• Wilhelmina International, Inc. Reports Results for Second Quarter 2023

    Источник: Nasdaq GlobeNewswire / 11 авг 2023 08:30:01   America/New_York

    Second Quarter Financial Results

     
    (in thousands)
    Q2 23

    Q2 22
    YOY
    Change
    Q2 23
                YTD
    Q2 22
    YTD
    YOY
    Change
    Total Revenues$4,493 $4,699(4.4%)$8,977$9,247(2.9%)
    Operating Income  149  1,040(85.7%) 378 1,914(80.3%)
    Income Before Provision for Taxes 88  1,148(92.3%) 298 2,013(85.2%)
    Net (Loss) Income  (14) 921(101.5%) 145 1,660(91.3%)
    Gross Billings* 17,541  17,604(0.4%) 35,128 34,2492.6%
    EBITDA*  144  1,197(88.0%) 406 2,124(80.9%)
    Adjusted EBITDA* 230  1,142(79.9%) 534 2,130(74.9%)
    Pre-Corporate EBITDA* 476  1,364(65.1%) 1.024 2,606(60.7%)
    *Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

    DALLAS, Aug. 11, 2023 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) ("Wilhelmina" or the "Company") today reported revenues of $4.5 million and net loss of $14 thousand for the three months ended June 30, 2023, compared to revenues of $4.7 million and net income of $0.9 million for the three months ended June 30, 2022. For the six months ended June 30, 2023, Wilhelmina reported revenues of $9.0 million and net income of $0.1 million compared to revenue of $9.2 million and net income of $1.7 million for the six months ended June 30, 2022.   Decreased revenues in 2023 were primarily due to decreased commissions on bookings in the Company’s core modeling divisions.

    Financial Results

    Net loss for the three months ended June 30, 2023 was $14 thousand or $0.00 per fully diluted share, compared to net income of $0.9 million, or $0.18 per fully diluted share, for the three months ended June 30, 2022. Net income for the six months ended June 30, 2023 was $0.1 million, or $0.03 per fully diluted share, compared to $1.7 million, or $0.32 per fully diluted share, for the six months ended June 30, 2022.

    Pre-Corporate EBITDA was $0.5 million and $1.0 million for the three and six months ended June 30, 2023, compared to Pre-Corporate EBITDA of $1.4 million and $2.6 million for the three and six months ended June 30, 2022.  

    The following table reconciles reported total revenues under generally accepted accounting principles to Gross Billings, for the three and six months ended June 30, 2023 and 2022.

    (in thousands) Three months ended
    June 30, 
    Six months ended
    June 30,
     2023202220232022
    Total Revenues4,4934,6998,9779,247
    Model costs13,04812,90526,15125,002
    Gross billings*17,54117,60435,12834,249
    *Non-GAAP measures referenced are detailed in the disclosures at the end of this release.


    Model costs include amounts owed to talent, including taxes required to be withheld and remitted directly to taxing authorities, commissions owed to other agencies, and related costs such as those paid for photography.

    The following table reconciles reported net income under generally accepted accounting principles to EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and six months ended June 30, 2023 and 2022.

    (in thousands)Three months ended
    June 30,
     Six months ended
    June 30,
     
     2023 2022 20232022 
    Net (loss) income(14)921 1451,660 
    Interest expense- 2 15 
    Income tax expense102 227 153353 
    Amortization and depreciation56 47 107106 
    EBITDA*144 1,197 4062,124 
    Foreign exchange loss (gain)61 (110)79(104)
    Share-based payment expense25 55 49110 
    Adjusted EBITDA*230 1,142 5342,130 
    Corporate overhead246 222 490476 
    Pre-Corporate EBITDA*476 1,364 1,0242,606 
    *Non-GAAP measures referenced are detailed in the disclosures at the end of this release.


    Changes in net income, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and six months ended June 30, 2023, when compared to the three and six months ended June 30, 2022, were primarily the result of the following:

    • Total revenues for the three and six months ended June 30, 2023 decreased by 4.4% and 2.9% due to decreased commissions on bookings in the Company’s core modeling divisions;
    • Salaries and service costs for the three and six months ended June 30, 2023 increased by 10.5% and 9.5% primarily due to personnel hires and payroll changes to better align Wilhelmina staffing with the needs of each office and geographical region;
    • Office and general expenses for the three and six months ended June 30, 2023 increased by 53.4% and 52.9% primarily due to increased legal expense, rent expense, utilities, and other office related expenses.;
    • Amortization and depreciation expense for the three and six months ended June 30, 2023 increased by 19.1% and 0.9%, primarily due to increased depreciation of capitalized furniture and leasehold assets at the Company’s new New York City office; and
    • Corporate overhead expenses for the three and six months ended June 30, 2023 increased by 10.8% and 2.9%, primarily due to increased corporate travel expenses and the timing of audit costs incurred earlier than the prior year.

    WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data) 

      (Unaudited)    
      June 30,
    2023
      December 31,
    2022
     
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $10,943   $11,998  
    Accounts receivable, net of allowance for doubtful accounts of $1,931 and $1,612, respectively  9,965    9,467  
    Prepaid expenses and other current assets  214    181  
    Total current assets  21,122    21,646  
             
    Property and equipment, net of accumulated depreciation of $1,292 and $1,216, respectively  340    307  
    Right of use assets-operating  3,429    3,565  
    Right of use assets-finance  108    138  
    Trademarks and trade names with indefinite lives   8,467    8,467  
    Goodwill  7,547    7,547  
    Other assets  301    322  
             
    TOTAL ASSETS $41,314   $41,992  
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Current liabilities:        
    Accounts payable and accrued liabilities $3,883   $4,306  
    Due to models  7,815    8,378  
    Contract liabilities  -    270  
    Lease liabilities – operating, current  572    385  
    Lease liabilities – finance, current  64    62  
    Total current liabilities  12,334    13,401  
             
    Long term liabilities:        
    Deferred income tax, net  1,138    985  
    Lease liabilities – operating, non-current  3,187    3,310  
    Lease liabilities – finance, non-current  52    85  
    Total long term liabilities  4,377    4,380  
             
    Total liabilities  16,711    17,781  
             
    Shareholders’ equity:        
    Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares        
    issued and outstanding at June 30, 2023 and December 31, 2022  65    65  
    Treasury stock, 1,314,694 shares at June 30, 2023 and December 31, 2022, at cost  (6,371)   (6,371) 
    Additional paid-in capital  88,819    88,770  
    Accumulated deficit  (57,564)   (57,709) 
    Accumulated other comprehensive loss  (346)   (544) 
    Total shareholders’ equity  24,603    24,211  
             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $41,314    $41,992  


    WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
    For the Three and Six Months Ended June 30, 2023 and 2022
     (In thousands, except for share and per share data)
    (Unaudited)

      Three Months Ended  Six Months Ended 
      June 30,   June 30,  
      2023   2022   2023   2022  
    Revenues:            
    Service revenues $4,486   $4,691   $8,962   $9,232  
    License fees  7    8    15    15  
    Total revenues  4,493    4,699    8,977    9,247  
                     
    Operating expenses:                
    Salaries and service costs  2,979    2,697    5,859    5,349  
    Office and general expenses  1,063    693    2,143    1,402  
    Amortization and depreciation  56    47    107    106  
    Corporate overhead  246    222    490    476  
    Total operating expenses  4,344    3,659    8,599    7,333  
    Operating income  149    1,040    378    1,914  
                     
    Other expense (income):                
    Foreign exchange loss (gain)  61    (110)   79    (104) 
    Interest expense  -    2    1    5  
    Total other expense (income)  61    (108)   80    (99) 
                     
    Income before provision for income taxes   88    1,148    298    2,013  
                     
    Provision for income taxes:                
    Current  56    (54)   -    (84) 
    Deferred  (158)   (173)   (153)   (269) 
    Provision for income taxes, net  (102)   (227)   (153)   (353) 
                     
     Net (loss) income $(14)  $921   $145   $1,660  
                     
    Other comprehensive income (loss):                
    Foreign currency translation adjustment  112    (338)   198    (512) 
    Total comprehensive income $98   $583   $343   $1,148  
                     
    Basic net income per common share $0.00   $0.18   $0.03   $0.32  
    Diluted net income per common share $0.00   $0.18   $0.03   $0.32  
                     
    Weighted average common shares outstanding-basic  5,157    5,157    5,157    5,157  
    Weighted average common shares outstanding-diluted  5,157    5,157    5,157    5,157  


    WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
    For the Three and Six Months Ended June 30, 2023 and 2022
    (In thousands)

      Common
    Shares
     Stock
    Amount
     Treasury
    Shares
      Stock
    Amount
      Additional
    Paid-in
    Capital
      Accumulated
    Deficit
       Accumulated
    Other
    Comprehensive
    Income (Loss)
     Total 
    Balances at December 31, 2021  6,472 $65  (1,315)  $(6,371)  $88,580  $(61,238)  $(23) $21,013  
    Share based payment expense  -  -  -    -    55   -    -   55  
    Net income  -  -  -    -    -   739    -   739  
    Foreign currency translation  -  -  -    -    -   -    (174)  (174) 
    Balances at March 31, 2022  6,472 $65  (1,315)  $(6,371)  $88,635  $(60,499)  $(197) $21,633  
    Share based payment expense  -  -  -    -    55   -    -   55  
    Net income  -  -  -    -    -   921    -   921  
    Foreign currency translation  -  -  -    -    -   -    (338)  (338) 
    Balances at June 30, 2022  6,472 $65  (1,315)  $(6,371)  $88,690  $(59,578)  $(535) $22,271  


      Common
    Shares
     Stock
    Amount
     Treasury
    Shares
      Stock
    Amount
      Additional
    Paid-in
    Capital
      Accumulated
    Deficit
       Accumulated
    Other
    Comprehensive
    Income (Loss)
     Total 
    Balances at December 31, 2022  6,472 $65  (1,315)  $(6,371)  $88,770  $(57,709)  $(544) $24,211  
    Share based payment expense  -  -  -    -    24   -    -   24  
    Net income  -  -  -    -    -   159    -   159  
    Foreign currency translation  -  -  -    -    -   -    86   86  
    Balances at March 31, 2023  6,472 $65  (1,315)  $(6,371)  $88,794  $(57,550)  $(458) $24,480  
    Share based payment expense  -  -  -    -    25   -    -   25  
    Net loss  -  -  -    -    -   (14)   -   (14 
    Foreign currency translation  -  -  -    -    -   -    112   112  
    Balances at June 30, 2023  6,472 $65  (1,315)  $(6,371)  $88,819  $(57,564)  $(346) $24,603  


    WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
    For the Six Months Ended June 30, 2023 and 2022
     (In thousands)
    (Unaudited)

      Six Months Ended
    June 30,
     
       2023   2022  
    Cash flows from operating activities:      
    Net income: $145   $1,660  
    Adjustments to reconcile net income to net cash used in operating activities:        
    Amortization and depreciation  107    106  
    Share based payment expense  49    110  
    Loss (gain) on foreign exchange rates  79    (104) 
    Deferred income taxes  153    269  
    Bad debt expense  82    79  
    Changes in operating assets and liabilities:        
    Accounts receivable  (659)   (2,412) 
    Prepaid expenses and other current assets  (33)   (116) 
    Right of use assets-operating  349    238  
    Other assets  21    (227) 
    Due to models  (563)   681  
    Lease liabilities-operating  (149)   (240) 
    Contract liabilities  (270)   (535) 
    Accounts payable and accrued liabilities  (423)   14  
    Net cash used in operating activities  (1,112)   (477) 
             
    Cash flows from investing activities:        
    Purchases of property and equipment  (109)   (18) 
    Net cash used in investing activities  (109)   (18) 
             
    Cash flows from financing activities:        
    Payments on finance leases  (32)   (33) 
    Net cash used in financing activities  (32)   (33) 
             
    Foreign currency effect on cash flows:  198    (412) 
             
    Net change in cash and cash equivalents:  (1,055)   (940) 
    Cash and cash equivalents, beginning of period  11,998    10,251  
    Cash and cash equivalents, end of period $10,943   $9,311  
             
    Supplemental disclosures of cash flow information:        
    Cash paid for income taxes $49   $5  
               
             
             

    Non-GAAP Financial Measures

    Gross Billings, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA represent measures of financial performance that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). The Company considers Gross Billings, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA to be important measures of performance because they:

    • are key operating metrics of the Company's business;
    • are used by management in its planning and budgeting processes and to monitor and evaluate its financial and operating results; and
    • provide stockholders and potential investors with a means to evaluate the Company's financial and operating results against other companies within the Company's industry. 

    The Company's calculation of non-GAAP financial measures may not be consistent with similar calculations by other companies in the Company's industry. The Company calculates Gross Billings as the gross amounts billed to customers on behalf of its models and talent for services performed. The Company calculates EBITDA as net income plus interest expense, income tax expense, and depreciation and amortization expense. The Company calculates “Adjusted EBITDA” as EBITDA plus foreign exchange gain/loss, share-based payment expense and certain significant non-recurring items that the Company may include from time to time. There were no such non-recurring items during the six months ended June 30, 2023 and 2022. The Company calculates “Pre-Corporate EBITDA” as Adjusted EBITDA plus corporate overhead expense, which includes director compensation, securities laws compliance costs, audit and professional fees, and other public company costs.

    Non-GAAP financial measures should not be considered as alternatives to net and operating income as an indicator of the Company's operating performance or cash flows from operating activities as a measure of liquidity or any other measure of performance derived in accordance with generally accepted accounting principles.

    Form 10-Q Filing

    Additional information concerning the Company's results of operations and financial position is included in the Company's Form 10-Q for the second quarter ended June 30, 2023 filed with the Securities and Exchange Commission on August 11, 2023.

    Forward-Looking Statements

    This press release contains certain “forward-looking” statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company are based on the beliefs of the Company’s management as well as information currently available to the Company’s management. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar import, as they relate to the Company or Company management, are intended to identify forward-looking statements. Such forward-looking statements include, in particular, projections about the Company’s future results, statements about its plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. Additionally, statements concerning future matters such as gross billing levels, revenue levels, expense levels, and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or the Company’s future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of its business or its industry to be materially different from those expressed or implied by any forward-looking statements. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not undertake any obligation to publicly update these forward-looking statements. As a result, no person should place undue reliance on these forward-looking statements.

    About Wilhelmina International, Inc. (www.wilhelmina.com):

    Wilhelmina, together with its subsidiaries, is an international full-service fashion model and talent management service, specializing in the representation and management of leading models, celebrities, artists, photographers, athletes, and content creators. Established in 1967 by fashion model Wilhelmina Cooper, Wilhelmina is one of the oldest and largest fashion model management companies in the world. Wilhelmina is publicly traded on Nasdaq under the symbol WHLM.  Wilhelmina is headquartered in New York and, since its founding, has grown to include operations in Los Angeles, Miami, and London. Wilhelmina also owns Aperture, a talent agency located in New York and Los Angeles. For more information, please visit www.wilhelmina.com and follow @WilhelminaModels.

    CONTACT: Investor Relations
    Wilhelmina International, Inc.
    214-661-7488
    ir@wilhelmina.com 


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