NathanH
10 years ago
Gr8 company
Wilhelmina International, Inc. Reports Earnings Results for First Quarter 2014
Core Gross Billings Up 31% to $18.1 million, Revenues Up 29% to $18.2 million
Pre-Corporate EBITDA Up 87% to $1.3 million, EBITDA Up 174% to $1.0 million
Progress On Key Strategic Initiatives:
All offices and individual boards showed double digit growth year over year
Launched XO Wilhelmina website
Signed license agreement for an agency in Tokyo, Japan
Entered into a product licensing arrangement, expected launch late 2014
Quarterly Financial Highlights
(in thousands) Q1 14 Q1 13 Annual
Growth
Core Gross Billings* $18,063 $13,815 31%
Total Gross Billings* $18,552 $14,890 25%
Total Revenues $18,236 $14,116 29%
Pre-Corporate EBITDA* $1,279 $685 87%
EBITDA* $1,000 $365 174%
*Non-GAAP measures referenced are detailed in the disclosures at the end of this release.
Wilhelmina International, Inc. (OTCBB:WHLM) ("Wilhelmina" or the "Company"), today reported record total revenues of $18.2 million for the quarter ended March 31, 2014, up 29% from the year ago quarter ended March 31, 2013. Revenues were driven by core gross billings growth of 31% year over year to $18.1 million. The revenue growth, along with solid expense management, drove Pre-Corporate EBITDA up 87% from last year, to $1.3 million. EBITDA increased 174% year over year.
Mark Schwarz, Executive Chairman of Wilhelmina, said, "Wilhelmina had a strong quarter. Recognizing that there is inherent volatility in the business, and that a revenue growth rate of 29% cannot reasonably be extrapolated into the future, we are very pleased with this quarter's solid results. In addition to solid and improving financial performance, Wilhelmina is making progress on many important strategic initiatives."
Alex Vaickus, Chief Executive Officer of Wilhelmina, said, "Our teams of agents and models in New York, Miami, and Los Angeles had a great performance in the quarter, as Wilhelmina continues to build momentum in the core modeling business. All of the major boards had solid increases in bookings, leading to strong financial performance, even while we invest in additional agents and certain growth initiatives. Additionally, we are pleased to announce that a new Wilhelmina licensed modeling agency will be opening in Japan this summer. We also continue to work on additional domestic and international expansion opportunities, both organic and inorganic, in the core modeling business. Another priority is to continue to build the Wilhelmina brand, and with that in mind, we launched the XO Wilhelmina lifestyle and fashion blog during the quarter. We are also excited about the opportunity to create Wilhelmina branded consumer products through licensing arrangements and are working towards launching our first products later this year."
Some recent highlights from our models:
Alexandra Martynova is the Spring/Summer 2014 face for Tom Ford's Beauty campaign
Clark Bockelman is the face for Calvin Klein Collection Spring/Summer 2014
Robyn Lawley appeared on the secondary (peel-away) cover for Cosmopolitan's May 2014 issue
Danielle Knudson is the new face of GUESS for Spring 2014
Armando Cabral is featured in the H & M campaign
Soo Joo was featured on the cover of Vs. Magazine's Spring/Summer 2014 issue
RJ King and Marlon Teixeira are in Tommy Hilfiger's Spring/Summer 2014 Campaign
Financial Results
The net income applicable to common stockholders was $0.3 million or $0.00 per fully diluted share for the quarter ended March 31, 2014, compared to a net (loss) of ($0.06 million) or ($0.00) per fully diluted share for the quarter ended March 31, 2013.
Pre-Corporate EBITDA was $1.3 million for the quarter ended March 31, 2014, compared to $0.7 million for the quarter ended March 31, 2013.
The following table reconciles operating income (loss) under GAAP (as reported in the Company's SEC filings) to EBITDA and Pre-Corporate EBITDA for the quarter ended March 31, 2014 and 2013.
(in thousands) Three months ended
March 31,
2014 2013
Operating Income (loss) $740 $ (25)
Add: Amortization of intangible assets and depreciation 260 390
EBITDA 1,000 365
Add: Corporate overhead (at the holding company level) 279 320
Pre-Corporate EBITDA $1,279 $685
Increases in net income and Pre-Corporate EBITDA for the quarter ended March 31, 2014 when compared to the quarter ended March 31, 2013 were the result of the following:
31% increase in revenues in the core modeling business driven by an expanded developed talent pool and our customers increased interest in booking the Company's talent.
Operating margins increased due to the Company's continued focus on containing costs while increasing revenues. The amount of salaries and service costs as a percentage of revenue for the quarter ended March 31, 2014 declined to 17.0% compared to 19.8% for the quarter ended March 31, 2013.
WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
ASSETS March 31, December 31,
2014 2013
Current assets:
Cash and cash equivalents $1,005 $2,776
Accounts receivable, net of allowance for doubtful accounts of $571 13,047 11,327
Deferred tax asset 1,414 1,659
Prepaid expenses and other current assets 427 257
Total current assets 15,893 16,019
Property and equipment, net of accumulated depreciation of $552 and $493 819 831
Trademarks and trade names with indefinite lives 8,467 8,467
Other intangibles with finite lives, net of amortization of $8,089 and $7,888 248 449
Goodwill 12,563 12,563
Restricted cash 222 222
Other assets 167 340
Total assets $38,379 $38,891
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $3,048 $2,969
Due to models 8,488 8,669
Total current liabilities 11,536 11,638
Long term liabilities
Amegy credit facility -- 800
Deferred income tax liability 1,287 1,287
Total long-term liabilities 1,287 2,087
Total liabilities 12,823 13,725
Shareholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; none outstanding
Common stock, $0.01 par value, 250,000,000 shares authorized; 117,406,651 shares issued and outstanding at March 31, 2014 and December 31, 2013 1,294 1,294
Treasury stock 12,034,101, at cost (1,637) (1,637)
Additional paid-in capital 85,418 85,360
Accumulated deficit (59,519) (59,851)
Total shareholders' equity 25,556 25,166
Total liabilities and shareholders' equity $38,379 $38,891
WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended
March 31,
2014 2013
Revenues
Revenues $18,136 $13,915
License fees and other income 100 201
Total revenues 18,236 14,116
Model costs 12,757 9,816
Revenues net of model costs 5,479 4,300
Operating expenses
Salaries and service costs 3,105 2,797
Office and general expenses 1,095 818
Amortization and depreciation 260 390
Corporate overhead 279 320
Total operating expenses 4,739 4,325
Operating income (loss) 740 (25)
Other income (expense):
Equity Earnings in Wilhelmina Kids & Creative Mgmt, LLC (20) 17
Interest income 2 2
Interest expense (8) (12)
Total other income (expense) (26) 7
Income (loss) before provision for income taxes 714 (18)
Provision for income taxes: (expense) benefit
Current (137) (38)
Deferred (245) --
(382) (38)
Net income (loss) applicable to common stockholders $332 $ (56)
Basic income (loss) per common share $0.00 $(0.00)
Diluted income (loss) per common share $0.00 $(0.00)
Weighted average common shares outstanding-basic 117,406 119,670
Weighted average common shares outstanding-diluted 118,337 120,500
Non GAAP financial measures
The Company calculates Earnings before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") as operating income before depreciation, and amortization expense. The Company calculates Pre-Corporate EBITDA as EBITDA before corporate overhead at the holding company level. The Company calculates Total Gross Billings as the sum total of all amounts invoiced to customers during the period, with no effect giving to amounts which are deferred into future periods, per the terms of a contract. The Company calculates Core Gross Billings as the sum total of all amounts invoiced to customers in the core modeling business during the period, with no effect giving to amounts which are deferred into future periods, per the terms of a contract.
Although EBITDA, Pre-Corporate EBITDA, Total Gross Billings and Core Gross Billings represent non-GAAP financial measures, the Company considers these non-GAAP measures important 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
can be useful to investors since they provide an analysis of financial and operating results using the same measures that the Company uses in evaluating itself.
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.
However, the Company's calculation of these non-GAAP measures may not be consistent with calculations of these measures by other companies in the Company's industry.
Non-GAAP financial measure are defined as numerical measures 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 provides a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures are not measurements of financial performance under GAAP and should not be considered as alternatives to 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 GAAP.
Table to reconcile revenues as reported to Core Gross Billings and Total Gross Billings
(in thousands) Three months ended
March 31,
2014 2013
Revenues $18,136 $13,915
less: Net revenues from the WAM business (73) (100)
Core Gross Billings 18,063 13,815
Add: Gross revenues from WAM business 489 1,075
Total Gross Billings $18,552 $14,890
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 three months ended March 31, 2014, which is expected to be filed May 15, 2014, with the Securities and Exchange Commission.
10 bagger
14 years ago
Wilhelmina International, Inc. Reports Third Quarter 2010 Financial Results
Dow Jones & Company, Inc. - Nov 16 at 04:33
Company Symbols: NASDAQ-OTCBB:WHLM
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 % of
Revenues Revenues
net of % of net of % of
model Operating model Operating
costs Expenses costs 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
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(MORE TO FOLLOW) Dow Jones Newswires
11-16-10 0433ET
Added on 11/16 at 04:33 PRESS RELEASE: Wilhelmina International, Inc. -2-
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.
/CONTACT: John Murray, Chief Financial Officer, of Wilhelmina International, Inc., +1-214-661-7480, john.murray@wilhelmina.com
/Web site: http://www.wilhelmina.com
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