HSN, Inc.

CIK:0001434729|SEC Filings

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net sales	$ 782,562	$ 823,023	$ 2,389,358	$ 2,494,096
Cost of sales	513,377	542,947	1,550,662	1,612,718
Gross profit	269,185	280,076	838,696	881,378
Operating expenses:
Selling and marketing	174,019	178,785	518,078	546,002
General and administrative	49,783	42,703	153,812	139,118
Depreciation and amortization	11,134	10,518	33,058	31,745
Loss on sale of businesses and asset impairment	0	11,195	0	31,595
Transaction costs	1,305	0	6,643	0
Total operating expenses	236,241	243,201	711,591	748,460
Operating income	32,944	36,875	127,105	132,918
Other income (expense):
Interest income	164	125	590	223
Interest expense	(4,181)	(4,126)	(12,316)	(12,211)
Total other expense, net	(4,017)	(4,001)	(11,726)	(11,988)
Income before income taxes	28,927	32,874	115,379	120,930
Income tax provision	(12,700)	(12,716)	(45,130)	(45,742)
Net income	$ 16,227	$ 20,158	$ 70,249	$ 75,188
Net income per share:
Basic (usd per share)	$ 0.31	$ 0.39	$ 1.34	$ 1.44
Diluted (usd per share)	$ 0.31	$ 0.38	$ 1.33	$ 1.42
Shares used in computing earnings per share:
Basic (shares)	52,555	52,356	52,494	52,376
Diluted (shares)	52,983	52,844	52,860	52,901
Dividends declared per share	$ 0.35	$ 0.35	$ 1.05	$ 1.05

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 70,249	$ 75,188
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	33,058	31,745
Stock-based compensation expense	7,633	14,698
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	0	27,768
Amortization of debt issuance costs	1,295	1,329
Deferred income taxes	7,188	(1,420)
Bad debt expense	18,343	13,664
Other	23	(52)
Changes in current assets and liabilities:
Accounts receivable	100,042	65,796
Inventories	(47,928)	(51,935)
Prepaid expenses and other assets	(2,059)	(14,347)
Accounts payable, accrued expenses and other current liabilities	(78,275)	(48,299)
Net cash provided by operating activities	109,569	114,135
Cash flows from investing activities:
Capital expenditures	(36,256)	(28,504)
Other	(807)	(627)
Net cash used in investing activities	(37,063)	(29,131)
Cash flows from financing activities:
Repayments of term loan	(18,750)	(18,750)
Borrowings under revolving credit facility	145,000	152,000
Repayments of revolving credit facility	(165,000)	(142,000)
Repurchase of common stock	0	(16,566)
Cash dividends paid	(55,013)	(54,880)
Proceeds from issuance of common stock	1,379	1,824
Payments of tax withholdings related to stock-based awards	(2,282)	(3,116)
Net cash used in financing activities	(94,666)	(81,488)
Net (decrease) increase in cash and cash equivalents	(22,160)	3,516
Cash and cash equivalents at beginning of period	42,734	63,926
Cash and cash equivalents at end of period	$ 20,574	$ 67,442

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 20,574	$ 42,734	$ 67,442
Accounts receivable, net of allowance of $15,862, $19,086 and $15,487, respectively	216,620	335,005	226,589
Inventories	439,034	391,106	450,671
Prepaid expenses and other current assets	48,107	44,173	56,309
Total current assets	724,335	813,018	801,011
Property and equipment, net	212,148	211,106	207,216
Intangible assets, net	253,655	253,623	253,619
Goodwill	9,858	9,858	9,858
Other non-current assets	16,187	16,928	12,809
TOTAL ASSETS	1,216,183	1,304,533	1,284,513
Current liabilities:
Accounts payable, trade	228,324	293,816	241,637
Current maturities of long-term debt	34,375	25,000	25,000
Accrued expenses and other current liabilities	211,073	225,265	191,775
Total current liabilities	473,772	544,081	458,412
Long-term debt, less current maturities and net of unamortized deferred financing costs	438,048	484,878	600,687
Deferred income taxes	66,899	59,760	43,145
Other long-term liabilities	20,466	20,328	20,199
Total liabilities	999,185	1,109,047	1,122,443
Commitments and contingencies (Note 12)
SHAREHOLDERS’ EQUITY:
Preferred stock $0.01 par value; 25,000,000 authorized shares; no issued shares	0	0	0
Common stock $0.01 par value; 300,000,000 authorized shares; 52,432,249, 52,239,795 and 52,187,351 issued shares September 30, 2017, December 31, 2016 and September 30, 2016, respectively	524	522	522
Additional paid-in capital	964,996	1,013,688	1,026,737
Accumulated deficit	(750,695)	(820,944)	(864,464)
Accumulated other comprehensive income (loss)	2,173	2,220	(725)
Total shareholders’ equity	216,998	195,486	162,070
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,216,183	$ 1,304,533	$ 1,284,513