Home Shopping Network 2015 Annual Report Download - page 64

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62
The following table summarizes HSNi's share repurchase activity (in thousands, except per share data):
2015 2014 2013
Number of shares repurchased and retired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 948 1,011 2,737
Average price per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61.73 $ 54.87 $ 53.67
Total cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 58,510 $ 55,467 $ 146,895
Dividend Policy
During the year ended December 31, 2015, HSNi's Board of Directors approved four quarterly cash dividends totaling
$1.40 per common share and approved a special cash dividend of $10.00 per common share that was payable February 19,
2015 resulting in aggregate dividend payments of approximately $597.9 million. During the year ended December 31, 2014,
HSNi’s Board of Directors approved four quarterly cash dividends totaling $1.10 per common share resulting in dividend
payments of approximately $57.8 million.
In February 2016, HSNi's Board of Directors approved a quarterly cash dividend of $0.35 per common share. The
dividend will be paid March 23, 2016 to HSNi's record holders as of March 9, 2016.
NOTE 17—QUARTERLY RESULTS (UNAUDITED)
Quarter Ended
March 31, June 30, September 30, December 31,
(a) (b) (c) (d)(e)
(In thousands, except per share data)
Year Ended December 31, 2015
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 841,887 $ 885,642 $ 864,868 $ 1,098,178
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,206 336,537 306,274 371,546
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,009 70,703 57,833 98,488
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,689 41,632 34,208 59,710
Net income per share:
Basic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.64 $ 0.79 $ 0.65 $ 1.14
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.63 $ 0.78 $ 0.64 $ 1.12
Dividends declared per common share . . . . . . . . . . . . . . . . . . . . . . $ 10.35 $ 0.35 $ 0.35 $ 0.35
Year Ended December 31, 2014
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 777,420 $ 855,204 $ 837,477 $ 1,117,894
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,774 313,135 302,415 381,737
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,868 67,367 65,968 109,406
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,182 40,940 39,531 68,331
Net income per share:
Basic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.45 $ 0.77 $ 0.75 $ 1.30
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.45 $ 0.76 $ 0.74 $ 1.28
Dividends declared per common share . . . . . . . . . . . . . . . . . . . . . . $ 0.25 $ 0.25 $ 0.25 $ 0.35
(a) The first quarter of 2014 includes $3.1 million, or $0.06 per diluted share, for a settlement with the CPSC.
(b) The second quarter of 2015 includes $3.0 million, or $0.03 per diluted share, for certain costs associated with the
planned closure of one of HSN's distribution centers as part of its supply chain optimization initiative.
(c) The third quarter of 2015 includes a non-cash charge of $5.0 million, or $0.06 per diluted share, at Cornerstone for
impairment of intangible assets related to Chasing Fireflies.
(d) The fourth quarter of 2015 includes $2.0 million, or $0.02 per diluted share, of severance costs associated with a
reorganization at HSN.
(e) The fourth quarter of 2014 includes $5.0 million of revenue, or $0.06 per diluted share, related to the breakage of
certain unused customer credits.