Shop At Home, Inc. Announces Fiscal 2002 Results; Revenue and EBITDA Improve Over Prior Year
NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 6, 2002--Shop At Home, Inc. (Nasdaq:SATH), a 16-year old nationally televised home shopping service, which owns and operates five television stations, today reported results for its fourth quarter and 2002 fiscal year ended June 30, 2002. The Company posted annual net revenues of $195.8 million and an EBITDA (consolidated earnings before interest, taxes, depreciation and amortization) loss of $10.4 million, both representing an improvement over fiscal year 2001 annual results of $177.6 million and a $29.3 million loss, respectively. Net loss for the year was $22.6 million, or 54 cents per share, compared to $10.2 million, or 51 cents per share, for fiscal year 2001. The net loss for fiscal 2001 includes an extraordinary gain of $48.9 million from the March 2001 sale of its Houston television station. The gain was used primarily to offset the operating losses of 2001.
Results for the fourth quarter also showed considerable improvement and significant growth with revenues of $53.5 million and an EBITDA loss of $2.7 million, compared to $39.9 million and a $12.0 million loss, respectively, for the same period last year.
Other significant improvements made throughout the year include:
-- Reduction in operating expenses
-- Improvement in gross margin
-- Reduction in returned items
-- Reduction of chargebacks
-- Expansion of product mix
-- Increase in household reach
In August 2002, Shop At Home entered into a strategic agreement to sell 70% of its television and Internet home shopping network to The E.W. Scripps Company for $49.5 million. The transaction is scheduled for approval of Shop At Home shareholders at a meeting to be held as soon as possible. Shop At Home will maintain a 30% interest in the network and will also retain ownership of its five full-power television stations, certain wireless spectrum and tax-loss carry-forward benefits. Upon close of the transaction, Scripps has agreed to loan the Company $47.5 million payable in three years. Shop At Home plans to use the purchase price and the loan proceeds to retire debt and for working capital purposes.
On August 15, 2002, Scripps purchased $3.0 million of newly authorized Preferred Stock. The shares of Preferred Stock will mature on April 15, 2005, at which time Shop At Home will be obligated to redeem the shares for a price equal to their original purchase price plus accrued and unpaid dividends.
The agreement with Scripps is consistent with previously announced plans to explore a strategic partnership which could bring to Shop At Home funding resources as well as added value to core business operations.
The Company plans to file today its annual report on Form 10-K for the year ended June 30, 2002 with the Securities and Exchange Commission.
Conference Call and Webcast
As noted in the Company's September 5, 2002 press release, a conference call to discuss Fiscal Year 2002 Year End Earnings will be held at 3:00 Central Time on Friday, September 6, 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 1-888-562-2764. The dial-in instant replay will be available through September 13, 2002. |
