QVCD Q1 2016 Earnings Report — QVC, Inc. 6.375% Senior Secured Revenue & Financial Results | Market Cap Arena

QVC, Inc. 6.375% Senior SecuredQVCD

Q1 2016 Earnings

Reported May 9, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2016	Q4 2015	Q1 2015	QoQ Change	YoY Change
Revenue	$2.0B	$2.8B	—	-28.1%	—
Op. Income	$261M	$455M	—	-42.6%	—
Gross Margin	36.4%	35.5%	—	0.9pp	—
Net Margin	6.2%	9.0%	—	-2.8pp	—
EPS (Diluted)	$0.00	$0.00	—	NaN%	—
Free Cash Flow	$241M	$152M	—	58.6%	—

Revenue Flow

Item	Amount
REVENUE	$2.0B
Cost of Revenue	$1.3B
GROSS PROFIT	$733M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$324M
Other Expenses	$0
Operating Expenses	$471M
Cost & Expenses	$1.8B
OPERATING INCOME	$261M
Interest Income	$0
Interest Expense	$53M
Other Income/Expenses	-$52M
INCOME BEFORE TAX	$209M
Income Tax Expense	$76M
Net Income from Continuing Ops	$133M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$125M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$125M
D&A	$124M
EBIT	$261M
EBITDA	$261M
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$2.0B
Cost of Revenue	$1.3B
GROSS PROFIT	$733M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$324M
Other Expenses	$0
Operating Expenses	$471M
Cost & Expenses	$1.8B
OPERATING INCOME	$261M
Interest Income	$0
Interest Expense	$53M
Other Income/Expenses	-$52M
INCOME BEFORE TAX	$209M
Income Tax Expense	$76M
Net Income from Continuing Ops	$133M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$125M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$125M
D&A	$124M
EBIT	$261M
EBITDA	$261M
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$125M
Depreciation & Amortization	$124M
Stock-Based Compensation	$6M
Deferred Income Tax	-$19M
Other Non-Cash Items	-$101M
Change in Working Capital	$126M
OPERATING CASH FLOW	$280M
Capital Expenditure	-$39M
Acquisitions (Net)	$0
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$9M
NET CASH FROM INVESTING	-$48M
Net Debt Issuance	$77M
Common Stock Repurchased	$0
Common Dividends Paid	-$234M
Other Financing Activities	-$28M
NET CASH FROM FINANCING	-$185M
FREE CASH FLOW	$241M
Net Change in Cash	$34M

Balance Sheet

Item	Amount
Cash & Equivalents	$361M
Short-Term Investments	$0
Net Receivables	$1.0B
Inventory	$1.0B
Other Current Assets	$11M
TOTAL CURRENT ASSETS	$2.5B
PP&E (Net)	$1.1B
Goodwill	$5.1B
Intangible Assets	$3.2B
Long-Term Investments	$32M
Tax Assets	-$32M
Other Non-Current Assets	$67M
TOTAL NON-CURRENT ASSETS	$9.4B
TOTAL ASSETS	$11.8B
Account Payables	$558M
Short-Term Debt	$0
Deferred Revenue	-$7M
Other Current Liabilities	$439M
TOTAL CURRENT LIABILITIES	$1.3B
Long-Term Debt	$5.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$1.1B
TOTAL NON-CURRENT LIABILITIES	$6.5B
TOTAL LIABILITIES	$7.8B
Common Stock	$0
Additional Paid-In Capital	$6.8B
Retained Earnings	-$2.8B
Treasury Stock	$0
Accum. Other Comp. Income	-$113M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.9B
Minority Interest	$94M
TOTAL EQUITY	$4.0B
TOTAL LIABILITIES & EQUITY	$11.8B
Total Debt	$5.5B
Net Debt	$5.1B