QURATE RETAIL, INC. Q3 2021
Earnings Presentation
Safe Harbor and Non-GAAP Measures
This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies; expectations regarding consumer trends and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, the impact of the COVID-19 pandemic on our businesses, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to Qurate Retail, Inc. ("QRI") and QVC, Inc. ("QVC"), availability of investment opportunities and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this presentation, and each of QRI and QVC expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in QRI's or QVC's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of QRI and QVC, including their most recent Forms 10-Q and 10-K, for additional information about QRI and QVC and about the risks and uncertainties related to their respective businesses which may affect the statements made in this presentation.
This presentation includes non-GAAP financial measures including adjusted OIBDA, adjusted OIBDA margin, free cash flow, and constant currency. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, can be found in this presentation or in the earnings press release issued November 4, 2021, as well as earnings press releases relating to prior periods, all of which are available on our website. This presentation is designed to be read in conjunction with the November 4, 2021 earnings press release, which is available on our website.
This presentation includes reference to free cash flow, which is a non-GAAP financial measure for QRI. QRI defines free cash flow as cash flows from operating activities less capital expenditures, expenditures for television distribution rights, investments in green energy and dividends paid to non- controlling interests. QRI believes free cash flow is an important indicator of the financial stability of our business. QRI believes cash flows from operating activities is the most directly comparable GAAP measures. Free cash flow is not meant to replace or supersede this GAAP measure, but rather to supplement such GAAP measures in order to present investors with a supplemental metric of financial performance. Please see the reconciliation of free cash flow to cash flows from operating activities calculated in accordance with GAAP for QRI on slide 12 of this presentation.
Q U R A T E R E T A I L , I N C . | 2 |
Key Points
- David Rawlinson became CEO on Oct. 1, 2021 after a two-month transition period beginning Aug. 2, 2021
- Results reflect continued macro industry supply chain constraints and cost inflation
- Operating highlights
- Took pricing actions that resulted in higher average selling prices at all business units
- Average spend and unit volume per customer at QxH increased 6% and 4%, respectively
- Strength in apparel at QxH, QVC International and at Cornerstone's Garnet Hill
- Repurchased 10.9 million shares for $120 million from Aug. 1, 2021 through Oct. 31, 2021
- Board of Directors declared a special cash dividend of $1.25 per share of common stock
Q U R A T E R E T A I L , I N C . | 3 |
Revenue & Adjusted OIBDA
Business Segment Contribution
Q3 2021
10% | 5% | |||||
10% | 26% | |||||
Revenue | 22% | Adjusted OIBDA | ||||
$3.1B | $0.4B | |||||
(7)% vs 2020 | Cornerstone | 73% | (24)% vs 2020 | |||
+2% vs 2019 | 58% | (5)% vs 2019 | ||||
Zulily | ||||||
QVC International
QxH
(4)%
$2.0B eCommerce Revenue I 63% of Revenue
(6)% vs 2020 | +8% vs 2019
Note: Percentages within the stacked bars exclude intersegment eliminations and unallocated corporate costs. | Q U R A T E R E T A I L , I N C . | 4 |
Revenue & Adjusted OIBDA
Year-on-Year Quarterly Comparative
REVENUE
2020 | 2021 | |||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |
QxH | (4)% | 7% | 7% | 1% | 3% | 8% | (1)% | (8)% |
QVC International | (1)% | 11% | 11% | 16% | 10% | 22% | 11% | (3)% |
QVC International A | 0% | 12% | 8% | 10% | 8% | 15% | 5% | (4)% |
Zulily | (20)% | 16% | 10% | 11% | 4% | 19% | (6)% | (17)% |
Cornerstone | (5)% | 18% | 26% | 30% | 19% | 41% | 18% | 7% |
Total Qurate Retail | (5)% | 10% | 10% | 7% | 5% | 14% | 2% | (7)% |
Total Qurate Retail A | (5)% | 10% | 9% | 6% | 5% | 13% | 1% | (7)% |
ADJUSTED OIBDA
2020 | 2021 | |||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | |
QxH | (17)% | (2)% | 10% | 10% | 1% | 19% | 1% | (14)% |
QVC International | (4)% | 12% | 25% | 22% | 14% | 47% | 21% | (13)% |
QVC International A | (3)% | 13% | 21% | 16% | 12% | 38% | 16% | (14)% |
Zulily | (88)% | 543% | 238% | (44)% | 73% | 200% | (80)% | NM |
Cornerstone | ||||||||
(167)% | 50% | 775% | 233% | 185% | 1,450% | 148% | (31)% | |
Total Qurate Retail | (17)% | 10% | 24% | 14% | 8% | 35% | 3% | (24)% |
Total Qurate Retail A | (16)% | 10% | 23% | 13% | 8% | 32% | 2% | (24)% |
A - Constant Currency | Note: Percentages on a segment basis exclude intersegment eliminations and unallocated corporate costs. | Q U R A T E R E T A I L , I N C . | 5 |
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Qurate Retail Inc. published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 11:24:16 UTC.
