QVCD FY 2018 Earnings Report — QVC, Inc. 6.375% Senior Secured Revenue & Financial Results | Market Cap Arena

QVC, Inc. 6.375% Senior SecuredQVCD

FY 2018 Earnings

Reported February 28, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$11.3B	—	$8.8B	—	28.6%
Op. Income	$1.6B	—	$1.3B	—	18.8%
Gross Margin	35.8%	—	36.2%	—	-0.4pp
Net Margin	7.8%	—	10.3%	—	-2.5pp
EPS (Diluted)	$0.00	—	$0.00	—	NaN%
Free Cash Flow	$928M	—	$1.1B	—	-11.6%

Revenue Flow

Item	Amount
REVENUE	$11.3B
Cost of Revenue	$7.2B
GROSS PROFIT	$4.0B
R&D Expenses	$15M
Selling & Marketing	$138M
General & Administrative	$1.9B
SG&A Expenses	$2.0B
Other Expenses	$0
Operating Expenses	$2.5B
Cost & Expenses	$9.8B
OPERATING INCOME	$1.6B
Interest Income	$0
Interest Expense	$245M
Other Income/Expenses	-$250M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$334M
Net Income from Continuing Ops	$928M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$882M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$882M
D&A	$316M
EBIT	$1.6B
EBITDA	$1.9B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$11.3B
Cost of Revenue	$7.2B
GROSS PROFIT	$4.0B
R&D Expenses	$15M
Selling & Marketing	$138M
General & Administrative	$1.9B
SG&A Expenses	$2.0B
Other Expenses	$0
Operating Expenses	$2.5B
Cost & Expenses	$9.8B
OPERATING INCOME	$1.6B
Interest Income	$0
Interest Expense	$245M
Other Income/Expenses	-$250M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$334M
Net Income from Continuing Ops	$928M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$882M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$882M
D&A	$316M
EBIT	$1.6B
EBITDA	$1.9B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$882M
Depreciation & Amortization	$316M
Stock-Based Compensation	$46M
Deferred Income Tax	$0
Other Non-Cash Items	$165M
Change in Working Capital	-$253M
OPERATING CASH FLOW	$1.2B
Capital Expenditure	-$228M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$185M
NET CASH FROM INVESTING	-$413M
Net Debt Issuance	-$566M
Common Stock Repurchased	$0
Common Dividends Paid	-$367M
Other Financing Activities	$448M
NET CASH FROM FINANCING	-$485M
FREE CASH FLOW	$928M
Net Change in Cash	$260M

Balance Sheet

Item	Amount
Cash & Equivalents	$543M
Short-Term Investments	$5M
Net Receivables	$1.7B
Inventory	$1.3B
Other Current Assets	$220M
TOTAL CURRENT ASSETS	$3.8B
PP&E (Net)	$1.2B
Goodwill	$6.0B
Intangible Assets	$3.8B
Long-Term Investments	$38M
Tax Assets	-$58M
Other Non-Current Assets	$110M
TOTAL NON-CURRENT ASSETS	$11.0B
TOTAL ASSETS	$14.9B
Account Payables	$1.0B
Short-Term Debt	$421M
Deferred Revenue	$0
Other Current Liabilities	$617M
TOTAL CURRENT LIABILITIES	$2.5B
Long-Term Debt	$4.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$873M
TOTAL NON-CURRENT LIABILITIES	$5.6B
TOTAL LIABILITIES	$8.0B
Common Stock	$0
Additional Paid-In Capital	$9.1B
Retained Earnings	-$2.3B
Treasury Stock	$0
Accum. Other Comp. Income	-$144M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.7B
Minority Interest	$119M
TOTAL EQUITY	$6.8B
TOTAL LIABILITIES & EQUITY	$14.9B
Total Debt	$5.1B
Net Debt	$4.6B