Qurate Retail, Inc. Reports First Quarter 2024 Financial Results
“Our first quarter results demonstrate the continued momentum in our turnaround. We expanded gross margins for the fourth consecutive quarter, increased Adjusted OIBDA over 40% as reported for the third consecutive quarter of growth, and improved free cash flow year-over-year for the fifth consecutive quarter," said
“In April, we launched our Age of Possibility campaign, where we brought together a group of Quintessential 50 ambassadors including
First quarter 2024 operating results:
-
Qurate Retail revenue decreased 4%(2) in both US Dollars and constant currency(3) -
Qurate Retail grew Adjusted OIBDA(4) 25%(2) in constant currency -
Qurate Retail reported diluted EPS of$0.00 -
Adjusted diluted EPS(4) of
$0.04
-
Adjusted diluted EPS(4) of
- QxH revenue decreased 4%
-
QVC International revenue decreased 3%- In constant currency, revenue decreased 1%
- Cornerstone revenue decreased 11%
Corporate headlines:
-
Repaid remaining
$423 million principal outstanding of QVC’s 4.85% senior secured notes dueApril 2024
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended
FIRST QUARTER 2024 FINANCIAL RESULTS |
||||||||||||||
|
|
|
|
|
|
|
||||||||
(amounts in millions) |
1Q23 |
|
1Q24 |
|
% Change |
% Change
|
||||||||
Revenue |
|
|
|
|
|
|
||||||||
QxH |
$ |
1,601 |
|
$ |
1,539 |
|
(4 |
)% |
|
|||||
|
|
592 |
|
|
572 |
|
(3 |
)% |
(1 |
)% |
||||
Cornerstone |
|
259 |
|
|
231 |
|
(11 |
)% |
|
|||||
Total Qurate Retail Revenue (excluding Zulily) |
|
2,452 |
|
|
2,342 |
|
(4 |
)% |
(4 |
)% |
||||
Zulily(b) |
|
192 |
|
|
— |
|
NM |
|
|
|||||
Total Qurate Retail Revenue (as reported) |
$ |
2,644 |
|
$ |
2,342 |
|
(11 |
)% |
(11 |
)% |
||||
|
|
|
|
|
|
|
||||||||
Operating Income (Loss) |
|
|
|
|
|
|
||||||||
QxH(c) |
$ |
74 |
|
$ |
94 |
|
27 |
% |
|
|||||
|
|
156 |
|
|
63 |
|
(60 |
)% |
(57 |
)% |
||||
Cornerstone |
|
(2 |
) |
|
(3 |
) |
(50 |
)% |
|
|||||
Unallocated corporate cost |
|
(9 |
) |
|
(9 |
) |
- |
% |
|
|||||
Total Qurate Retail Operating Income (excluding Zulily) |
|
219 |
|
|
145 |
|
(34 |
)% |
(32 |
)% |
||||
Zulily(b) |
|
(43 |
) |
|
— |
|
NM |
|
|
|||||
Total Qurate Retail Operating Income (as reported) |
$ |
176 |
|
$ |
145 |
|
(18 |
)% |
(15 |
)% |
||||
|
|
|
|
|
|
|
||||||||
Adjusted OIBDA |
|
|
|
|
|
|
||||||||
QxH(c) |
$ |
139 |
|
$ |
185 |
|
33 |
% |
|
|||||
|
|
72 |
|
|
75 |
|
4 |
% |
10 |
% |
||||
Cornerstone |
|
4 |
|
|
6 |
|
50 |
% |
|
|||||
Unallocated corporate cost |
|
(5 |
) |
|
(7 |
) |
(40 |
)% |
|
|||||
Total Qurate Retail Adjusted OIBDA (excluding Zulily) |
$ |
210 |
|
$ |
259 |
|
23 |
% |
25 |
% |
||||
Zulily(b) |
|
(31 |
) |
|
— |
|
NM |
|
|
|||||
Total Qurate Retail Adjusted OIBDA (as reported) |
$ |
179 |
|
$ |
259 |
|
45 |
% |
47 |
% |
____________________ | ||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
|
|
c) |
In the first quarter of 2023, QxH incurred |
|
d) |
In the first quarter of 2023, |
|
FIRST QUARTER 2024 NET INCOME AND ADJUSTED NET INCOME (4) |
||||||||
|
|
|
|
|
||||
(amounts in millions) |
1Q23 |
|
1Q24 |
|
||||
Net income (loss) |
$ |
20 |
|
$ |
(1 |
) |
||
Adjusted net income (loss)(a) |
$ |
(20 |
) |
$ |
17 |
|
||
|
|
|
|
|
||||
Basic weighted average shares outstanding ("WASO") |
|
383 |
|
|
392 |
|
||
Potentially dilutive shares |
|
1 |
|
|
1 |
|
||
Diluted WASO |
|
384 |
|
|
393 |
|
||
|
|
|
|
|
||||
GAAP EPS(b) |
$ |
0.05 |
|
$ |
— |
|
||
Adjusted EPS(a) |
$ |
(0.05 |
) |
$ |
0.04 |
|
____________________ | ||
a) |
See Reconciling Schedule 3. |
|
b) |
Represents diluted net income per share attributable to Series A and Series B common stockholders as presented in Qurate Retail’s financial statements. |
QxH
QxH revenue declined primarily due to a 4% decrease in units shipped, partially offset by favorable returns and higher shipping and handling revenue. QxH reported sales declines mainly in home and apparel, partially offset by growth in accessories and jewelry.
Operating income and Adjusted OIBDA margin(4) increased mainly due to higher product margins and lower fulfillment (warehouse and freight) and administrative expenses, partially offset by higher marketing costs. Product margins increased primarily due to mix shift to higher-margin products and lower supply chain costs. Fulfillment favorability primarily reflected lower freight rates and efficiencies from Project Athens initiatives. Administrative expenses declined primarily due to lower costs for outside services related to Project Athens. Marketing expenses increased largely due to the normalization of the annual spend compared to the prior year.
US Dollar denominated results were negatively impacted by exchange rate fluctuations due to the US Dollar strengthening 11% against the Japanese Yen, which was partially offset by the US Dollar weakening 5% against the British Pound and 1% against the Euro. The financial metrics presented in this press release also provide a comparison of the percentage change in QVC International’s results in constant currency (where applicable) to the comparable figures calculated in accordance with US GAAP for the first quarter of 2024.
QVC International’s constant currency revenue declined slightly as a 4% increase in units shipped was offset by a 5% decrease in average selling price.
Operating income decreased primarily as a result of comparing against
Adjusted OIBDA margin increased mainly due to higher product margins and lower administrative expenses. Product margins increased primarily due to favorable returns, higher initial margins and shipping and handling revenue. Lower administrative expenses mainly reflected lower personnel expenses.
Cornerstone
Cornerstone revenue decreased due to continued softness in certain categories in the home sector and for apparel at Garnet Hill.
Operating income margin decreased primarily due to higher depreciation related to the opening of six new retail stores and the relocation of four stores in the past year.
Adjusted OIBDA margin increased primarily due to lower supply chain costs, partially offset by deleverage of administrative costs and marketing expenses.
FIRST QUARTER 2024 SUPPLEMENTAL METRICS |
||||||||||||||
|
|
|
|
|
|
|
||||||||
(amounts in millions unless otherwise noted) |
1Q23 |
|
1Q24 |
|
% Change |
% Change
|
||||||||
QxH |
|
|
|
|
|
|
||||||||
Cost of Goods Sold % of Revenue |
|
69.0 |
% |
|
65.4 |
% |
(360 |
) bps |
|
|||||
Operating Income Margin (%)(b) |
|
4.6 |
% |
|
6.1 |
% |
150 |
bps |
|
|||||
Adjusted OIBDA Margin (%)(b) |
|
8.7 |
% |
|
12.0 |
% |
330 |
bps |
|
|||||
Average Selling Price |
$ |
53.90 |
|
$ |
53.60 |
|
(1 |
)% |
|
|||||
Units Sold |
|
|
|
|
(4 |
)% |
|
|||||||
Return Rate(c) |
|
16.0 |
% |
|
15.4 |
% |
(60 |
) bps |
|
|||||
eCommerce Revenue(d) |
$ |
961 |
|
$ |
958 |
|
- |
% |
|
|||||
eCommerce % of Total Revenue |
|
60.0 |
% |
|
62.2 |
% |
220 |
bps |
|
|||||
Mobile % of eCommerce Revenue(e) |
|
68.3 |
% |
|
69.8 |
% |
150 |
bps |
|
|||||
LTM Total Customers(f) |
|
8.5 |
|
|
8.0 |
|
(6 |
)% |
|
|||||
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Cost of Goods Sold % of Revenue |
|
64.7 |
% |
|
64.0 |
% |
(70 |
) bps |
|
|||||
Operating Income Margin (%)(g) |
|
26.4 |
% |
|
11.0 |
% |
(1,540 |
) bps |
|
|||||
Adjusted OIBDA Margin (%)(g) |
|
12.2 |
% |
|
13.1 |
% |
90 |
bps |
|
|||||
Average Selling Price |
|
|
|
|
(7 |
)% |
(5 |
)% |
||||||
Units Sold |
|
|
|
|
4 |
% |
|
|||||||
Return Rate(c) |
|
19.3 |
% |
|
19.2 |
% |
(10 |
) bps |
|
|||||
eCommerce Revenue(d) |
$ |
280 |
|
$ |
294 |
|
5 |
% |
7 |
% |
||||
eCommerce % of Total Revenue |
|
47.3 |
% |
|
51.4 |
% |
410 |
bps |
|
|||||
Mobile % of eCommerce Revenue(e) |
|
69.5 |
% |
|
68.8 |
% |
(70 |
) bps |
|
|||||
LTM Total Customers(f) |
|
4.3 |
|
|
4.1 |
|
(5 |
)% |
|
|||||
|
|
|
|
|
|
|
|
|||||||
Cornerstone |
|
|
|
|
|
|
|
|||||||
Cost of Goods Sold % of Revenue |
|
63.8 |
% |
|
59.7 |
% |
(410 |
) bps |
|
|||||
Operating Income Margin (%) |
|
(0.8 |
)% |
|
(1.3 |
)% |
(50 |
) bps |
|
|||||
Adjusted OIBDA Margin (%) |
|
1.5 |
% |
|
2.6 |
% |
110 |
bps |
|
|||||
eCommerce Revenue(d) |
$ |
197 |
|
$ |
175 |
|
(11 |
)% |
|
|||||
eCommerce % of Total Revenue |
|
76.1 |
% |
|
75.8 |
% |
(30 |
) bps |
|
____________________ | ||
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
In the first quarter of 2023, QxH incurred |
|
c) |
Measured as returned sales over gross shipped sales in US Dollars. |
|
d) |
Based on net revenue. |
|
e) |
Based on gross US Dollar orders. |
|
f) |
LTM: Last twelve months. |
|
g) |
In the first quarter of 2023, |
FOOTNOTES
1) |
|
|
2) |
Adjusted for the divestiture of Zulily on |
|
3) |
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. |
|
4) |
For definitions and applicable reconciliations of Adjusted OIBDA, Adjusted OIBDA margin, adjusted net income and adjusted diluted EPS, see the accompanying schedules. |
NOTES
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
(amounts in millions) |
|
|
||||||
Cash and cash equivalents (GAAP) |
$ |
1,121 |
|
$ |
1,102 |
|
||
|
|
|
|
|
||||
Debt: |
|
|
|
|
||||
QVC senior secured notes(a) |
$ |
3,509 |
|
$ |
3,086 |
|
||
QVC senior secured bank credit facility |
|
857 |
|
|
1,295 |
|
||
Total Qurate Retail Group Debt |
$ |
4,366 |
|
$ |
4,381 |
|
||
|
|
|
|
|
||||
Senior notes(a) |
|
792 |
|
|
792 |
|
||
Senior exchangeable debentures(b) |
|
781 |
|
|
780 |
|
||
Corporate Level Debentures |
|
1,573 |
|
|
1,572 |
|
||
|
$ |
5,939 |
|
$ |
5,953 |
|
||
Unamortized discount, fair market value adjustment and deferred loan costs |
|
(599 |
) |
|
(462 |
) |
||
|
$ |
5,340 |
|
$ |
5,491 |
|
||
|
|
|
|
|
||||
Other Financial Obligations: |
|
|
|
|
||||
Preferred stock(c) |
$ |
1,270 |
|
$ |
1,272 |
|
||
|
|
|
|
|
||||
|
|
2.4x |
|
2.5x |
____________________ | ||
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 8% coupon, |
|
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
QVC’s bank credit facility has
As of
Important Notice:
This press release includes certain forward-looking statements, including statements about business strategies and initiatives (including Project Athens) 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
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
In addition, this press release includes references to adjusted net income and adjusted earnings per share, which are non-GAAP financial measures, for
This press release also references certain financial metrics on a constant currency basis, which is a non-GAAP measure, for
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
CONSOLIDATED OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION |
||||||||||||||||||||
(amounts in millions) |
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
||||||||||
Qurate Retail Operating Income (Loss) |
$ |
176 |
|
$ |
366 |
|
$ |
151 |
$ |
(103 |
) |
$ |
145 |
|
||||||
Depreciation and amortization |
|
100 |
|
|
104 |
|
|
105 |
|
|
98 |
|
|
99 |
|
|||||
Stock compensation expense |
|
16 |
|
|
14 |
|
|
10 |
|
|
13 |
|
|
16 |
|
|||||
Restructuring, penalties and fire related costs, net of (recoveries) (including |
|
— |
|
|
(208 |
) |
|
19 |
|
|
— |
|
|
— |
|
|||||
Impairment of intangible assets(b) |
|
— |
|
|
— |
|
|
— |
|
|
326 |
|
|
— |
|
|||||
(Gains) losses on sale of assets and sale leaseback transactions(c) |
|
(113 |
) |
|
(6 |
) |
|
— |
|
|
6 |
|
|
(1 |
) |
|||||
Qurate Retail Adjusted OIBDA |
$ |
179 |
|
$ |
270 |
|
$ |
285 |
|
$ |
340 |
|
$ |
259 |
|
____________________ | ||
a) |
In the second quarter of 2023, QxH recognized (i) a |
|
b) |
In the fourth quarter of 2023, QxH recognized a |
|
c) |
Includes gains related to the sale leaseback of the |
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
SUBSIDIARY ADJUSTED OIBDA RECONCILIATION |
||||||||||||||||||||
(amounts in millions) |
1Q23 |
|
2Q23 |
|
3Q23 |
|
4Q23 |
|
1Q24 |
|
||||||||||
QVC |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
$ |
230 |
|
$ |
374 |
|
$ |
154 |
$ |
(113 |
) |
$ |
157 |
|
||||||
Depreciation and amortization |
|
89 |
|
|
94 |
|
|
98 |
|
|
91 |
|
|
92 |
|
|||||
Stock compensation |
|
9 |
|
|
11 |
|
|
7 |
|
|
10 |
|
|
12 |
|
|||||
Restructuring, penalties and fire related costs, net of (recoveries) (including |
|
(4 |
) |
|
(211 |
) |
|
19 |
|
|
— |
|
|
— |
|
|||||
(Gains) losses on sale of assets and sale leaseback transactions |
|
(113 |
) |
|
(6 |
) |
|
— |
|
|
6 |
|
|
(1 |
) |
|||||
Impairment of intangible assets |
|
— |
|
|
— |
|
|
— |
|
|
326 |
|
|
— |
|
|||||
Adjusted OIBDA |
$ |
211 |
|
$ |
262 |
|
$ |
278 |
|
$ |
320 |
|
$ |
260 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
QxH Adjusted OIBDA |
$ |
139 |
|
$ |
185 |
|
$ |
201 |
|
$ |
221 |
|
$ |
185 |
|
|||||
QVC International Adjusted OIBDA |
$ |
72 |
|
$ |
77 |
|
$ |
77 |
|
$ |
99 |
|
$ |
75 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
$ |
(2 |
) |
$ |
15 |
|
$ |
4 |
|
$ |
18 |
|
$ |
(3 |
) |
|||||
Depreciation and amortization |
|
5 |
|
|
7 |
|
|
7 |
|
|
7 |
|
|
7 |
|
|||||
Stock compensation |
|
1 |
|
|
1 |
|
|
— |
|
|
2 |
|
|
2 |
|
|||||
Restructuring costs |
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Adjusted OIBDA |
$ |
4 |
|
$ |
25 |
|
$ |
11 |
|
$ |
27 |
|
$ |
6 |
|
SCHEDULE 3
The following table provides a reconciliation of Qurate Retail’s net income (loss) to its adjusted net income and diluted earnings (loss) per share to adjusted earnings per share, in each case, calculated in accordance with GAAP for the three months ended
ADJUSTED NET INCOME AND ADJUSTED EPS RECONCILIATION |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(amounts in millions) |
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
1Q24 |
|
|||||
Qurate Retail Net Income (Loss) (GAAP) |
$ |
20 |
|
$ |
107 |
|
$ |
1 |
$ |
(273 |
) |
$ |
(1 |
) |
||||||
Purchase accounting amort., net of deferred tax benefit(a) |
|
17 |
|
|
15 |
|
|
14 |
|
|
14 |
|
|
14 |
|
|||||
Impairment of intangible assets, net of tax impact |
|
— |
|
|
— |
|
|
— |
|
|
326 |
|
|
— |
|
|||||
Restructuring, penalties and fire related costs, net of (recoveries) and tax impact (including |
|
— |
|
|
(156 |
) |
|
14 |
|
|
— |
|
|
— |
|
|||||
(Gains) losses on sale of intangible asset and sale leaseback transactions, net of tax impact |
|
(92 |
) |
|
(5 |
) |
|
— |
|
|
6 |
|
|
(2 |
) |
|||||
Mark-to-market adjustments, net(b) |
|
35 |
|
|
26 |
|
|
11 |
|
|
14 |
|
|
6 |
|
|||||
Adjusted Net Income (Loss) |
$ |
(20 |
) |
$ |
(13 |
) |
$ |
40 |
|
$ |
87 |
|
$ |
17 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per share (GAAP) |
$ |
0.05 |
|
$ |
0.28 |
|
$ |
— |
|
$ |
(0.70 |
) |
$ |
— |
|
|||||
Total adjustments per share, net of tax |
|
(0.10 |
) |
|
(0.31 |
) |
|
0.10 |
|
|
0.92 |
|
|
0.04 |
|
|||||
Adjusted earnings (loss) per share |
$ |
(0.05 |
) |
$ |
(0.03 |
) |
$ |
0.10 |
|
$ |
0.22 |
|
$ |
0.04 |
|
____________________ | ||
a) |
Add-back relates to non-cash, non-tax deductible purchase accounting amortization from Qurate Retail’s acquisitions of QVC, HSN, Zulily and Cornerstone, net of book deferred tax benefit. |
|
b) |
Add-back includes realized and unrealized gains/losses on financial instruments, net of tax. |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION |
|||||||
(unaudited) |
|||||||
|
|
|
|
||||
|
|
|
|||||
|
2024 |
2023 |
|||||
|
amounts in millions |
||||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,102 |
|
1,121 |
|
||
Trade and other receivables, net of allowance for credit losses |
|
980 |
|
1,308 |
|
||
Inventory, net |
|
1,134 |
|
1,044 |
|
||
Other current assets |
|
170 |
|
209 |
|
||
Total current assets |
|
3,386 |
|
3,682 |
|
||
Property and equipment, net |
|
496 |
|
512 |
|
||
Intangible assets not subject to amortization |
|
5,839 |
|
5,862 |
|
||
Intangible assets subject to amortization, net |
|
495 |
|
526 |
|
||
Operating lease right-of-use assets |
|
629 |
|
635 |
|
||
Other assets, at cost, net of accumulated amortization |
|
136 |
|
151 |
|
||
Total assets |
$ |
10,981 |
|
11,368 |
|
||
Liabilities and Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
|
789 |
|
895 |
|
||
Accrued liabilities |
|
715 |
|
983 |
|
||
Current portion of debt |
|
939 |
|
642 |
|
||
Other current liabilities |
|
100 |
|
97 |
|
||
Total current liabilities |
|
2,543 |
|
2,617 |
|
||
Long-term debt |
|
4,552 |
|
4,698 |
|
||
Deferred income tax liabilities |
|
1,504 |
|
1,531 |
|
||
Preferred stock |
|
1,272 |
|
1,270 |
|
||
Operating lease liabilities |
|
617 |
|
615 |
|
||
Other liabilities |
|
142 |
|
148 |
|
||
Total liabilities |
|
10,630 |
|
10,879 |
|
||
Equity |
|
255 |
|
385 |
|
||
Non-controlling interests in equity of subsidiaries |
|
96 |
|
104 |
|
||
Total liabilities and equity |
$ |
10,981 |
|
11,368 |
|
||
|
|||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION |
|||||||
(unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
Three months ended |
|||||
|
|
|
|||||
|
|
2024 |
|
2023 |
|||
|
|
amounts in millions |
|||||
Revenue: |
|
|
|
||||
Total revenue, net |
$ |
2,342 |
|
2,644 |
|
||
|
|
|
|
||||
Operating costs and expenses: |
|
|
|
||||
Cost of goods sold (exclusive of depreciation shown separately below) |
|
1,511 |
|
1,809 |
|
||
Operating expense |
|
180 |
|
194 |
|
||
Selling, general and administrative, including stock-based compensation |
|
408 |
|
478 |
|
||
Depreciation and amortization |
|
99 |
|
100 |
|
||
Gain on sale of assets and leaseback transactions |
|
(1 |
) |
(113 |
) |
||
|
|
2,197 |
|
2,468 |
|
||
Operating income (loss) |
|
145 |
|
176 |
|
||
|
|
|
|
||||
Other income (expense): |
|
|
|
||||
Interest expense |
|
(117 |
) |
(94 |
) |
||
Dividend and interest income |
|
12 |
|
11 |
|
||
Realized and unrealized gains (losses) on financial instruments, net |
|
(7 |
) |
(32 |
) |
||
Other, net |
|
(2 |
) |
4 |
|
||
|
|
(114 |
) |
(111 |
) |
||
Earnings (loss) before income taxes |
|
31 |
|
65 |
|
||
Income tax (expense) benefit |
|
(23 |
) |
(32 |
) |
||
Net earnings (loss) |
|
8 |
|
33 |
|
||
Less net earnings (loss) attributable to the noncontrolling interests |
|
9 |
|
13 |
|
||
Net earnings (loss) attributable to |
$ |
(1 |
) |
20 |
|
||
|
|||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION |
|||||||
(unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
Three months ended |
|||||
|
|
|
|||||
|
|
2024 |
|
2023 |
|||
|
|
amounts in millions |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net earnings (loss) |
$ |
8 |
|
33 |
|
||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
99 |
|
100 |
|
||
Stock-based compensation |
|
16 |
|
16 |
|
||
Realized and unrealized (gains) losses on financial instruments, net |
|
7 |
|
32 |
|
||
Gain on sale of assets and sale leaseback transactions |
|
(1 |
) |
(113 |
) |
||
Gain on insurance proceeds, net of fire related costs |
|
— |
|
(17 |
) |
||
Insurance proceeds received for operating expenses and business interruption losses |
|
— |
|
37 |
|
||
Deferred income tax expense (benefit) |
|
(2 |
) |
(2 |
) |
||
Other, net |
|
4 |
|
9 |
|
||
Changes in operating assets and liabilities |
|
|
|
||||
Decrease (increase) in accounts receivable |
|
313 |
|
294 |
|
||
Decrease (increase) in inventory |
|
(94 |
) |
25 |
|
||
Decrease (increase) in prepaid expenses and other assets |
|
45 |
|
48 |
|
||
(Decrease) increase in trade accounts payable |
|
(101 |
) |
(167 |
) |
||
(Decrease) increase in accrued and other liabilities |
|
(268 |
) |
(279 |
) |
||
Net cash provided (used) by operating activities |
|
26 |
|
16 |
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(40 |
) |
(54 |
) |
||
Expenditures for television distribution rights |
|
(2 |
) |
(38 |
) |
||
Cash proceeds from dispositions of investments |
|
6 |
|
1 |
|
||
Proceeds from sale of fixed assets |
|
6 |
|
198 |
|
||
Insurance proceeds received for fixed asset loss |
|
— |
|
18 |
|
||
Payments for settlements of financial instruments |
|
— |
|
(179 |
) |
||
Proceeds from settlements of financial instruments |
|
— |
|
167 |
|
||
Other investing activities, net |
|
(1 |
) |
(1 |
) |
||
Net cash provided (used) by investing activities |
|
(31 |
) |
112 |
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Borrowings of debt |
|
1,570 |
|
677 |
|
||
Repayments of debt |
|
(1,555 |
) |
(803 |
) |
||
Dividends paid to noncontrolling interest |
|
(11 |
) |
(12 |
) |
||
Dividends paid to common shareholders |
|
(4 |
) |
(7 |
) |
||
Indemnification agreement settlement |
|
— |
|
24 |
|
||
Other financing activities, net |
|
(2 |
) |
(1 |
) |
||
Net cash provided (used) by financing activities |
|
(2 |
) |
(122 |
) |
||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
(12 |
) |
4 |
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(19 |
) |
10 |
|
||
Cash, cash equivalents and restricted cash at beginning of period |
|
1,136 |
|
1,285 |
|
||
Cash, cash equivalents and restricted cash at end period |
$ |
1,117 |
|
1,295 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507179583/en/
720-875-5432
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