DALLAS, Nov. 15, 2010 /PRNewswire-FirstCall/ --
Wilhelmina International, Inc. (OTC Bulletin Board: WHLM) (the
"Company") today reported total revenues of $12.2 million and $35.9
million for the three and nine months ended September 30, 2010, respectively, compared to
$9.4 million and $22.8 million for the three and nine months ended
September 30, 2009, respectively.
Additional information regarding the Company's results is
disclosed in the Form 10-Q for the quarter ended September 30, 2010 that was filed with the
Securities and Exchange Commission on November 15, 2010.
The net income applicable to common stockholders was
$408,000 or $0.00 per fully diluted share and $839,000 or $0.01
per fully diluted share for the three and nine months ended
September 30, 2010, respectively,
compared to a net loss of $328,000 or
$0.00 per fully diluted share and
$1,908,000 or $0.02 per fully diluted share for the three and
nine months ended September 30, 2009,
respectively.
The net income for the three and nine months ended September 30, 2010 includes before tax charges of
$481,000 and $1,447,000 for amortization of intangible assets
and depreciation and $290,000 and
$1,014,000 for corporate overhead,
respectively. The net loss for the three and nine months
ended September 30, 2009 includes
before tax charges of $490,000 and
$1,225,000 for amortization of
intangible assets and depreciation, $276,000 and $885,000 for corporate
overhead and $13,000 and $673,000 for acquisition transaction costs,
respectively.
In a further effort to provide investors with additional
information regarding the Company's results of operations, the
Company is disclosing Adjusted EBITDA, which is computed as
operating income (loss) before depreciation and amortization and
corporate overhead at the holding company level. Adjusted EBITDA is
a non-GAAP financial measure, defined as a numerical measure of
financial performance that excludes or includes amounts so as to be
different than the most directly comparable measure calculated and
presented in accordance with United
States generally accepted accounting principles ("GAAP") in
a company's statements of operations, balance sheets or statements
of cash flows. Pursuant to the requirements of Regulation G,
the Company provided a reconciliation of this non-GAAP financial
measure to the most directly comparable GAAP financial measure.
Although Adjusted EBITDA represents a non-GAAP financial
measure, the Company considers Adjusted EBITDA to be a key
operating metric of the Company's business, and uses Adjusted
EBITDA in its planning and budgeting processes and to monitor and
evaluate its financial and operating results. The Company
believes that Adjusted EBITDA is useful to investors because it
provides an analysis of financial and operating results using the
same measure that the Company uses in evaluating itself. The
Company believes that Adjusted EBITDA also provides stockholders
and potential investors with a means to evaluate the Company's
financial and operating results against other companies within the
Company's industry. However, the Company's calculation of
Adjusted EBITDA may not be consistent with the calculation of this
measure by other companies in the Company's industry.
Adjusted EBITDA is not a measurement of financial performance
under GAAP and should not be considered as an alternative to
operating income (loss) 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 GAAP.
The following table reconciles operating income (loss) under
GAAP (in thousands) (as reported in the Company's quarterly and
annual SEC filings) to Adjusted EBITDA for the three and nine
months ended September 30, 2010 and
2009.
|
Three months
ended
|
Nine months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Operating Income (loss)
|
$ 523
|
$ (293)
|
$1,146
|
$(1,177)
|
|
|
|
|
|
|
|
Add: Corporate
overhead
|
290
|
276
|
1,014
|
885
|
|
|
|
|
|
|
|
Add: Amortization of
intangible assets and depreciation
|
481
|
490
|
1,447
|
1,225
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$ 1,294
|
$ 473
|
$3,607
|
$ 933
|
|
|
|
|
|
|
The Company completed the acquisition of Wilhelmina
International, Ltd. and affiliated companies (collectively, the
"Wilhelmina Companies") on February 13,
2009 and, therefore, recorded revenues and expenses of the
Wilhelmina Companies for the period from February 13, 2009 through September 30, 2009, in its statements of
operations for the nine months ended September 30, 2009.
In an effort to provide investors with additional information
regarding the Company's results of operations, the Company is
disclosing the unaudited pro forma financial information and
discussion below relating solely to the Wilhelmina Companies, which
does not take into account any amounts attributable to the
Company's operations at the holding company level during such
periods, including corporate overhead, amortization of intangibles,
acquisition transaction costs and interest expense and income.
Certain adjustments have been made to the historical
information for the nine months ended September 30, 2009 to adjust for expenses
incurred by the Wilhelmina Companies in connection with the
acquisition of the Wilhelmina Companies. Such information and
discussion should be read in conjunction with the Condensed
Consolidated Financial Statements of the Company and the notes
thereto included in the Company's Form 10-Q for the quarter ended
September 30, 2010. The
unaudited pro forma information and discussion below is not
necessarily indicative of the current or future financial position
or operating results of the Company.
The following table provides unaudited pro forma financial
information (in thousands), with adjustments as discussed above,
relating solely to the Wilhelmina Companies for the nine months
ended September 30, 2010 and 2009, as
if the acquisition had occurred at the beginning of the respective
periods and was consummated on the same terms.
|
|
|
Nine months
ended September 30,
|
|
|
(in
thousands)
|
|
|
2010
|
2009
|
|
|
|
%
of
Revenues
net of
model costs
|
%
of
Operating
Expenses
|
|
%
of
Revenues
net of
model costs
|
%
of
Operating
Expenses
|
|
Total
revenues
|
$35,855
|
|
|
$27,244
|
|
|
|
Model
costs
|
24,076
|
|
|
19,092
|
|
|
|
Revenues net
of model costs
|
11,779
|
|
|
8,152
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Salaries and
service costs
|
5,995
|
50.9%
|
73.4%
|
5,493
|
67.4%
|
74.6%
|
|
Office and
general expenses
|
2,177
|
18.5%
|
26.6%
|
1,866
|
22.9%
|
25.4%
|
|
Total
operating expenses
|
8,172
|
69.4%
|
100%
|
7,359
|
90.3%
|
100%
|
|
Pro forma
operating income
|
$3,607
|
|
|
$793
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Billings
Gross billings for the nine months ended September 30, 2010 increased approximately
$9,982,000, or 33.6%, to
approximately $39,684,000, compared
to approximately $29,702,000 for the
nine months ended September 30, 2009.
Generally, gross billings have increased due to the Company's
clients spending more on advertising and the Company having the
desired talent available to its clients. During the nine months
ended September 30, 2010, the
Wilhelmina Companies experienced an increase in gross billings
across the core modeling business of approximately 32% and an
increase in gross billings in the WAM business of approximately 45%
compared to gross billings generated by the respective divisions
during the nine months ended September 30,
2010. Gross billings of the WAM division represented
approximately 16% of total gross billings for the nine months ended
September 30, 2010, compared to
approximately 16% for the nine months ended September 30, 2009. During the nine months
ended September 30, 2010, gross
billings of the various boards of the core modeling business
experienced positive growth ranging from 3% to 89% compared to the
nine months ended September 30, 2009.
Pro Forma Operating Income
During the nine months ended September
30, 2010, the pro forma operating income was approximately
$3,607,000 compared to operating
income of approximately $793,000
during the nine months ended September 30,
2009, representing an increase of $2,814,000, or 354.9%. The increase was
primarily attributable to an increase in revenues, net of model
costs, as a result of increases in gross billings for the core
modeling and WAM businesses and from an increase in previously
deferred revenues.
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 quarter ended September 30,
2010 which will be filed today with the Securities and
Exchange Commission. A copy of the Company's 10-Q filing will be
available on our website at www.wilhelmina.com.
Forward-Looking Statements
This report contains certain "forward-looking" statements as
such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the Company and its
subsidiaries that are based on the beliefs of the Company's
management as well as assumptions made by and 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 its subsidiaries or Company management, are intended
to identify forward-looking statements. Such statements
reflect the current risks, uncertainties and assumptions related to
certain factors including, without limitation, the Company's
success in integrating the operations of the Wilhelmina Companies
in a timely manner, or at all, the Company's ability to realize the
anticipated benefits of the Wilhelmina Companies to the extent, or
in the timeframe, anticipated, competitive factors, general
economic conditions, the interest rate environment, governmental
regulation and supervision, seasonality, changes in industry
practices, one-time events and other factors described herein and
in other filings made by the Company with the SEC. Based upon
changing conditions, 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 intend to update these
forward-looking statements.
About Wilhelmina International, Inc. and Wilhelmina Artist
Management (www.wilhelmina.com):
Through Wilhelmina Models and its other subsidiaries including
Wilhelmina Artist Management, Wilhelmina International, Inc.
provides traditional, full-service fashion model and talent
management services, specializing in the representation and
management of leading models, entertainers, artists, athletes and
other talent to various customers and clients including retailers,
designers, advertising agencies and catalog companies. Wilhelmina
Models was founded in 1967 by Wilhelmina
Cooper, a renowned fashion model, and is one of the oldest
and largest fashion model management companies in the world.
Wilhelmina Models is headquartered in New
York and, since its founding, has grown to include
operations located in Los Angeles
and Miami, as well as a growing
network of licensees comprising leading modeling agencies in
various local markets across the U.S.
Contact:
|
|
|
John Murray
|
|
|
Chief Financial
Officer
|
|
|
Wilhelmina International,
Inc.
|
|
|
214-661-7480
|
|
|
john.murray@wilhelmina.com
|
|
|
|
SOURCE Wilhelmina International, Inc.