iMedia Reports Preliminary Q4 2020 Results and 2021 Guidance
February 09 2021 - 8:30AM
iMedia Brands, Inc. (the “Company”) (NASDAQ: IMBI) is reporting
select preliminary unaudited financial results for the fourth
quarter ended January 30, 2021, along with recent key company
highlights and select guidance for 2021.
Preliminary Q4 2020 Results, Company
Highlights and 2021 Outlook
- Q4 net sales are expected to be at
least $124.6 million, an increase of at least $1.0 million compared
to the same prior-year period and the first time since 20151 that
the Company has achieved Q4 revenue growth.
- Full year 2020 cash flow from
operations is expected to be at least $6.0 million compared to
$(6.2) million cash used for operations for the same prior-year
period. Full year 2020 free cash flow is expected to be at least
$1.0 million compared to $(13.3) million for the same prior-year
period.
- Q4 gross margin is expected to be
approximately 35.5%, a 550-basis point improvement over the same
prior-year period. Full year 2020 gross margin is expected to be
approximately 36.8%, a 420-basis point improvement over the same
prior-year period.
- Q4 gross profit is expected to be
approximately $44.3 million, a 20% increase compared to the same
prior-year period.
- Q4 new customers grew by
approximately 12% compared to the same prior-year period, reversing
a six-year negative growth rate trend.
- Q4 net loss is expected to be
approximately $3.0 million or $(0.23) per basic share, compared to
the same prior-year period net loss of $18.4 million or $(2.30) per
basic share. Full year 2020 net loss is expected to be $13.5
million or $(1.26) per basic share, compared to a net loss of $56.3
million or $(7.54) per basic share for the same prior-year
period.
- Q4 adjusted EBITDA is expected to
be at least $8.2 million, which is a $17.3 million improvement from
the same prior-year period. Full year 2020 adjusted EBITDA is
expected to be at least $23.5 million, compared to an $18.4 million
adjusted EBITDA loss for the same prior-year period.
- On February 5, 2021, the company
contributed approximately $3.5 million in inventory to acquire a
controlling interest in an online marketplace called
TheCloseOut.com. The site offers consumers exclusive and name-brand
products at deep discounts. The Company is launching a “Closeout
Deals” television program to drive customer growth.
- Outlook - For Q1
2021, the Company anticipates reporting adjusted EBITDA of at least
$6 million. For the full year 2021, the Company anticipates
reporting adjusted EBITDA between $28 million and $32 million.
“Q4 was another strong quarter for us,” said Tim
Peterman, CEO of iMedia Brands, “which creates an even stronger
foundation for revenue and profit growth in 2021.”
The financial information in this release is
preliminary and subject to completion of iMedia’s year-end
financial reporting processes and audit. iMedia expects to report
its full fourth quarter and fiscal year 2020 financial results in
March 2021.
________________________1 The Company reported
Q4 revenue growth in 2017 on a 53-week fiscal year.
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.
iMEDIA BRANDS, INC. |
AND SUBSIDIARIES |
Reconciliation of Net Loss to Adjusted
EBITDA: |
(Unaudited) |
(in millions) |
|
|
|
|
|
|
|
|
|
For the Three-MonthPeriods Ended |
|
For the Twelve-MonthPeriods Ended |
|
|
Preliminary |
|
|
|
Preliminary |
|
|
|
|
January 30,2021 |
|
February 1,2020 |
|
January 30,2021 |
|
February 1,2020 |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3.0 |
) |
|
$ |
(18.4 |
) |
|
|
(13.5 |
) |
|
$ |
(56.3 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
8.3 |
|
|
|
2.8 |
|
|
|
28.0 |
|
|
|
12.0 |
|
Interest income |
|
|
(0.0 |
) |
|
|
(0.0 |
) |
|
|
(0.0 |
) |
|
|
(0.0 |
) |
Interest expense |
|
|
1.3 |
|
|
|
1.2 |
|
|
|
5.2 |
|
|
|
3.8 |
|
Income taxes |
|
|
0.0 |
|
|
|
(0.0 |
) |
|
|
0.1 |
|
|
|
0.0 |
|
EBITDA (as defined) |
|
$ |
6.7 |
|
|
$ |
(14.4 |
) |
|
$ |
19.7 |
|
|
$ |
(40.5 |
) |
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined) |
|
$ |
6.7 |
|
|
$ |
(14.4 |
) |
|
$ |
19.7 |
|
|
$ |
(40.5 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring costs |
|
|
0.5 |
|
|
|
2.5 |
|
|
|
0.7 |
|
|
|
9.2 |
|
Transaction, settlement and integration costs, net (a) |
|
|
0.3 |
|
|
|
1.5 |
|
|
|
1.2 |
|
|
|
0.7 |
|
Executive and management transition costs |
|
|
- |
|
|
|
0.3 |
|
|
|
- |
|
|
|
2.7 |
|
Rebranding costs |
|
|
- |
|
|
|
0.5 |
|
|
|
- |
|
|
|
1.3 |
|
Inventory impairment write-down |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6.1 |
|
Non-cash share-based compensation expense |
|
|
0.7 |
|
|
|
0.5 |
|
|
|
1.9 |
|
|
|
2.2 |
|
Adjusted EBITDA |
|
$ |
8.2 |
|
|
$ |
(9.1 |
) |
|
$ |
23.5 |
|
|
$ |
(18.4 |
) |
|
|
|
|
|
|
|
|
|
(a) Transaction, settlement and
integration costs for the three and twelve-month period ended
January 30, 2021 includes consulting fees incurred to explore
additional loan financings, settlement costs, professional fees
related to the TheCloseOut.com transaction, and incremental
COVID-19 related legal costs. Transaction, settlement and
integration costs for three-month period ended February 1, 2020
includes contract settlement costs, costs incurred to effect a
reverse stock split and business acquisition and
integration-related costs to acquire Float Left and J.W. Hulme.
Transaction, settlement and integration costs, net, for the
twelve-month period ended February 1, 2020 includes $2.2 million of
costs for contract settlement costs, business acquisition and
integration-related; costs incurred related to the implementation
of our ShopHQ VIP customer program and our third-party logistics
service offerings and costs incurred to effect a reverse stock
split, partially offset by a $1.5 million gain for the sale of our
claim related to the Payment Card Interchange Fee and Merchant
Discount Antitrust Litigation class action lawsuit.Free
Cash Flow
Free cash flow represents net cash provided by
operating activities less cash paid for property and equipment. It
should not be inferred that the entire free cash flow amount is
available for discretionary expenditures. Management utilizes the
free cash flow measure in order to assess the operating performance
of its television and online businesses. Free cash flow is a
non-GAAP measure and therefore should not be considered a
substitute for income or cash flow data prepared in accordance with
GAAP and may not be comparable to similarly titled measures
reported by other companies. The Company has included a
reconciliation of the comparable GAAP measure, net cash provided by
operating activities in this release.
iMEDIA BRANDS, INC. |
AND SUBSIDIARIES |
SUPPLEMENTAL FINANCIAL INFORMATION |
(Unaudited) |
(in millions) |
|
|
|
|
|
|
For the Twelve-Month Periods Ended |
|
|
Preliminary |
|
|
|
|
January 30,2021 |
|
February 1,2020 |
|
|
|
|
|
Major GAAP Cash Flow Categories |
|
|
|
|
|
|
|
|
|
Net cash provided by (used for) operating activities |
|
$ |
6.0 |
|
|
$ |
(6.2 |
) |
Net cash used in investing activities |
|
|
(5.0 |
) |
|
|
(7.8 |
) |
Net cash provided by financing activities |
|
$ |
3.8 |
|
|
$ |
3.3 |
|
|
|
|
|
|
Free Cash Flow (non-GAAP measure) |
|
|
|
|
|
|
|
|
|
Net cash provided by (used for) operating activities |
|
$ |
6.0 |
|
|
$ |
(6.2 |
) |
Cash paid for property and equipment |
|
|
(5.0 |
) |
|
|
(7.1 |
) |
Free cash flow |
|
$ |
1.0 |
|
|
$ |
(13.3 |
) |
|
|
|
|
|
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading
interactive media company that owns a growing portfolio of
lifestyle television networks, consumer brands and media commerce
services. Its brand portfolio spans multiple business models and
product categories. Its television brands are ShopHQ,
ShopBulldogTV, ShopHQHealth and LaVenta. Its media commerce
services brands are Float Left Interactive and i3PL Services. Its
consumer brands include J.W. Hulme, OurGalleria.com and
TheCloseOut.com. Please visit www.imediabrands.com for more
investor information.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995This release
contains statements, estimates, projections, guidance or outlooks
that constitute “forward-looking” statements as defined under U.S.
federal securities laws. Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “plan,” “project,” “should” and
similar expressions identify forward-looking statements, which
generally are not historical in nature. These statements may
contain information about our prospects, including anticipated
show, event, or product line launches, and involve risks and
uncertainties. We caution that actual results could differ
materially from those that management expects, depending on the
outcome of certain factors.
Contacts:
Investors:Gateway Investor RelationsCody
SlachIMBI@gatewayir.com(949) 574-3860
Media:press@imediabrands.com(800) 938-9707
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