iMedia Brands, Inc. (the “Company” or “iMedia”) (NASDAQ: IMBI,
IMBIL) today announced results for the third quarter ended October
29, 2022.
CEO Commentary – Tim Peterman,
CEO“Tough economic conditions increasingly distract
consumers; therefore, our priority is to ensure we strengthen our
balance sheet and build our core businesses to serve our
customers.
Our 2022 debt & liquidity management plan is
ahead of schedule. On November 8 we executed a letter of
intent with a real estate investment firm to sell three of iMedia’s
four buildings for gross proceeds of $48 million in a
sale-leaseback transaction. We plan to use our net operating loss
carryforwards to offset the taxable gain. Our use of proceeds plan
is to retire existing debt, including the $28.5 million Green Lake
term loan, and increase working capital. We remain confident this
transaction will close in Q4.
For the seventh successive quarter, iMedia
posted year-over-year customer file growth in Q3, this time 15%.
This KPI proves that our strategy of increasing our Q3 promotional
activity in our core businesses was successful.
In light of the short-term challenges we faced
with the DISH carriage disruption on ShopHQ and the negative
impacts from the Ukraine and Russia conflict on 1-2-3.tv, our
Q3 net sales only declined 6% year-over-year. In short, our
unique media strategy of building television networks supported by
three distinct revenue streams, T-commerce, ecommerce, and
advertising, provides us with a competitive advantage in today’s
crowded media landscape.
As we announced yesterday, ShopHQ relaunched on
the DISH Network, ending the six-month carriage disruption
pressuring our financial performance. DISH customers can once again
engage with their favorite ShopHQ hosts and brands on the same
channel location as before.”
Third Quarter and Year-To-Date 2022
Financial Highlights:
- Q3 Net sales were $123 million, a
5.7% decrease over the same prior year period, primarily driven by
ShopHQ’s year-over-year net sales decline from the carriage
disruption with DISH. Year-to-date net sales were $411 million, a
15.0% increase over the same prior year period.
- Q3 Gross margin was 41.8%, roughly
flat to the same prior year period. Year-to-date gross margin was
39.2%, a 231 basis-point decline compared to the same prior year
period, primarily driven by 1-2-3.tv’s lower margin posted in the
first half of 2022.
- Q3 Net loss was $21.3 million,
compared to a $9.5 million Net loss for the same prior year period.
The $11.8 million increase in Net loss was primarily driven by the
Company’s capital allocation decision to terminate its Shaq
licensing agreement, resulting in a $10 million non-cash write-off
during the quarter.
- Adjusted EBITDA was $8.6 million, a
14% decrease over the same prior year-period. This decrease was
primarily driven by our year-over-year net sales decline from the
carriage disruption with DISH.
Consolidated Third Quarter and Year-to-
Date 2022 Results:
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For the Three-Month Periods Ended |
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For the Nine-Month Periods Ended |
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October 29, 2022 |
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October 30, 2021 |
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Change |
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October 29, 2022 |
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October 30, 2021 |
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Change |
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Net Sales |
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$ |
123.3 |
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$ |
130.7 |
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(6 |
%) |
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$ |
411.0 |
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$ |
357.3 |
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15 |
% |
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Gross Margin
% |
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41.8 |
% |
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41.6 |
% |
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13 bps |
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39.2 |
% |
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41.5 |
% |
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(231
bps |
) |
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Net loss
attributable to non-controlling interest |
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$ |
- |
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$ |
- |
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- |
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$ |
(0.4 |
) |
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$ |
(0.3 |
) |
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(47 |
%) |
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Net loss
attributable to shareholders |
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$ |
(21.3 |
) |
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$ |
(9.5 |
) |
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(124 |
%) |
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$ |
(45.9 |
) |
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$ |
(17.0 |
) |
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(170 |
%) |
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EPS |
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$ |
(0.72 |
) |
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$ |
(0.44 |
) |
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(64 |
%) |
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$ |
(1.77 |
) |
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$ |
(0.91 |
) |
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(95 |
%) |
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Adjusted
EBITDA |
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$ |
8.6 |
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$ |
10.1 |
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(14 |
%) |
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$ |
22.9 |
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$ |
26.5 |
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(14 |
%) |
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Segment Third Quarter and Year-to-Date 2022
Highlights:
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For the
Three-Month Period Ended |
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For the
Three-Month Period Ended |
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October 29, 2022 |
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October 30, 2021 |
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Media |
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Media |
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Consumer |
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Commerce |
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Consumer |
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Commerce |
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Entertainment |
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Brands |
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Services |
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Consolidated |
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Entertainment |
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Brands |
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Services |
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Consolidated |
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Net Sales |
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$ |
101.2 |
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|
$ |
9.5 |
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$ |
12.6 |
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$ |
123.3 |
|
|
$ |
105.5 |
|
|
$ |
13.7 |
|
$ |
11.5 |
|
$ |
130.7 |
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Gross
Profit |
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$ |
42.6 |
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$ |
5.4 |
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$ |
3.5 |
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$ |
51.5 |
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$ |
44.4 |
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$ |
6.6 |
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$ |
3.4 |
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$ |
54.4 |
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Operating Income (Loss) |
$ |
(19.3 |
) |
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$ |
2.1 |
|
$ |
1.9 |
|
$ |
(15.3 |
) |
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$ |
(6.8 |
) |
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$ |
0.3 |
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$ |
0.5 |
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$ |
(6.0 |
) |
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Adjusted
EBITDA |
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$ |
3.3 |
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$ |
2.8 |
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$ |
2.6 |
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$ |
8.6 |
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$ |
7.3 |
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$ |
0.8 |
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$ |
2.0 |
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$ |
10.1 |
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For the
Nine-Month Period Ended |
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For the
Nine-Month Period Ended |
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October 29, 2022 |
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October 30, 2021 |
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Media |
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Media |
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Consumer |
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Commerce |
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Consumer |
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Commerce |
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Entertainment |
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Brands |
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Services |
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Consolidated |
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Entertainment |
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Brands |
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Services |
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Consolidated |
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Net
Sales |
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$ |
341.6 |
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$ |
32.6 |
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$ |
36.8 |
|
$ |
411.0 |
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|
$ |
313.5 |
|
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$ |
29.2 |
|
$ |
14.6 |
|
$ |
357.3 |
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Gross
Profit |
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$ |
135.1 |
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$ |
16.2 |
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$ |
10.0 |
|
$ |
161.3 |
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|
$ |
129.0 |
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$ |
14.7 |
|
$ |
4.7 |
|
$ |
148.4 |
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Operating Income (Loss) |
$ |
(41.4 |
) |
|
$ |
6.6 |
|
$ |
4.2 |
|
$ |
(30.6 |
) |
|
$ |
(11.6 |
) |
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$ |
0.9 |
|
$ |
0.3 |
|
$ |
(10.4 |
) |
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Adjusted
EBITDA |
|
$ |
8.2 |
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$ |
8.0 |
|
$ |
6.7 |
|
$ |
22.9 |
|
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$ |
20.9 |
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$ |
3.7 |
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$ |
2.0 |
|
$ |
26.5 |
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Entertainment & Consumer Brands
Segments’ Third Quarter and Year-to-Date 2022 Key Operating
Metrics:
Entertainment + Consumer Brands |
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For the Three-Month Periods Ended |
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For the Nine-Month Periods Ended |
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|
October
29, |
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October
30, |
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October
29, |
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October
30, |
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Description |
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2022 |
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2021 |
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Change |
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2022 |
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2021 |
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Change |
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Net Units (000s) |
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2,418 |
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|
1,986 |
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|
22 |
% |
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|
8,671 |
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|
5,261 |
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|
65 |
% |
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Average
Selling Price (ASP) |
|
$ |
41 |
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$ |
55 |
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|
(25 |
%) |
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$ |
39 |
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|
$ |
59 |
|
|
(34 |
%) |
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Return Rate
% |
|
|
16.0 |
% |
|
|
15.8 |
% |
|
17 bps |
|
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|
|
17.2 |
% |
|
|
16.0 |
% |
|
122
bps |
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Total
Customers - 12 Month Rolling (000s) |
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|
1,416 |
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|
1,229 |
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15 |
% |
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Entertainment + Consumer Brands |
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For the Three-Month Periods Ended |
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For the Nine-Month Periods Ended |
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|
October
29, |
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October
30, |
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October
29, |
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October
30, |
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% of Net Merchandise Sales by Category |
|
2022 |
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|
2021 |
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|
Change |
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|
2022 |
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|
2021 |
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|
Change |
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|
Jewelry
& Watches |
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|
34 |
% |
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35 |
% |
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(121 bps) |
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37 |
% |
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|
40 |
% |
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(303 bps) |
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Home &
Consumer Electronics |
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22 |
% |
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16 |
% |
|
560 bps |
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|
19 |
% |
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|
15 |
% |
|
400 bps |
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Beauty
& Health |
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|
21 |
% |
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|
25 |
% |
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(362 bps) |
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20 |
% |
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|
24 |
% |
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(426 bps) |
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Fashion
& Accessories |
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22 |
% |
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23 |
% |
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(77 bps) |
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24 |
% |
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|
21 |
% |
|
330 bps |
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Total |
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|
100 |
% |
|
|
100 |
% |
|
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|
100 |
% |
|
|
100 |
% |
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(a) For the three-month periods and year-to-date
periods ended October 29, 2022 and October 30, 2021,
period-over-period comparison of the key operating metrics above
are impacted by the addition of 1-2-3.tv in the three-month period
and year-to-date period ended October 29, 2022, particularly the
ASP metric because 1-2-3.tv’s ASP is below $25.Liquidity
and Capital Resources:
As of October 29, 2022, total unrestricted cash
was $9.1 million. We expect to complete the sale-leaseback
transaction for estimated gross proceeds of $48 million in Q4. We
plan to use our net operating loss carryforwards to offset the
taxable gain and our planned uses of proceeds are to reduce debt
and increase working capital.
Outlook:
For the fourth quarter 2022, we expect the
holiday season to be challenging and promotional. Accordingly, we
anticipate reporting net sales of approximately $177 million, which
is a 9% decline over the same prior year period. We anticipate
reporting adjusted EBITDA of approximately $16 million, which is a
6% increase over the same prior year period. We continue to expect
positive quarterly earnings per share in Q4 2022.
For the full-year 2022, we anticipate reporting
revenue of approximately $588 million, which is a 7% increase
compared to full year 2021. We expect to report full year adjusted
EBITDA of $39 million, a 7% decline compared to prior year.
A reconciliation of adjusted EBITDA is not
available on a forward-looking basis without unreasonable efforts
because we are unable to predict with reasonable certainty the
ultimate outcome and timing of certain significant items, including
mergers and acquisitions, other transactions, settlements,
integration activities, customer concessions, restructuring
activities, and certain tax related events. These items are
uncertain, depend on various factors and could have a material
impact on earnings and cash flow measures determined in accordance
with U.S. generally accepted accounting principles (“GAAP”) for the
applicable future period.
Conference Call:
Q3 2022 Earnings Conference
Call: As announced on November 4, 2022, our Q3 earnings
conference call and webcast is scheduled for later this
morning:
- Date: Tuesday, November 22,
2022
- Time: 8:30 a.m. Eastern time (7:30
a.m. Central time)
- U.S. dial-in number:
1-877-407-9039
- International dial-in number:
1-201-689-8470
- Conference ID: 1373 4238
- Webcast link: iMedia Brands 3Q
earnings webcast
The conference call and webcast will be
broadcast live and available for replay 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 6, 2022.
- Toll-free replay number:
1-844-512-2921
- International replay number:
1-412-317-6671
- Replay ID: 1373 4238
About iMedia Brands, Inc.
iMedia Brands, Inc. (NASDAQ: IMBI, IMBIL) is a
global media company capitalizing on the convergence of
entertainment, ecommerce, and advertising. The Company owns and
operates four television networks, ShopHQ, 1-2-3.tv, ShopBulldogTV
and ShopHQHealth. It’s flagship television network, ShopHQ is
nationally distributed in the U.S. to over 90 million homes via its
affiliation agreements with cable, satellite, and broadcast
platforms, and it reaches additional viewers through its social
platforms and its OTT Apps available on Roku, Apple TV, Amazon Fire
and Samsung Smart-televisions.
iMedia’s common stock is traded on the NASDAQ
Global Market stock exchange under the ticker IMBI. iMedia’s 8.5%
bonds are also publicly traded on the NASDAQ Global Market under
the ticker IMBIL and pay holders 8.5% interest quarterly in arrears
on March 31, June 30, September 30, and December 31.
Investors:Ken
Cooperkcooper@imediabrands.com(952) 943-6119
Media:press@imediabrands.com(952) 943-6125
iMEDIA
BRANDS INC. |
AND
SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
(In thousands except
share and per share data) |
|
|
|
|
|
|
|
|
|
October
29, |
|
January
29, |
|
|
2022 |
|
|
2022 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
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|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
9,071 |
|
|
$ |
11,295 |
|
Restricted Cash |
|
|
1,500 |
|
|
|
1,893 |
|
Accounts receivable, net |
|
|
55,351 |
|
|
|
78,947 |
|
Inventories |
|
|
119,687 |
|
|
|
116,256 |
|
Current portion of television broadcast rights, net |
|
|
21,016 |
|
|
|
27,521 |
|
Prepaid expenses and other |
|
|
11,424 |
|
|
|
18,340 |
|
Total current assets |
|
|
218,049 |
|
|
|
254,252 |
|
Property and equipment, net |
|
|
46,910 |
|
|
|
48,225 |
|
Television broadcast rights, net |
|
|
62,090 |
|
|
|
74,821 |
|
Goodwill |
|
|
89,323 |
|
|
|
99,050 |
|
Intangible assets, net |
|
|
26,293 |
|
|
|
27,940 |
|
Other assets |
|
|
19,379 |
|
|
|
18,359 |
|
TOTAL ASSETS |
|
$ |
462,044 |
|
|
$ |
522,647 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
87,168 |
|
|
$ |
89,046 |
|
Accrued liabilities |
|
|
37,144 |
|
|
|
44,388 |
|
Current portion of television broadcast rights obligations |
|
|
30,296 |
|
|
|
31,921 |
|
Current portion of long-term debt |
|
|
7,100 |
|
|
|
14,031 |
|
Current portion of operating lease liabilities |
|
|
2,346 |
|
|
|
2,331 |
|
Deferred revenue |
|
|
121 |
|
|
|
427 |
|
Total current liabilities |
|
|
164,175 |
|
|
|
182,144 |
|
Long
term broadcast rights liability |
|
|
63,566 |
|
|
|
81,268 |
|
Long-term debt, net |
|
|
186,399 |
|
|
|
176,432 |
|
Long-term operating lease liabilities |
|
|
3,354 |
|
|
|
5,169 |
|
Deferred tax liability |
|
|
5,183 |
|
|
|
5,285 |
|
Other long term liabilities |
|
|
2,741 |
|
|
|
2,986 |
|
Total liabilities |
|
|
425,418 |
|
|
|
453,284 |
|
Commitments and contingencies |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
Preferred stock, $0.01 per share par value, 400,000 shares
authorized; zero shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 per share par value, 49,600,000 and 29,600,000
shares authorized as of October 29, 2022 and January 29, 2022;
28,916,847 and 21,571,387 shares issued and outstanding as of
October 29, 2022 and January 29, 2022 |
|
|
256 |
|
|
|
216 |
|
Additional paid-in capital |
|
|
561,710 |
|
|
|
538,627 |
|
Accumulated deficit |
|
|
(515,347 |
) |
|
|
(469,463 |
) |
Accumulated Other Comprehensive Income/(loss) |
|
|
(9,993 |
) |
|
|
(2,429 |
) |
Total shareholders’ equity |
|
|
36,626 |
|
|
|
66,951 |
|
Equity of the non-controlling interest |
|
|
— |
|
|
|
2,412 |
|
Total equity |
|
|
36,626 |
|
|
|
69,363 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
462,044 |
|
|
$ |
522,647 |
|
|
|
|
|
|
|
|
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
29, |
|
|
October
30, |
|
October
29, |
|
|
October
30, |
|
|
|
|
|
|
2022 |
|
|
|
|
2021 |
|
|
|
2022 |
|
|
|
|
2021 |
|
Net sales |
|
$ |
123,264 |
|
|
|
$ |
130,681 |
|
|
$ |
411,042 |
|
|
|
$ |
357,325 |
|
Cost of sales |
|
|
71,754 |
|
|
|
|
76,260 |
|
|
|
249,782 |
|
|
|
|
208,911 |
|
|
|
|
Gross
profit |
|
|
51,510 |
|
|
|
|
54,421 |
|
|
|
161,260 |
|
|
|
|
148,414 |
|
|
|
|
Gross Profit
% |
|
|
41.8 |
% |
|
|
|
41.6 |
% |
|
|
39.2 |
% |
|
|
|
41.5 |
% |
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
Distribution and selling |
|
|
35,261 |
|
|
|
|
39,302 |
|
|
|
115,150 |
|
|
|
|
108,907 |
|
|
General and administrative |
|
|
21,185 |
|
|
|
|
10,746 |
|
|
|
44,818 |
|
|
|
|
24,569 |
|
|
Depreciation and amortization |
|
|
8,778 |
|
|
|
|
9,741 |
|
|
|
27,421 |
|
|
|
|
24,727 |
|
|
Restructuring costs |
|
|
1,551 |
|
|
|
|
634 |
|
|
|
4,490 |
|
|
|
|
634 |
|
|
|
Total operating expense |
|
|
66,775 |
|
|
|
|
60,423 |
|
|
|
191,879 |
|
|
|
|
158,837 |
|
Operating loss |
|
|
(15,265 |
) |
|
|
|
(6,002 |
) |
|
|
(30,619 |
) |
|
|
|
(10,423 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income and other |
|
|
20 |
|
|
|
|
85 |
|
|
|
230 |
|
|
|
|
124 |
|
|
Interest expense |
|
|
(6,038 |
) |
|
|
|
(3,551 |
) |
|
|
(15,931 |
) |
|
|
|
(6,245 |
) |
|
Change in fair value of warrant liability |
|
- |
|
|
|
|
- |
|
|
|
1,937 |
|
|
|
|
- |
|
|
Loss on divestiture |
|
|
- |
|
|
|
|
- |
|
|
|
(985 |
) |
|
|
|
- |
|
|
Loss on debt extinguishment |
|
|
- |
|
|
|
|
(9 |
) |
|
|
(884 |
) |
|
|
|
(663 |
) |
|
|
Total other expense |
|
|
(6,018 |
) |
|
|
|
(3,475 |
) |
|
|
(15,633 |
) |
|
|
|
(6,784 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(21,283 |
) |
|
|
|
(9,477 |
) |
|
|
(46,252 |
) |
|
|
|
(17,207 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision) benefit |
|
|
(15 |
) |
|
|
|
(15 |
) |
|
|
(47 |
) |
|
|
|
(45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(21,298 |
) |
|
|
|
(9,492 |
) |
|
|
(46,299 |
) |
|
|
|
(17,252 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss attributable to non-controlling interest |
|
- |
|
|
|
|
- |
|
|
|
(415 |
) |
|
|
|
(282 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to shareholders |
|
$ |
(21,298 |
) |
|
|
$ |
(9,492 |
) |
|
$ |
(45,884 |
) |
|
|
$ |
(16,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
$ |
(0.72 |
) |
|
|
$ |
(0.44 |
) |
|
$ |
(1.77 |
) |
|
|
$ |
(0.91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
---assuming dilution |
|
$ |
(0.72 |
) |
|
|
$ |
(0.44 |
) |
|
$ |
(1.77 |
) |
|
|
$ |
(0.91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of |
|
|
|
|
|
|
|
|
|
|
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
29,415,680 |
|
|
|
|
21,503,340 |
|
|
|
25,932,294 |
|
|
|
|
18,710,658 |
|
|
|
|
Diluted |
|
|
29,415,680 |
|
|
|
|
21,503,340 |
|
|
|
25,932,294 |
|
|
|
|
18,710,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMEDIA
BRANDS, INC. |
|
AND
SUBSIDIARIES |
|
Reconciliation of Net Loss to Adjusted EBITDA |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended October 29,
2022 |
|
For the Three-Month Period Ended October 30,
2021 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
Media |
|
|
|
|
Consumer |
Commerce |
|
|
|
Consumer |
Commerce |
|
|
|
Entertainment |
Brands |
Services |
Consolidated |
|
Entertainment |
Brands |
Services |
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
|
|
$ |
(21,298 |
) |
|
|
|
|
$ |
(9,492 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Television Broadcast Rights Amortization |
|
|
|
|
6,617 |
|
|
|
|
|
|
7,926 |
|
|
Depreciation and Amortization, other |
|
|
|
|
2,999 |
|
|
|
|
|
|
2,751 |
|
|
Interest, net |
|
|
|
|
6,018 |
|
|
|
|
|
|
3,466 |
|
|
Tax |
|
|
|
|
15 |
|
|
|
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined) |
$ |
(9,828 |
) |
$ |
1,913 |
$ |
2,266 |
$ |
(5,649 |
) |
|
$ |
3,516 |
$ |
554 |
$ |
596 |
$ |
4,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
$ |
(9,828 |
) |
$ |
1,913 |
$ |
2,266 |
$ |
(5,649 |
) |
|
$ |
3,516 |
$ |
554 |
$ |
596 |
$ |
4,666 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
- |
|
|
Transaction, Settlement and Integration costs, net (a) |
|
10,824 |
|
|
887 |
|
82 |
|
11,793 |
|
|
|
2,205 |
|
256 |
|
1,374 |
|
3,835 |
|
|
Non-Cash Share-Based Compensation |
|
952 |
|
|
- |
|
- |
|
952 |
|
|
|
949 |
|
- |
|
- |
|
949 |
|
|
Loss on Debt Extinguishment |
|
- |
|
|
- |
|
- |
|
- |
|
|
|
9 |
|
- |
|
- |
|
9 |
|
|
Restructuring Costs |
|
1,341 |
|
|
- |
|
210 |
|
1,551 |
|
|
|
626 |
|
8 |
|
- |
|
634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
3,289 |
|
$ |
2,800 |
$ |
2,558 |
$ |
8,647 |
|
|
$ |
7,305 |
$ |
818 |
$ |
1,970 |
$ |
10,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine-Month Period Ended October 29,
2022 |
|
For the Nine-Month Period Ended October 30,
2021 |
|
|
|
|
|
|
|
|
|
Media |
|
|
|
|
Media |
|
|
|
|
Consumer |
Commerce |
|
|
|
Consumer |
Commerce |
|
|
|
Entertainment |
Brands |
Services |
Consolidated |
|
Entertainment |
Brands |
Services |
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
|
|
$ |
(45,884 |
) |
|
|
|
|
$ |
(16,970 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Television Broadcast Rights Amortization |
|
|
|
|
19,689 |
|
|
|
|
|
|
19,121 |
|
|
Depreciation and Amortization, other |
|
|
|
|
10,358 |
|
|
|
|
|
|
8,444 |
|
|
Interest, net |
|
|
|
|
15,701 |
|
|
|
|
|
|
6,121 |
|
|
Loss on divestiture |
|
|
|
|
985 |
|
|
|
|
|
|
- |
|
|
Change in fair value of warrant liability |
|
|
|
|
(1,937 |
) |
|
|
|
|
|
- |
|
|
Tax |
|
|
|
|
47 |
|
|
|
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
$ |
(13,269 |
) |
$ |
7,264 |
$ |
4,964 |
$ |
(1,041 |
) |
|
$ |
14,492 |
$ |
1,675 |
$ |
594 |
$ |
16,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of EBITDA to Adjusted EBITDA is as follows: |
|
|
|
|
|
|
|
|
|
EBITDA (as
defined) |
$ |
(13,269 |
) |
$ |
7,264 |
$ |
4,964 |
$ |
(1,041 |
) |
|
$ |
14,492 |
$ |
1,675 |
$ |
594 |
$ |
16,761 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
- |
|
|
Transaction, Settlement and Integration costs, net (a) |
|
12,671 |
|
|
731 |
|
1,503 |
|
14,905 |
|
|
|
2,370 |
|
2,013 |
|
1,374 |
|
5,757 |
|
|
Non-Cash Share-Based Compensation |
|
3,061 |
|
|
- |
|
- |
|
3,061 |
|
|
|
2,385 |
|
- |
|
- |
|
2,385 |
|
|
Loss on Debt Extinguishment |
|
884 |
|
|
- |
|
- |
|
884 |
|
|
|
663 |
|
- |
|
- |
|
663 |
|
|
Other |
|
618 |
|
|
- |
|
- |
|
618 |
|
|
|
|
|
|
|
Restructuring Costs |
|
4,280 |
|
|
- |
|
210 |
|
4,490 |
|
|
|
626 |
|
8 |
|
- |
|
634 |
|
|
One Time Customer Adjustment |
|
- |
|
|
- |
|
- |
|
- |
|
|
|
341 |
|
- |
|
- |
|
341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
8,245 |
|
$ |
7,995 |
$ |
6,677 |
$ |
22,917 |
|
|
$ |
20,877 |
$ |
3,696 |
$ |
1,968 |
$ |
26,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Transaction, settlement and integration
costs for the three-month and year-to-date periods ended October
29, 2022, includes Shaq licensing contract separation costs,
transaction and integration costs related to 1-2-3.tv, iMDS and
Christopher & Banks transactions. Transaction, settlement and
integration costs for the three-month and year-to-date periods
ended and October 30, 2021, includes transaction and integration
costs related to 1-2-3.tv, iMDS and Christopher & Banks
transactions.
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; one-time customer
concessions; 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 segments 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 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 anticipated closing of the sale-leaseback
transaction, the value to be received by the Company in connection
with the sale-leaseback transaction, the timing to close on the
sale-leaseback transaction and the Company's use of proceeds
related thereto, the Company's new DISH Network agreement, the
Company's expected performance for the remainder of 2022, and the
Company's belief about the state of consumer demand are
forward-looking. The Company often use words such as anticipates,
believes, estimates, expects, intends, seeks, predicts, hopes,
should, plans, will, or the negative of these terms and similar
expressions to identify forward-looking statements, although not
all forward looking-statements contain these words. 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; the
Company’s 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; logistics costs including the price of
gasoline and transportation; and the risks described from time to
time in the Company’s reports filed with the SEC, including, but
not limited to, the Company’s most recent 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.
Grafico Azioni iMedia Brands (NASDAQ:IMBI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni iMedia Brands (NASDAQ:IMBI)
Storico
Da Giu 2023 a Giu 2024