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| Slopnbc lays off 170 due to slow sales! | Rate Topic |
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| Posted: Wed May 23rd, 2007 02:16 pm |
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1st Post |
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oagaspar Site Founder 
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ValueVision cuts 170 jobs as shoppers slow buying The operator of ShopNBC blamed falling consumer confidence for a slowdown in sales growth, leading to an operating loss. By Chris Serres, Star Tribune Last update: May 21, 2007 – 8:57 PM http://www.startribune.com/535/story/1198033.html   Blaming a sudden drop in consumer confidence for slowing sales, the parent company of home shopping network ShopNBC is laying off 170 workers, or 12 percent of its total staff.ValueVision Media Inc., which is based in Eden Prairie and owns ShopNBC, said sales of jewelry, big-screen TVs, furniture and other items slowed dramatically in mid-March, causing the company to post a quarterly operating loss. "We hope the consumer will come back and demand will increase, but we can't bank on it," said William Lansing, president and chief executive of ValueVision Media. "All we can do is focus on what we can control, and that's our cost structure." About 100 of the job cuts will be at ValueVision's warehouse in Eden Prairie, where it stores many of the products it sells on ShopNBC. That facility will be closed and consolidated with one six times as large in Bowling Green, Ky., Lansing said. The other 70 jobs will come from ValueVision's headquarters and its two outlet stores. The stores, in Eden Prairie and Albertville, will close. The layoffs coincide with increased worries over record-high gasoline prices and a wave of mortgage defaults. Consumer confidence fell in April to its lowest point in eight months, according to a Reuters/University of Michigan survey. Wal-Mart Stores Inc., the nation's largest retailer, said sales at its discount stores open at least a year fell 0.1 percent in the first quarter. Home Depot's declined 7.6 percent. Falling consumer confidence often is reflected first in reduced spending on discretionary items, such as jewelry and furniture, Lansing noted. "When people read about everything from housing prices falling, to subprime credit issues, to high gas prices ... it gets them to hunker down," he said. "They bring some renewed discipline to their spending and that affects all of retail." One of ValueVision's main competitors, HSN, last week laid off 60 workers, most of them at its headquarters in St. Petersburg, Fla. HSN, a shop-at-home network with about 2,500 workers, said its layoffs were part of an effort to drive down costs and reduce redundant positions. The layoffs at ValueVision are the first since Lansing became chief executive 3½ years ago. Since his arrival, the company has hired about 500 people, bringing its workforce to about 1,300. At the same time, the company has changed its merchandise mix. Two years ago, Lansing began to shift its focus away from jewelry to a wider variety of goods, including cosmetics, home electronics and housewares. The company recently launched ShopNBC.TV, which makes its television network available over the Internet. In the first quarter, ended May 5, ValueVision's sales rose 5 percent to $188 million. It was the first time in several quarters that sales growth slowed to less than 10 percent, Lansing said. The company posted an operating loss of $7.43 million, up from $3.92 million a year ago. "We've focused very much on growth over the past several years," Lansing said. "I'm proud of that growth record. But it doesn't make it any easier to lay people off." The company announced the layoffs and its earnings after the market closed Monday. Shares fell 11 cents in after-hours trading to $10.29
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| Posted: Wed May 23rd, 2007 03:51 pm |
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2nd Post |
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Skipdawg 3T WIS 
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Always sad to hear of lay offs. :(
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| Posted: Wed May 23rd, 2007 05:10 pm |
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3rd Post |
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Paxman 3T WIS 
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I agree it is sad to hear of good folks losing jobs. I am wondering if the drop in consumer confidence has anything to do with the BS they spew... I don't purchase from them anymore...
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| Posted: Wed May 23rd, 2007 05:49 pm |
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4th Post |
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oagaspar Site Founder
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Rumor has it that slowed Watch&Jewelry sales over the past year is to blame....the recent unloading of Watches through clearance sales on Slop was an attempt to show the dept. was making money...it's easy to see by the lack of any real Watch brands other than the usual Invicta,Croton,and Renato's that even Lior hasn't been bringing on any of his usual name brand closeouts anymore....I stopped watching Slops shows a couple years ago  With the addition of SAH and the return of Tim Temples "Watch Show" along with all the brands that they carry I'm sure they took a big bite out of Slops sales
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| Posted: Wed May 23rd, 2007 09:18 pm |
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5th Post |
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Gregger 3T WIS 
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Skipdawg wrote: Always sad to hear of lay offs. :( True...I was laid off once in my life and it sucked
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| Posted: Wed May 23rd, 2007 09:43 pm |
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6th Post |
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Skipdawg 3T WIS
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Gregger wrote: Skipdawg wrote:Always sad to hear of lay offs. :( Been there done that myself. And yeppers it sucks! :(
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| Posted: Wed May 23rd, 2007 09:48 pm |
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7th Post |
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KenC Admin 
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Heard the true figure was more like 25%...that this is just the 1st batch and that watch sales (Geez....failing customer confidence...hard to figure) along with jewelry is the main reason....I've notice that Mr. BS himself has been doing fewer and fewer shows....I can only hope they are getting close to showing him the door.......OMG, what will Big & Dumb do then with all of there hero-worship???
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| Posted: Wed May 23rd, 2007 10:36 pm |
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8th Post |
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tny795 3T WIS 
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The whole 9 yds.......numbers and all ValueVision Media Announces 5% Revenue Growth in the First Quarter
Cost Reduction Plan Underway $25 Million Stock Buyback Authorized MINNEAPOLIS, May 21 /PRNewswire-FirstCall/ -- ValueVision Media, Inc. (Nasdaq: VVTV) today announced results for the first quarter ended May 5, 2007. First Quarter Performance ValueVision's first quarter revenues were $188 million, an increase of 5% over last year. First quarter EBITDA (defined below) was a loss of ($1.4) million, excluding stock option expense, versus EBITDA of $1.9 million in the same quarter last year. The gain on the sale of ValueVision's 12.5% equity stake in Polo.com was $40.2 million in the quarter, which is not included in the above EBITDA. Net income for the quarter was $34.4 million compared to a net loss of ($2.1) million for the same quarter last year. "Our sales growth slowed to less than 10% for the first time in several quarters," said William J. Lansing, President and Chief Executive Officer of ValueVision Media, Inc. "The quarter had a strong start, but slowed in the last six weeks, driven by across-the-board softness in consumer demand. With the high fixed-cost nature of our business, we were unable to reduce spending quickly enough to ensure EBITDA profitability for the quarter. Our focus is to grow this business profitably and we have taken steps to reduce our cost base and simplify our operations." "Despite the first quarter financial results, we are pleased that many of our initiatives continued to accelerate this quarter," Lansing continued. "Sales through our ShopNBC.com website increased 28% in the first quarter and now represent 28% of total merchandise sales. Continued growth in our search and affiliate programs drove these results." First Quarter Events Polo.com. The Company reached an agreement with Polo Ralph Lauren Corp. to sell our 12.5% equity stake in Ralph Lauren Media, LLC (Polo.com) for cash proceeds of $43.75 million. The gain on the sale of this non-strategic asset was $40.2 million. ShopNBC License Agreement. The Company and NBC Universal came to an agreement to extend the ShopNBC brand license through May 2011. Vendor relationship. During the first quarter, one of our major electronics vendors, Viscom Technology Group, informed us of their decision to discontinue operations. We are working with them on an orderly wind-down of their business. We continue to grow our overall electronics business with other vendors and new product offerings. We also expect to retain relationships with key manufacturers that Viscom previously represented. Outlook for Fiscal 2007 "In light of our first quarter results, we have taken decisive steps to improve the financial performance of our company and maximize long-term shareholder value," continued Lansing. "We are restructuring our business operations to improve profitability and we have authorized an incremental $25 million stock buyback to improve return on capital." Restructuring Impact The Company has initiated a restructuring of its operations that includes a 12% reduction in the salaried workforce, a consolidation of our distribution operations into a single warehouse facility, the closure of our two outlet stores and other cost saving and margin-enhancing measures. The Company expects these changes to generate on-going, annualized savings of over $10 million. These reductions, which were announced today at the company's Eden Prairie headquarters, are being implemented immediately. ValueVision expects to incur restructuring charges of $2 - $3 million during fiscal 2007 as a result of the actions announced today. $25 Million Stock Buyback ValueVision is also announcing today the authorization of a $25 million stock buyback program. The program permits the Company to buy back up to $25 million of common stock over the next 12 months. The timing and amount of any repurchase will be determined by Company management based on its evaluation of market conditions and other factors. The buyback will be funded through existing cash balances. "This buyback program reflects our belief in the positive long-term trends of our Company and our industry," said Mr. Lansing. "This will enable us to repurchase shares at attractive prices while still preserving a strong balance sheet." Financial Guidance At this time we are adjusting our fiscal 2007 guidance. Annual sales are projected to grow in the 6% - 8% range. EBITDA is expected to be $15 to $20 million, excluding the impact of the one-time restructuring charge, stock option expense and equity income from Ralph Lauren Media, LLC (Polo.com). This is comparable to last year's EBITDA of $14.3 million on the same basis. Conference Call Information Management has scheduled a conference call at 11:00 a.m. EDT/10:00 a.m. CDT on Tuesday, May 22, 2007 to discuss first quarter results. To participate in the conference call, please dial 1-888-469-0883 (Pass code: VALUEVISION) five to ten minutes prior to call time. If you are unable to participate live, a replay will be available for 30 days after the conference call. To access the replay, please dial 1-866-395-4250. You also may participate via live audio stream by logging on to https://e-meetings.mci.com. To access the audio stream, please use conference number 7192187 with pass code 'VALUEVISION'. A rebroadcast of the audio stream will be available using the same access information for 30 days after the initial broadcast. To be placed on the Company's e-mail notification list for press releases, SEC filings, certain analytical information, and/or upcoming events, please go to http://www.valuevisionmedia.com and click on "Investor Relations." Click on "E-mail Alerts" and complete the requested information. EBITDA Defined The Company defines EBITDA as net income (loss) from continuing operations for the respective periods excluding depreciation and amortization expense, interest income (expense), and income taxes. Management views EBITDA as an important alternative operating performance measure because it is commonly used by analysts and institutional investors in analyzing the financial performance of companies in the broadcast and television home shopping sectors. However, EBITDA should not be construed as an alternative to operating income (loss) or to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) and should not be construed as a measure of liquidity. EBITDA, as presented, may not be comparable to similarly entitled measures reported by other companies. Management uses EBITDA to evaluate operating performance and as a measure of performance for incentive compensation purposes and as a way to evaluate its core business operations. Management has excluded non-cash stock option expense and earnings and gains from non-operating investments from its EBITDA presentation in order to maintain comparability of previously issued financial guidance of its ongoing core business operations. About ValueVision Media, Inc Founded in 1990, ValueVision Media is an integrated direct marketing company that sells general merchandise directly to consumers through television, the Internet, and direct mail. It operates ShopNBC, one of the top three television shopping networks in the United States. For more information, please visit http://www.valuevisionmedia.com or http://www.shopnbc.com. Forward-Looking Information This release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are accordingly subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer spending and debt levels; interest rates; competitive pressures on sales, pricing and gross profit margins; the level of cable distribution for the Company's programming and the fees associated therewith; the success of the Company's e-commerce and rebranding initiatives; the performance of its equity investments; the success of its strategic alliances and relationships; the ability of the Company to manage its operating expenses successfully; risks associated with acquisitions; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting the Company's operations; and the ability of the Company to obtain and retain key executives and employees. More detailed information about those factors is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company is under no obligation (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. VALUE VISION MEDIA, INC. Key Performance Metrics* (Unaudited) Q1 For the three months ending 5/5/2007 5/6/2006 % Program Distribution Cable FTEs 40,379 38,329 5% Satellite FTEs 27,136 25,211 8% Total FTEs (Average 000s) 67,515 63,540 6% Net Sales per FTE (Annualized) $10.98 $11.10 -1% Active Customers - 12 month rolling 850,700 804,044 6% % New Customers - 12 month rolling 53% 56% % Retained - 12 month rolling 47% 44% Customer Penetration - 12 month rolling 1.3% 1.3% Product Mix Jewelry 40% 45% Watches, Apparel and Health & Beauty 23% 22% Home & All Other 37% 33% Shipped Units (000s) 1,149 1,291 -11% Average Price Point - shipped units $225 $193 17% *Includes ShopNBC TV and ShopNBC.com only. VALUEVISION MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) For the Three Month Periods Ended May 5, May 6, 2007 2006 Net sales $188,109 $178,724 Cost of sales 121,996 115,522 (exclusive of depreciation and amortization shown below) Operating expense: Distribution and selling 60,460 54,909 General and administrative 7,495 6,806 Depreciation and amortization 5,586 5,376 Asset impairments and write offs - 29 Total operating expense 73,541 67,120 Operating loss (7,428) (3,918) Other income: Gain on sale of investments 40,240 - Other income - 350 Interest income 1,240 946 Total other income 41,480 1,296 Income (loss) before income taxes and equity in net income of affiliates 34,052 (2,622) Equity in income of affiliates 609 546 Income tax provision (281) (15) Net income (loss) 34,380 (2,091) Accretion of redeemable preferred stock (72) (72) Net income (loss) available to common shareholders $34,308 $(2,163) Net income (loss) per common share $0.80 $0.06 Net income (loss) per common share -- assuming dilution $0.80 $0.06 Weighted average number of common shares outstanding: Basic 37,599,124 37,679,102 Diluted 42,938,684 37,679,102 VALUEVISION MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) May 5, February 3, 2007 2007 (Unaudited) ASSETS Current assets: Cash and cash equivalents $60,564 $41,496 Short-term investments 55,447 29,798 Accounts receivable, net 109,081 117,169 Inventories 72,456 66,622 Prepaid expenses and other 5,443 5,360 Total current assets 302,991 260,445 Property and equipment, net 37,816 40,107 FCC broadcasting license 31,943 31,943 NBC Trademark License Agreement, net 13,028 12,234 Cable distribution and marketing agreement, net 1,535 1,759 Other assets 1,119 5,492 $388,432 $351,980 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $61,707 $57,196 Accrued liabilities 46,433 47,709 Deferred revenue 468 369 Total current liabilities 108,608 105,274 Other long-term obligations - 2,553 Deferred revenue 2,030 1,699 Series A Redeemable Convertible Preferred Stock, $.01 par value, 5,339,500 shares authorized; 5,339,500 shares issued and outstanding 43,680 43,607 Shareholders' equity: Common stock, $.01 par value, 100,000,000 shares authorized; 37,628,342 and 37,593,768 shares issued and outstanding 376 376 Warrants to purchase 4,036,858 shares of common stock 22,972 22,972 Additional paid-in capital 288,428 287,541 Accumulated deficit (77,662) (112,042) Total shareholders' equity 234,114 198,847 $388,432 $351,980 VALUEVISION MEDIA, INC. Reconciliation of EBITDA to net income (loss): First Quarter First Quarter 5-May-07 6-May-06 EBITDA, before non-cash stock option expense (000's) $(1,383) $1,858 Less: non-cash stock option expense (459) (400) EBITDA (as defined) (a) (1,842) 1,458 A reconciliation of EBITDA to net income (loss) is as follows: EBITDA, as defined (1,842) 1,458 Adjustments: Depreciation and amortization (5,586) (5,376) Interest income 1,240 946 Income taxes (281) (15) Gain on sale of RLM 40,240 - Equity in income of RLM and other investment income 609 896 Net income (loss) $34,380 $(2,091) (a) EBITDA as defined for this statistical presentation represents net income (loss) from continuing operations for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. Management views EBITDA as an important alternative operating performance measure because it is commonly used by analysts and institutional investors in analyzing the financial performance of companies in the broadcast and television home shopping sectors. However, EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with generally accepted accounting principles) and should not be construed as a measure of liquidity. EBITDA, as presented, may not be comparable to similarly entitled measures reported by other companies. Management uses EBITDA to evaluate operating performance and as a measure of performance for incentive compensation purposes and as a way to evaluate its core business operations. Management has excluded non-cash stock option expense and earnings and gains form its non-operating investments from its EBITDA presentation in order to maintain comparability to our analyst's coverage and guidance of our ongoing core business operations.
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| Posted: Wed May 23rd, 2007 10:51 pm |
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9th Post |
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KenC Admin
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In other words...they still are not profitable, and they are losing money and "partners"....who could have guessed, what with the high level of integrity and the sterling reputation of their (watch) host!
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| Posted: Thu May 24th, 2007 07:54 pm |
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10th Post |
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mcwright Admin 
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"In a related story, Zale Corp. posted a 3.1 millon dollar loss for their third quarter blaming high gas prices as the cause. The same period last year the company posted a profit of 16.8 millon dollars. Zale has hired an advisor to review the performance of its Jewelry chains which could lead to some management changes or the sale of some brands." Sounds like things aren't rosy in the Jewelry business. At least in the middle to low end of it.
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| Posted: Thu May 24th, 2007 09:40 pm |
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11th Post |
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jk103 3T WIS
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Working in the construction business layoffs are just as common as coffee breaks. No tears shed here.
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