In its second-largest acquisition, Amazon buys the company for $970 million.
The operator of ShopNBC.com also forecasts a drop in Q4 total revenue of 18%.
Last week was a busy one for ValueVision Media Inc. as it renegotiated key distribution agreements with its main banking and TV distribution partners.
But in the midst of new credit and TV distribution deals, ValueVision, which operates ShopNBC.com, No. 84 in the Internet Retailer Top 500 Guide, also reports that total sales decreased in the fourth quarter and were flat for the year.
ValueVision, which will break out its full year financials, including e-commerce, on March 14, reports:
- Sales in the fourth quarter totaled approximately $148 million, a decline of approximately 18% from $180.5 million in the fourth quarter of 2010. The net sales decline primarily reflects a downturn in purchases of consumer electronics, which is expected to continue in the near-term, says ValueVision.
- Total revenue for 2011 is expected to decrease about 1% to $558 million from $563.3 million in 2010. ValueVision didn’t include a forecast for 2011 e-commerce sales.
“I am disappointed with our fourth quarter sales, which were principally impacted by a sales shortfall in consumer electronics,” says CEO Keith Stewart. “Despite this shortfall, we were able to carefully manage our working capital components during the quarter to improve our cash position.”
At the same time ValueVision is reporting a downturn in sales, the company is also looking to shore up its financing. ValueVision has secured a $40 million revolving credit facility with PNC Bank and National Association, a member of The PNC Financial Services Group. The financing will be used to fund the retirement of the company's existing $25 million term loan and the payment of an approximately $12.4 million deferred payment obligation to a TV distribution provider during the first quarter.
ValueVision also has renewed three TV distribution agreements that the company anticipates will cut its annual TV distribution costs by approximately $15 million beginning in January 2013.
“The successful completion of our debt refinancing, as well as the anticipated operational savings and improved channel positioning from renewing our TV distribution agreements, puts the company in a stronger position to support future growth,” says Stewart.