- Record revenues for the quarter and YTD
- Core Gross Billings for the quarter up 10% to $19.6 million, Revenues for the quarter up 10% to $20.0 million
- Core Gross Billings YTD up 20% to $57.2 million, Revenues up 20% to $57.8 million
- Pre-Corporate EBITDA for the quarter down 29% to $1.2 million, EBITDA down 37% to $0.9 million
- Pre-Corporate EBITDA YTD down 3% to $3.6 million, EBITDA down 4% to $2.6 million
- Progress On Key Strategic Initiatives:
- Solid execution with strong growth at each office and individual board
- Wilhelmina branded agency in Tokyo opened
- Beginning production and sell-in of licensed fragrance line
Quarterly Financial Highlights
|(in thousands)|| |
| YOY |
Q3 14 YTD
Q3 13 YTD
| YTD |
|Core Gross Billings*||$19,637||$17,823||10%||$57,154||$47,489||20%|
|Total Gross Billings*||$21,080||$18,735||13%||$59,575||$50,716||17%|
|Pre-Corporate EBITDA*||$ 1,203||$1,695||(29%)||$ 3,557||$3,660||(3%)|
|*Non-GAAP measures referenced are detailed in the disclosures at the end of this release.|
DALLAS, Nov. 13, 2014 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) ("Wilhelmina" or the "Company"), today reported record third quarter revenues of $20.0 million, up 10% from the third quarter of 2013. Revenues were driven by a 10% growth in core billings. Pre-corporate EBITDA declined 29% to $1.2 million, as a result of changes in the mix of revenues and investments in people, as well as temporarily elevated legal and technology costs. EBITDA declined 37% for the quarter to $0.9 million. Year-to-date, core gross billings are up 20%, driving revenue growth of 20%. Pre-corporate EBITDA is down 3% year-to-date to $3.6 million, while YTD EBITDA is down 4% to $2.6 million.
Mark Schwarz, Executive Chairman of Wilhelmina, said, "Wilhelmina continued to build momentum in billings and revenue during the quarter, with revenues up 10% for the quarter and 20% year-to-date. EBITDA was down for the quarter, primarily due to changes in the mix of revenues which impacted gross margin, and investments the company is making to grow the core model representation business and to expand into other areas. Additionally, EBITDA was impacted by legal and technology expenses that were unusually high, which should normalize over time. We believe our growth is outperforming the industry, and remain very pleased with Wilhelmina's revenue levels."
Alex Vaickus, Chief Executive Officer of Wilhelmina, said, "Wilhelmina's core modeling business continues to execute at a high level, with the women's business particularly strong during Q3. As the core modeling business continued, albeit at a slower pace than earlier in the year, to perform well, we are also pleased to show progress on expanding the footprint of the brand. During the quarter, the licensed Wilhelmina agency in Tokyo opened. In addition, retailer response to Wilhelmina's licensed line of fragrances has been encouraging. The product is now expected to be on-shelves in the U.S. early in the new year."
Some recent highlights from our models:
- Nick Jonas is featured in the solo cover story of Flaunt Magazine's "Grind Issue" shot by Yu Tsai.
- Coco Rocha graces the cover of October's 2014 Harper's Bazaar Thailand and is featured in an editorial shot by photographer, Natth Jaturapahu.
- Clark Bockelman landed the cover of V Magazine's Fall Preview 2014 issue shot by Mario Testino, while also starring alongside seven other models in the cover editorial, "Less Is (In This Case) More."
- Sung Jin Park stars in New York designer Kenneth Cole's new Fall/Winter 2014 campaign and Fall/Winter 2014 Aldo campaign.
- Armando Cabral presented his Spring/Summer 2015 collection at his first NYFW this past September.
- Iggy Azalea's holiday campaign for Forever 21 launched.
- Lu Ping, new to Wilhelmina this summer, appears in Zara's Fall 2014 lookbook.
- Erin Alice is the face of Garnier's Texture Tease hair spray.
- Cindy Bruna is featured in an editorial for Allure Magazine's November 2014 issue photographed by Sebastian Kim and styled by Siobhan Bonnouvrier.
- Manon Leloup is the newest face of RMK beauty products for the Fall/Winter 2014 collection and is featured in Max Mara Fall/Winter 2014 and Replay Fall/Winter 2014. All of these were shot by David Sims in an editorial exclusive.
- Coco Rocha covers the November 2014 issue of Allure Korea shot by Mikael Schulz.
- Elisabeth Erm is featured in David Dunan's editorial for Vogue Italia October 2014.
- Robyn Lawley covers Marie Claire Australia's November 2014 issue shot by David Gubert. She is featured in an editorial entitled "Surf Rescue" featuring several swim lines including her own, Robyn Lawley Swimwear.
- RJ King shoots again with Steven Meisel for Moncler Gamme Rouge's Fall 2014 campaign.
- Ton Heukels is featured in Armani Exchange Fall/Winter 2014 collection.
- Coco Rocha and Cindy Bruna grace the cover of September Italian Vogue, shot by Steven Meisel.
- Eli Almeida is featured in Pantene's new hair product campaign.
- RJ King is featured on the July 2014 cover of Italian Vogue shot by Steven Meisel. He is the first male model to be featured on two Italian Vogue covers in a year's time.
- Robyn Lawley is featured in the Fall/Winter 2014 look for Mango's Violeta collection.
The net income applicable to common stockholders was $0.3 million or $0.06 per fully diluted share and $1.1 million or $0.18 per fully diluted share for the three and nine months ended September 30, 2014, compared to a net income of $0.5 million or $0.09 per fully diluted share and $0.8 million or $0.13 per fully diluted share for the three and nine months ended September 30, 2013.
Pre-Corporate EBITDA was $1.2 million and $3.6 million for the three and nine months ended September 30, 2014, compared to $1.7 million and $3.7 million for the three and nine months ended September 30, 2013.
The following table reconciles operating income under GAAP (as reported in the Company's SEC filings) to EBITDA and Pre-Corporate EBITDA for the three and nine months ended September 30, 2014 and 2013.
|(in thousands)||Three months ended||Nine months ended|
|September 30,||September 30,|
|Operating Income||$ 825||$ 1,017||$ 2,171||$ 1,553|
|Add: Foreign currency loss||(34)||--||(34)||--|
|Add: Equity Earnings of 50% owned sub||(7)||19||(22)||21|
|Add: Amortization and depreciation||114||394||484||1,177|
|Add: Corporate overhead||305||265||958||909|
|Pre-Corporate EBITDA||$ 1,203||$ 1,695||$ 3,557||$ 3,660|
Changes in operating income and Pre-Corporate EBITDA for the three and nine months ended September 30, 2014 when compared to the three and nine months ended September 30, 2013 were the result of the following:
- Increased revenues in the core modeling business driven by an expanded developed talent pool and our customers increased interest in booking the Company's talent.
- Operating margins decreased due to a change in the mix of revenues and increased mother agency fees.
- Salaries and service costs as a percentage of revenue were 16.7% and 16.8% for three and nine months ended September 30, 2014, respectively, compared to 15.6% and 17.7% for the three and nine months ended September 30, 2013. Management continues to focus on containing costs while making investments that are necessary to support the Company's continued growth.
- Office and general expenses as a percentage of revenue increased to 6.0% and 5.8% for the three and nine months ended September 30, 2014, respectively, when compared to 5.4% for the three and nine months ended September 30, 2013. The Company continues to incur increased costs related to technology, consulting and professional services in its efforts to improve delivery of model management services it its talent.
|WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES|
|Consolidated Balance Sheets|
|(In thousands, except share data)|
|ASSETS||September 30, 2014||December 31, 2013|
|Cash and cash equivalents||$ 3,798||$ 2,776|
|Accounts receivable net of allowance for doubtful accounts of $660 and $571||13,265||11,327|
|Deferred tax asset||1,025||1,659|
|Prepaid expenses and other current assets||349||257|
|Total current assets||18,437||16,019|
|Property and equipment, net of accumulated depreciation of $689 and $493||1,025||831|
|Trademarks and trade names with indefinite lives||8,467||8,467|
|Other intangibles with finite lives, net of amortization of $8,178 and $7,888||159||449|
|Total assets||$ 41,081||$ 38,891|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accounts payable and accrued liabilities||$ 3,961||$ 2,969|
|Due to models||9,416||8,669|
|Total current liabilities||13,377||11,638|
|Long term liabilities|
|Amegy credit facility||--||800|
|Deferred income tax liability||1,333||1,287|
|Total long-term liabilities||1,333||2,087|
|Preferred stock, $0.01 par value, 10,000,000 shares authorized; none outstanding|
|Common stock, $0.01 par value, 12,500,000 shares authorized; 5,870,302 shares issued and outstanding at September 30, 2014 and December 31, 2013||65||65|
|Treasury stock 601,705, at cost||(1,637)||(1,637)|
|Additional paid-in capital||86,735||86,589|
|Total shareholders' equity||26,371||25,166|
|Total liabilities and shareholders' equity||$ 41,081||$ 38,891|
|WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES|
|Unaudited Consolidated Statements of Operations|
|(In thousands, except per share data)|
|Three months ended||Nine months ended|
|September 30,||September 30,|
|September 30,||September 30,||September 30,||September 30,|
|Revenues||$ 19,853||$ 17,965||$ 57,517||$ 47,858|
|License fees and other income||100||134||300||507|
|Revenues net of model costs||5,768||5,473||16,669||14,691|
|Salaries and service costs||3,336||2,818||9,690||8,461|
|Office and general expenses||1,188||979||3,366||2,591|
|Amortization and depreciation||114||394||484||1,177|
|Total operating expenses||4,943||4,456||14,498||13,138|
|Other income (expense):|
|Foreign currency loss||(34)||--||(34)||--|
|Equity in Earnings (loss) of 50% owned sub||(7)||19||(22)||21|
|Income before provision for income taxes||786||1,025||2,113||720|
|Provision for income taxes|
|Net income applicable to common stockholders||$ 336||$ 522||$ 1,059||$ 819|
|Basic net income per common share||$ 0.06||$ 0.09||$ 0.18||$ 0.14|
|Diluted net income per common share||$ 0.06||$ 0.09||$ 0.18||$ 0.13|
|Weighted average common shares outstanding-basic||5,870||5,955||5,870||5,973|
|Weighted average common shares outstanding diluted||5,968||6,052||5,968||6,071|
Non GAAP financial measures
The Company calculates Earnings before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") as operating income before depreciation, and amortization expense. The Company calculates Pre-Corporate EBITDA as EBITDA before corporate overhead at the holding company level. The Company calculates Total Gross Billings as the sum total of all amounts invoiced to customers during the period, with no effect giving to amounts which are deferred into future periods, per the terms of a contract. The Company calculates Core Gross Billings as the sum total of all amounts invoiced to customers in the core modeling business during the period, with no effect giving to amounts which are deferred into future periods, per the terms of a contract.
Although EBITDA, Pre-Corporate EBITDA, Total Gross Billings and Core Gross Billings represent non-GAAP financial measures, the Company considers these non-GAAP measures important because they:
- are key operating metrics of the Company's business
- are used by management in its planning and budgeting processes and to monitor and evaluate its financial and operating results
- can be useful to investors since they provide an analysis of financial and operating results using the same measures that the Company uses in evaluating itself.
- provide stockholders and potential investors with a means to evaluate the Company's financial and operating results against other companies within the Company's industry.
However, the Company's calculation of these non-GAAP measures may not be consistent with calculations of these measures by other companies in the Company's industry.
Non-GAAP financial measure are defined as numerical measures of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles ("GAAP") in a company's statements of operations, balance sheets or statements of cash flows. Pursuant to the requirements of Regulation G, the Company provides a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures are not measurements of financial performance under GAAP and should not be considered as alternatives to operating income as an indicator of the Company's operating performance or cash flows from operating activities, as a measure of liquidity or any other measure of performance derived in accordance with GAAP.
Table to reconcile revenues as reported to Core Gross Billings and Total Gross Billings
|Three months ended||Nine months ended|
|(in thousands)||September 30,||September 30,|
|Less: Net revenues from the WAM business||(216)||(142)||(363)||(369)|
|Core Gross Billings||19,637||17,823||57,154||47,489|
|Add: Gross revenues from WAM business||1,443||912||2,421||3,227|
|Total Gross Billings||$21,080||$18,735||$59,575||$50,716|
Form 10-Q Filing
Additional information concerning the Company's results of operations and financial position is included in the Company's Form 10-Q for the three months ended September 30, 2014, which is expected to be filed November 13, 2014, with the Securities and Exchange Commission.
This report contains certain "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and information relating to the Company and its subsidiaries that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. When used in this report, the words "anticipate", "believe", "estimate", "expect" and "intend" and words or phrases of similar import, as they relate to the Company or its subsidiaries or Company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, the interest rate environment, governmental regulation and supervision, seasonality, changes in industry practices, one-time events and other factors described herein and in other filings made by the Company with the SEC. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not intend to update these forward-looking statements.
About Wilhelmina International, Inc. (www.wilhelmina.com):
Through Wilhelmina Models and its other subsidiaries, including, Wilhelmina Artist Management, Wilhelmina International, Inc. provides traditional, full-service fashion model and talent management services, specializing in the representation and management of leading models, entertainers, artists, athletes and other talent to various customers and clients, including, retailers, designers, advertising agencies and catalog companies. Wilhelmina Models was founded in 1967 by Wilhelmina Cooper, a renowned fashion model, and is one of the oldest and largest fashion model management companies in the world. Wilhelmina Models is headquartered in New York and, since its founding, has grown to include operations located in Los Angeles and Miami, as well as a growing network of licensees comprising leading modeling agencies in various local markets across the U.S. as well as in Thailand, Dubai, Vancouver and Tokyo.
CONTACT: John Murray Chief Financial Officer Wilhelmina International, Inc. 214-661-7480 firstname.lastname@example.org
Source:Wilhelmina International, Inc.