow generation, reduced substantial debt and optimized our portfolio with the divesture of Zulily, and in the fourth quarter, we grew Adjusted OIBDA by over
Fourth quarter and full year 2023 operating results:
-
Qurate Retail revenue decreased
4% (2) in Q4 and5% (2) in full year in both US Dollars and constant currency(3) -
Qurate Retail Adjusted OIBDA(4) increased
46% (2) in Q4 and decreased3% (2) in full year in constant currency -
Qurate Retail reported diluted EPS of
$(0.70) $(0.37) -
Adjusted diluted EPS(4) of
$0.22 $0.24
-
Adjusted diluted EPS(4) of
-
QxH revenue decreased
4% in Q4 and5% in full year -
QVC International revenue increased
2% in Q4 and decreased3% in full year-
In constant currency, revenue was flat in Q4 and decreased
1% in full year
-
In constant currency, revenue was flat in Q4 and decreased
-
Cornerstone revenue decreased
12% in Q4 and11% in full year
Corporate updates:
-
Reduced Qurate Retail principal amount of debt by
$956 million -
Delivered redemption notice on February 27, 2024 to redeem remaining outstanding QVC
4.85% senior secured notes due 2024 on March 28, 2024
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months and year ended December 31, 2023 to the same periods in 2022.
FOURTH QUARTER 2023 FINANCIAL RESULTS |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
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(amounts in millions) |
4Q22 |
|
4Q23 |
|
% Change |
|
|
% Change
|
|
|||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH |
$ |
2,258 |
|
|
$ |
2,159 |
|
|
(4 |
) |
% |
|
|
|
QVC International |
|
666 |
|
|
|
679 |
|
|
2 |
|
% |
|
— |
% |
Cornerstone |
|
348 |
|
|
|
305 |
|
|
(12 |
) |
% |
|
|
|
Total Qurate Retail Revenue (excluding Zulily) |
$ |
3,272 |
|
|
$ |
3,143 |
|
|
(4 |
) |
% |
|
(4) |
% |
Zulily(b) |
|
254 |
|
|
|
— |
|
|
NM |
|
|
|
|
|
Total Qurate Retail Revenue (as reported) |
$ |
3,526 |
|
|
$ |
3,143 |
|
|
(11 |
) |
% |
|
(11) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
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QxH(c) |
$ |
28 |
|
|
$ |
(193 |
) |
|
NM |
|
|
|
|
|
QVC International |
|
85 |
|
|
|
80 |
|
|
(6 |
) |
% |
|
(6) |
% |
Cornerstone |
|
(14 |
) |
|
|
18 |
|
|
NM |
|
|
|
|
|
Unallocated corporate cost |
|
(10 |
) |
|
|
(8 |
) |
|
20 |
|
% |
|
|
|
Total Qurate Retail Operating Income (Loss) (excluding Zulily) |
$ |
89 |
|
|
$ |
(103 |
) |
|
NM |
|
|
|
NM |
|
Zulily(b) |
|
(47 |
) |
|
|
— |
|
|
NM |
|
|
|
|
|
Total Qurate Retail Operating Income (Loss) (as reported) |
$ |
42 |
|
|
$ |
(103 |
) |
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH(c) |
$ |
150 |
|
|
$ |
221 |
|
|
47 |
|
% |
|
|
|
QVC International |
|
97 |
|
|
|
99 |
|
|
2 |
|
% |
|
2 |
% |
Cornerstone |
|
(7 |
) |
|
|
27 |
|
|
NM |
|
|
|
|
|
Unallocated corporate cost |
|
(7 |
) |
|
|
(7 |
) |
|
- |
|
% |
|
|
|
Total Qurate Retail Adjusted OIBDA (excluding Zulily) |
$ |
233 |
|
|
$ |
340 |
|
|
46 |
|
% |
|
46 |
% |
Zulily(b) |
|
(36 |
) |
|
|
— |
|
|
NM |
|
|
|
|
|
Total Qurate Retail Adjusted OIBDA (as reported) |
$ |
197 |
|
|
$ |
340 |
|
|
73 |
|
% |
|
73 |
% |
________________________________________ |
||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
Zulily, LLC (“Zulily”) was divested on May 24, 2023. In the fourth quarter of 2022, Zulily recorded |
|
c) |
In the fourth quarter of 2022, QxH incurred |
|
FULL YEAR 2023 FINANCIAL RESULTS |
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(amounts in millions) |
2022 |
|
2023 |
|
% Change |
|
|
% Change
|
|
|||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH |
$ |
7,359 |
|
|
$ |
6,995 |
|
|
(5 |
) |
% |
|
|
|
QVC International |
|
2,528 |
|
|
|
2,454 |
|
|
(3 |
) |
% |
|
(1) |
% |
Cornerstone |
|
1,313 |
|
|
|
1,165 |
|
|
(11 |
) |
% |
|
|
|
Total Qurate Retail Revenue (excluding Zulily) |
$ |
11,200 |
|
|
$ |
10,614 |
|
|
(5 |
) |
% |
|
(5) |
% |
Zulily(b) |
|
906 |
|
|
|
301 |
|
|
NM |
|
|
|
|
|
Total Qurate Retail Revenue (as reported) |
$ |
12,106 |
|
|
$ |
10,915 |
|
|
(10 |
) |
% |
|
(10) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH(c) |
$ |
(1,820 |
) |
|
$ |
275 |
|
|
NM |
|
|
|
|
|
QVC International(d) |
|
306 |
|
|
|
370 |
|
|
21 |
|
% |
|
26 |
% |
Cornerstone(e) |
|
48 |
|
|
|
35 |
|
|
(27 |
) |
% |
|
|
|
Unallocated corporate cost |
|
(36 |
) |
|
|
(33 |
) |
|
8 |
|
% |
|
|
|
Total Qurate Retail Operating Income (Loss) (excluding Zulily) |
$ |
(1,502 |
) |
|
$ |
647 |
|
|
NM |
|
|
|
NM |
|
Zulily(b) |
|
(539 |
) |
|
|
(57 |
) |
|
NM |
|
|
|
|
|
Total Qurate Retail Operating Income (Loss) (as reported) |
$ |
(2,041 |
) |
|
$ |
590 |
|
|
NM |
|
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH(c) |
$ |
750 |
|
|
$ |
746 |
|
|
(1 |
) |
% |
|
|
|
QVC International(d) |
|
358 |
|
|
|
325 |
|
|
(9 |
) |
% |
|
(6) |
% |
Cornerstone(e) |
|
78 |
|
|
|
67 |
|
|
(14 |
) |
% |
|
|
|
Unallocated corporate cost |
|
(25 |
) |
|
|
(23 |
) |
|
8 |
|
% |
|
|
|
Total Qurate Retail Adjusted OIBDA (excluding Zulily) |
$ |
1,161 |
|
|
$ |
1,115 |
|
|
(4 |
) |
% |
|
(3) |
% |
Zulily(b) |
|
(97 |
) |
|
|
(41 |
) |
|
NM |
|
|
|
|
|
Total Qurate Retail Adjusted OIBDA (as reported) |
$ |
1,064 |
|
|
$ |
1,074 |
|
|
1 |
|
% |
|
2 |
% |
________________________________________ |
||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
Zulily was divested on May 24, 2023. For the year ended December 31, 2022, Zulily recorded (i) a |
|
c) |
For the year ended December 31, 2022, QxH incurred (i) a |
|
d) |
For the year ended December 31, 2023, QVC International incurred |
|
e) |
For the year ended December 31, 2023, Cornerstone recorded |
|
FOURTH QUARTER AND FULL YEAR 2023 NET INCOME AND ADJUSTED NET INCOME(4) |
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(amounts in millions) |
4Q22 |
|
4Q23 |
|
|
|
2022 |
|
2023 |
|
||||||||
Net income (loss) |
$ |
(51 |
) |
|
$ |
(273 |
) |
|
|
|
$ |
(2,594 |
) |
|
$ |
(145 |
) |
|
Adjusted net income (loss)(a) |
$ |
(18 |
) |
|
$ |
87 |
|
|
|
|
$ |
58 |
|
|
$ |
94 |
|
|
|
|
|
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||||
Basic weighted average shares
|
|
381 |
|
|
|
389 |
|
|
|
|
|
380 |
|
|
|
387 |
|
|
Potentially dilutive shares |
|
1 |
|
|
|
1 |
|
|
|
|
|
3 |
|
|
|
1 |
|
|
Diluted WASO |
|
382 |
|
|
|
390 |
|
|
|
|
|
383 |
|
|
|
388 |
|
|
|
|
|
|
|
|
|
|
|
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|
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||||
GAAP EPS(b) |
$ |
(0.13 |
) |
|
$ |
(0.70 |
) |
|
|
|
$ |
(6.83 |
) |
|
$ |
(0.37 |
) |
|
Adjusted EPS(a) |
$ |
(0.05 |
) |
|
$ |
0.22 |
|
|
|
|
$ |
0.15 |
|
|
$ |
0.24 |
|
|
________________________________________ |
||
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 in the fourth quarter and full year. Revenue declined in both periods primarily due to lower units shipped, which decreased
Operating loss in the fourth quarter was primarily driven by a
QVC International
In the fourth quarter, US Dollar denominated results were positively affected by exchange rate fluctuations. The US Dollar weakened
In the fourth quarter, QVC International’s constant currency revenue was flat, with a
Operating margin declined in the fourth quarter and increased for the full year and Adjusted OIBDA margin was flat in the fourth quarter and declined for the full year. Operating income for the full year benefited from lower depreciation expense following the sale leaseback transactions in January 2023. For both periods, QVC International reported higher product margins and lower obsolescence expense, offset by increased administrative and fulfillment costs. Product margins increased due to less inventory clearance, lower supply chain costs and mix shift to higher-margin products. Obsolescence favorability reflected a reduced and healthier inventory profile. Administrative costs increased mostly due to outside services and management incentive accruals. Fulfillment pressure was mainly attributable to fulfillment center rents due to the sale leaseback transactions in January 2023 and increased labor rates, notably in
Cornerstone
Cornerstone revenue decreased in the fourth quarter and full year, reflecting softness and competitive promotional pressure in the home sector as well as lower demand for apparel at Garnet Hill.
Operating income and Adjusted OIBDA margin decreased in the full year due to higher promotions and deleverage of marketing and administrative costs, partially offset by lower supply chain costs. Operating income and Adjusted OIBDA margin increased in the fourth quarter as a result of continued efforts to manage supply chain costs.
FOURTH QUARTER 2023 SUPPLEMENTAL METRICS |
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(amounts in millions unless otherwise noted) |
|
4Q22 |
|
4Q23 |
|
% Change |
|
|
% Change
Constant
|
|
|||||
QxH |
|
|
|
|
|
|
|
|
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|
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|
|||
Cost of Goods Sold % of Revenue |
|
|
72.9 |
|
% |
|
68.4 |
|
% |
(450 |
) |
bps |
|
|
|
Operating Income Margin (%)(b) |
|
|
1.2 |
|
% |
|
(8.9 |
) |
% |
NM |
|
|
|
|
|
Adjusted OIBDA Margin (%)(b) |
|
|
6.6 |
|
% |
|
10.2 |
|
% |
360 |
|
bps |
|
|
|
Average Selling Price |
|
$ |
53.95 |
|
|
$ |
55.76 |
|
|
3 |
|
% |
|
|
|
Units Sold |
|
|
|
|
|
|
|
(5 |
) |
% |
|
|
|
||
Return Rate(c) |
|
|
12.0 |
|
% |
|
13.9 |
|
% |
190 |
|
bps |
|
|
|
eCommerce Revenue(d) |
|
$ |
1,413 |
|
|
$ |
1,392 |
|
|
(1 |
) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
62.6 |
|
% |
|
64.5 |
|
% |
190 |
|
bps |
|
|
|
Mobile % of eCommerce Revenue(e) |
|
|
67.9 |
|
% |
|
70.1 |
|
% |
220 |
|
bps |
|
|
|
|
|
|
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|||
QVC International |
|
|
|
|
|
|
|
|
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|
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|||
Cost of Goods Sold % of Revenue |
|
|
64.0 |
|
% |
|
63.0 |
|
% |
(100 |
) |
bps |
|
|
|
Operating Income Margin (%) |
|
|
12.8 |
|
% |
|
11.8 |
|
% |
(100 |
) |
bps |
|
|
|
Adjusted OIBDA Margin (%) |
|
|
14.6 |
|
% |
|
14.6 |
|
% |
— |
|
bps |
|
|
|
Average Selling Price |
|
|
|
|
|
|
|
3 |
|
% |
|
1 |
% |
||
Units Sold |
|
|
|
|
|
|
|
(1 |
) |
% |
|
|
|
||
Return Rate(c) |
|
|
18.6 |
|
% |
|
18.1 |
|
% |
(50 |
) |
bps |
|
|
|
eCommerce Revenue(d) |
|
$ |
326 |
|
|
$ |
359 |
|
|
10 |
|
% |
|
7 |
% |
eCommerce % of Total Revenue |
|
|
48.9 |
|
% |
|
52.9 |
|
% |
400 |
|
bps |
|
|
|
Mobile % of eCommerce Revenue(e) |
|
|
70.7 |
|
% |
|
70.5 |
|
% |
(20 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of Goods Sold % of Revenue |
|
|
71.2 |
|
% |
|
59.0 |
|
% |
(1,220 |
) |
bps |
|
|
|
Operating Income Margin (%) |
|
|
(4.0 |
) |
% |
|
5.9 |
|
% |
NM |
|
|
|
|
|
Adjusted OIBDA Margin (%) |
|
|
(2.0 |
) |
% |
|
8.9 |
|
% |
NM |
|
|
|
|
|
eCommerce Revenue(d) |
|
$ |
273 |
|
|
$ |
245 |
|
|
(10 |
) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
78.4 |
|
% |
|
80.3 |
|
% |
190 |
|
bps |
|
|
|
________________________________________ |
||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
In the fourth quarter of 2022, QxH incurred |
|
c) |
Measured as returned sales over gross shipped sales in US Dollars. |
|
d) |
Based on net revenue. |
|
e) |
Based on gross US Dollar orders. |
|
FULL YEAR 2023 SUPPLEMENTAL METRICS |
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|
|
|
|
|
|
|
|
||
(amounts in millions unless otherwise noted) |
|
2022 |
|
2023 |
|
% Change |
|
|
% Change
|
|
||||
QxH |
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of Goods Sold % of Revenue(b) |
|
|
69.7 |
|
% |
|
67.3 |
% |
(240 |
) |
bps |
|
|
|
Operating Income Margin (%)(c) |
|
|
(24.7 |
) |
% |
|
3.9 |
% |
NM |
|
|
|
|
|
Adjusted OIBDA Margin (%)(c) |
|
|
10.2 |
|
% |
|
10.7 |
% |
50 |
|
bps |
|
|
|
Average Selling Price |
|
$ |
51.74 |
|
|
$ |
53.33 |
|
3 |
|
% |
|
|
|
Units Sold |
|
|
|
|
|
|
|
(6 |
) |
% |
|
|
|
|
Return Rate(d) |
|
|
14.0 |
|
% |
|
15.2 |
% |
120 |
|
bps |
|
|
|
eCommerce Revenue(e) |
|
$ |
4,450 |
|
|
$ |
4,321 |
|
(3 |
) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
60.5 |
|
% |
|
61.8 |
% |
130 |
|
bps |
|
|
|
Mobile % of eCommerce Revenue(f) |
|
|
67.1 |
|
% |
|
69.1 |
% |
200 |
|
bps |
|
|
|
LTM Total Customers(g) |
|
|
8.9 |
|
|
|
8.1 |
|
(9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
QVC International |
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of Goods Sold % of Revenue |
|
|
64.1 |
|
% |
|
63.7 |
% |
(40 |
) |
bps |
|
|
|
Operating Income Margin (%)(h) |
|
|
12.1 |
|
% |
|
15.1 |
% |
300 |
|
bps |
|
|
|
Adjusted OIBDA Margin (%)(h) |
|
|
14.2 |
|
% |
|
13.2 |
% |
(100 |
) |
bps |
|
|
|
Average Selling Price |
|
|
|
|
|
|
|
1 |
|
% |
|
2 |
% |
|
Units Sold |
|
|
|
|
|
|
|
(3 |
) |
% |
|
|
|
|
Return Rate(d) |
|
|
18.8 |
|
% |
|
19.1 |
% |
30 |
|
bps |
|
|
|
eCommerce Revenue(e) |
|
$ |
1,202 |
|
|
$ |
1,217 |
|
1 |
|
% |
|
2 |
% |
eCommerce % of Total Revenue |
|
|
47.5 |
|
% |
|
49.6 |
% |
210 |
|
bps |
|
|
|
Mobile % of eCommerce Revenue(f) |
|
|
70.8 |
|
% |
|
69.9 |
% |
(90 |
) |
bps |
|
|
|
LTM Total Customers(g) |
|
|
4.3 |
|
|
|
4.1 |
|
(5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of Goods Sold % of Revenue |
|
|
64.7 |
|
% |
|
61.5 |
% |
(320 |
) |
bps |
|
|
|
Operating Income Margin (%)(i) |
|
|
3.7 |
|
% |
|
3.0 |
% |
(70 |
) |
bps |
|
|
|
Adjusted OIBDA Margin (%)(i) |
|
|
5.9 |
|
% |
|
5.8 |
% |
(10 |
) |
bps |
|
|
|
eCommerce Revenue(e) |
|
$ |
994 |
|
|
$ |
902 |
|
(9 |
) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
75.7 |
|
% |
|
77.4 |
% |
170 |
|
bps |
|
|
|
________________________________________ |
||
a) |
|
For a definition of constant currency financial metrics, see the accompanying schedules. |
b) |
|
Excludes |
c) |
|
For the year ended December 31, 2022, QxH incurred (i) a |
d) |
|
Measured as returned sales over gross shipped sales in US Dollars. |
e) |
|
Based on net revenue. |
f) |
|
Based on gross US Dollar orders. |
g) |
|
LTM: Last twelve months. |
h) |
|
For the year ended December 31, 2023, QVC International incurred |
i) |
|
For the year ended December 31, 2023, Cornerstone recorded |
FOOTNOTES
1) |
Qurate Retail will discuss these highlights and other matters on Qurate Retail’s earnings conference call that will begin at 8:30 a.m. (E.T.) on February 28, 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) |
|
9/30/2023 |
|
12/31/2023 |
||||
Cash and cash equivalents (GAAP) |
|
$ |
1,099 |
|
|
$ |
1,121 |
|
|
|
|
|
|
|
|
||
Indemnification agreement receivable(a) |
|
$ |
21 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||
Debt: |
|
|
|
|
|
|
||
QVC senior secured notes(b) |
|
$ |
3,509 |
|
|
$ |
3,509 |
|
QVC senior secured bank credit facility |
|
|
995 |
|
|
|
857 |
|
Total Qurate Retail Group Debt |
|
$ |
4,504 |
|
|
$ |
4,366 |
|
|
|
|
|
|
|
|
||
Senior notes(b) |
|
|
792 |
|
|
|
792 |
|
Senior exchangeable debentures(c) |
|
|
858 |
|
|
|
781 |
|
Corporate Level Debentures |
|
|
1,650 |
|
|
|
1,573 |
|
Total Qurate Retail, Inc. Debt |
|
$ |
6,154 |
|
|
$ |
5,939 |
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(589 |
) |
|
|
(599 |
) |
Total Qurate Retail, Inc. Debt (GAAP) |
|
$ |
5,565 |
|
|
$ |
5,340 |
|
|
|
|
|
|
|
|
||
Other Financial Obligations: |
|
|
|
|
|
|
||
Preferred stock(d) |
|
$ |
1,270 |
|
|
$ |
1,270 |
|
|
|
|
|
|
|
|
||
QVC, Inc. leverage(e) |
|
|
2.6x |
|
|
2.4x |
||
________________________________________ |
||
a) |
Indemnity from Liberty Broadband Corporation (“Liberty Broadband”), pursuant to an indemnification agreement with respect to the Liberty Interactive LLC ("LI LLC") |
|
b) |
Face amount of senior notes and debentures with no reduction for the unamortized discount. |
|
c) |
Face amount of senior exchangeable debentures with no adjustment for the fair market value adjustment. |
|
d) |
Preferred stock has an |
|
e) |
As defined in QVC, Inc.’s credit agreement. The gains from sale leaseback transactions completed within the last twelve months and 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 increased
QVC’s bank credit facility has
As of December 31, 2023, 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 under its senior secured notes. 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 December 31, 2023.
Important Notice: Qurate Retail (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 February 28, 2024. The call can be accessed by dialing (877) 704-4234 or (215) 268-9904, passcode 13742822, 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, future repayment of debt 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 Form 10-K, 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, fire related costs, net (including
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
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 December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023 and years ended December 31, 2022 and 2023.
CONSOLIDATED OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION |
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
(amounts in millions) |
|
4Q22 |
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
4Q23 |
|
|
|
|
2022 |
|
|
2023 |
|
|||||||
Qurate Retail Operating Income (Loss) |
|
$ |
42 |
|
$ |
176 |
|
|
$ |
366 |
|
|
$ |
151 |
|
$ |
(103 |
) |
|
|
|
$ |
(2,041 |
) |
|
$ |
590 |
|
Depreciation and amortization |
|
|
110 |
|
|
100 |
|
|
|
104 |
|
|
|
105 |
|
|
98 |
|
|
|
|
|
481 |
|
|
|
407 |
|
Stock compensation expense |
|
|
14 |
|
|
16 |
|
|
|
14 |
|
|
|
10 |
|
|
13 |
|
|
|
|
|
60 |
|
|
|
53 |
|
Restructuring, penalties and fire related costs, net of (recoveries)(a) |
|
|
31 |
|
|
— |
|
|
|
(208 |
) |
|
|
19 |
|
|
— |
|
|
|
|
|
3 |
|
|
|
(189 |
) |
Impairment of intangible assets(b) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
326 |
|
|
|
|
|
3,081 |
|
|
|
326 |
|
(Gains) on sale of assets and sale leaseback transactions(c) |
|
|
— |
|
|
(113 |
) |
|
|
(6 |
) |
|
|
— |
|
|
6 |
|
|
|
|
|
(520 |
) |
|
|
(113 |
) |
Qurate Retail Adjusted OIBDA |
|
$ |
197 |
|
$ |
179 |
|
|
$ |
270 |
|
|
$ |
285 |
|
$ |
340 |
|
|
|
|
$ |
1,064 |
|
|
$ |
1,074 |
|
________________________________________ |
||
a) |
The year ended December 31, 2022 includes (i) |
|
b) |
Includes |
|
c) |
Includes gains on the sale related to the modification of a lease that resulted in a sale leaseback for GAAP purposes of six US properties completed the year ended December 31, 2022 and the sale leaseback transactions of |
|
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 December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023 and years ended December 31, 2022 and 2023.
SUBSIDIARY ADJUSTED OIBDA RECONCILIATION |
|||||||||||||||||||||||||||||
(amounts in millions) |
|
4Q22 |
|
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
|
|
2022 |
|
2023 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
QVC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
$ |
113 |
|
|
$ |
230 |
|
|
$ |
374 |
|
|
$ |
154 |
|
$ |
(113 |
) |
|
|
|
$ |
(1,514 |
) |
|
$ |
645 |
|
Depreciation and amortization |
|
|
96 |
|
|
|
89 |
|
|
|
94 |
|
|
|
98 |
|
|
91 |
|
|
|
|
|
401 |
|
|
|
372 |
|
Stock compensation |
|
|
9 |
|
|
|
9 |
|
|
|
11 |
|
|
|
7 |
|
|
10 |
|
|
|
|
|
36 |
|
|
|
37 |
|
Restructuring, penalties and fire related costs, net of (recoveries) (including |
|
|
29 |
|
|
|
(4 |
) |
|
|
(211 |
) |
|
|
19 |
|
|
— |
|
|
|
|
|
(10 |
) |
|
|
(196 |
) |
(Gains) on sale of assets and sale leaseback transactions |
|
|
— |
|
|
|
(113 |
) |
|
|
(6 |
) |
|
|
— |
|
|
6 |
|
|
|
|
|
(520 |
) |
|
|
(113 |
) |
Impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
326 |
|
|
|
|
|
2,715 |
|
|
|
326 |
|
Adjusted OIBDA |
|
$ |
247 |
|
|
$ |
211 |
|
|
$ |
262 |
|
|
$ |
278 |
|
$ |
320 |
|
|
|
|
$ |
1,108 |
|
|
$ |
1,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
QxH Adjusted OIBDA |
|
$ |
150 |
|
|
$ |
139 |
|
|
$ |
185 |
|
|
$ |
201 |
|
$ |
221 |
|
|
|
|
$ |
750 |
|
|
$ |
746 |
|
QVC International Adjusted OIBDA |
|
$ |
97 |
|
|
$ |
72 |
|
|
$ |
77 |
|
|
$ |
77 |
|
$ |
99 |
|
|
|
|
$ |
358 |
|
|
$ |
325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
$ |
(14 |
) |
|
$ |
(2 |
) |
|
$ |
15 |
|
|
$ |
4 |
|
$ |
18 |
|
|
|
|
$ |
48 |
|
|
$ |
35 |
|
Depreciation and amortization |
|
|
7 |
|
|
|
5 |
|
|
|
7 |
|
|
|
7 |
|
|
7 |
|
|
|
|
|
27 |
|
|
|
26 |
|
Stock compensation |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
2 |
|
|
|
|
|
3 |
|
|
|
4 |
|
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
|
2 |
|
Adjusted OIBDA (Loss) |
|
$ |
(7 |
) |
|
$ |
4 |
|
|
$ |
25 |
|
|
$ |
11 |
|
$ |
27 |
|
|
|
|
$ |
78 |
|
|
$ |
67 |
|
________________________________________
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 December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023 and years ended December 31, 2022 and 2023.
ADJUSTED NET INCOME AND ADJUSTED EPS RECONCILIATION |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(amounts in millions) |
|
|
4Q22 |
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
|
|
2022 |
|
|
2023 |
||||||
Qurate Retail Net Income (Loss) (GAAP) |
|
$ |
(51 |
) |
|
$ |
20 |
|
|
$ |
107 |
|
|
$ |
1 |
|
$ |
(273 |
) |
|
|
|
$ |
(2,594 |
) |
|
$ |
(145 |
) |
Purchase accounting amort., net of deferred tax benefit(a) |
|
|
18 |
|
|
|
17 |
|
|
|
15 |
|
|
|
14 |
|
|
14 |
|
|
|
|
|
68 |
|
|
|
60 |
|
Impairment of intangible assets, net of tax impact |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
326 |
|
|
|
|
|
3,004 |
|
|
|
326 |
|
Restructuring, penalties and fire related costs, net of (recoveries) |
|
|
24 |
|
|
|
— |
|
|
|
(156 |
) |
|
|
14 |
|
|
— |
|
|
|
|
|
3 |
|
|
|
(142 |
) |
(Gains) on sale of assets and sale leaseback transactions, net of tax impact |
|
|
— |
|
|
|
(92 |
) |
|
|
(5 |
) |
|
|
— |
|
|
6 |
|
|
|
|
|
(392 |
) |
|
|
(91 |
) |
Mark-to-market adjustments, net(b) |
|
|
(9 |
) |
|
|
35 |
|
|
|
26 |
|
|
|
11 |
|
|
14 |
|
|
|
|
|
(31 |
) |
|
|
86 |
|
Adjusted Net Income (Loss) |
|
$ |
(18 |
) |
|
$ |
(20 |
) |
|
$ |
(13 |
) |
|
$ |
40 |
|
$ |
87 |
|
|
|
|
$ |
58 |
|
|
$ |
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share (GAAP) |
|
$ |
(0.13 |
) |
|
$ |
0.05 |
|
|
$ |
0.28 |
|
|
$ |
— |
|
$ |
(0.70 |
) |
|
|
|
$ |
(6.83 |
) |
|
$ |
(0.37 |
) |
Adjustments, net of tax |
|
|
0.08 |
|
|
|
(0.10 |
) |
|
|
(0.31 |
) |
|
|
0.10 |
|
|
0.92 |
|
|
|
|
|
6.98 |
|
|
|
0.61 |
|
Adjusted earnings per share |
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.10 |
|
$ |
0.22 |
|
|
|
|
$ |
0.15 |
|
|
$ |
0.24 |
|
________________________________________
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. BALANCE SHEET INFORMATION (unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
amounts in millions |
||||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,121 |
|
1,275 |
|
Trade and other receivables, net |
|
|
1,308 |
|
1,394 |
|
Inventory, net |
|
|
1,044 |
|
1,346 |
|
Indemnification agreement receivable |
|
|
— |
|
50 |
|
Other current assets |
|
|
209 |
|
210 |
|
Total current assets |
|
|
3,682 |
|
4,275 |
|
Property and equipment, net |
|
|
512 |
|
570 |
|
Intangible assets not subject to amortization |
|
|
5,862 |
|
6,219 |
|
Intangible assets subject to amortization, net |
|
|
526 |
|
612 |
|
Operating lease right-of-use assets |
|
|
635 |
|
585 |
|
Other assets, at cost, net of accumulated amortization |
|
|
151 |
|
310 |
|
Total assets |
|
$ |
11,368 |
|
12,571 |
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
895 |
|
976 |
|
Accrued liabilities |
|
|
983 |
|
1,133 |
|
Current portion of debt |
|
|
642 |
|
828 |
|
Other current liabilities |
|
|
97 |
|
162 |
|
Total current liabilities |
|
|
2,617 |
|
3,099 |
|
Long-term debt |
|
|
4,698 |
|
5,525 |
|
Deferred income tax liabilities |
|
|
1,531 |
|
1,440 |
|
Preferred stock |
|
|
1,270 |
|
1,266 |
|
Operating lease liabilities |
|
|
615 |
|
518 |
|
Other liabilities |
|
|
148 |
|
198 |
|
Total liabilities |
|
|
10,879 |
|
12,046 |
|
Equity/Attributed net assets (liabilities) |
|
|
385 |
|
412 |
|
Non-controlling interests in equity of subsidiaries |
|
|
104 |
|
113 |
|
Total liabilities and equity |
|
$ |
11,368 |
|
12,571 |
|
QURATE RETAIL, INC. STATEMENT OF OPERATIONS INFORMATION (unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
Years ended December 31, |
|||||
|
|
2023 |
|
2022 |
|||
|
|
amounts in millions |
|||||
Revenue: |
|
|
|
|
|
||
Total revenue, net |
|
$ |
10,915 |
|
|
12,106 |
|
|
|
|
|
|
|
||
Operating costs and expenses: |
|
|
|
|
|
||
Cost of goods sold (exclusive of depreciation shown separately below) |
|
|
7,230 |
|
|
8,417 |
|
Operating expense |
|
|
795 |
|
|
835 |
|
Selling, general and administrative, including stock-based compensation |
|
|
1,869 |
|
|
1,945 |
|
Impairment of intangible assets |
|
|
326 |
|
|
3,081 |
|
Gains on sale of assets and sale leaseback transactions |
|
|
(113 |
) |
|
(520 |
) |
Restructuring, penalties and fire related costs, net of (recoveries) |
|
|
(189 |
) |
|
(92 |
) |
Depreciation and amortization |
|
|
407 |
|
|
481 |
|
|
|
|
10,325 |
|
|
14,147 |
|
Operating income (loss) |
|
|
590 |
|
|
(2,041 |
) |
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
||
Interest expense |
|
|
(451 |
) |
|
(456 |
) |
Dividend and interest income |
|
|
52 |
|
|
10 |
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(61 |
) |
|
55 |
|
Loss on disposition of Zulily, net |
|
|
(64 |
) |
|
- |
|
Tax sharing income (expense) with Liberty Broadband |
|
|
(11 |
) |
|
79 |
|
Other, net |
|
|
11 |
|
|
45 |
|
|
|
|
(524 |
) |
|
(267 |
) |
Earnings (loss) from continuing operations before income taxes |
|
|
66 |
|
|
(2,308 |
) |
Income tax (expense) benefit |
|
|
(160 |
) |
|
(224 |
) |
Net earnings (loss) |
|
|
(94 |
) |
|
(2,532 |
) |
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
51 |
|
|
62 |
|
Net earnings (loss) attributable to Qurate Retail shareholders |
|
$ |
(145 |
) |
|
(2,594 |
) |
QURATE RETAIL, INC. STATEMENT OF CASH FLOWS INFORMATION (unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Years ended December 31, |
|
|||||
|
|
2023 |
|
2022 |
|
|||
|
|
amounts in millions |
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net earnings (loss) |
|
$ |
(94 |
) |
|
(2,532 |
) |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
407 |
|
|
481 |
|
|
Impairment of intangible assets |
|
|
326 |
|
|
3,081 |
|
|
Stock-based compensation |
|
|
53 |
|
|
60 |
|
|
Noncash interest expense |
|
|
9 |
|
|
10 |
|
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
61 |
|
|
(55 |
) |
|
Gains on sale of assets and sale leaseback transactions |
|
|
(113 |
) |
|
(520 |
) |
|
Gain on insurance proceeds, net of fire related costs |
|
|
(225 |
) |
|
(132 |
) |
|
Deferred income tax expense (benefit) |
|
|
80 |
|
|
12 |
|
|
Insurance proceeds received for inventory, operating expenses and business interruption losses |
|
|
226 |
|
|
96 |
|
|
Loss on disposition of Zulily, net |
|
|
64 |
|
|
— |
|
|
Other noncash charges (credits), net |
|
|
15 |
|
|
(38 |
) |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable |
|
|
36 |
|
|
124 |
|
|
Decrease (increase) in inventory |
|
|
257 |
|
|
254 |
|
|
Decrease (increase) in prepaid expenses and other assets |
|
|
68 |
|
|
102 |
|
|
(Decrease) increase in trade accounts payable |
|
|
(34 |
) |
|
(446 |
) |
|
(Decrease) increase in accrued and other liabilities |
|
|
(217 |
) |
|
(303 |
) |
|
Net cash provided (used) by operating activities |
|
|
919 |
|
|
194 |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Cash proceeds from dispositions of investments |
|
|
71 |
|
|
13 |
|
|
Investment in and loans to cost and equity investees |
|
|
— |
|
|
(7 |
) |
|
Capital expenditures |
|
|
(230 |
) |
|
(268 |
) |
|
Cash paid for disposal of Zulily |
|
|
(41 |
) |
|
— |
|
|
Expenditures for television distribution rights |
|
|
(113 |
) |
|
(45 |
) |
|
Insurance proceeds received for fixed asset loss |
|
|
54 |
|
|
184 |
|
|
Proceeds from sale of fixed assets |
|
|
208 |
|
|
704 |
|
|
Payments for settlements of financial instruments |
|
|
(179 |
) |
|
— |
|
|
Payments from settlements of financial instruments |
|
|
167 |
|
|
— |
|
|
Other investing activities, net |
|
|
9 |
|
|
20 |
|
|
Net cash provided (used) by investing activities |
|
|
(54 |
) |
|
601 |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings of debt |
|
|
1,267 |
|
|
3,029 |
|
|
Repayments of debt |
|
|
(2,258 |
) |
|
(3,008 |
) |
|
Withholding taxes on net share settlements of stock-based compensation |
|
|
(1 |
) |
|
(7 |
) |
|
Dividends paid to noncontrolling interest |
|
|
(53 |
) |
|
(68 |
) |
|
Dividends paid to common shareholders |
|
|
(8 |
) |
|
(12 |
) |
|
Indemnification agreement settlement |
|
|
45 |
|
|
- |
|
|
Other financing activities, net |
|
|
(2 |
) |
|
(6 |
) |
|
Net cash provided (used) by financing activities |
|
|
(1,010 |
) |
|
(72 |
) |
|
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
|
(4 |
) |
|
(34 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(149 |
) |
|
689 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,285 |
|
|
596 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,136 |
|
|
1,285 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227714996/en/
Shane Kleinstein
720-875-5432
Source: Qurate Retail, Inc.
FAQ
What were Qurate Retail's revenue changes in the fourth quarter of 2023?
How did Qurate Retail's Adjusted OIBDA change in the fourth quarter of 2023?
What corporate updates did Qurate Retail announce?
What was the diluted EPS for Qurate Retail in the fourth quarter of 2023?
What was the full year revenue change for Qurate Retail in 2023?
