iMedia Brands, Inc. (the “Company” or “IMBI”) (NASDAQ: IMBI) today
announced results for the second quarter ended July 31, 2021.
“Q2 represented a significant achievement for
us,” said Tim Peterman, CEO of IMBI. “Despite short-term logistic
challenges that caused inventory receipt delays, we continued to
optimize our existing television networks and consumer brands while
strengthening our balance sheet and completing the acquisition of a
leading video advertising platform that we believe, when combined
with our first party customer data and our OTT App platform, Float
Left, will become online publishers’ most trusted video advertising
platform. Strategically, our goal remains the same - to scale our
television networks and consumer brands while improving our digital
services offerings because we believe those successes will continue
to accelerate our timeline to becoming the leading single-source
partner to brands and advertisers seeking to entertain and transact
with customers using interactive video.”
Second Quarter and Year-to-Date 2021
Summary & Recent Highlights
- Q2 12-month rolling active
customers grew by 9% compared to same prior-year period, driven by
40% growth in new customers. July 2021 marked the 10th consecutive
month of year-over-year new customer growth and the best overall
customer file growth rate since April 2010.
- Q2 net sales were $113.4 million, a
decrease of 9% compared to the same prior-year period, driven by
the Company experiencing material delays in seasonal inventory
receipts of its best-selling direct-import products resulting from
the industry-wide container shortages and congestion delays at U.S.
ports.
- Year-to-date net sales were $226.6
million, which was 3% growth compared to the same prior year period
and represent the strongest year-over-year net sales growth in the
Company’s first two fiscal quarters in seven years. This success
was driven primarily by the 66 new merchandise brand launches
occurring year-to-date, which was a 65% increase in new brand
launches compared to the same prior year period.
- On June 28th, 2021, ShopHQ launched
in 20+ million high-definition homes in top U.S. markets, including
New York City, Los Angeles, San Francisco, Philadelphia, Dallas,
Washington DC, Houston, and Boston through an affiliation agreement
with RNN.
- Q2 gross margin was 42.3%, a
510-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.
- Q2 net loss attributable to
shareholders was ($4.2) million, a $5.3 million decrease from the
same prior-year period. Year-to-date net loss attributable to
shareholders was ($7.5) million, a $1.7 million decrease from the
same prior-year period.
- Q2 adjusted EBITDA was $8.3
million, a $2.4 million decrease from the same prior-year period.
Year-to-date adjusted EBITDA was $16.4 million, a $7.3 million
increase or 80% improvement, over the same prior-year period and
the highest Q2 year-to-date adjusted EBITDA in the Company’s
history.
- Strategic Acquisition of Leading
Video Advertising Platform: On July 30, 2021, the Company closed on
the acquisition of Synacor’s Portal and Advertising business
segment. The Company has relaunched this business as iMedia Digital
Services (“iMDS”) and will offer iMedia’s existing OTT App
platform, Float Left (www.floatleft.tv), as one of its products.
iMedia expects this transaction to be accretive and expects iMDS to
generate at least $45 million in profitable revenue over the next
twelve months.
- Strengthening Its Balance Sheet: On
June 14, 2021, the Company closed on a common stock equity raise,
generating proceeds of $40.3 million, net of discounts,
commissions, and other offering costs. On July 30, 2021, the
Company closed on a new, expanded $108.5 million debt financing
facility to replace its previous facility.
Second Quarter and Year-to-Date 2021
Results
SUMMARY
RESULTS AND KEY OPERATING METRICS |
|
($ Millions,
except average selling price and EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q27/31/2021 |
|
Q28/1/2020 |
|
Q2Change |
|
YTD 20217/31/2021 |
|
YTD 20208/1/2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
113.4 |
|
|
$ |
124.5 |
|
|
(9 |
%) |
|
$ |
226.6 |
|
|
$ |
220.3 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % |
|
|
42.3 |
% |
|
|
37.2 |
% |
|
510
bps |
|
|
|
41.5 |
% |
|
|
37.1 |
% |
|
430
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
$ |
(0.1 |
) |
|
$ |
- |
|
|
N/A |
|
|
$ |
(0.3 |
) |
|
$ |
- |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to shareholders |
|
$ |
(4.2 |
) |
|
$ |
1.1 |
|
|
(486 |
%) |
|
$ |
(7.5 |
) |
|
$ |
(5.8 |
) |
|
(30 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
|
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
(310 |
%) |
|
$ |
(0.43 |
) |
|
$ |
(0.65 |
) |
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
8.3 |
|
|
$ |
10.7 |
|
|
(23 |
%) |
|
$ |
16.4 |
|
|
$ |
9.1 |
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Shipped Units (000s) |
|
|
1,521 |
|
|
|
1,763 |
|
|
(14 |
%) |
|
|
3,034 |
|
|
|
3,111 |
|
|
(2 |
%) |
|
Average Selling Price (ASP) |
|
$ |
67 |
|
|
$ |
64 |
|
|
5 |
% |
|
$ |
66 |
|
|
$ |
63 |
|
|
5 |
% |
|
Return Rate % |
|
|
15.5 |
% |
|
|
11.9 |
% |
|
360
bps |
|
|
|
16.1 |
% |
|
|
14.6 |
% |
|
150
bps |
|
|
ShopHQ Digital Net Sales % |
|
|
47.2 |
% |
|
|
50.1 |
% |
|
(290
bps) |
|
|
|
49.4 |
% |
|
|
51.4 |
% |
|
(200
bps) |
|
|
Total Customers - 12 Month Rolling (000s) |
|
|
1,109 |
|
|
|
1,014 |
|
|
9 |
% |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of ShopHQ Net Merchandise Sales by Category |
|
|
|
|
|
|
|
|
|
|
|
|
Jewelry
& Watches |
|
|
49 |
% |
|
|
36 |
% |
|
|
|
|
48 |
% |
|
|
40 |
% |
|
|
|
|
Home &
Consumer Electronics |
|
|
17 |
% |
|
|
11 |
% |
|
|
|
|
16 |
% |
|
|
13 |
% |
|
|
|
|
Beauty &
Health |
|
|
20 |
% |
|
|
43 |
% |
|
|
|
|
21 |
% |
|
|
35 |
% |
|
|
|
|
Fashion
& Accessories |
|
|
14 |
% |
|
|
10 |
% |
|
|
|
|
15 |
% |
|
|
12 |
% |
|
|
|
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
100 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Resources
As of July 31, 2021, total unrestricted cash was
$20.9 million, an increase of $5.4 million from the prior
year-end. The Company also had an additional $13.5 million of
unused availability on its new revolving credit facility.
Increased Outlook
For Q3 2021, the Company anticipates reporting
at least $9 million of adjusted EBITDA and approximately $127
million in net sales, which is approximately 17% growth in net
sales compared to the same prior year period.
For the full year 2021, the Company anticipates
reporting full year adjusted EBITDA between $37 and $40 million,
which is an increase from its previous guidance range of between
$35 and $37 million. In addition, the Company anticipates reporting
full year net sales of approximately $502 million, which is a $12
million increase from management’s Q1 guidance.
Conference Call
The Company will hold a conference call today at
8:30 a.m. Eastern time to discuss its second quarter 2021
results.
Date: Tuesday, August 24, 2021Toll-free dial-in
number: (877) 407-9039International dial-in number: (201)
689-8470Conference ID: 13722262
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
September 7, 2021.
Toll-free replay number: (844)
512-2921International replay number: (412) 317-6671Replay ID:
13722262
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading interactive
media company that owns a growing portfolio of TV Networks,
Consumer Brands and Digital Services that together position the
Company as a leading single-source partner to television
advertisers and consumer brands seeking to entertain and transact
with customers using interactive video.
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
January 30, |
|
|
|
|
|
|
2021 |
|
2021 |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
Current assets: |
|
|
|
|
|
|
Cash |
|
|
$ |
20,918 |
|
|
$ |
15,485 |
|
|
Restricted Cash |
|
|
|
2,192 |
|
|
|
- |
|
|
Accounts receivable, net |
|
|
|
64,324 |
|
|
|
61,951 |
|
|
Inventories |
|
|
|
76,735 |
|
|
|
68,715 |
|
|
Current portion of television broadcast rights, net |
|
|
24,972 |
|
|
|
19,725 |
|
|
Prepaid expenses and other |
|
|
|
15,027 |
|
|
|
7,853 |
|
|
|
Total current assets |
|
|
|
204,168 |
|
|
|
173,729 |
|
Property and equipment, net |
|
|
|
44,593 |
|
|
|
41,988 |
|
Television broadcast rights, net |
|
|
|
46,234 |
|
|
|
7,028 |
|
Intangible assets, net |
|
|
|
36,915 |
|
|
|
2,359 |
|
Other assets |
|
|
|
12,936 |
|
|
|
1,533 |
|
|
|
|
Total Assets |
|
|
$ |
344,846 |
|
|
$ |
226,637 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
$ |
58,535 |
|
|
$ |
77,995 |
|
|
Accrued liabilities |
|
|
|
31,816 |
|
|
|
29,509 |
|
|
Current portion of television broadcast rights obligation |
|
29,441 |
|
|
|
29,173 |
|
|
Current portion of long term credit facility |
|
|
- |
|
|
|
2,714 |
|
|
Current portion of operating lease liabilities |
|
|
1,036 |
|
|
|
462 |
|
|
Deferred revenue |
|
|
|
679 |
|
|
|
213 |
|
|
|
Total current liabilities |
|
|
|
121,507 |
|
|
|
140,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long term liabilities |
|
|
|
64,157 |
|
|
|
8,855 |
|
Long term credit facilities |
|
|
|
73,919 |
|
|
|
50,666 |
|
|
|
Total liabilities |
|
|
|
259,583 |
|
|
|
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 |
|
|
|
|
|
July 31, 2021 and January 30, 2021; 21,254,414 and 13,019,061
shares |
|
|
|
|
issued and outstanding as of July 31, 2021 and January 30,
2021 |
|
212 |
|
|
|
130 |
|
|
Additional paid-in capital |
|
|
|
536,835 |
|
|
|
474,375 |
|
|
Accumulated deficit |
|
|
|
(454,932 |
) |
|
|
(447,455 |
) |
|
|
Total shareholders' equity |
|
|
|
82,115 |
|
|
|
27,050 |
|
|
|
Equity of the Non-Controlling Interest |
|
|
3,148 |
|
|
$ |
- |
|
|
|
Total Equity |
|
|
$ |
85,263 |
|
|
$ |
27,050 |
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
344,846 |
|
|
$ |
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 Six-Month Periods Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31, |
|
August 1, |
|
July 31, |
|
August 1, |
|
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net sales |
$ |
113,442 |
|
|
$ |
124,515 |
|
|
$ |
226,644 |
|
|
$ |
220,349 |
|
|
Cost of sales |
$ |
65,456 |
|
|
|
78,223 |
|
|
|
132,651 |
|
|
|
138,500 |
|
|
|
|
|
Gross profit |
$ |
47,986 |
|
|
$ |
46,292 |
|
|
|
93,993 |
|
|
|
81,849 |
|
|
|
|
|
Margin % |
|
42.3 |
% |
|
|
37.2 |
% |
|
|
41.5 |
% |
|
|
37.1 |
% |
|
Operating expense: |
|
|
|
|
|
|
|
|
|
Distribution and selling |
$ |
35,357 |
|
|
|
31,875 |
|
|
|
69,605 |
|
|
|
65,610 |
|
|
|
General and administrative |
$ |
7,387 |
|
|
|
5,104 |
|
|
|
13,822 |
|
|
|
10,471 |
|
|
|
Depreciation and amortization |
$ |
7,611 |
|
|
|
6,842 |
|
|
|
14,986 |
|
|
|
8,723 |
|
|
|
Restructuring costs |
$ |
- |
|
|
|
- |
|
|
|
- |
|
|
|
209 |
|
|
|
|
Total operating expense |
$ |
50,355 |
|
|
$ |
43,821 |
|
|
|
98,413 |
|
|
|
85,013 |
|
|
Operating income (loss) |
$ |
(2,369 |
) |
|
$ |
2,471 |
|
|
|
(4,420 |
) |
|
|
(3,164 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
39 |
|
|
|
- |
|
|
|
39 |
|
|
|
1 |
|
|
|
Debt Extinguishment |
$ |
(654 |
) |
|
|
- |
|
|
|
(654 |
) |
|
|
- |
|
|
|
Interest expense |
$ |
(1,381 |
) |
|
|
(1,402 |
) |
|
|
(2,694 |
) |
|
|
(2,581 |
) |
|
|
|
Total other expense |
$ |
(1,996 |
) |
|
$ |
(1,402 |
) |
|
|
(3,309 |
) |
|
|
(2,580 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before income taxes |
$ |
(4,365 |
) |
|
$ |
1,069 |
|
|
$ |
(7,729 |
) |
|
|
(5,744 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
$ |
(15 |
) |
|
|
(15 |
) |
|
|
(30 |
) |
|
|
(30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(4,380 |
) |
|
$ |
1,054 |
|
|
$ |
(7,759 |
) |
|
$ |
(5,774 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to non-controlling interest |
$ |
(131 |
) |
|
|
- |
|
|
|
(282 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to
shareholders |
$ |
(4,249 |
) |
|
$ |
1,054 |
|
|
$ |
(7,477 |
) |
|
$ |
(5,774 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
(0.43 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
---assuming dilution |
$ |
(0.22 |
) |
|
$ |
0.11 |
|
|
$ |
(0.43 |
) |
|
$ |
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
|
|
|
|
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
19,101,652 |
|
|
|
9,532,369 |
|
|
|
17,314,317 |
|
|
|
8,911,580 |
|
|
|
|
|
Diluted |
|
19,101,652 |
|
|
|
9,896,729 |
|
|
|
17,314,317 |
|
|
|
8,911,580 |
|
|
iMEDIA
BRANDS, INC. |
|
AND
SUBSIDIARIES |
|
PERFORMANCE
MEASURES BY SEGMENT |
|
($ in
Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Three-Month Period Ended |
|
|
|
|
July 31, 2021 |
|
August 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
94.8 |
|
|
$ |
18.6 |
|
$ |
113.4 |
|
|
$ |
120.7 |
|
$ |
3.8 |
|
|
$ |
124.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
39.3 |
|
|
$ |
8.7 |
|
$ |
48.0 |
|
|
$ |
44.7 |
|
$ |
1.6 |
|
|
$ |
46.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
$ |
(2.8 |
) |
|
$ |
0.4 |
|
$ |
(2.4 |
) |
|
$ |
3.7 |
|
$ |
(1.3 |
) |
|
$ |
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
6.4 |
|
|
$ |
1.9 |
|
$ |
8.3 |
|
|
$ |
11.8 |
|
$ |
(1.1 |
) |
|
$ |
10.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six-Month Period Ended |
|
For the
Six-Month Period Ended |
|
|
|
|
July 31, 2021 |
|
August 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
195.0 |
|
|
$ |
31.6 |
|
$ |
226.6 |
|
|
$ |
214.5 |
|
$ |
5.8 |
|
|
$ |
220.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
$ |
79.7 |
|
|
$ |
14.3 |
|
$ |
94.0 |
|
|
$ |
79.7 |
|
$ |
2.1 |
|
|
$ |
81.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
$ |
(4.6 |
) |
|
$ |
0.2 |
|
$ |
(4.4 |
) |
|
$ |
- |
|
$ |
(3.1 |
) |
|
$ |
(3.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
13.5 |
|
|
$ |
2.9 |
|
$ |
16.4 |
|
|
$ |
11.8 |
|
$ |
(2.7 |
) |
|
$ |
9.1 |
|
|
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 |
|
|
|
July 31, 2021 |
|
August 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to shareholders |
|
|
|
|
|
$ |
(4,249 |
) |
|
|
|
|
|
$ |
1,054 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
8,572 |
|
|
|
|
|
|
|
7,840 |
|
|
Interest income |
|
|
|
|
|
|
(39 |
) |
|
|
|
|
|
|
- |
|
|
Interest expense |
|
|
|
|
|
|
1,381 |
|
|
|
|
|
|
|
1,402 |
|
|
Income taxes |
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
15 |
|
|
EBITDA (as
defined) |
|
$ |
4,948 |
|
$ |
722 |
|
$ |
5,680 |
|
|
$ |
11,427 |
|
$ |
(1,116 |
) |
|
$ |
10,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
|
$ |
4,948 |
|
$ |
722 |
|
$ |
5,680 |
|
|
$ |
11,427 |
|
$ |
(1,116 |
) |
|
$ |
10,311 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction, settlement and
integration costs, net (a) |
|
40 |
|
|
1,180 |
|
|
1,220 |
|
|
|
315 |
|
|
- |
|
|
|
315 |
|
|
Non-cash share-based compensation
expense |
|
|
758 |
|
|
- |
|
|
758 |
|
|
|
109 |
|
|
- |
|
|
|
109 |
|
|
Loss on Debt Extinguishment |
|
|
654 |
|
|
- |
|
|
654 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
Adjusted EBITDA |
|
$ |
6,400 |
|
$ |
1,902 |
|
$ |
8,312 |
|
|
$ |
11,851 |
|
$ |
(1,116 |
) |
|
$ |
10,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six-Month Period Ended |
|
For the
Six-Month Period Ended |
|
|
|
July 31, 2021 |
|
August 1, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ShopHQ |
|
Emerging |
|
Consolidated |
ShopHQ |
|
Emerging |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to shareholders |
|
|
|
|
|
$ |
(7,477 |
) |
|
|
|
|
|
$ |
(5,774 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
16,888 |
|
|
|
|
|
|
|
10,745 |
|
|
Interest income |
|
|
|
|
|
|
(39 |
) |
|
|
|
|
|
|
(1 |
) |
|
Interest expense |
|
|
|
|
|
|
2,695 |
|
|
|
|
|
|
|
2,581 |
|
|
Income taxes |
|
|
|
|
|
|
30 |
|
|
|
|
|
|
|
30 |
|
|
EBITDA (as
defined) |
|
$ |
10,915 |
|
$ |
1,182 |
|
$ |
12,097 |
|
|
$ |
10,364 |
|
$ |
(2,783 |
) |
|
$ |
7,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
|
$ |
10,915 |
|
$ |
1,182 |
|
$ |
12,097 |
|
|
$ |
10,364 |
|
$ |
(2,783 |
) |
|
$ |
7,581 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs |
|
|
- |
|
|
- |
|
|
- |
|
|
|
209 |
|
|
- |
|
|
|
209 |
|
|
One-time customer concessions |
|
|
341 |
|
|
- |
|
|
341 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
Transaction, settlement and
integration costs, net |
|
164 |
|
|
1,756 |
|
|
1,920 |
|
|
|
574 |
|
|
- |
|
|
|
574 |
|
|
Non-cash share-based compensation
expense |
|
|
1,436 |
|
|
- |
|
|
1,436 |
|
|
|
723 |
|
|
- |
|
|
|
723 |
|
|
Loss on Debt Extinguishment |
|
|
654 |
|
|
- |
|
|
654 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
Adjusted EBITDA |
|
$ |
13,510 |
|
$ |
2,938 |
|
$ |
16,448 |
|
|
$ |
11,870 |
|
$ |
(2,783 |
) |
|
$ |
9,087 |
|
|
(a) Transaction, settlement and
integration costs for the three-month period ended July 31, 2021,
includes transaction and integration costs related primarily to the
Christopher & Banks transaction. Transaction, settlement and
integration costs for three-month period ended August 1, 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’s 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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