August 25, 1999 16:16
ValueVision Reports Record Second Quarter and Six-Month Sales
5th Consecutive Quarter of Over 30% Sales Growth in Core TV Home Shopping Business
3rd Consecutive Quarter of Consolidated Operating Income
Second Quarter Highlights:
-- Earnings per share (excluding unusual items) improves by $0.09 over
year-ago quarter; 2Q EPS rises to $0.03 on 38,908,000 diluted shares
from a loss of ($0.06) on 25,979,000 shares last year
-- TV home shopping sales increase 50% to record $52.0 million. Total
consolidated sales increase 31% to record $57.9 million
-- Consolidated operating income improves by $3,448,000 to $311,000 from a
loss of ($3,137,000) in year-ago quarter
-- Net income available to common shareholders improves by $1,700,000 to
$979,000 from a net loss of ($721,000) last year
MINNEAPOLIS, Aug. 25 /PRNewswire/ -- ValueVision International, Inc. (Nasdaq: VVTV), an integrated electronic and print media direct marketing company, today reported record television home shopping sales and substantial gains in earnings for the second quarter and six month period ended July 31, 1999.
"ValueVision's positive quarter and six month financial and operational performance reflect the strength and momentum of our core television home shopping business," said Gene McCaffery, Chairman, Chief Executive Officer and President of ValueVision International, Inc. "With today's results, the Company's TV home shopping operations has experienced five consecutive quarters of greater than 30% growth and three consecutive quarters of greater than 45% growth. The ongoing improvements in our TV television operations, coupled with a rapidly expanding subscriber base and stronger than ever balance sheet position us well for growth, acquisitions and partnerships," said Mr. McCaffery.
Record Quarterly Television Home Shopping Revenues
Net sales for the second quarter ended July 31, 1999 were a record $57,875,000, compared with net sales of $44,082,000 for the second quarter of fiscal 1999, an increase of 31%. The increase in net sales is primarily attributable to continued improvements in the Company's television home shopping operations, which have reported greater than 30% sales increases for the past five quarters in a row and reported its largest revenue quarter in the Company's history. Net sales for the Company's television home shopping operations for the second quarter of fiscal 2000 increased 50% to a record $51,999,000 from $34,721,000 for the comparable prior year-period, on a 36% increase in average full-time equivalent (FTE) cable homes. The Company's mail order operations contributed $5,876,000, or 10% of net sales for the second quarter, compared with $9,361,000, or 21% of net sales for the same period last year, a decrease of $3,486,000, or approximately 37%. The decrease in catalog revenues is a result of the fiscal 1999 divestiture of the Company's unprofitable HomeVisions (formerly known as Montgomery Ward Direct) mail order catalog operations.
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