Qurate Retail, Inc. Reports Third Quarter 2024 Financial Results
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP) reported its Q3 2024 financial results, highlighting a 5% revenue decrease to $2.344 billion. Operating income was $152 million, and adjusted OIBDA fell by 12% to $250 million. Key segment performances included a 6% revenue decline for QxH and a 1% decline for QVC International. Cornerstone saw a 12% revenue drop. Despite revenue challenges, Qurate managed to maintain gross margins and reduced operating expenses. The company also improved QVC's credit profile by tendering 89% of its 2027 and 2028 notes, partially funded by $605 million in new notes due 2029. The Project Athens initiative is nearing completion, focusing on margin and free cash flow improvements. Qurate is transitioning to a new strategic growth phase, aiming to enhance capabilities for social and streaming platforms.
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP) ha riportato i risultati finanziari per il terzo trimestre 2024, evidenziando un calo del fatturato del 5% a 2,344 miliardi di dollari. Il reddito operativo è stato di 152 milioni di dollari e l'OIBDA rettificato è diminuito del 12% a 250 milioni di dollari. Le performance dei principali segmenti hanno incluso un declino del fatturato del 6% per QxH e un calo dell'1% per QVC International. Cornerstone ha registrato un calo del fatturato del 12%. Nonostante le difficoltà nei ricavi, Qurate è riuscita a mantenere i margini lordi e a ridurre le spese operative. L'azienda ha anche migliorato il profilo creditizio di QVC, riacquistando l'89% delle proprie obbligazioni del 2027 e 2028, parzialmente finanziato da 605 milioni di dollari in nuove obbligazioni con scadenza nel 2029. L'iniziativa Project Athens è quasi completata, concentrandosi sul miglioramento dei margini e del flusso di cassa libero. Qurate sta passando a una nuova fase di crescita strategica, puntando a potenziare le proprie capacità per le piattaforme social e di streaming.
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP) informó sus resultados financieros del tercer trimestre de 2024, destacando una disminución del 5% en los ingresos a 2.344 millones de dólares. El ingreso operativo fue de 152 millones de dólares y el OIBDA ajustado cayó un 12% a 250 millones de dólares. Las actuaciones clave de los segmentos incluyeron una caída del 6% en los ingresos para QxH y una disminución del 1% para QVC International. Cornerstone experimentó una caída en los ingresos del 12%. A pesar de los desafíos en los ingresos, Qurate logró mantener los márgenes brutos y reducir los gastos operativos. La empresa también mejoró el perfil crediticio de QVC al canjear el 89% de sus notas de 2027 y 2028, financiado parcialmente por 605 millones de dólares en nuevas notas que vencen en 2029. La iniciativa Project Athens está cerca de su finalización, enfocándose en mejorar los márgenes y el flujo de caja libre. Qurate está transitando a una nueva fase de crecimiento estratégico, con el objetivo de mejorar las capacidades para las plataformas sociales y de streaming.
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP)는 2024년 3분기 재무 결과를 발표하며 5% 매출 감소를 기록하여 23억 4,400만 달러에 도달했다고 밝혔다. 운영 소득은 1억 5,200만 달러였으며, 조정된 OIBDA는 12% 감소하여 2억 5,000만 달러에 이르렀다. 주요 세분화 실적은 QxH에서 6% 매출 하락과 QVC International에서 1% 하락을 포함하였다. Cornerstone은 12% 매출 감소를 보였다. 수익 문제에도 불구하고 Qurate는 총 마진을 유지하고 운영 비용을 줄이는 데 성공했다. 또한 회사는 2027년과 2028년 채권의 89%를 매입하여 QVC의 신용 프로필을 개선했으며, 이는 2029년 만기 신규 채권 6억 5백만 달러로 부분적으로 자금을 조달했다. Project Athens 이니셔티브는 마진 및 자유 현금 흐름 개선에 집중하며 완공에 가까워지고 있다. Qurate는 소셜 및 스트리밍 플랫폼을 위한 역량을 향상시키는 새로운 전략적 성장 단계로 전환하고 있다.
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP) a publié ses résultats financiers pour le troisième trimestre 2024, mettant en évidence une baisse de 5 % des revenus à 2,344 milliards de dollars. Le revenu d'exploitation a été de 152 millions de dollars et l'OIBDA ajusté a chuté de 12 % pour atteindre 250 millions de dollars. Les performances des principaux segments comprenaient une baisse des revenus de 6 % pour QxH et une baisse de 1 % pour QVC International. Cornerstone a enregistré une baisse des revenus de 12 %. Malgré les défis en matière de revenus, Qurate a réussi à maintenir ses marges brutes et à réduire ses charges d'exploitation. L'entreprise a également amélioré le profil de crédit de QVC en rachetant 89 % de ses obligations de 2027 et 2028, financé en partie par 605 millions de dollars de nouvelles obligations arrivant à échéance en 2029. L'initiative Project Athens est en voie d'achèvement, axée sur l'amélioration des marges et du flux de trésorerie libre. Qurate est en transition vers une nouvelle phase de croissance stratégique, visant à renforcer ses capacités pour les plateformes sociales et de streaming.
Qurate Retail (Nasdaq: QRTEA, QRTEB, QRTEP) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und einen Rückgang der Einnahmen um 5% auf 2,344 Milliarden Dollar hervorgehoben. Das Betriebsergebnis betrug 152 Millionen Dollar und das bereinigte OIBDA sank um 12% auf 250 Millionen Dollar. Die Leistungsdaten der wichtigsten Segmente umfassten einen Rückgang der Einnahmen um 6% für QxH und einen Rückgang um 1% für QVC International. Cornerstone verzeichnete einen Umsatzrückgang von 12%. Trotz der Umsatzschwierigkeiten konnte Qurate die Bruttomargen aufrechterhalten und die Betriebskosten senken. Das Unternehmen verbesserte auch das Kreditprofil von QVC, indem es 89% seiner Anleihen von 2027 und 2028 zurückkaufte, teilweise finanziert durch 605 Millionen Dollar an neuen Anleihen mit Fälligkeit 2029. Die Initiative Project Athens steht kurz vor dem Abschluss und konzentriert sich auf die Verbesserung der Margen und des freien Cashflows. Qurate befindet sich im Übergang zu einer neuen strategischen Wachstumsphase, die darauf abzielt, die Fähigkeiten für soziale und Streaming-Plattformen zu verbessern.
- Completed tender offer for 89% of QVC’s 2027 and 2028 notes, reducing debt and extending maturity.
- Maintained consolidated gross margin despite revenue decline.
- Reduced operating expenses through disciplined cost management.
- Revenue decreased by 5% to $2.344 billion.
- Adjusted OIBDA fell by 12% to $250 million.
- QxH revenue declined by 6%, and QVC International revenue decreased by 1%.
- Cornerstone revenue dropped by 12%.
“While the third quarter was anticipated to be the most difficult quarter of 2024, current headline events and the challenging macro-economic climate heavily impacted viewership of our programming and consumer behavior more than expected,” said David Rawlinson, President and CEO of Qurate Retail. “As a result, revenue underperformed this quarter and resulted in meaningful bottom-line deleverage. Despite this, we were able to hold consolidated gross margin flat with disciplined cost management and reduced operating expenses. We also continued our proactive balance sheet management, completing an offer in which
“We are nearing the end of our multi-year Project Athens initiative focused on margin and free cash flow. The team has materially improved the business, becoming a more profitable, leaner and more nimble organization. We are transitioning to the next phase of our strategic growth as we enhance our capabilities to reach aggregated audiences on primarily social and streaming platforms.”
Third quarter 2024 headlines:
-
Qurate Retail revenue decreased
5% in both US Dollars and constant currency(2) -
Generated
$152 million -
Adjusted OIBDA(3) decreased
12% in both US Dollars and constant currency to$250 million -
QxH revenue decreased
6% -
QVC International revenue decreased
1% in both US Dollars and constant currency -
Cornerstone revenue decreased
12% -
Tendered
89% of QVC, Inc.’s 2027 and 2028 notes-
Partially funded with
$605 million 6.875% senior secured notes due 2029 - Improves QVC credit position with reduced debt balance and extended maturity profile
-
Partially funded with
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended September 30, 2024 to the same period in 2023.
THIRD QUARTER 2024 FINANCIAL RESULTS |
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(amounts in millions) |
3Q23 |
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3Q24 |
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% Change |
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% Change Constant Currency(a) |
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Revenue |
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QxH |
$ |
1,617 |
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|
$ |
1,521 |
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(6 |
)% |
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QVC International |
|
577 |
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|
|
571 |
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(1 |
)% |
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(1 |
)% |
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Cornerstone |
|
285 |
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|
252 |
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(12 |
)% |
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Total Qurate Retail Revenue |
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2,479 |
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2,344 |
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(5 |
)% |
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(5 |
)% |
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Operating Income (Loss) |
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QxH(b) |
$ |
91 |
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$ |
107 |
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|
18 |
% |
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QVC International |
|
63 |
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|
57 |
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(10 |
)% |
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(8 |
)% |
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Cornerstone |
|
4 |
|
|
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(2 |
) |
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NM |
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Unallocated corporate cost |
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(7 |
) |
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(10 |
) |
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(43 |
)% |
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Total Qurate Retail Operating Income |
|
151 |
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152 |
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1 |
% |
|
1 |
% |
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Adjusted OIBDA |
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QxH(b) |
$ |
201 |
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$ |
182 |
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(9 |
)% |
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QVC International |
|
77 |
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|
70 |
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(9 |
)% |
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(9 |
)% |
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Cornerstone |
|
11 |
|
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|
6 |
|
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(45 |
)% |
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Unallocated corporate cost |
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(4 |
) |
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(8 |
) |
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(100 |
)% |
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Total Qurate Retail Adjusted OIBDA |
$ |
285 |
|
|
$ |
250 |
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(12 |
)% |
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(12 |
)% |
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| ________________________________________ | ||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
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b) |
In the third quarter of 2023, QxH incurred (i) a |
|
QxH
QxH revenue declined due to a
Operating income increased in the third quarter comparing against
Adjusted OIBDA margin(3) decreased due to fulfillment (warehouse and freight) pressure and sales deleverage, partially offset by higher product margins. Fulfillment pressure was driven by higher fulfillment center wages and freight rates and deleverage, partially offset by increased productivity efficiencies. Operating expenses decreased
QVC International
QVC International’s constant currency revenue decreased primarily due to a
Operating income and Adjusted OIBDA margin decreased primarily due to higher fulfillment costs and lower product margins, partially offset by lower operating expenses. Fulfillment costs increased due to higher freight rates and fulfillment center wages. Product margins decreased reflecting lower initial margin due to product mix and higher ocean freight rates, partially offset by favorable returns.
US Dollar denominated results were not materially impacted by exchange rate fluctuations. The Dollar weakened
Cornerstone
Cornerstone revenue decreased, reflecting softness and competitive promotional pressure in the home sector. Cornerstone is implementing a transformation plan to improve its revenue and profitability given the continued challenges in the housing sector. Operating income and Adjusted OIBDA margin decreased mainly due to higher costs for outside services related to its transformation plan and sales deleverage, partially offset by lower supply chain costs.
THIRD QUARTER 2024 SUPPLEMENTAL METRICS |
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(amounts in millions unless otherwise noted) |
|
3Q23 |
3Q24 |
% Change |
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% Change Constant Currency(a) |
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QxH |
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Cost of Goods Sold % of Revenue |
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|
65.4 |
% |
|
65.5 |
% |
10 |
bps |
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|||
Operating Income Margin (%)(b) |
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|
5.6 |
% |
|
7.0 |
% |
140 |
bps |
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Adjusted OIBDA Margin (%)(b) |
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|
12.4 |
% |
|
12.0 |
% |
(40 |
)bps |
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Average Selling Price |
|
$ |
51.78 |
|
$ |
51.76 |
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0 |
% |
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Units Sold |
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(6 |
)% |
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Return Rate(c) |
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15.4 |
% |
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14.6 |
% |
(80 |
)bps |
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eCommerce Revenue(d) |
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$ |
996 |
|
$ |
967 |
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(3 |
)% |
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eCommerce % of Total Revenue |
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61.6 |
% |
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63.6 |
% |
200 |
bps |
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Mobile % of eCommerce Revenue(e) |
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69.0 |
% |
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70.7 |
% |
170 |
bps |
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LTM Total Customers(f) |
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8.2 |
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7.9 |
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(4 |
)% |
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QVC International |
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Cost of Goods Sold % of Revenue |
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63.4 |
% |
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64.6 |
% |
120 |
bps |
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Operating Income Margin (%) |
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10.9 |
% |
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10.0 |
% |
(90 |
)bps |
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Adjusted OIBDA Margin (%) |
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|
13.3 |
% |
|
12.3 |
% |
(100 |
)bps |
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Average Selling Price |
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(3 |
)% |
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(3 |
)% |
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Units Sold |
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|
1 |
% |
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Return Rate(c) |
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19.6 |
% |
|
18.9 |
% |
(70 |
)bps |
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eCommerce Revenue(d) |
|
$ |
283 |
|
$ |
297 |
|
5 |
% |
|
5 |
% |
||
eCommerce % of Total Revenue |
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|
49.0 |
% |
|
52.0 |
% |
300 |
bps |
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Mobile % of eCommerce Revenue(e) |
|
|
69.3 |
% |
|
76.1 |
% |
680 |
bps |
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LTM Total Customers(f) |
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|
4.2 |
|
|
4.0 |
|
(5 |
)% |
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Cornerstone |
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Cost of Goods Sold % of Revenue |
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|
62.8 |
% |
|
59.9 |
% |
(290 |
)bps |
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Operating Income Margin (%) |
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|
1.4 |
% |
|
NM |
|
NM |
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Adjusted OIBDA Margin (%) |
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|
3.9 |
% |
|
2.4 |
% |
(150 |
)bps |
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eCommerce Revenue(d) |
|
$ |
218 |
|
$ |
188 |
|
(14 |
)% |
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eCommerce % of Total Revenue |
|
|
76.5 |
% |
|
74.6 |
% |
(190 |
)bps |
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| ________________________________________ | ||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
In the third quarter of 2023, QxH incurred (i) a |
|
c) |
Measured as returned sales over gross shipped sales in US Dollars. |
|
d) |
Based on net revenue. |
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e) |
Based on gross US Dollar orders. |
|
f) |
LTM: Last twelve months. |
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| 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 November 7, 2024. For information regarding how to access the call, please see “Important Notice” later in this document. |
|
2) |
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. |
|
3) |
For definitions and applicable reconciliations of Adjusted OIBDA and Adjusted OIBDA margin, see the accompanying schedules. |
|
NOTES
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
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(amounts in millions) |
|
6/30/2024 |
|
9/30/2024 |
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Cash and cash equivalents (GAAP) |
|
$ |
1,210 |
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$ |
873 |
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Debt: |
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QVC senior secured notes(a) |
|
$ |
3,086 |
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$ |
2,732 |
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QVC senior secured bank credit facility |
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|
1,225 |
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|
|
1,280 |
|
Total Qurate Retail Group Debt |
|
$ |
4,311 |
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$ |
4,012 |
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|
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Senior notes(a) |
|
|
792 |
|
|
|
792 |
|
Senior exchangeable debentures(b) |
|
|
779 |
|
|
|
779 |
|
Corporate Level Debentures |
|
|
1,571 |
|
|
|
1,571 |
|
Total Qurate Retail, Inc. Debt |
|
$ |
5,882 |
|
|
$ |
5,583 |
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(543 |
) |
|
|
(524 |
) |
Total Qurate Retail, Inc. Debt (GAAP) |
|
$ |
5,339 |
|
|
$ |
5,059 |
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Other Financial Obligations: |
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Preferred stock(c) |
|
$ |
1,272 |
|
|
$ |
1,272 |
|
|
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|
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QVC, Inc. leverage(d) |
|
|
3.1x |
|
|
3.1x |
||
| ________________________________________ | ||
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 |
|
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
QVC’s bank credit facility has
As of September 30, 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 September 30, 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 November 7, 2024. The call can be accessed by dialing (877) 704-4234 or (215) 268-9904, passcode 13744091, 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 Cornerstone’s transformation plan) 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) 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
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.
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 September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024, respectively.
CONSOLIDATED OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION |
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|
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|
|
|
|
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(amounts in millions) |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
2Q24 |
|
3Q24 |
|||||||
Qurate Retail Operating Income (Loss) |
|
$ |
151 |
|
$ |
(103 |
) |
|
$ |
145 |
|
|
$ |
165 |
|
$ |
152 |
Depreciation and amortization |
|
|
105 |
|
|
98 |
|
|
|
99 |
|
|
|
96 |
|
|
95 |
Stock compensation expense |
|
|
10 |
|
|
13 |
|
|
|
16 |
|
|
|
3 |
|
|
3 |
Restructuring, penalty and fire related costs, net of (recoveries) (including |
|
|
19 |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
— |
Impairment of intangible assets(b) |
|
|
— |
|
|
326 |
|
|
|
— |
|
|
|
— |
|
|
— |
(Gains) losses on sale of assets and sale leaseback transactions(c) |
|
|
— |
|
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
Qurate Retail Adjusted OIBDA |
|
$ |
285 |
|
$ |
340 |
|
|
$ |
259 |
|
|
$ |
282 |
|
$ |
250 |
| ________________________________________ | ||
a) |
In the third quarter of 2023, QxH incurred (i) a |
|
b) |
In the fourth quarter of 2023, QxH recognized a |
|
c) |
Includes 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 September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024, respectively.
SUBSIDIARY ADJUSTED OIBDA RECONCILIATION |
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|
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|
|
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(amounts in millions) |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
2Q24 |
|
3Q24 |
||||||||
QVC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) |
|
$ |
154 |
|
$ |
(113 |
) |
|
$ |
157 |
|
|
$ |
163 |
|
$ |
164 |
|
Depreciation and amortization |
|
|
98 |
|
|
91 |
|
|
|
92 |
|
|
|
88 |
|
|
87 |
|
Stock compensation |
|
|
7 |
|
|
10 |
|
|
|
12 |
|
|
|
2 |
|
|
1 |
|
Restructuring, penalty and fire related costs, net of (recoveries) (including |
|
|
19 |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
— |
|
(Gains) losses on sale of assets and sale leaseback transactions |
|
|
— |
|
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
— |
|
Impairment of intangible assets |
|
|
— |
|
|
326 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Adjusted OIBDA |
|
$ |
278 |
|
$ |
320 |
|
|
$ |
260 |
|
|
$ |
271 |
|
$ |
252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
QxH Adjusted OIBDA |
|
$ |
201 |
|
$ |
221 |
|
|
$ |
185 |
|
|
$ |
194 |
|
$ |
182 |
|
QVC International Adjusted OIBDA |
|
$ |
77 |
|
$ |
99 |
|
|
$ |
75 |
|
|
$ |
77 |
|
$ |
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) |
|
$ |
4 |
|
$ |
18 |
|
|
$ |
(3 |
) |
|
$ |
11 |
|
$ |
(2 |
) |
Depreciation and amortization |
|
|
7 |
|
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
8 |
|
Stock compensation |
|
|
— |
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
— |
|
Restructuring costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Adjusted OIBDA |
|
$ |
11 |
|
$ |
27 |
|
|
$ |
6 |
|
|
$ |
19 |
|
$ |
6 |
|
QURATE RETAIL, INC. CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (unaudited) |
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|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2024 |
|
2023 |
|
|
|
amounts in millions |
||
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
873 |
|
1,121 |
Trade and other receivables, net of allowance for credit losses |
|
|
883 |
|
1,308 |
Inventory, net |
|
|
1,299 |
|
1,044 |
Other current assets |
|
|
174 |
|
209 |
Total current assets |
|
|
3,229 |
|
3,682 |
Property and equipment, net |
|
|
500 |
|
512 |
Intangible assets not subject to amortization |
|
|
5,873 |
|
5,862 |
Intangible assets subject to amortization, net |
|
|
437 |
|
526 |
Operating lease right-of-use assets |
|
|
618 |
|
635 |
Other assets, at cost, net of accumulated amortization |
|
|
116 |
|
151 |
Total assets |
|
$ |
10,773 |
|
11,368 |
Liabilities and Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
|
839 |
|
895 |
Accrued liabilities |
|
|
802 |
|
983 |
Current portion of debt |
|
|
874 |
|
642 |
Other current liabilities |
|
|
134 |
|
97 |
Total current liabilities |
|
|
2,649 |
|
2,617 |
Long-term debt |
|
|
4,185 |
|
4,698 |
Deferred income tax liabilities |
|
|
1,443 |
|
1,531 |
Preferred stock |
|
|
1,272 |
|
1,270 |
Operating lease liabilities |
|
|
614 |
|
615 |
Other liabilities |
|
|
131 |
|
148 |
Total liabilities |
|
|
10,294 |
|
10,879 |
Equity |
|
|
397 |
|
385 |
Non-controlling interests in equity of subsidiaries |
|
|
82 |
|
104 |
Total liabilities and equity |
|
$ |
10,773 |
|
11,368 |
QURATE RETAIL, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION (unaudited) |
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|
|
Three months ended |
|||||
|
|
September 30, |
|||||
|
|
2024 |
|
2023 |
|||
|
|
amounts in millions |
|||||
Revenue: |
|
|
|
|
|
||
Total revenue, net |
|
$ |
2,344 |
|
|
2,479 |
|
|
|
|
|
|
|
||
Operating costs and expenses: |
|
|
|
|
|
||
Cost of goods sold (exclusive of depreciation shown separately below) |
|
|
1,517 |
|
|
1,603 |
|
Operating expense |
|
|
175 |
|
|
186 |
|
Selling, general and administrative, including stock-based compensation |
|
|
405 |
|
|
415 |
|
Restructuring, penalty and fire related costs, net of (recoveries) |
|
|
— |
|
|
19 |
|
Depreciation and amortization |
|
|
95 |
|
|
105 |
|
|
|
|
2,192 |
|
|
2,328 |
|
Operating income (loss) |
|
|
152 |
|
|
151 |
|
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
||
Interest expense |
|
|
(117 |
) |
|
(119 |
) |
Dividend and interest income |
|
|
14 |
|
|
14 |
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(36 |
) |
|
(14 |
) |
Other, net |
|
|
(13 |
) |
|
1 |
|
|
|
|
(152 |
) |
|
(118 |
) |
Earnings (loss) before income taxes |
|
|
— |
|
|
33 |
|
Income tax (expense) benefit |
|
|
(15 |
) |
|
(21 |
) |
Net earnings (loss) |
|
|
(15 |
) |
|
12 |
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
8 |
|
|
11 |
|
Net earnings (loss) attributable to Qurate Retail, Inc. shareholders |
|
$ |
(23 |
) |
|
1 |
|
QURATE RETAIL, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION (unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
Nine months ended |
|||||
|
|
September 30, |
|||||
|
|
2024 |
|
2023 |
|||
|
|
amounts in millions |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
||
Net earnings (loss) |
|
$ |
25 |
|
|
164 |
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
|
290 |
|
|
309 |
|
Stock-based compensation |
|
|
22 |
|
|
40 |
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
53 |
|
|
60 |
|
Gain on sale of assets and sale leaseback transactions |
|
|
(1 |
) |
|
(119 |
) |
Gain on insurance proceeds, net of fire related costs |
|
|
— |
|
|
(225 |
) |
Insurance proceeds received for operating expenses and business interruption losses |
|
|
— |
|
|
226 |
|
Loss on disposition of Zulily |
|
|
— |
|
|
64 |
|
Deferred income tax expense (benefit) |
|
|
(86 |
) |
|
62 |
|
Other, net |
|
|
11 |
|
|
3 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
||
Decrease (increase) in accounts receivable |
|
|
411 |
|
|
378 |
|
Decrease (increase) in inventory |
|
|
(249 |
) |
|
63 |
|
Decrease (increase) in prepaid expenses and other assets |
|
|
71 |
|
|
90 |
|
(Decrease) increase in trade accounts payable |
|
|
(59 |
) |
|
(103 |
) |
(Decrease) increase in accrued and other liabilities |
|
|
(175 |
) |
|
(410 |
) |
Net cash provided (used) by operating activities |
|
|
313 |
|
|
602 |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
||
Capital expenditures |
|
|
(137 |
) |
|
(151 |
) |
Expenditures for television distribution rights |
|
|
(23 |
) |
|
(111 |
) |
Cash proceeds from dispositions of investments |
|
|
7 |
|
|
71 |
|
Cash paid for disposal of Zulily |
|
|
— |
|
|
(35 |
) |
Proceeds from sale of fixed assets |
|
|
6 |
|
|
202 |
|
Insurance proceeds received for fixed asset loss |
|
|
— |
|
|
54 |
|
Payments for settlements of financial instruments |
|
|
— |
|
|
(179 |
) |
Proceeds from settlements of financial instruments |
|
|
— |
|
|
167 |
|
Other investing activities, net |
|
|
(2 |
) |
|
— |
|
Net cash provided (used) by investing activities |
|
|
(149 |
) |
|
18 |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
||
Borrowings of debt |
|
|
1,895 |
|
|
1,137 |
|
Repayments of debt |
|
|
(2,249 |
) |
|
(1,893 |
) |
Dividends paid to noncontrolling interest |
|
|
(51 |
) |
|
(35 |
) |
Dividends paid to common shareholders |
|
|
(4 |
) |
|
(8 |
) |
Indemnification agreement settlement |
|
|
— |
|
|
26 |
|
Other financing activities, net |
|
|
(3 |
) |
|
(3 |
) |
Net cash provided (used) by financing activities |
|
|
(412 |
) |
|
(776 |
) |
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
|
2 |
|
|
(17 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(246 |
) |
|
(173 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,136 |
|
|
1,285 |
|
Cash, cash equivalents and restricted cash at end period |
|
$ |
890 |
|
|
1,112 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106593803/en/
Shane Kleinstein (720) 875-5432
Source: Qurate Retail, Inc.
FAQ
What were Qurate Retail's Q3 2024 revenue results?
How did Qurate Retail's QxH segment perform in Q3 2024?
What was Qurate Retail's adjusted OIBDA for Q3 2024?
What actions did Qurate Retail take to improve QVC's credit profile?
