iMedia Brands, Inc. (the “Company”) (NASDAQ: IMBI) today announced
results for the fourth quarter and full year ended January 30,
2021.
Fourth Quarter and Full Year 2020
Summary & Recent Highlights
- Q4 net sales were $124.8 million,
an increase of 1% compared to same prior-year period, which was the
first time since 20151 that the Company achieved Q4 revenue
growth.
- Full year 2020 cash flow from
operations improved to $6.2 million compared to $(6.2) million cash
used for operations for the same prior-year period. Full year 2020
free cash flow improved to $1.3 million compared to $(13.3) million
for the same prior-year period.
- Q4 gross margin was 35.6%, a
560-basis point improvement over the same prior-year period. Full
year 2020 gross margin was 36.8%, a 420-basis point improvement
over the same prior-year period.
- Q4 gross profit was $44.4 million,
a 20% increase compared to the same prior-year period.
- Q4 new customers grew by 12%
compared to the same prior-year period, reversing a six-year
negative growth rate trend.
- Q4 net loss improved to $2.7
million or $(0.21) per share, compared to the same prior-year
period net loss of $18.4 million or $(2.30) per share. Full year
2020 net loss improved to $13.2 million or $(1.23) per share,
compared to a net loss of $56.3 million or $(7.54) per share for
the same prior-year period.
- Q4 adjusted EBITDA was $8.4
million, which is a $17.5 million improvement from the same
prior-year period. Full year 2020 adjusted EBITDA was $23.9
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.
- On February 22, 2021, the Company
successfully closed on its common stock equity raise of $21.2
million, net of discounts, commissions and other offering
costs.
- On March 1, 2021, the Company
entered into a licensing partnership with ReStore Capital, a Hilco
Global company, where iMedia will operate and grow the Christopher
& Banks business throughout all sales channels, including
digital, television, catalog, and brick and mortar retail.
CEO Commentary
“Q4 was another strong quarter for us,” said Tim
Peterman, CEO of iMedia Brands, “which we believe creates an even
stronger foundation for profitable revenue growth in 2021.”
Fourth Quarter 2020 Results
SUMMARY
RESULTS AND KEY OPERATING METRICS |
|
($ Millions,
except average selling price and EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 20201/30/2021 |
|
Q4 20192/1/2020 |
|
Change |
|
YTD 20201/30/2021 |
|
YTD 20192/1/2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
124.8 |
|
|
$ |
123.6 |
|
|
1% |
|
|
$ |
454.2 |
|
|
$ |
501.8 |
|
|
(9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % |
|
|
35.6% |
|
|
|
30.0% |
|
|
560
bps |
|
|
|
36.8% |
|
|
|
32.6% |
|
|
420
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
8.4 |
|
|
$ |
(9.1) |
|
|
N/A |
|
|
$ |
23.9 |
|
|
$ |
(18.4) |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2.7) |
|
|
$ |
(18.4) |
|
|
85% |
|
|
$ |
(13.2) |
|
|
$ |
(56.3) |
|
|
76% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
|
$ |
(0.21) |
|
|
$ |
(2.30) |
|
|
91% |
|
|
$ |
(1.23) |
|
|
$ |
(7.54) |
|
|
84% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Shipped Units (000s) |
|
|
1,722 |
|
|
|
1,645 |
|
|
5% |
|
|
|
6,497 |
|
|
|
6,872 |
|
|
(5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Price (ASP) |
|
$64 |
|
|
$67 |
|
|
(4%) |
|
|
$61 |
|
|
$65 |
|
|
(6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return Rate % |
|
|
15.5% |
|
|
|
18.4% |
|
|
(290
bps) |
|
|
|
14.8% |
|
|
|
19.4% |
|
|
(460
bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ Digital Net Sales % |
|
|
51.1% |
|
|
|
53.8% |
|
|
(270
bps) |
|
|
|
50.8% |
|
|
|
52.7% |
|
|
(190
bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Customers - 12 Month Rolling (000s) |
|
1,020 |
|
|
|
1,041 |
|
|
(2%) |
|
|
|
N/A |
|
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of ShopHQ Net Merchandise Sales by Category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jewelry
& Watches |
|
|
44% |
|
|
|
41% |
|
|
|
|
|
41% |
|
|
|
44% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home &
Consumer Electronics |
|
|
21% |
|
|
|
32% |
|
|
|
|
|
16% |
|
|
|
23% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beauty &
Health |
|
|
24% |
|
|
|
15% |
|
|
|
|
|
32% |
|
|
|
18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fashion
& Accessories |
|
|
11% |
|
|
|
12% |
|
|
|
|
|
11% |
|
|
|
15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
100% |
|
|
|
100% |
|
|
|
|
|
100% |
|
|
|
100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Resources
As of January 30, 2021, total unrestricted cash
was $15.5 million, an increase of $5.2 million from prior-year
end. Net debt at the end of Q4 was $37.9 million, a $20.8
million reduction from prior-year end. The Company also had an
additional $12.5 million of unused availability on its revolving
credit facility.
Outlook
For Q1 2021, the Company anticipates reporting
revenue growth between 3% and 5% and adjusted EBITDA of at least $6
million. For the full year 2021, the Company anticipates adjusted
EBITDA between $28 million and $32 million.
_____________________________1 The Company
reported Q4 revenue growth in 2017, but it was on a 53-week fiscal
year.
Conference Call
The Company will hold a conference call today at
8:30 a.m. Eastern time to discuss its fourth quarter and full year
2020 results.
Date: Tuesday, March 23, 2021Toll-free dial-in
number: (877) 407-9039International dial-in number: (201)
689-8470Conference ID: 13717498
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 Investors 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
April 6, 2021.
Toll-free replay number: (844)
512-2921International replay number: (412) 317-6671Replay ID:
13717498
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 jwhulmeco.com, Christopher &
Banks christopherandbanks.com, OurGalleria.com and TheCloseOut.com.
Please visit www.imediabrands.com for more investor
information.
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
30, |
|
February
1, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
Current assets: |
|
|
|
|
|
|
Cash |
|
|
$ |
15,485 |
|
|
$ |
10,287 |
|
|
Accounts receivable, net |
|
|
|
61,951 |
|
|
|
63,594 |
|
|
Inventories |
|
|
|
68,715 |
|
|
|
78,863 |
|
|
Current portion of television distribution rights, net |
|
19,725 |
|
|
|
- |
|
|
Prepaid expenses and other |
|
|
|
7,853 |
|
|
|
8,196 |
|
|
|
Total current assets |
|
|
|
173,729 |
|
|
|
160,940 |
|
Property and equipment, net |
|
|
|
41,988 |
|
|
|
47,616 |
|
Television distribution rights, net |
|
|
|
7,028 |
|
|
|
- |
|
Other assets |
|
|
|
3,892 |
|
|
|
4,187 |
|
|
|
Total Assets |
|
|
|
$ |
226,637 |
|
|
$ |
212,743 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
$ |
77,995 |
|
|
$ |
83,659 |
|
|
Accrued liabilities |
|
|
|
29,509 |
|
|
|
40,250 |
|
|
Current portion of television distribution rights obligation |
|
29,173 |
|
|
|
- |
|
|
Current portion of long term credit facility |
|
|
2,714 |
|
|
|
2,714 |
|
|
Current portion of operating lease liabilities |
|
|
462 |
|
|
|
704 |
|
|
Deferred revenue |
|
|
|
213 |
|
|
|
141 |
|
|
|
Total current liabilities |
|
|
|
140,066 |
|
|
|
127,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long term liabilities |
|
|
|
8,855 |
|
|
|
335 |
|
Long term credit facilities |
|
|
|
50,666 |
|
|
|
66,246 |
|
|
|
Total liabilities |
|
|
|
199,587 |
|
|
|
194,049 |
|
|
|
|
|
|
|
|
|
|
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 and 14,600,000 shares
authorized |
|
|
|
|
as of January 30, 2021 and February 1, 2020; 13,019,061 and
8,208,227 |
|
|
|
|
shares
issued and outstanding as of January 30, 2021 and February 1,
2020 |
|
|
|
|
130 |
|
|
|
82 |
|
|
Additional paid-in capital |
|
|
|
474,375 |
|
|
|
452,833 |
|
|
Accumulated deficit |
|
|
|
(447,455 |
) |
|
|
(434,221 |
) |
|
|
Total shareholders' equity |
|
|
|
27,050 |
|
|
|
18,694 |
|
|
|
Total Liabilities and Shareholders'
Equity |
|
|
$ |
226,637 |
|
|
$ |
212,743 |
|
|
|
|
|
|
|
|
|
|
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 Twelve-Month Periods Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
30, |
|
February
1, |
|
January
30, |
|
February
1, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net sales |
$ |
124,797 |
|
|
$ |
123,639 |
|
|
$ |
454,171 |
|
|
$ |
501,822 |
|
Cost of sales |
|
80,407 |
|
|
|
86,607 |
|
|
|
287,118 |
|
|
|
338,185 |
|
|
|
|
Gross
profit |
|
44,390 |
|
|
|
37,032 |
|
|
|
167,053 |
|
|
|
163,637 |
|
|
|
|
Margin
% |
|
35.6 |
% |
|
|
30.0 |
% |
|
|
36.8 |
% |
|
|
32.6 |
% |
Operating expense: |
|
|
|
|
|
|
|
|
Distribution and selling |
|
32,820 |
|
|
|
41,870 |
|
|
|
129,920 |
|
|
|
170,587 |
|
|
General and administrative |
|
5,178 |
|
|
|
7,795 |
|
|
|
20,336 |
|
|
|
25,611 |
|
|
Depreciation and amortization |
|
7,322 |
|
|
|
1,823 |
|
|
|
24,022 |
|
|
|
8,057 |
|
|
Restructuring costs |
|
451 |
|
|
|
2,485 |
|
|
|
715 |
|
|
|
9,166 |
|
|
Executive and management transition costs |
|
- |
|
|
|
313 |
|
|
|
- |
|
|
|
2,741 |
|
|
|
Total operating expense |
|
45,771 |
|
|
|
54,286 |
|
|
|
174,993 |
|
|
|
216,162 |
|
Operating loss |
|
(1,381 |
) |
|
|
(17,254 |
) |
|
|
(7,940 |
) |
|
|
(52,525 |
) |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
17 |
|
|
Interest expense |
|
(1,317 |
) |
|
|
(1,169 |
) |
|
|
(5,237 |
) |
|
|
(3,777 |
) |
|
|
Total other expense |
|
(1,316 |
) |
|
|
(1,167 |
) |
|
|
(5,234 |
) |
|
|
(3,760 |
) |
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(2,697 |
) |
|
|
(18,421 |
) |
|
|
(13,174 |
) |
|
|
(56,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision) benefit |
|
(15 |
) |
|
|
33 |
|
|
|
(60 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,712 |
) |
|
$ |
(18,388 |
) |
|
$ |
(13,234 |
) |
|
$ |
(56,296 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
$ |
(0.21 |
) |
|
$ |
(2.30 |
) |
|
$ |
(1.23 |
) |
|
$ |
(7.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
|
|
|
|
|
|
|
|
---assuming dilution |
$ |
(0.21 |
) |
|
$ |
(2.30 |
) |
|
$ |
(1.23 |
) |
|
$ |
(7.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
|
|
|
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
12,982,514 |
|
|
|
7,990,381 |
|
|
|
10,745,916 |
|
|
|
7,462,380 |
|
|
|
|
Diluted |
|
12,982,514 |
|
|
|
7,990,381 |
|
|
|
10,745,916 |
|
|
|
7,462,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iMEDIA
BRANDS, INC. |
|
AND
SUBSIDIARIES |
|
PERFORMANCE
MEASURES BY SEGMENT |
|
($ in
Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three-Month Period Ended |
|
For the
Three-Month Period Ended |
|
|
|
|
January 30, 2021 |
|
February 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
118.4 |
|
|
$ |
6.4 |
|
|
$ |
124.8 |
|
|
$ |
120.5 |
|
|
$ |
3.1 |
|
|
$ |
123.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
41.7 |
|
|
$ |
2.7 |
|
|
|
44.4 |
|
|
|
36.5 |
|
|
$ |
0.5 |
|
|
|
37.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(1.1 |
) |
|
$ |
(0.3 |
) |
|
|
(1.4 |
) |
|
|
(14.6 |
) |
|
|
(2.6 |
) |
|
|
(17.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
8.5 |
|
|
|
(0.1 |
) |
|
|
8.4 |
|
|
|
(7.0 |
) |
|
|
(2.2 |
) |
|
|
(9.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Twelve-Month Period Ended |
|
For the
Twelve-Month Period Ended |
|
|
|
|
January 30, 2021 |
|
February 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
437.2 |
|
|
$ |
17.0 |
|
|
$ |
454.2 |
|
|
$ |
496.1 |
|
|
$ |
5.7 |
|
|
$ |
501.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
160.2 |
|
|
$ |
6.9 |
|
|
|
167.1 |
|
|
|
162.8 |
|
|
$ |
0.8 |
|
|
|
163.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(3.6 |
) |
|
$ |
(4.3 |
) |
|
|
(7.9 |
) |
|
|
(47.0 |
) |
|
|
(5.6 |
) |
|
|
(52.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
27.5 |
|
|
|
(3.6 |
) |
|
|
23.9 |
|
|
|
(14.9 |
) |
|
|
(3.5 |
) |
|
|
(18.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iMEDIA
BRANDS, INC. |
AND
SUBSIDIARIES |
Reconciliation of Net Loss to Adjusted
EBITDA: |
(Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three-Month Period Ended |
|
For the
Three-Month Period Ended |
|
|
January 30, 2021 |
|
February 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
|
|
$ |
(2,712 |
) |
|
|
|
|
|
$ |
(18,388 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
8,281 |
|
|
|
|
|
|
|
2,822 |
|
Interest income |
|
|
|
|
|
|
(1 |
) |
|
|
|
|
|
|
(2 |
) |
Interest expense |
|
|
|
|
|
|
1,317 |
|
|
|
|
|
|
|
1,169 |
|
Income taxes |
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
(33 |
) |
EBITDA (as
defined) |
|
$ |
6,970 |
|
$ |
(70 |
) |
|
$ |
6,900 |
|
|
$ |
(11,932 |
) |
|
$ |
(2,500 |
) |
|
$ |
(14,432 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
|
$ |
6,970 |
|
$ |
(70 |
) |
|
$ |
6,900 |
|
|
$ |
(11,932 |
) |
|
$ |
(2,500 |
) |
|
$ |
(14,432 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, settlement and
integration costs, net (a) |
|
314 |
|
|
- |
|
|
|
314 |
|
|
|
1,282 |
|
|
|
216 |
|
|
|
1,498 |
|
Restructuring costs |
|
|
451 |
|
|
- |
|
|
|
451 |
|
|
|
2,389 |
|
|
|
96 |
|
|
|
2,485 |
|
Executive and management transition
costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
313 |
|
|
|
- |
|
|
|
313 |
|
Rebranding costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
473 |
|
|
|
- |
|
|
|
473 |
|
Non-cash share-based compensation
expense |
|
|
733 |
|
|
- |
|
|
|
733 |
|
|
|
521 |
|
|
|
- |
|
|
|
521 |
|
Adjusted EBITDA |
|
$ |
8,468 |
|
$ |
(70 |
) |
|
$ |
8,398 |
|
|
$ |
(6,954 |
) |
|
$ |
(2,188 |
) |
|
$ |
(9,142 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Twelve-Month Period Ended |
|
For the
Twelve-Month Period Ended |
|
|
January 30, 2021 |
|
February 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
|
|
$ |
(13,234 |
) |
|
|
|
|
|
$ |
(56,296 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
27,978 |
|
|
|
|
|
|
|
12,014 |
|
Interest income |
|
|
|
|
|
|
(3 |
) |
|
|
|
|
|
|
(17 |
) |
Interest expense |
|
|
|
|
|
|
5,237 |
|
|
|
|
|
|
|
3,777 |
|
Income taxes |
|
|
|
|
|
|
60 |
|
|
|
|
|
|
|
11 |
|
EBITDA (as
defined) |
|
$ |
23,649 |
|
$ |
(3,611 |
) |
|
$ |
20,038 |
|
|
$ |
(35,561 |
) |
|
$ |
(4,950 |
) |
|
$ |
(40,511 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
|
$ |
23,649 |
|
$ |
(3,611 |
) |
|
$ |
20,038 |
|
|
$ |
(35,561 |
) |
|
$ |
(4,950 |
) |
|
$ |
(40,511 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, settlement and
integration costs, net (a) |
|
1,200 |
|
|
- |
|
|
|
1,200 |
|
|
|
266 |
|
|
|
428 |
|
|
|
694 |
|
Restructuring costs |
|
|
715 |
|
|
- |
|
|
|
715 |
|
|
|
8,228 |
|
|
|
938 |
|
|
|
9,166 |
|
Executive and management transition
costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
2,741 |
|
|
|
- |
|
|
|
2,741 |
|
Rebranding costs |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
1,265 |
|
|
|
- |
|
|
|
1,265 |
|
Inventory Impairment write-down |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
6,050 |
|
|
|
- |
|
|
|
6,050 |
|
Non-cash share-based compensation
expense |
|
|
1,960 |
|
|
- |
|
|
|
1,960 |
|
|
|
2,152 |
|
|
|
52 |
|
|
|
2,204 |
|
Adjusted EBITDA |
|
$ |
27,524 |
|
$ |
(3,611 |
) |
|
$ |
23,913 |
|
|
$ |
(14,859 |
) |
|
$ |
(3,532 |
) |
|
$ |
(18,391 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 affect 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.
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 Operating Cash Flow to Free Cash
Flow: |
(Unaudited) |
(in millions) |
|
|
|
|
|
|
For the
Twelve-Month |
|
For the
Twelve-Month |
|
|
|
Period
Ended |
|
Period
Ended |
|
|
|
January 30,2021 |
|
February 1,2020 |
|
|
|
|
|
|
Major GAAP Cash Flow Categories |
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used for) operating activities |
|
|
$ |
6.2 |
|
|
$ |
(6.2 |
) |
Net cash
used for investing activities |
|
|
$ |
(4.9 |
) |
|
$ |
(7.8 |
) |
Net cash
provided by financing activities |
|
|
$ |
3.9 |
|
|
$ |
3.3 |
|
|
|
|
|
|
|
Free
Cash Flow (non-GAAP measure) |
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used for) operating activities |
|
|
$ |
6.2 |
|
|
$ |
(6.2 |
) |
Cash paid
for property and equipment |
|
|
$ |
(4.9 |
) |
|
$ |
(7.1 |
) |
Free cash
flow |
|
|
$ |
1.3 |
|
|
$ |
(13.3 |
) |
|
|
|
|
|
|
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.
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 uses 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 disclaims 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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