DALLAS, May 15, 2013 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (OTCBB:WHLM) (the "Company") today reported total revenues of $14.1 million for the quarter ended March 31, 2013, compared to $13.5 million for the quarter ended March 31, 2012.
The net (loss) income applicable to common stockholders was $(56,000) or $(0.00) per fully diluted share for the quarter ended March 31, 2013, compared to a net income of $210,000 or $0.00 per fully diluted share for the quarter ended March 31, 2012.
The net loss for the quarter ended March 31, 2013 includes before tax charges of $390,000 for amortization of intangible assets and depreciation and $320,000 for corporate overhead. The net income for the quarter ended March 31, 2012 includes before tax charges of $396,000 for amortization of intangible assets and depreciation and $408,000 for corporate overhead.
Gross billings for the quarter ended March 31, 2013 decreased approximately $430,000, or 3%, to approximately $14,890,000, compared to approximately $15,320,000 for the quarter ended March 31, 2012. Generally, changes in gross billings are impacted by the Company's clients' level of spending on advertising and the Company having the desired talent available to its clients. During the quarter ended March 31, 2013, the Company experienced a 6% increase in gross billings across the core modeling business which was more than offset by a 53% decrease in gross billings of the WAM business, compared to the gross billings across the core modeling business and the WAM business for the three months ended March 31, 2012. Gross billings of the WAM business decreased due to reduced fixed payments earned under a product licensing agreement (per the terms of the contract) and due to the expiration of another product licensing agreement (per the terms of the contract), which the Company was a party to, with a former talent. Gross billings of the WAM division represented approximately 7% of total gross billings for the quarter ended March 31, 2013, compared to approximately 15% for the quarter ended March 31, 2012.
In a further effort to provide investors with additional information regarding the Company's results of operations, the Company is disclosing Adjusted EBITDA, which is computed as operating income before depreciation and amortization and corporate overhead at the holding company level. Adjusted EBITDA is a non-GAAP financial measure, defined as a numerical measure 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 this non-GAAP financial measure to the most directly comparable GAAP financial measure.
Although Adjusted EBITDA represents a non-GAAP financial measure, the Company considers Adjusted EBITDA to be a key operating metric of the Company's business, and uses Adjusted EBITDA in its planning and budgeting processes and to monitor and evaluate its financial and operating results. The Company believes that Adjusted EBITDA is useful to investors because it provides an analysis of financial and operating results using the same measure that the Company uses in evaluating itself. The Company believes that Adjusted EBITDA also provides 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 Adjusted EBITDA may not be consistent with the calculation of this measure by other companies in the Company's industry.
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative 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.
The following table reconciles operating income (loss) under GAAP (in thousands) (as reported in the Company's SEC filings) to Adjusted EBITDA for the quarter ended March 31, 2013 and 2012.
|Three months ended|
|Operating (loss) income||$ (25)||$ 333|
|Add: Corporate overhead||320||408|
|Add: Amortization of intangible assets and depreciation||390||396|
|Adjusted EBITDA||$ 685||$ 1,137|
Changes in Adjusted EBITDA for the quarter ended March 31, 2013 when compared to the quarter ended March 31, 2012 were most significantly impacted by the following items:
- Increases in salaries and service costs have contributed to declines in Adjusted EBITDA. During the quarter ended December 31, 2012, the Company hired key personnel to execute the Company's strategy of increasing value to shareholders through certain key initiatives, including, expanding its licensing and branding businesses.
- A decline in the operating results of the WAM business have contributed to a decrease in Adjusted EBITDA due to the factors discussed above.
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 quarter ended March 31, 2013 which is expected to be filed May 15, 2013 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. and Wilhelmina Artist Management (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 Panama, Thailand and Dubai.