Shop At Home Quarterly Operating Results Show Improvement in Revenues and Net Income
NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 14, 2002--Shop At Home, Inc. (Nasdaq:SATH - news), a 16-year-old nationally televised home shopping service, today announced financial operating results for the quarter ending December 31, 2001, the second quarter of fiscal year 2002. Net revenues increased 6% to $49.2 million from $46.5 million last year. Net loss was reduced to $5.5 million from $8.2 million last year. EBITDA (earnings before interest, taxes, depreciation and amortization) declined from a loss of $2.5 million last year to a loss of $2.9 million this year.
For the six months ending December 31, 2001, net revenues increased 6% to $92.6 million from $87.3 million last year. Net loss was reduced to $10.4 million from $17.0 million last year. EBITDA improved from a loss of $8.4 million last year to a loss of $4.7 million this year.
The Company continued its turnaround efforts with significant progress in several areas during the quarter:
A reduction in returned merchandise to 17.6% from 27.1% last year.
A reduction in chargebacks (including fraud) to 0.3% of sales from 1.2% last year
A substantial reduction in affiliate costs per home reached.
A reduction in salaries and wages and general and administrative expense.
Significant improvements year-over-year in customer service metrics and shipping timeliness.
The Company's gross shipment results were negatively impacted by the national retailing slowdown, which began before September 11, 2001 and accelerated thereafter. In addition, the Company's historically largest product category, sports memorabilia, has declined in popularity even as competition has increased from other sources for collectors. The Company's merchandising plan is addressing these challenges by increasingly offering products that appeal to female customers. Women account for a disproportionate amount of the television home shopping industry's sales volume, and historically the Company has been male oriented.
During the quarter, the Company continued to attract new management talent with deep retailing and broadcasting experience. The Company appointed new executive vice presidents of operations and strategic planning, a vice president of merchandising and a director of electronics, among others.
Conference Call and Webcast
As noted in the Company's February 7, 2002 press release, a conference call to discuss Fiscal Year 2002 2nd Quarter Earnings will be held at 3:00 CST on February 14, 2002. A live listen-only web-cast of the conference call will be available for 90 days on the Company's website at www.shopathometv.com/corporate/news-index.html or by dial-in instant replay at 800/294-2476. The dial-in instant replay will be available beginning February 15 until February 22, 2002. |
