ValueVision Media Inc. (VVTV, Financial) filed Quarterly Report for the period ended 2012-10-27.
Valuevision Media, Inc. has a market cap of $88.3 million; its shares were traded at around $1.86 with and P/S ratio of 0.2.
Distribution and selling expense decreased $815,000, or 2%, to $46,762,000, or 34.0% of net sales during the fiscal 2012 third quarter compared to $47,577,000, or 35.2% of net sales for the comparable prior year fiscal quarter. Distribution and selling expense decreased during the quarter primarily due to decreases totaling $973,000 in variable credit card processing fees, driven by more favorable credit and debit card rates and lower bad debt expense; decreased share based compensation expenses of $431,000 due to the timing of fully vested older stock option grants no longer being expensed and reduced restricted stock compensation expense resulting from the timing of vesting; and decreases in advertising and promotion expense of $158,000. These decreases were partially offset by increased program distribution expenses of $685,000 related to a 3% increase in average homes reached during the quarter.
Distribution and selling expense increased $1,942,000 or 1%, to $142,308,000, or 34.8% of net sales during the nine months ended October 27, 2012 compared to $140,366,000 or 34.2% of net sales for the comparable prior year period. Distribution and selling expense increased on a year-to-date basis primarily due to increased program distribution expense of $4,037,000 related to a 4% increase in average homes reached during the year. The increase over the prior year was also due to increased salary and wage costs of $759,000 and increased customer service and telemarketing expense of $466,000 attributable to an increase in units ordered and shipped during the year. These distribution and selling expense increases were offset by decreases in variable credit card processing fees and other credit expense of $2,264,000, decreased share based compensation expenses of $432,000 and decreases in advertising and promotion expense of $841,000.
General and administrative expense for the fiscal 2012 third quarter decreased $582,000, or 12%, to $4,242,000, or 3.1% of net sales, compared to $4,824,000, or 3.6% of net sales for the comparable prior year fiscal quarter. General and administrative expense decreased during the quarter primarily as a result of a reduction in share-based compensation of $401,000 due to the timing of fully vested older stock option grants no longer being expensed and reduced restricted stock compensation expense resulting from the timing of vesting. In addition, general and administrative expense was also reduced by a $312,000 favorable litigation settlement received during the third quarter of fiscal 2012. For the nine months ended October 27, 2012, general and administrative expense decreased $1,350,000, or 9%, to $13,446,000, or 3.3% of net sales, compared to $14,796,000, or 3.6% of
Depreciation and amortization expense for the fiscal 2012 third quarter was $3,174,000 compared to $3,210,000 for the comparable prior year quarter, representing a decrease of $36,000, or 1%. Depreciation and amortization expense as a percentage of net sales for the three-month periods ended October 27, 2012 and October 29, 2011 was 2.3% and 2.4% respectively. For the nine months ended October 27, 2012, depreciation and amortization expense was $10,026,000 compared to $9,278,000 for the comparable prior year period, representing an increase of $748,000, or 8%. Depreciation and amortization expense as a percentage of net sales for the nine-month periods ended October 27, 2012 and October 29, 2011 was 2.4% and 2.3%, respectively. The increase in depreciation and amortization expense on a year-to-date basis was primarily due to increased amortization expense of $211,000 attributable to our renewed NBC trademark license and increased depreciation expense of $484,000 attributable to new software upgrades being put into service.
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Valuevision Media, Inc. has a market cap of $88.3 million; its shares were traded at around $1.86 with and P/S ratio of 0.2.
Highlight of Business Operations:
For the first nine-months of fiscal 2012 gross profit was $153,502,000, a decrease of $1,400,000 or 0.9% from $154,902,000 for the comparable prior year period. The decrease in the gross profits experienced during the first nine-months of fiscal 2012 was driven primarily by the year-over-year sales decrease and the lower year-to-date gross margin percentages experienced as discussed below. Gross margin percentages for the third quarter of fiscal 2012 and fiscal 2011 were 36.9% and 37.2%, respectively, a 30 basis point decrease. On a year to date basis, gross profit percentages were 37.5% for fiscal 2012 and 37.7% for fiscal 2011, respectively, a 20 basis point decrease. The decreases in the third quarter and year-to-date gross margin percentage were driven primarily by increased shipping and handling promotions made during the year.Distribution and selling expense decreased $815,000, or 2%, to $46,762,000, or 34.0% of net sales during the fiscal 2012 third quarter compared to $47,577,000, or 35.2% of net sales for the comparable prior year fiscal quarter. Distribution and selling expense decreased during the quarter primarily due to decreases totaling $973,000 in variable credit card processing fees, driven by more favorable credit and debit card rates and lower bad debt expense; decreased share based compensation expenses of $431,000 due to the timing of fully vested older stock option grants no longer being expensed and reduced restricted stock compensation expense resulting from the timing of vesting; and decreases in advertising and promotion expense of $158,000. These decreases were partially offset by increased program distribution expenses of $685,000 related to a 3% increase in average homes reached during the quarter.
Distribution and selling expense increased $1,942,000 or 1%, to $142,308,000, or 34.8% of net sales during the nine months ended October 27, 2012 compared to $140,366,000 or 34.2% of net sales for the comparable prior year period. Distribution and selling expense increased on a year-to-date basis primarily due to increased program distribution expense of $4,037,000 related to a 4% increase in average homes reached during the year. The increase over the prior year was also due to increased salary and wage costs of $759,000 and increased customer service and telemarketing expense of $466,000 attributable to an increase in units ordered and shipped during the year. These distribution and selling expense increases were offset by decreases in variable credit card processing fees and other credit expense of $2,264,000, decreased share based compensation expenses of $432,000 and decreases in advertising and promotion expense of $841,000.
General and administrative expense for the fiscal 2012 third quarter decreased $582,000, or 12%, to $4,242,000, or 3.1% of net sales, compared to $4,824,000, or 3.6% of net sales for the comparable prior year fiscal quarter. General and administrative expense decreased during the quarter primarily as a result of a reduction in share-based compensation of $401,000 due to the timing of fully vested older stock option grants no longer being expensed and reduced restricted stock compensation expense resulting from the timing of vesting. In addition, general and administrative expense was also reduced by a $312,000 favorable litigation settlement received during the third quarter of fiscal 2012. For the nine months ended October 27, 2012, general and administrative expense decreased $1,350,000, or 9%, to $13,446,000, or 3.3% of net sales, compared to $14,796,000, or 3.6% of
Depreciation and amortization expense for the fiscal 2012 third quarter was $3,174,000 compared to $3,210,000 for the comparable prior year quarter, representing a decrease of $36,000, or 1%. Depreciation and amortization expense as a percentage of net sales for the three-month periods ended October 27, 2012 and October 29, 2011 was 2.3% and 2.4% respectively. For the nine months ended October 27, 2012, depreciation and amortization expense was $10,026,000 compared to $9,278,000 for the comparable prior year period, representing an increase of $748,000, or 8%. Depreciation and amortization expense as a percentage of net sales for the nine-month periods ended October 27, 2012 and October 29, 2011 was 2.4% and 2.3%, respectively. The increase in depreciation and amortization expense on a year-to-date basis was primarily due to increased amortization expense of $211,000 attributable to our renewed NBC trademark license and increased depreciation expense of $484,000 attributable to new software upgrades being put into service.
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