VALUEVISION MEDIA INC

CIK:0000870826|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021	Oct. 29, 2022	Oct. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 123,264	$ 130,681	$ 411,042	$ 357,325
Cost of sales	71,754	76,260	249,782	208,911
Gross profit	51,510	54,421	161,260	148,414
Operating expense:
Distribution and selling	35,261	39,302	115,150	108,907
General and administrative	21,185	10,746	44,818	24,569
Depreciation and amortization	8,778	9,741	27,421	24,727
Restructuring costs	1,551	634	4,490	634
Total operating expense	66,775	60,423	191,879	158,837
Operating loss	(15,265)	(6,002)	(30,619)	(10,423)
Other income (expense):
Interest income and other	20	85	230	124
Interest expense	(6,038)	(3,551)	(15,932)	(6,245)
Change in fair value of contract liability, net			1,937
Loss on divestiture			(985)
Loss on debt extinguishment		(9)	(884)	(663)
Total other expense, net	(6,018)	(3,475)	(15,634)	(6,784)
Loss before income taxes	(21,283)	(9,477)	(46,253)	(17,207)
Income tax provision	(15)	(15)	(47)	(45)
Net loss	(21,298)	(9,492)	(46,300)	(17,252)
Less: Net loss attributable to non-controlling interest			(415)	(282)
Net loss attributable to shareholders	$ (21,298)	$ (9,492)	$ (45,885)	$ (16,970)
Net loss per common share	$ (0.72)	$ (0.44)	$ (1.77)	$ (0.91)
Net loss per common share - assuming dilution	$ (0.72)	$ (0.44)	$ (1.77)	$ (0.91)
Weighted average number of common shares outstanding:
Basic	29,415,680	21,503,340	25,932,294	18,710,658
Diluted	29,415,680	21,503,340	25,932,294	18,710,658

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 29, 2022	Oct. 30, 2021
OPERATING ACTIVITIES:
Net loss	$ (46,300)	$ (17,252)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	30,047	27,565
Share-based payment compensation	3,205	2,385
Payments for television broadcast rights	(21,093)	(21,926)
Amortization of deferred financing costs	2,072	556
Loss on debt extinguishment	884	663
Change in fair value of contract liability, net	(1,937)
Contract separation charges	9,941
Loss on divestiture	985
Changes in operating assets and liabilities:
Accounts receivable, net	20,146	3,453
Inventories	(4,883)	(17,996)
Deferred revenue	654	10
Prepaid expenses and other	(1,897)	(8,269)
Accounts payable and accrued liabilities	(10,415)	(18,046)
Net cash used for operating activities	(18,591)	(48,857)
INVESTING ACTIVITIES:
Property and equipment additions	(7,163)	(7,247)
Acquisitions		(23,500)
Vendor exclusivity deposit		(6,000)
Net cash used for investing activities	(7,163)	(36,747)
FINANCING ACTIVITIES:
Proceeds from issuance of revolving loan	3,570	56,736
Proceeds from issuance of common stock and warrants	20,761	61,368
Proceeds from issuance of term loan	9,980	28,500
Proceeds from issuance of long-term bonds		80,000
Payments on revolving loan		(77,736)
Payments on term loan	(7,500)	(12,440)
Payments on seller notes	(3,000)	(1,000)
Payments on finance leases	(7)	(70)
Payments for restricted stock issuance	(224)	(134)
Payments for deferred financing costs	(580)	(11,180)
Payments for debt extinguishment costs		(405)
Net cash provided by financing activities	23,000	123,639
Net increase (decrease) in cash and restricted cash	(2,754)	38,035
Effect of exchange rate changes on cash	137
BEGINNING CASH AND RESTRICTED CASH	13,188	15,485
ENDING CASH AND RESTRICTED CASH	10,571	53,520
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	12,377	3,612
Income taxes paid	63	62
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment purchases included in accounts payable	451	915
Inventory received in divestiture	3,505
Reclassification of forward contract liability to additional paid in capital	4,383
Other long term liability issued in exchange for acquired assets		10,000
Television broadcast rights obtained in exchange for liabilities		55,647
Common stock issuance costs included in accrued liabilities	100	$ 122
Common stock issued for acquisition liability (See Note 15)	1,500
Common stock issued for contingent consideration	$ 24

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 29, 2022	Jan. 29, 2022
Current assets:
Cash	$ 9,071	$ 11,295
Restricted Cash	1,500	1,893
Accounts receivable, net	55,301	78,947
Inventories	119,162	116,256
Current portion of television broadcast rights, net	21,016	27,521
Prepaid expenses and other	11,726	18,340
Total current assets	217,776	254,252
Property and equipment, net	46,788	48,225
Television broadcast rights, net	62,090	74,821
Goodwill	87,741	99,050
Intangible assets, net	25,827	27,940
Other assets	19,379	18,359
TOTAL ASSETS	459,601	522,647
Current liabilities:
Accounts payable	87,168	89,046
Accrued liabilities	37,144	44,388
Current portion of television broadcast rights obligations	30,296	31,921
Current portion of long-term debt	98,209	14,031
Current portion of operating lease liabilities	2,346	2,331
Deferred revenue	121	427
Total current liabilities	255,284	182,144
Long-term broadcast rights obligations	63,566	81,268
Long-term debt, net	94,800	176,432
Long-term operating lease liabilities	3,354	5,169
Deferred tax liability	4,450	5,285
Other long-term liabilities	2,671	2,986
Total liabilities	424,125	453,284
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 per share par value, 400,000 shares authorized; zero shares issued and outstanding	0	0
Common stock, $0.01 per share par value, 49,600,000 and 29,600,000 shares authorized as of October 29, 2022 and January 29, 2022; 28,916,847 and 21,571,387 shares issued and outstanding as of October 29, 2022 and January 29, 2022	257	216
Additional paid-in capital	561,710	538,627
Accumulated deficit	(515,348)	(469,463)
Accumulated other comprehensive loss	(11,143)	(2,428)
Total shareholders' equity	35,476	66,952
Equity of the non-controlling interest	0	2,412
Total equity	35,476	69,363
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 459,601	$ 522,647