iMedia Brands, Inc. (the “Company” or “IMBI”) (NASDAQ: IMBI) today
announced results for the third quarter ended October 30, 2021.
“Our mission is to capitalize on the
accelerating marketplace convergence of entertainment, ecommerce
and advertising,” said Tim Peterman, CEO of IMBI. “Our strong third
quarter performance and the successful closing of our 123tv
acquisition are tangible examples that our progress continues.”
Third Quarter 2021 Summary & Recent
Highlights
- Net sales were $130.7 million, an
increase of 20% compared to the same prior-year period and the best
year-over-year quarterly revenue growth in over ten years. During
the quarter, the Company launched 25+ new brands across its
television networks ShopHQ, ShopBulldogTV and ShopHQHealth.
- Year-to-date net sales were $357.3
million, which was 8% growth compared to the same prior year period
and represent the strongest year-over-year net sales growth in the
Company's first three fiscal quarters in eight years. This success
was driven primarily by the 90+ new merchandise brand launches
occurring year-to-date plus the accretive impact of the Christopher
& Banks and iMDS net sales.
- Our 12-month rolling active
customers grew by 20% compared to same prior-year period, driven by
65% growth in new customers which was the best new customer growth
in over ten years.
- Gross margin was 41.6%, a 420-basis
point improvement over the same prior-year period.
Year-to-date gross margin was 41.5%, a 430-basis point improvement
over the same prior-year period.
- Net loss attributable to
stockholders was $(9.5) million, a $4.7 million increase over the
same prior-year period, largely driven by $4.5 million in one-time
transaction and transition costs and $713,000 in interest costs
relating to the bond offering in the third quarter.
- Adjusted EBITDA was $10.1 million,
a $3.7 million improvement over the same prior-year period.
Year-to-date adjusted EBITDA was $26.5 million, an $11.0 million
increase, or 71% improvement, over the same prior-year period and
the highest Q3 year-to date adjusted EBITDA in the Company's
history.
- As previously announced, on
November 5, 2021, the Company completed its acquisition of 123tv.
On September 28, 2021, the Company closed on its offering of $80
million in 8.50% Senior Secured Notes due 2026 and used all the net
proceeds to fund the closing cash payment for the acquisition of
the 123tv.
Third Quarter and Year-to-Date 2021 Results
SUMMARY RESULTS AND KEY OPERATING METRICS |
($ Millions, except average selling price and
EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q310/30/2021 |
|
Q310/31/2020 |
|
Q3Change |
|
YTD 202110/30/2021 |
|
YTD 202010/31/2020 |
|
Change |
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|
|
|
Net Sales |
$ |
130.7 |
|
|
$ |
109.0 |
|
|
20% |
|
|
$ |
357.3 |
|
|
$ |
329.4 |
|
|
8% |
|
|
|
|
|
|
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|
|
|
|
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|
|
|
|
|
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|
|
|
Gross Margin % |
|
41.6% |
|
|
|
37.4% |
|
|
420 bps |
|
|
|
41.5% |
|
|
|
37.2% |
|
|
430 bps |
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
$ |
- |
|
|
$ |
- |
|
|
N/A |
|
|
$ |
(0.3) |
|
|
$ |
- |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Net loss attributable to shareholders |
$ |
(9.5) |
|
|
$ |
(4.7) |
|
|
100% |
|
|
$ |
(17.0) |
|
|
$ |
(10.5) |
|
|
(61%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$ |
(0.44) |
|
|
$ |
(0.39) |
|
|
(13%) |
|
|
$ |
(0.91) |
|
|
$ |
(1.05) |
|
|
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
10.1 |
|
|
$ |
6.4 |
|
|
57% |
|
|
$ |
26.5 |
|
|
$ |
15.5 |
|
|
71% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Shipped Units (000s) |
|
1,919 |
|
|
|
1,664 |
|
|
15% |
|
|
|
5,411 |
|
|
|
4,775 |
|
|
13% |
|
Average Selling Price (ASP) |
$ |
68 |
|
|
$ |
58 |
|
|
17% |
|
|
$ |
66 |
|
|
$ |
61 |
|
|
8% |
|
Return Rate % |
|
15.8% |
|
|
|
14.4% |
|
|
140 bps |
|
|
|
16.0% |
|
|
|
14.5% |
|
|
150 bps |
|
ShopHQ Digital Net Sales % |
|
46.5% |
|
|
|
49.1% |
|
|
(260 bps) |
|
|
|
48.5% |
|
|
|
50.7% |
|
|
(220 bps) |
|
Total Customers - 12 Month Rolling (000s) |
|
1,229 |
|
|
|
1,028 |
|
|
20% |
|
|
|
N/A |
|
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of ShopHQ Net Merchandise Sales by Category |
|
|
|
|
|
|
|
|
|
|
|
Jewelry & Watches |
|
44% |
|
|
|
40% |
|
|
|
|
|
|
47% |
|
|
|
40% |
|
|
|
|
|
Home & Consumer Electronics |
|
17% |
|
|
|
16% |
|
|
|
|
|
|
16% |
|
|
|
14% |
|
|
|
|
|
Beauty & Health |
|
24% |
|
|
|
34% |
|
|
|
|
|
|
22% |
|
|
|
34% |
|
|
|
|
|
Fashion & Accessories |
|
15% |
|
|
|
10% |
|
|
|
|
|
|
15% |
|
|
|
12% |
|
|
|
|
|
Total |
|
100% |
|
|
|
100% |
|
|
|
|
|
|
100% |
|
|
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
Liquidity and Capital Resources
As of October 30, 2021, total unrestricted cash
was $51.4 million. The Company also had an additional $23.5
million of unused availability on its revolving credit
facility.
Increased Outlook
Regarding our Outlook for Q4, we anticipate
reporting approximately $13 to $15 million of adjusted EBITDA,
which is a 55% to 79% increase over the same prior year period,
despite continued expectations for unusually high logistics costs
due to COVID-19. We anticipate reporting Q4 net sales of
approximately $175 to $180 million, which is roughly 40% to 44%
growth compared to the same prior year period.
For the full year 2022, we anticipate reporting
revenue of approximately $675 to $725 million and adjusted EBITDA
of approximately $50 to $60 million and reporting positive
quarterly EPS beginning in the back half of 2022.
Conference Call
The Company will hold a conference call today at
8:30 a.m. Eastern time to discuss its third quarter 2021
results.
Date: Wednesday, November 17, 2021Toll-free
dial-in number: (877) 407-9039International dial-in number: (201)
689-8470Conference ID: 13724909
Please call the conference telephone number 5-10
minutes prior to the start time. An operator will register your
name and organization. If you have any difficulty connecting with
the conference call, please contact Gateway Investor Relations at
(949) 574-3860.
The conference call will be broadcast live and
available for replay here and via the investor relations section of
the iMedia Brands website at www.imediabrands.com.
A replay of the conference call will be
available after 11:30 a.m. Eastern time on the same day through
December 1, 2021.
Toll-free replay number: (844)
512-2921International replay number: (412) 317-6671Replay ID:
13724909
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading
interactive media company capitalizing on the convergence of
entertainment, ecommerce, and advertising. The Company owns a
growing, global portfolio of Entertainment, Consumer Brands and
Media Commerce Services businesses that cross promote and exchange
data with each other to optimize the engagement experiences it
creates for advertisers and consumers.
Contacts:
Investors:Gateway Investor RelationsCody
SlachIMBI@gatewayir.com(949) 574-3860
Media:press@imediabrands.com(800) 938-9707
iMEDIA BRANDS INC. |
AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In thousands except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
October 30, |
|
January 30, |
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
ASSETS |
Current assets: |
|
|
|
|
Cash |
$ |
51,352 |
|
|
$ |
15,485 |
|
|
Restricted Cash |
|
2,168 |
|
|
|
- |
|
|
Accounts receivable, net |
|
66,948 |
|
|
|
61,951 |
|
|
Inventories |
|
92,001 |
|
|
|
68,715 |
|
|
Current portion of television broadcast rights, net |
|
21,349 |
|
|
|
19,725 |
|
|
Prepaid expenses and other |
|
15,922 |
|
|
|
7,853 |
|
|
|
Total current assets |
|
249,740 |
|
|
|
173,729 |
|
Property and equipment, net |
|
44,932 |
|
|
|
41,988 |
|
Television broadcast rights, net |
|
41,865 |
|
|
|
7,028 |
|
Intangible assets, net |
|
35,769 |
|
|
|
2,359 |
|
Other assets |
|
13,161 |
|
|
|
1,533 |
|
|
|
|
Total Assets |
$ |
385,467 |
|
|
$ |
226,637 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
62,234 |
|
|
$ |
77,995 |
|
|
Accrued liabilities |
|
39,592 |
|
|
|
29,509 |
|
|
Current portion of television broadcast rights obligation |
|
25,937 |
|
|
|
29,173 |
|
|
Current portion of long term credit facility |
|
- |
|
|
|
2,714 |
|
|
Current portion of operating lease liabilities |
|
1,046 |
|
|
|
462 |
|
|
Deferred revenue |
|
541 |
|
|
|
213 |
|
|
|
Total current liabilities |
|
129,350 |
|
|
|
140,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term broadcast rights liability |
|
45,742 |
|
|
|
7,358 |
|
Other long term liabilities |
|
13,403 |
|
|
|
1,497 |
|
Long term credit facilities |
|
46,650 |
|
|
|
50,666 |
|
8.50% Senior Secured Notes |
|
73,768 |
|
|
|
- |
|
|
|
Total liabilities |
|
308,914 |
|
|
|
199,587 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Preferred stock, $.01 par value, 400,000 shares authorized; |
|
|
|
|
|
zero shares issued and outstanding |
|
- |
|
|
|
- |
|
|
Common stock, $.01 par value, 29,600,000 shares authorized as
of |
|
|
|
|
|
October 30, 2021 and January 30, 2021; 21,560,514 and 13,019,061
shares |
|
|
|
|
issued and outstanding as of October 30, 2021 and January 30,
2021 |
|
213 |
|
|
|
130 |
|
|
Additional paid-in capital |
|
537,987 |
|
|
|
474,375 |
|
|
Accumulated deficit |
|
(464,424 |
) |
|
|
(447,455 |
) |
|
Accumulated other comprehensive loss |
|
(371 |
) |
|
|
- |
|
|
|
Total shareholders' equity |
|
73,405 |
|
|
|
27,050 |
|
|
|
Equity of the Non-Controlling Interest |
|
3,148 |
|
|
$ |
- |
|
|
|
Total Equity |
$ |
76,553 |
|
|
$ |
27,050 |
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
385,467 |
|
|
$ |
226,637 |
|
|
|
|
|
|
|
|
iMEDIA BRANDS, INC. |
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Periods Ended |
|
For the Nine-Month Periods Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 30, |
|
October 31, |
|
October 30, |
|
October 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net sales |
$ |
130,681 |
|
|
$ |
109,025 |
|
|
$ |
357,325 |
|
|
$ |
329,374 |
|
Cost of sales |
$ |
76,260 |
|
|
|
68,211 |
|
|
|
208,911 |
|
|
|
206,711 |
|
|
|
|
Gross profit |
$ |
54,421 |
|
|
$ |
40,814 |
|
|
|
148,414 |
|
|
|
122,663 |
|
|
|
|
Margin % |
|
41.6% |
|
|
|
37.4% |
|
|
|
41.5% |
|
|
|
37.2% |
|
Operating expense: |
|
|
|
|
|
|
|
|
Distribution and selling |
$ |
39,302 |
|
|
|
31,490 |
|
|
|
108,907 |
|
|
|
97,100 |
|
|
General and administrative |
$ |
10,747 |
|
|
|
4,687 |
|
|
|
24,569 |
|
|
|
15,158 |
|
|
Depreciation and amortization |
$ |
9,740 |
|
|
|
7,977 |
|
|
|
24,727 |
|
|
|
16,700 |
|
|
Restructuring costs |
$ |
634 |
|
|
|
55 |
|
|
|
634 |
|
|
|
264 |
|
|
|
Total operating expense |
$ |
60,423 |
|
|
$ |
44,209 |
|
|
|
158,837 |
|
|
|
129,222 |
|
Operating income (loss) |
$ |
(6,002) |
|
|
$ |
(3,395) |
|
|
|
(10,423) |
|
|
|
(6,559) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
$ |
85 |
|
|
|
1 |
|
|
|
124 |
|
|
|
2 |
|
|
Debt Extinguishment |
$ |
(9) |
|
|
|
- |
|
|
|
(663) |
|
|
|
- |
|
|
Interest expense |
$ |
(3,551) |
|
|
|
(1,339) |
|
|
|
(6,245) |
|
|
|
(3,920) |
|
|
|
Total other expense |
$ |
(3,475) |
|
|
$ |
(1,338) |
|
|
|
(6,784) |
|
|
|
(3,918) |
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
$ |
(9,477) |
|
|
$ |
(4,733 |
) |
|
$ |
(17,207 |
) |
|
|
(10,477 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
$ |
(15) |
|
|
|
(15) |
|
|
|
(45) |
|
|
|
(45) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(9,492) |
|
|
$ |
(4,748) |
|
|
$ |
(17,252) |
|
|
$ |
(10,522) |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to non-controlling interest |
$ |
- |
|
|
|
- |
|
|
|
(282) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to
shareholders |
$ |
(9,492) |
|
|
$ |
(4,748) |
|
|
$ |
(16,970) |
|
|
$ |
(10,522) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
$ |
(0.44) |
|
|
$ |
(0.39) |
|
|
$ |
(0.91) |
|
|
$ |
(1.05) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
---assuming dilution |
$ |
(0.44) |
|
|
$ |
(0.39) |
|
|
$ |
(0.91) |
|
|
$ |
(1.05) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
|
|
|
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
21,503,340 |
|
|
|
12,177,990 |
|
|
|
18,710,658 |
|
|
|
10,000,383 |
|
|
|
|
Diluted |
|
21,503,340 |
|
|
|
12,177,990 |
|
|
|
18,710,658 |
|
|
|
10,000,383 |
|
|
|
|
|
|
|
|
|
|
|
|
iMEDIA BRANDS, INC. |
AND SUBSIDIARIES |
PERFORMANCE MEASURES BY SEGMENT |
($ in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Three-Month Period Ended |
|
|
October 30, 2021 |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
97.5 |
|
|
$ |
33.2 |
|
$ |
130.7 |
|
|
$ |
104.3 |
|
|
$ |
4.7 |
|
|
$ |
109.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
41.4 |
|
|
$ |
13.0 |
|
$ |
54.4 |
|
|
|
38.8 |
|
|
$ |
2.0 |
|
|
$ |
40.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
$ |
(6.8 |
) |
|
$ |
0.8 |
|
$ |
(6.0 |
) |
|
|
(2.4 |
) |
|
$ |
(1.0 |
) |
|
$ |
(3.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
7.2 |
|
|
$ |
2.9 |
|
$ |
10.1 |
|
|
|
7.2 |
|
|
$ |
(0.8 |
) |
|
$ |
6.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine-Month Period Ended |
|
For the Nine-Month Period Ended |
|
|
October 30, 2021 |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
292.5 |
|
|
$ |
64.8 |
|
$ |
357.3 |
|
|
$ |
318.8 |
|
|
$ |
10.6 |
|
|
$ |
329.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
121.1 |
|
|
$ |
27.3 |
|
$ |
148.4 |
|
|
|
118.5 |
|
|
$ |
4.2 |
|
|
$ |
122.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
$ |
(11.5 |
) |
|
$ |
1.0 |
|
$ |
(10.5 |
) |
|
|
(2.5 |
) |
|
$ |
(4.1 |
) |
|
$ |
(6.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
20.7 |
|
|
$ |
5.8 |
|
$ |
26.5 |
|
|
|
19.1 |
|
|
$ |
(3.5 |
) |
|
$ |
15.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iMEDIA BRANDS, INC. |
AND SUBSIDIARIES |
Reconciliation of Net Income (Loss) Attributable to
Shareholders to Adjusted EBITDA: |
(Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Three-Month Period Ended |
|
|
October 30, 2021 |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to
shareholders |
|
|
|
|
|
$ |
(9,492 |
) |
|
|
|
|
|
$ |
(4,748 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
10,677 |
|
|
|
|
|
|
|
8,952 |
|
Interest income |
|
|
|
|
|
|
(85 |
) |
|
|
|
|
|
|
(1 |
) |
Interest expense |
|
|
|
|
|
|
3,551 |
|
|
|
|
|
|
|
1,339 |
|
Income taxes |
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
15 |
|
EBITDA (as defined) |
|
$ |
3,435 |
|
|
$ |
1,231 |
|
|
$ |
4,666 |
|
|
$ |
6,315 |
|
|
$ |
(758 |
) |
|
$ |
5,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined) |
|
$ |
3,435 |
|
|
$ |
1,231 |
|
|
$ |
4,666 |
|
|
$ |
6,315 |
|
|
$ |
(758 |
) |
|
$ |
5,557 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, settlement and integration costs, net (a) |
|
2,207 |
|
|
|
1,630 |
|
|
|
3,837 |
|
|
|
312 |
|
|
|
- |
|
|
|
312 |
|
Restructuring costs |
|
|
625 |
|
|
|
7 |
|
|
|
632 |
|
|
|
55 |
|
|
|
- |
|
|
|
55 |
|
Non-cash share-based compensation expense |
|
|
949 |
|
|
|
- |
|
|
|
949 |
|
|
|
504 |
|
|
|
- |
|
|
|
504 |
|
Loss on Debt Extinguishment |
|
|
9 |
|
|
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
7,225 |
|
|
$ |
2,868 |
|
|
$ |
10,093 |
|
|
$ |
7,186 |
|
|
$ |
(758 |
) |
|
$ |
6,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine-Month Period Ended |
|
For the Nine-Month Period Ended |
|
|
October 30, 2021 |
|
October 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to shareholders |
|
|
|
|
|
$ |
(16,970 |
) |
|
|
|
|
|
$ |
(10,522 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
27,564 |
|
|
|
|
|
|
|
19,697 |
|
Interest income |
|
|
|
|
|
|
(124 |
) |
|
|
|
|
|
|
(2 |
) |
Interest expense |
|
|
|
|
|
|
6,245 |
|
|
|
|
|
|
|
3,920 |
|
Income taxes |
|
|
|
|
|
|
45 |
|
|
|
|
|
|
|
45 |
|
EBITDA (as defined) |
|
$ |
14,351 |
|
|
$ |
2,410 |
|
|
$ |
16,760 |
|
|
$ |
16,679 |
|
|
$ |
(3,541 |
) |
|
$ |
13,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined) |
|
$ |
14,351 |
|
|
$ |
2,410 |
|
|
$ |
16,761 |
|
|
$ |
16,679 |
|
|
$ |
(3,541 |
) |
|
$ |
13,138 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs |
|
|
625 |
|
|
|
9 |
|
|
|
634 |
|
|
|
264 |
|
|
|
- |
|
|
|
264 |
|
One-time customer concessions |
|
|
341 |
|
|
|
- |
|
|
|
341 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Transaction, settlement and integration costs, net |
|
2,370 |
|
|
|
3,387 |
|
|
|
5,757 |
|
|
|
886 |
|
|
|
- |
|
|
|
886 |
|
Non-cash share-based compensation expense |
|
|
2,385 |
|
|
|
- |
|
|
|
2,385 |
|
|
|
1,227 |
|
|
|
- |
|
|
|
1,227 |
|
Loss on Debt Extinguishment |
|
|
663 |
|
|
|
- |
|
|
|
663 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
20,735 |
|
|
$ |
5,806 |
|
|
$ |
26,541 |
|
|
$ |
19,056 |
|
|
$ |
(3,541 |
) |
|
$ |
15,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Transaction, settlement and integration
costs for the three-month period ended October 30, 2021, includes
transaction and integration costs related primarily to the Synacor
and 123tv transactions. Transaction, settlement and integration
costs for three-month period ended October 31, 2020, includes
contract settlement costs, business acquisition and
integration-related costs.
Adjusted EBITDA
EBITDA represents net income (loss) for the
respective periods excluding depreciation and amortization expense,
interest income (expense) and income taxes. The Company defines
Adjusted EBITDA as EBITDA excluding non-operating gains (losses);
executive and management transition costs; restructuring costs;
non-cash impairment charges and write downs; transaction,
settlement, and integration costs, net; rebranding costs; and
non-cash share-based compensation expense. The Company has included
the “Adjusted EBITDA” measure in its EBITDA reconciliation in order
to adequately assess the operating performance of its television
and online businesses and in order to maintain comparability to its
analyst's coverage and financial guidance, when given. Management
believes that the Adjusted EBITDA measure allows investors to make
a meaningful comparison between its business operating results over
different periods of time with those of other similar companies. In
addition, management uses Adjusted EBITDA as a metric to evaluate
operating performance under the Company’s management and executive
incentive compensation programs. EBITDA and Adjusted EBITDA are
both non-GAAP measures and should not be construed as an
alternative to operating income (loss), net income (loss) or to
cash flows from operating activities as determined in accordance
with generally accepted accounting principles (“GAAP”) and should
not be construed as a measure of liquidity. Adjusted EBITDA may not
be comparable to similarly titled measures reported by other
companies. The Company has included a reconciliation of the
comparable GAAP measure, net income (loss) to Adjusted EBITDA in
this release.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This document may contain certain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements contained
herein that are not statements of historical fact, including
statements regarding the expected impact of COVID-19 on television
retailing are forward-looking. The Company often use words such as
anticipates, believes, estimates, expects, intends, seeks,
predicts, hopes, should, plans, will and similar expressions to
identify forward-looking statements. These statements are based on
management's current expectations and accordingly are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained herein due to various
important factors, including (but not limited to): variability in
consumer preferences, shopping behaviors, spending and debt levels;
the general economic and credit environment, including COVID-19;
interest rates; seasonal variations in consumer purchasing
activities; the ability to achieve the most effective product
category mixes to maximize sales and margin objectives; competitive
pressures on sales and sales promotions; pricing and gross sales
margins; the level of cable and satellite distribution for the
Company’s programming and the associated fees or estimated cost
savings from contract renegotiations; the Company’s ability to
establish and maintain acceptable commercial terms with third-party
vendors and other third parties with whom the Company has
contractual relationships, and to successfully manage key vendor
and shipping relationships and develop key partnerships and
proprietary and exclusive brands; the ability to manage operating
expenses successfully and the Company’s working capital levels; the
ability to remain compliant with the Company’s credit facilities
covenants; customer acceptance of the Company’s branding strategy
and its repositioning as a video commerce Company; the ability to
respond to changes in consumer shopping patterns and preferences,
and changes in technology and consumer viewing patterns; changes to
the Company’s management and information systems infrastructure;
challenges to the Company’s data and information security; changes
in governmental or regulatory requirements; including without
limitation, regulations of the Federal Communications Commission
and Federal Trade Commission, and adverse outcomes from regulatory
proceedings; litigation or governmental proceedings affecting the
Company’s operations; significant events (including disasters,
weather events or events attracting significant television
coverage) that either cause an interruption of television coverage
or that divert viewership from its programming; disruptions in the
Company’s distribution of its network broadcast to customers; the
Company’s ability to protect its intellectual property rights; our
ability to obtain and retain key executives and employees; the
Company’s ability to attract new customers and retain existing
customers; changes in shipping costs; expenses related to the
actions of activist or hostile shareholders; the Company’s ability
to offer new or innovative products and customer acceptance of the
same; changes in customer viewing habits of television programming;
and the risks identified under Item 1A(Risk Factors) in the
Company’s most recently filed Form 10-K and any additional risk
factors identified in its periodic reports since the date of such
Form 10-K. More detailed information about those factors is set
forth in the Company’s filings with the Securities and Exchange
Commission, including its annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K. Investors
are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this announcement.
The Company is under no obligation (and expressly disclaim any such
obligation) to update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
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