QVCD FY 2016 Earnings Report — QVC, Inc. 6.375% Senior Secured Revenue & Financial Results | Market Cap Arena

QVC, Inc. 6.375% Senior SecuredQVCD

FY 2016 Earnings

Reported February 28, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2016	Prior Q	FY 2015	QoQ Change	YoY Change
Revenue	$8.7B	—	$8.7B	—	-0.7%
Op. Income	$1.2B	—	$1.3B	—	-5.6%
Gross Margin	36.2%	—	36.8%	—	-0.6pp
Net Margin	7.0%	—	7.2%	—	-0.2pp
EPS (Diluted)	$0.00	—	$0.00	—	NaN%
Free Cash Flow	$999M	—	$813M	—	22.9%

Revenue Flow

Item	Amount
REVENUE	$8.7B
Cost of Revenue	$5.5B
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$84M
General & Administrative	$1.3B
SG&A Expenses	$1.3B
Other Expenses	$0
Operating Expenses	$1.9B
Cost & Expenses	$7.4B
OPERATING INCOME	$1.2B
Interest Income	$0
Interest Expense	$208M
Other Income/Expenses	-$176M
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$385M
Net Income from Continuing Ops	$642M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$604M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$604M
D&A	$505M
EBIT	$1.2B
EBITDA	$1.2B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$8.7B
Cost of Revenue	$5.5B
GROSS PROFIT	$3.1B
R&D Expenses	$0
Selling & Marketing	$84M
General & Administrative	$1.3B
SG&A Expenses	$1.3B
Other Expenses	$0
Operating Expenses	$1.9B
Cost & Expenses	$7.4B
OPERATING INCOME	$1.2B
Interest Income	$0
Interest Expense	$208M
Other Income/Expenses	-$176M
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$385M
Net Income from Continuing Ops	$642M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$604M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$604M
D&A	$505M
EBIT	$1.2B
EBITDA	$1.2B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$604M
Depreciation & Amortization	$505M
Stock-Based Compensation	$32M
Deferred Income Tax	$0
Other Non-Cash Items	$90M
Change in Working Capital	-$53M
OPERATING CASH FLOW	$1.2B
Capital Expenditure	-$179M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$42M
NET CASH FROM INVESTING	-$221M
Net Debt Issuance	-$228M
Common Stock Repurchased	$0
Common Dividends Paid	-$703M
Other Financing Activities	-$50M
NET CASH FROM FINANCING	-$981M
FREE CASH FLOW	$999M
Net Change in Cash	-$33M

Balance Sheet

Item	Amount
Cash & Equivalents	$284M
Short-Term Investments	$0
Net Receivables	$1.2B
Inventory	$950M
Other Current Assets	$78M
TOTAL CURRENT ASSETS	$2.5B
PP&E (Net)	$1.0B
Goodwill	$5.0B
Intangible Assets	$2.9B
Long-Term Investments	$2M
Tax Assets	-$74M
Other Non-Current Assets	$141M
TOTAL NON-CURRENT ASSETS	$9.0B
TOTAL ASSETS	$11.5B
Account Payables	$678M
Short-Term Debt	$14M
Deferred Revenue	$0
Other Current Liabilities	$497M
TOTAL CURRENT LIABILITIES	$1.5B
Long-Term Debt	$5.3B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$914M
TOTAL NON-CURRENT LIABILITIES	$6.2B
TOTAL LIABILITIES	$7.7B
Common Stock	$0
Additional Paid-In Capital	$6.9B
Retained Earnings	-$2.8B
Treasury Stock	$0
Accum. Other Comp. Income	-$224M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.8B
Minority Interest	$100M
TOTAL EQUITY	$3.9B
TOTAL LIABILITIES & EQUITY	$11.5B
Total Debt	$5.3B
Net Debt	$5.0B