QVCC FY 2013 Earnings Report — QVC, Inc. 6.250% Senior Secured Revenue & Financial Results | Market Cap Arena

QVC, Inc. 6.250% Senior SecuredQVCC

FY 2013 Earnings

Reported March 3, 2014

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2013	Prior Q	FY 2012	QoQ Change	YoY Change
Revenue	$8.6B	—	$5.5B	—	57.4%
Op. Income	$1.2B	—	$591M	—	110.7%
Gross Margin	36.6%	—	36.5%	—	0.1pp
Net Margin	6.8%	—	9.2%	—	-2.4pp
EPS (Diluted)	$0.00	—	$0.00	—	NaN%
Free Cash Flow	$759M	—	—	—	—

Revenue Flow

Item	Amount
REVENUE	$8.6B
Cost of Revenue	$5.5B
GROSS PROFIT	$3.2B
R&D Expenses	$0
Selling & Marketing	$89M
General & Administrative	$1.3B
SG&A Expenses	$1.4B
Other Expenses	$0
Operating Expenses	$2.0B
Cost & Expenses	$7.4B
OPERATING INCOME	$1.2B
Interest Income	$0
Interest Expense	$214M
Other Income/Expenses	-$259M
INCOME BEFORE TAX	$986M
Income Tax Expense	$353M
Net Income from Continuing Ops	$633M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$588M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$588M
D&A	$480M
EBIT	$1.2B
EBITDA	$1.7B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$8.6B
Cost of Revenue	$5.5B
GROSS PROFIT	$3.2B
R&D Expenses	$0
Selling & Marketing	$89M
General & Administrative	$1.3B
SG&A Expenses	$1.4B
Other Expenses	$0
Operating Expenses	$2.0B
Cost & Expenses	$7.4B
OPERATING INCOME	$1.2B
Interest Income	$0
Interest Expense	$214M
Other Income/Expenses	-$259M
INCOME BEFORE TAX	$986M
Income Tax Expense	$353M
Net Income from Continuing Ops	$633M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$588M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$588M
D&A	$480M
EBIT	$1.2B
EBITDA	$1.7B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$588M
Depreciation & Amortization	$480M
Stock-Based Compensation	$38M
Deferred Income Tax	$0
Other Non-Cash Items	-$52M
Change in Working Capital	-$81M
OPERATING CASH FLOW	$973M
Capital Expenditure	-$214M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$56M
NET CASH FROM INVESTING	-$270M
Net Debt Issuance	$0
Common Stock Repurchased	$0
Common Dividends Paid	-$1.0B
Other Financing Activities	$929M
NET CASH FROM FINANCING	-$763M
FREE CASH FLOW	$759M
Net Change in Cash	$413M

Balance Sheet

Item	Amount
Cash & Equivalents	$457M
Short-Term Investments	$0
Net Receivables	$1.1B
Inventory	$931M
Other Current Assets	$176M
TOTAL CURRENT ASSETS	$2.7B
PP&E (Net)	$1.1B
Goodwill	$5.2B
Intangible Assets	$3.9B
Long-Term Investments	-$16M
Tax Assets	$16M
Other Non-Current Assets	$109M
TOTAL NON-CURRENT ASSETS	$10.3B
TOTAL ASSETS	$13.1B
Account Payables	$494M
Short-Term Debt	$0
Deferred Revenue	-$11M
Other Current Liabilities	$628M
TOTAL CURRENT LIABILITIES	$1.5B
Long-Term Debt	$3.7B
Deferred Revenue NC	-$4M
Deferred Tax Liabilities	$4M
Other Non-Current Liabilities	$1.4B
TOTAL NON-CURRENT LIABILITIES	$5.2B
TOTAL LIABILITIES	$6.7B
Common Stock	$0
Additional Paid-In Capital	$6.7B
Retained Earnings	-$620M
Treasury Stock	$0
Accum. Other Comp. Income	$139M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.2B
Minority Interest	$119M
TOTAL EQUITY	$6.3B
TOTAL LIABILITIES & EQUITY	$13.1B
Total Debt	$3.8B
Net Debt	$3.3B