Qurate Retail (QRTEA) 1 Mar 232022 Q4 Earnings call transcript

Welcome to the Qurate Retail, Inc. 2022 Year-End Earnings Call.

During the presentation all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions].

conference recorded this X. reminder, a will March be As

to the Vice ahead. I turn over Shane go would now Please call Kleinstein, Relations. President, Investor

morning. Good

XX-K Before most results Private risks SEC. those Securities by this and Reform you number filed Act statements we of Actual to and recent materially Litigation the includes mentioned QVC events due XXXX. or the within the certain including forward-looking differ company in begin, that the of meaning Form of like could the we'd uncertainties, our call with remind to

These expectations this forward-looking any any forward-looking statements speak updates any only expressly events, regard disseminate change earnings accompany as any to of revisions with any release. that Please statement which on the contained call date to Retail's Qurate obligation conditions circumstances of or to herein and statement have or or in is such based. this we to undertaking disclaims note any Retail reflect thereto, in change slides or published Qurate

today's measures, required OIBDA on preliminary today including certain website. presentation, press flow or comparable adjusted non-GAAP available our and regarding GAAP schedules with including and issued call four through definitions found one be in financial metrics and the the reconciliations are adjusted free cash along margin, address note OIBDA, we can release which On currency. constant Information will earnings earnings our

David and and speaking Qurate we Qurate Today, President Maffei. Chairman, Qurate Group's CEO, Executive Greg Rawlinson; call Interim on the Jim Retail earnings Retail Retail, CFO, Hathaway; have

Rawlinson. call hand will David the I Now, to over

your and for good joining Thank Retail. Thank today everyone. Qurate in and you you, Shane, interest for morning to us

aimed our Athens, strategic We challenging a a was improvement coming began our plan company. financial on Project and material the year in work quarters. multi-year XXXX announced at for

have in and processes We inducing in discipline company. action new place the cost aggressive cost are taking

I Zulily, QxH headcount took last announced we at action at on year. reductions we the of shortly, restructuring will that outline Yesterday, top

impacts to downstream and balances. Fire took of the Rocky through aggressive we action inventory excess address Importantly, worked Mount

on We future bolstered stood up liquidity capitalize and streaming and sale our to shopping, in with we and attractive financing opportunities live growth transactions. leaseback sheet and increased balance multiple new business sources of various units and

our announcement new also Group the including talent made leadership and of to team plan. our to we Qurate CFO, today's additions critical needed Retail execute our We have

off When Project XXXX base everything I best based year. of announced -- we Athens, a

I I challenging are to We on on for would to retail I'll a these track all our their thank know outcomes, about. was speak backdrop. what financial amidst work deliver which teams of more like hard

QX unit -- in company Focusing and company today, declined due on results, revenue I'm volume to primarily XX% currency handling and lower revenue. shipping total revenue less sorry, constant declined

inventory impacted on macroeconomic as sentiment. reduction Our weighing by as management at challenges efforts primarily QxH, continued well and top-line was receipt consumer

experienced that revenue addition, in in In shipped This in increase were reported an was that headwind QX XXXX advanced shipment remind you QX QX XXXX. benefited I'll QX orders XXXX timing slight XXXX. in QxH a and of of

margins product XX% lower OIBDA as well half challenges fulfillment promotions clearance, as adjusted to from center in constant work QX, in our attributed declined nearly company currency Total reduce and inventory. to as we

our fulfillment, throughout of and the was pressures our details provide deleverage Adjusted Jim more sales expenses Interim demurrage business for inflationary by fixed pressured will as chain detention well the inefficiencies, continued OIBDA supply each CFO, as units including also in higher charges, and P&L. quarter four Hathaway, momentarily. and

that net hundreds cost opportunities discipline, customer generate enhancements, is relationships, anticipated a path to margin margin through period. OIBDA operating to are streaming run our the revenue. over and to to better of Project Athens strategy and XXXX growth material, expansion, identified control, savings, cost and represents XXXX initiatives key rate We

which initiatives, mainly XXXX in back full margin results more XXXX. impact half in will of and cost gross reach year in efforts impact the Our and financial focused materially the on savings

impact in will significantly implemented revenue initiatives be expect and XXXX results and We more beyond.

file This selection, year, drive cost, we vendor are reducing focused pricing customer our and and growth, eventually efficiency advancing on-air capabilities customer agreements to freight improved assortment analytics and across near-term enhance capabilities building on improving and to to programming. loyalty generate categories, optimize margins

From as with among over product to of for product as drawn balances necessary fresh perspective, customers was operating a we We the reduction. XXXX, business ability of particularly into impacts clearance our customer are actively impacted leaning as demand, financial well detail additional counts, thrill our inventory on-air our but Starting quarter, drivers in and on who airtime did to our cost rotation, position improve which best dedicated managed We actions. to down impact discovery. know put fourth results. the to inventory key top-line

home, these offer but pulled XXXX, QX, of on the our and a and following customers and receipt fulfillment centers apparel, Rocky Throughout several at and fire This customers we accessories, in top back our due to categories. QVC; index In it particularly who at affected receipts management to merchandise. impacted our to accessories categories, on fresh HSN; lack jewelry space Mount. ability apparel at on

cost In promotion and of that we detention top impact addition, on substantial, pricing margins and clearance product material incurred. a had on demurrage

ahead commitment reduction inventory we a well inventory -- to this and and or effort HSN inventory over balances last the inventory year HSN of capital had delivered year-over-year, the commitments. on million. to $XXX At June down the to I'm We year, and rebalance and our June XX happy QVC the work underway of by Day reduce reduce QVC U.S. ended XX% an position. networking XX% our improve with year ahead and goal from XX%. XX% our hitting U.S. we I plan the next said year team's XX, Investor our months

Cleaner This efficiently. inventory XXXX more fresh significantly the our a benefits more merchandise, to our in both fulfillment offering, and us We product healthier, line. cleaner, with position. are be operate flexible top beginning inventory enables centers re-infuse and bottom

demand. see better into to we this translate are While early, starting

been and We control to costs OIBDA. action taking have improve adjusted aggressive

are certain reduction global in and yesterday as We well organizational an undertaking as QVC layoffs at functions. U.S. HSN cost announced and

reductions headcount we of While forward. primarily headcount. XX% know positions our XXX we business is workforce rebalancing our at over HSN right for U.S. QVC We're or are decisions, about eliminating going corporate recognize and hard

We will Since the expect effect impact we $XX anticipate plan March, will not this generate million on million take of loaded actions fully savings, quarterly a benefit $XX of XXXX. results approximately do not second meaningful until which do they have quarter. rate in until run will these

for impacted as by team who employees services, well. remaining be this transition and We severance members fair have as will supporting resources loss committed other with impacted as to resources well our

We implemented manage to discipline a have process non-merchandise costs. discretionary

time. are anticipate innings, the in we savings meaningful we While generate will process early the over

a has heightened management discipline towards it importantly, our culture. into cost company More added

Free cash is a flow metric. key

including in catching As cash by working up items, we laid out was several purchases. our Day, the year discrete flow XXXX, inventory $XXX to in burdened from in $XXX free XXXX to million million prior approximately Investor payables headwinds capital

working growth. to initiatives expect in of the run half to headwind of cash rate this to flow and Athens this, lead top reduction that We XXXX first Project reverse inventory anticipate capital continue from actions. we benefit will free our On

some will P&L. show Although, initiatives in time take the to up

can merchandise acquire partners vendor the quarters with to prices work our example, better at P&L. fresh several take to For through flow

Project of to flow to $XXX initiatives. to run are rate we believe $XXX to continue million free cash due generate million Athens positioned We

We expect November. in ramp reach of XXXX in will half full as these in and the XXXX second articulated scale

spending. December customer declined The count very other piece The of XXXX. of impacts and of count product loyal by to experience enhancements, base. homes linear last Rocky availability, customer and of especially ended and recently, Project consumer on shipping decline sentiment customer better impact continued reach XX% core numbers serving and margin QxH of million which revenue the $X.X the our was are customer is Athens for drivers driven competition, Mount, our more months cutting on biggest dampened the by relative XX we impacted to discretionary

in pain extensive have short. retail. file, and on differentiator their we fallen customer of a and huge have base We our where demographic customer The work loyalty points remains done understanding our

acquisition re-energizing our hyper-focused retention. We are and on customer

are here on core play video engagement boosting investing and and on free streaming as new both over-the-air addition as retention homes commerce expanded we Efforts as platform distribution First, against and offerings an platforms. of defensive these and well in cutting. focus our the offensive

TV. Our streaming services distribution linear reach now have our than a larger

through the on Android Fire, HSN+ quarter generating with Apple revenue and viewed our and customers, both Comcast, We streaming results. The our platforms pleased Amazon our streaming and existing app-based new XX% TV, are four. minutes sequentially in TV, services increased and QVC+ websites Roku, early Cox, Samsung TV, are from for total while

and channel free to the TV Pluto continue we of quarter two are fast ad expand distribution largest on four, streaming Roku channels, As launching the TV. supported in

on in we we our to relevant Second, our are impact by joined newer lead demand by to merchandise Stacy results her base and product new progress time HSN signs in leads portfolio, XXXX. with will curating Merchandising pleased Chief work merchandise very loyal moved Bowe, keeping times curating improvement engaged. early QVC fresh, to to QVC and encouraged have and of This our fully a September merchandise. take and brand. due at differentiated at customer dedicated Merchant is critical focused

we to worked tenaciously January, customers. to receipts In fresh bring

Beauty marketing our During live social week, Class brands and excitement XX-hour years show items. campaign across streaming, included linear, a platforms. We David In Kitchen the the first exceeded which we show, XXX two around audience the brought degree studios expectations. shows, sales campaign new and to a launched our Master back with in hosted a with that premier with We digital,

earrings in leather private sweaters and blazers, strength heeled color seeing footwear, and gourmet and accessories, handbags and newer diamonds, apparel, wedges subcategories, and jewelry. including and sandals, gemstones French food also are We pumps Terry, label and and

now meaningfully operational we advanced and our focus experience cost importantly, actions, can directly but on inventory the reduction Finally, and management we execution. customer that more have

level. real-time advanced using occurring are and align pricing adjustments to product, and We at airtime price product promotion bolster better the analytics to

and inventory order the also through center systems multiple We're across reducing personalization. and and these optimized increasing more tracking heavily with into delivery We're fulfillment periods. efficiency more efforts cohorts of leaning enhanced times time to success by

a that execute. in necessary In us closing, better leave we challenging but was made which to decisions XXXX year hard positioned

As we in to are the deliver own executing track XXXX on look outcomes. Athens focused and we our forward, Project XXXX intensely

welcome native across Vitamin retail, he and and of and a businesses. previously Everlane, joins digitally consumer Shoppe, goods, consulting JCPenney and was footwear apparel, served Bill accessories CFO. He finance management in digital Qurate Prior Chief management, brand than Bill various are to the been years executive XX. who corporate of I finance, XX it discuss Bill experience Officer Wafford March has more businesses, leadership Jim Group Retail in named starting Before turn Financial and of brings we of to consulting, Qurate each CFO to excited that, roles. to was our commerce where from and executive

leverage his will with deep We experience and financial executive discipline, leadership. transformations, strategic insights,

We team. are add and to experience finance excited Bill's our to lead talent

a I Bill CFO largest to U.S. service thank CFO will Project maintaining and business Jim the want Athens. Interim to division. a Hathaway our high-level attention focus of as of as Once we for Jim have pursued QVC operating Qurate, joins become and

Jim each Now, the call details I'll unit. Jim. you, turn to to business of discuss Thank the over

everyone. you, good morning, David, and Thank

three Unless my compare financial in to the the December months ended XX, XXXX. otherwise noted period same comments XXXX, performance for

Home well reduced We performance. with as declined revenue. in floor ability reduce merchandise. to accessories offer apparel and and impacted apparel in promotions seasonal fresh on XX%. overall the but lower unit and receipts, QX supplements, and jewelry demand essentially revenue through and declined primarily categories, and home several with which action In décor, back primarily improvement, primarily eCommerce and HSN. vitamins QX, QxH, growth in This affected shipping offset receipts. in by revenue inventory XX% accessories, demand categories line at took revenue we as categories Starting lower declined experienced to customers on and partially at revenue affected our QVC pulled home, handling for our clearance XX% actions, reduced care. We volume

gain X% computers, primarily softness last casual XXXX QX was contemporary QX primarily and QX to was the The performance to declined declined to in QX nails. partially tablets, declined against year. care Beauty was XX% second weakness in bath hair growth against in loungewear decline year. that body, for and for of XX%, XX%, classic partially demand due by revenue gains declined smart The from home primarily note last Apparel audio. by and in Electronics X% colors and office, primarily offset growth like of I'd and in in Accessories footwear. to due due softness lower an and offset and third home also improvement XXXX apparel. a XX% quarters.

Adjusted OIBDA experienced adjusted XXX material basis pressure declining OIBDA margin decreasing with XX% points.

compression, promotional primarily a and basis These handling main decreased margins as declined by margin pressures unfavorable and margin XXX at clear due to activity in revenue and largely margins. through HSN. points, components promotional favorable Looking remain Product promotions competitive handling and to they reflecting landscape. ran decline the to increased contribute the product price inventory the were the gross excess returns. QVC Lower at offset partially also shipping shipping both of

and wages incentive were from and Pennsylvania, decommissioning pay as savings by partially have our deleverage. centers reflect due centers, well inflation, we These rates, expenses fuel from demurrage transactions Roanoke, surcharges QX, the leaseback the Lancaster, million in fulfillment of offset as higher fulfillment freight costs sale in same lower largely Fulfillment $XX incremental our Virginia XXXX. detention and to headwinds sales and rent in and as didn't

increased pressure liquidated, by obsolescence partially remaining balances, not reserves to primarily levels. on improved year-over-year, still reduced Inventory offset due but yet sequentially, inventory inventory has

primarily expanded which were unfavorable to XX expenses Operating distribution basis Tonga, and over-the-air due Nexstar. Ion, Scripts points commissions, reflected

SG&A leaseback. sales was in of post deleverage, and cost corporate sale basis investments $X Fixed unfavorable to due commerce and approximately rent pressure ventures, million video was XXX primarily the points.

partially retention expense and platforms, spend. commerce Marketing to were investments our advertising expand marketing due primarily by year-over-year, to reduced which increased offset

X%, will Revenue QVC to on volume currency declined lower on reduced My handling primarily shipping focus revenue. results. Moving and comments International. on unit and constant

energy. businesses, Our experienced weaken sentiment the UK Germany from inflation, low-double-digits, historic largest the particularly European consumer and in declined and

XXX revenue QxH, reflecting Like actions handling sales, and promotions. the points. XXX The lower adjusted reduction impacted grew QVC categories. apparel. compression declined factors primary declined gross declined to for the basis all were Japan QVC and across actions and high-single-digits. shipping lower declines by inventory and these Product and decreased to experienced particularly International margins in categories inventory reduced was points. basis OIBDA margin reduction home Gross except and for unit mid less impacted Adjusted OIBDA XX% due handling margin costs. free margin higher factors volume fixed shipping margin

leverage higher higher as caused provisions European sales in obsolescence higher and by labor COVID-related markets. cost labor our reflects to in well minimum Inventory challenges, markets. and as increased aged costs freight Fulfillment rates European reflected rates staffing for inventories an

Operating unfavorable expenses were of commissions. deleverage reflecting

SG&A well higher due software sales and was wages rose and fixed due IT to deleverage unfavorable and benefits, higher as costs. primarily to costs, as which project

certain of products, mention Revenue at record and declined Cornerstone. to Moving in Ballard Designs. These pressures at as brands. apparel. inbound million higher for costs at storage such generated and largely outdoor Phoenix driven for OIBDA X% were delays due and Halloween to noteworthy furniture, reflecting offset seasonal revenue women's the softness the full-year fulfillment categories Adjusted partially record by to decreased Cornerstone that demurrage each are detention by which fees revenue fourth It's quarter $XX in of new its and construction our transportation Cornerstone. handling, center

the second the to that end of this quarter. by be center expect operational fulfillment We

primarily due the Looking higher traffic the revenue, million, lower by deleverage of partially declined in fourth fixed unit These costs. to and OIBDA offset pressures to -- volume $XX of handling product to lower marketing due expenses, reflecting availability margins, Adjusted at were by brand quarter. and These project product Zulily. costs. fulfillment lower pressures offset were primarily partially decreased Revenue shipping declined and national site. improved XX%,

cash was of we've $XXX expenditures free flow. TV XX, renewals spent and December flow $X sheet were balance the our Total to on for ended distribution for of XXXX, a million contracts. year and was operating year-over-year Turning as use the driven Total results, cash million by XXXX, payments cash capital offset lower attributed of working $XXX a unfavorable for by well distribution last partially from lower capital headwinds, to weaker cash year. versus million our The rights. as decline TV operations million source of $XX

approximately said, million David flow with payables As capital of related to inventory included XXXX free year to headwinds $XXX purchases. million cash aligning prior $XXX working

benefit capital first of anticipate we XXXX. payable have the half our actions a we of the normalization With in taken, the inventory working accounts from

Rocky $XXX free related proceeds, Mount. and cash includes million proceeds XXXX of of million Our leaseback to insurance flow $XXX sale and

a generate was to our Project pressured, $XXX reiterate flow by of million $XXX free flow cash XXXX. are we I we to starting confident opportunities XXXX cash Athens rate million are run going position While that in want in to better into driven workstreams. ability

related second will of after Athens they and of Project XXXX. XXXX, necessary the representing expect million expenditures IT ramp in reduction in capital initiatives. XXXX in from half We reach and even scale We investments approximately anticipate $XXX XXXX, a

TV fluctuate payments expect depending Our distribution to can average approximately be two-year on renewal the million. we but $XXX year-over-year cycles,

billion XXXX, December incremental drawn our QVC on XX, billion $XXX $X.X revolver Looking availability. of at profile. we had On debt the with

ratio our took ourselves throughout significant as defined leverage on was QVC to action credit XXXX create by revolving facility execute position Our priorities. the strategic X.Xx. to and liquidity We

to our facility. covenant and and debt and quarters following covenant sale is the net and sufficient for level transactions. the also have QVC, OIBDA We Cornerstone, on includes leverage believe our This the Zulily, leverage of the manageable relative transactions net cushion adjusted includes such four threshold maximum in credit leaseback gains X.Xx

XX, of total As XXXX, December billion. Retail of Qurate has $X.X cash

I'll to the over call Greg. that, With turn

you, Thank Jim.

that So navigated doubt there's XXXX, business no lot. this a in

negative like the turned quickly outside inflation record impacts, into shortages, Somewhere retail excess environment. Rocky and and the control downstream supply macro inventory, Fire the consumer freight, and which changing sentiment continued a Mountain enduring around and of

overbuying control, story. is were core inventory this Some over including underserving turnaround constrained and and acknowledge under best We with customers, our our definitely a product capacity. rotating

XXXX was a horrible year.

XXXX in and $XXX First, the clean $XXX and noted our leaseback XXXX sheet sale of we've We in had taken up provide from an European balance room. more million properties. us proceeds million to Jim as on and action total additional

of excluding level, a corporate $XXX Zulily million at in multiple a $XXX actions obligations million and of quarter LI and satisfy service. the our which cash took fourth of years level corporate We a resulting $XXX cash, Of the QRI is for at series modest is debt at a to LLC CBI. redistribution incremental also million in

We at also Inc. million QVC, have $XXX

has And this as open controls, were here, be turnaround this years address for actions a think revenue We said -- which ourselves the mentioned story, implement and questions. believe that, are XXXX with other I we'll waiting that ahead. the actions, of team to taken story. the will in and to which headcount including some to are opportunities, we've bought we cost been We have year, of time taken, for it turnaround which up this hundreds

Thank floor you. for now open is [Operator The questions. Instructions].

The first coming today of Haas America. from Jason is Bank go of ahead. question Please

Hey, good morning, for questions. taking my and thanks

this year And the help it'll I year year. maybe for starting about so a customer growth I Is is would a in or next year in XXXX. framework sort lower great. guidance it's going this for So this this well. through softer use good with count at curious segment and cadence relatively year, the year with then this least know than you. QxH, growth stable be and to if double-digit segment of just and know in revenue OIBDA be get then you're to I the any believe Thank long-term that for by as don't be entering main better also the cadence that like

Yes. Thank I appreciate questions. you, Jason. both

for apply year So year. you and stable revenue we I OIBDA the for Project think Athens next this double-digit can set out initiative the cadence

think it your interpretation. I right you So had in

just have. through I to talk want On bit. people a count, number imagine of the a little a customer question it's that I

What have see last So counts months trailing big is on before, of customers. reported as XX we crop a actually in we've last customer the XX-month we pandemic the really you basis. discussed

count was our was XX%, grew it over And QX customers QXs decline QX any largest XXXX the customers Total XXXX XX%. QX fact, the recent quarter. of XXXX so other XXXX. in of than driver the trailing QX for years. one QX strongest XX-month in decline in year-over-year the grew in actually biggest in new And customer in was XXXX

increase we abnormally And off trailing. big QX QX versus next the was months that time report fall this so the XX Obviously biggest XXXX. will driver in XXXX

moderation improvement we the around we're So we've bit customer since and decline in had And that's of the revenue or hiding the customer ahead declines. now a that then. see I count think counts decline at lot seeing of little

We partially say customer especially The customer about -- we second in dollars continued marketing is by customer XX%, the what than that in thing market QVC. did explainable our returning brand more disproportionately at budget. we existing The new count by existing down and new What advertising into and count marketing count is that customers. reprogrammed our has stable stabilization which customer with nice new existing seeing are customer And know in some fourth QV the instead we advertising those brings I'd is our advertising -- been targeting we quarter and took count. count customers. -- of

result so existing actions. customers, conscious customer drop much quarter doing fourth new in decision a we of we the clearance new concentrate customers, decline especially so was year-over-year And to because the the a in partially on made were

a have And who we see. going lot customers to want weren't of the to would ideal attracted merchandise that so new we

Final into and the moderation of we're the -- existing continue make course we continuing year, new reactivating that see beginnings And XX the over that note improvement to sequential is customers. I'll saw XXXX. customers in customers, of

story little I a trailing looking read is months. better the at customer bit So the XX you think than can

helpful. That's Thank you.

first up right XXXX? that Just to year? correctly is follow-up revenue And I flat what's OIBDA then Is question, second use just if and the sure then beginning for through cadence it make framework half? revenue the my in and part to the of to on of down the so what understood the in double-digit the

Yes.

don't we So flat. we said said I I think -- think

I think we said stable.

way go it, through right some year. you'll I think think the on improvement see relative the is the compares we and year-over-year XXXX in revenue to stable think I so And about as

viewed know quarter-over-quarter I you. Thank gave I like the you've wanted in viewed, And That's sort streaming for of overall then but number. minutes follow-up, you I sequential given it. the Got to helpful. an think number minutes past

if trended. lot declines I just is ultimately, revenue So of a the a it a versus that core And was much it on how has is the issue lot something you issue of people. is helpful how be you is get cutting kind it out, I parse that question been, curious -- just So Thanks. could yes, else merchandising for faced? of a or help chain supply it'd

Yes. great. That's

the streaming talked active in users. past about in have monthly we So

talk think selectively that. I we'll about

of the from across what get the seen streaming is we channels. Increasingly One like apps growing Amazon is we're get things minutes channels mainstreaming lot Roku we've common active the monthly that platforms users' seeing metric viewed. our The of fast fast our a numbers all monthly and Fire. active most from things don't the and we is users

see And growth year through signs I We're path. the number talked that's been so active a well a users minutes we've that's as we've to viewed gone here. as monthly why continued also -- as on about on encouraging

the was driving months, business occasion. purchase XX count In has the didn't drivers by we the given there say and year eventually to our a also in say partially customer lot revenue and that get is supply months would a chain this in would revenue -- I that line revenue, decline, on get terms of I terms the I the we and clearance headwind. of to have definitely the a was say to the up. sensitive obviously price last impacted also on would so XX so, challenges, actions core of cutting been of

at screen want. the a you're you mobile you're or at computer moment, or something of a the screen, the looking moment at television At looking

of think of our And crisp improving in pieces the over past so the -- we not working XXXX been proposition, of before, on get we're admitted some supply I I periods chain in impacted by some disproportionately I've as value are challenges. And did core we think which as have disproportionately executing the to now.

wouldn't been all I I drivers put those are think percentages have drivers. of -- to So but it,

The coming of Thank from Casella Carla go JPMorgan. is you. question ahead. next Please

of items. couple housekeeping a Hi,

disclosed where approximately typically deferred liability sits just year-end. at or today? You that where you that give Can the tax us

year-end $XXX what was believe disclosed approximately million. at I we

Okay. Great. -- And then

you I'd fine. Day refer to Investor the

much plan cash, and $X.X Qurate this And -- to Okay. think anything QVC more think go you the said hold that. I heard giving have wondering you billion heavy drawing you the do versus at have you you but that the correctly, missed charter how then company cash more Or parent I of and cash you I'm down of about or timeframe is parent do down it October will I level how debenture And the and/or QVC? you to else? hold the payment at for revolver cash pay the on potential in at of

it's Carla, Oren. Ben Sure,

at our some each just Zulily having we small Liberty obligations contractual of as various Interactive, and $XXX tier. at clarify, and XX/XX. actions took at we've benefit address the some Cornerstone and level. $XXX QX, in The obligations at got of amounts to million So QRI of split that cash after various debt is into million tiers to in million cash corporate the That's $XXX level, at

to at to expect to use QVC continue at service fund Liberty level debt We borrowings level the cash or the QRG and Interactive.

have some exchangeable did exchanges we X.XX% And QX. in of charter actually the

million face market in after Liberty at from borrowings value That was face the XX/XX. value. of as satisfied was $XXX Broadband. and of million premium of exchanged $XXX for million funded the $XXX QVC, funded We or And cash indemnification conversions the have, additional Inc. today, by the value level by above

and you forma say give -- UK Have to the that the did wouldn't gave, pro was include those sale you Germany? completed did then that that in you And where you cash from the cash? leaseback proceeds the Okay. numbers

give We revolver repay was cash used the The pro did leaseback debt. to sale cash. that not forma was received the for

like in you And just that about great. demurrage -- comments lapping. That's to costs I be hear then, we'd the Okay. that talk just was surprised I that something was XQ. felt Can will demurrage or about was -- in see more versus XXXX? the when sunset do in that versus we that year of could XQ half what first and the or XQ last of what

three Thank of first Great. things. One increases saw driven of attention Hathaway, is significant in marketplace great question Carla, by demurrage is, we Jim amount half the is this trailer This the on the a is storage. you. year,

was fairly thousandths to can the demurrage spoke now, to. was we level inventory some needed post trailers actions the say detention normal as CBI and Mount, a level was That we with is in that referring tragedy did were location. the storage. trailer we're a Right have FCs. to, Phoenix in third up the and standing we spoke David that additional back Second our a down that to we thing we then Rocky I was And normal

may so in the as be done that CBI, demurrage, see stand anticipate which up XXXX in we second we And degree detention some to and by the Phoenix is to speaking we I about just quarter. the was location

then This The Okay. or the impact of to give will the you you what's in your on XXXX, And about, leaning environment you in of question. Great. inventory's or that others lean back holding categories be in mentioned channel? ability on cleaner. specific my any on kind last either on because talk can just does where on going much you're

what mix. as do varied Yes. as mix to in be and to much is more anything allocated it I more us be our would say in our to allows as properly

that a adaptive, programming. to stories devote and a to items is quarter the her to and on of It better to things new optimize some have inventory. allows tell to resources the bring had like so are of We because We Athens to fourth we're set opportunity us we think in work in get optimization the much programming our we in do to Blair, Selma of with be part also our to we customers. big work some through Project our so pushes new working getting couldn't there's some going

that other of And our to number very think -- we attractive there to given to customers, were the but like that able weren't be we that a initiatives are able going get are inventory we to backlog. not

So squarely we demand will for our we customers. able do able being of to to some because think meet bring moment be the back more

to a wellness. inventory into, we're leaning private to brand us leaning that have I be big other jewelry. think looking think position; We're we going there's going be into places into now the cleaner to see going penetration. to you'll especially continue lean We be label opportunity there. fashion, pretty We're to grow a

see say average and price will we without The year go much think to the you'll to able through be I as do the having I pressure on promotion. work as last margin thing also is us clearance of sale

next from of The Thank go Securities. question you. Please ahead. Routh FBN Robert coming is

thanks Yes. for Good morning and taking questions. my

two ones. quick Just

fortune campus value sure, Because and do the would I'm you worth so, land? have price. Pennsylvania to any not First, estimates is that and you reflecting that is a own And your quite I if obviously land? of the all large stock small think it's there that in

Thanks Chester, for part The West It's leaseback was in and Pennsylvania, again. Ben campus XXXX. Oren sale that. in of transactions

look he's shares there And tried Great. for company. of to a an kind would if are, is, you're Malone's company exercised first years have I of the few control be of Okay. you the in getting B the interest a that filed their and Greg still both block at B XX, would getting possible, an the buy X-K, at transaction I'm and of And ever that Dr. refusal stock you it A still if now question right shares viewing you hindsight on you just taking in think entity ago, and view second how that controlling was that. the how curious or ago where years if

point, in that those to this The available the didn't at ago, a to XX. were effect here. -- substantially price transactions still not get probably to obviously is and while market really better. I'm the current was hindsight they're them at be that which I was that retire buy those of net above shares price, purchased

people personalities in in with bigger and do last you that the other terms folks the because is if online your enhance something it entity any operating in not you're that a reputation have guess, have built as that, doesn't the infrastructure you do your to there'd online opportunities of secure is and lot moving exploring? have you larger quite entity interested what a QVC than I that one or to Great. may, to things one you given forward, opportunity do any be distribution I would of results seem is some as well or given and feel more a there Macy's from HSN Okay. platforms, partner buying

at I say in David. is point. this exploring Hi, opportunities Yes. interested would we're this of all a lot

of who where out, is become there it in from commerce right, will are future -- don't figure selling today. substantial mediated think retailers looking have part interest is you're there they to I than I But video how think are commerce other a expertise. the especially any thinks real bigger everybody video

of space. partnership in explored other some modes the have we of ways players And so partnership, various with various

to type you'll I and we think where thinking about. in apps conversations different we're our up, flexibility customers. retailer actively and actively that bring our probably brands to it's the streaming value relationship place more show some something having first some light about for But in have it's see of propositions

The next Hale you. coming ahead. from Holden go Thank is Barclays. question Please of

doesn't the for Thank debt satisfy that's is ton QRI that to because in you. have up a the million or service coming couple of morning. $XXX look Good preferred there? next predominantly the at it The coupon maturities of level years like you

Hale. preferred at dividend right, the for overhead payments service It'll level. the any That’s and QRI the

flattish us the about get of for then, unable as number a to Got feeling refill the world, of spending looking that roll customer if of you has self-gifting months core pandemic state was of year. world over sort your bulge. about you've and to QVC of kind think lot guess been it. could thinking customer's sense their And how funnel, you how revenue the the new I of how the last for give of the wondering was how real of kind we get customers to down play a a with I customers XX just and kind your you

Yes. I of make number a comments.

some think seems be we of you to it the out. would Michigan, lot in me have I appear doesn't of it's University think I to the a to others, I seen whether sentiment that although Deloitte, of leveled consumer have depression say it studies, largely sentiment can see in getting worse. dramatically

think see back. do spending drawing discretionary you I do some

I think inflation. partly that's

rate that's partly think interest expense. I

sized and that We also have business bit a homes new a home fewer of downstream opening. little is reasonably home sales

that place now in stability a seeing customers. we're that's might behaviors I would a softer. the overall, touch relative be But of so say And our

with our to best Our some see customers. customers, seem to retention with get some to still rates starting are price holding ability and be we and pretty our up well take price some

they're there And similar our from think a I well. pretty for are in wouldn't main relatively stable that frequency slope, brand customers, of seeing hanging we're I our but level. data that of brand best So customers they're on upward say levels at the as I'd say an -- purchase our

So it looks reasonably stable right now.

where given I X question are is to some just over high has bonds liquidity are on XX prices? months, next market price advantage sort got potential the the to the down head then the you And deleveraging that and of your or last it. trading take is company the accelerate operations of to there focused guys months of my

It's Ben Oren again.

time Athens and violations risk now I opportunities why give what amendments that's did that's XXXX. or taken in of But every sheet. such Doesn't look we've at the do we the saves. balance should cash we think covenants put to that company any we've -- in won't actions between for of a for once done then. be that and the we healthier mean tier now, at is Project much have we back our now And don't the to realize place

We we think also certainty towards leasebacks and create the flexibility more If to both manage elements fit our That the dedicated sheet is Ben's have believe the maximum we about the But of that we took to flexibility. turnaround. I actions the the going it of turnaround, on balance as could provide which took to comments is we of does I cash see first balance when movements be underway. sale some just right add, sheet are on.

Thank you. Citi. from The next of Jason Please coming Bazinet go question ahead. is

I we is that call like and Is in as anything EBITDA free or CapEx out you'd energy. call XXXX had a our I'm green other free that once noteworthy there thinking just out terms get distribution there? liquidity. on generation? In unusual rights cash TV of you'd words, question cash or there that anything things forecast, for

have CapEx. quick fully a initiatives give things. on just fund with we for as We would we ensure versus One then XXXX. a is could I'll Ben projecting lower decisions CapEx that comment, Project made CapEx, offsets Athens Two on slightly I are well. XXXX follow-up to actually quick related

last the just CapEx, that But this $XXX We million. also slightly about I to distribution up compared related year. number you. will It be an commissions in elevated in have gave imagined to to will year but that's averages

embedded this A on This David. in your I'd things cash bit And was bit into a going covered as just earlier. I are this flow. terms of Yes. little go a of is question. this year say we little in number

the thing cash first is material of we year, free what The flow capital last that's outlook. out pointed from in terms reversal the working to

that second tailwinds get the at expect the little storage the this this some to but as of talked The the detention start relative talked year. I cash P&L costs. on are give in some Jim about about a of taking to there start us about and And XXXX. bit also we some to year the falling should flow then through of costs, talked Liberty Mount actions call we've half, Rocky second that out year Day the flow. demurrage other from Athens on in earlier last of as we going some last terms benefit And Project we're cash Investor in

of of Okay. from sale sort of tapping And on you've in we liquidity. on follow-up of leasebacks, we're sort do assets hidden taken one of that's Should anything the or then just the with you now? think to liquidity all pools done anticipate related actions top

we opportunistically look over it for think no real estate have currently have but estate, we'll look asset at mix at transactions, expectations we I regularly, although our additional real time. additional do

Reuter from America. of go Thank William of you. is question Bank ahead. coming The next Please

with Good morning. remarks that your in revolver. improves OIBDA prepared or X.Xx as that commentary you mentioned you the you in compliance continue at release My expect obligations think the first at throughout at QVC year? to I the thought covenant. of the you question be to Qurate I above that Liberty covenant fund with it that referred expect to the bottom to is, Is press being the

carved of are service test. debt the out payments So restricted and payments tax-related

Got it.

it to more there'll regard potentially done with ones major this be are or expect with we And leasebacks, year? should sale the Okay. we

Yes.

just I think I answered that question.

have We current have We to and time from estate. time it real additional expectations. no we at look

right. want terms now you values, in products when happen you continues of upon special today's you that is able to them? to or something the are put your supply based shifting All to disruption still show And then, want of chain that whatever

chain Yes. to happens to time a the TSVs as getting still close we're It's our able for lessened pretty very to It now height substantially expectation execute normal much being of back time. difficulties. from supply plans But the from of planned.

last Okay. And then just my question.

source you Should throughout had down mentioned a cash continue XX% reduction, this flattish will point, to of You'd a we XX% capital should were XXXX? or at that it of be goal XX%. to expect be of working kind inventory

of to checks not only inventory, We're inventory a continue to We buying reduced think controls Yes. we We're manage the it we're around keep in going inventories. procedures a built a -- we've aggressively. now. help rein -- reasonable to future to that going level and we on will tighter system back the built and us

see So movement, of you we're a reasonable in level. think we place might now overall but some terms in inventory

Operator. you, Thank

done to today. the to for investors and for next not quarter, speak interest we're that Qurate, I continued you your sooner. we is you if with in Thank think all hope

Thank you.

for you Ladies thank participation. and gentlemen, event. your today's This concludes

the disconnect rest logoff of may You the and this at time your webcast lines day. or your enjoy