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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Wilhelmina International, Inc. Reports Results for Third Quarter 2019

November 12, 2019 GMT

Third Quarter Financial Results

------------------------------------------------------------------------------------------------- (in thousands) YOY Q3 19 Q3 18 YOY Q3 19 Q3 18 Change YTD YTD Change ---------------------------------------- ---------- -------- --------- -------- -------- -------- Total Revenues $ 17,241 $ 19,153 (10.0 %) $ 57,245 $ 59,465 (3.7 %) Operating (Loss) Income (149 ) 281 (153.0 %) 488 1,167 (58.2 %) (Loss) Income Before Provision for Taxes (173 ) 238 (172.7 %) 399 1,030 (61.3 %) Net (Loss) Income (166 ) 208 (179.8 %) 176 797 (77.9 %) EBITDA** 151 516 (70.7 %) 1,373 1,830 (25.0 %) Adjusted EBITDA** 197 617 (68.1 %) 1,538 2,174 (29.3 %) Pre-Corporate EBITDA** 448 915 (51.0 %) 2,372 3,069 (22.7 %) **Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

DALLAS, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) (“Wilhelmina” or the “Company”) today reported revenues of $17.2 million and net loss of $0.2 million for the three months ended September 30, 2019, compared to revenues of $19.2 million and net income of $0.2 million for the three months ended September 30, 2018. For the nine months ended September 30, 2019, Wilhelmina reported revenues of $57.2 million and net income of $0.2 million compared to revenue of $59.5 million and net income of $0.8 million for the nine months ended September 30, 2018. The decrease in revenues when compared to the same periods of the prior year was primarily due to a decrease in bookings in the Wilhelmina Studios division and core model bookings in the United States, partially offset by an increase in core model bookings in the London office and bookings from the Aperture division. For the three and nine months ended September 30, 2019 compared to the three and nine months ended September 30, 2018, operating income, EBITDA, Adjusted EBITDA, and Pre-Corporate EBITDA decreased, primarily due to decreased revenues, partially offset by decreased operating expenses.

Bill Wackermann, Wilhelmina’s Chief Executive Officer, commented, “Despite challenges in the third quarter of 2019, I feel optimistic about the Company’s path forward. We are focused on strengthening our core business and encouraged by our growth in international markets.”

Financial Results

Net loss for the three months ended September 30, 2019 was $0.2 million or $0.03 per fully diluted share and net income for the nine months ended September 30, 2019 was $0.2 million or $0.03 per fully diluted share, compared to net income of $0.2 million and $0.8 million, or $0.04 and $0.15 per fully diluted share, for the three and nine months ended September 30, 2018.

Pre-Corporate EBITDA was $0.4 million and $2.4 million for the three and nine months ended September 30, 2019, compared to $0.9 million and $3.1 million for the three and nine months ended September 30, 2018.

The following table reconciles reported net income under generally accepted accounting principles to EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and nine months ended September 30, 2019 and 2018.

Three months Nine months ended ended (in thousands) September 30, September 30, - ------------- - ------------- 2019 2018 2019 2018 - ---- - - ---- - ----- - ----- Net (loss) income $ (166 ) $ 208 $ 176 $ 797 Interest expense 27 26 89 73 Income tax (benefit) expense (7 ) 30 223 233 Amortization and depreciation 297 252 885 727 - ---- - - ---- - ----- - ----- EBITDA** $ 151 $ 516 $ 1,373 $ 1,830 Foreign exchange (gain) loss (3 ) 17 - 64 Share-based payment expense 49 84 165 280 - ---- - - ---- - ----- - ----- Adjusted EBITDA** $ 197 $ 617 $ 1,538 $ 2,174 Corporate overhead 251 298 834 895 - ---- - - ---- - ----- - ----- Pre-Corporate EBITDA** $ 448 $ 915 $ 2,372 $ 3,069 - ---- - - ---- - ----- - ----- **Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

Changes in net income, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and nine months ended September 30, 2019, when compared to the three and nine months ended September 30, 2018, were primarily the result of the following:

-- Revenues net of model costs for the three and nine months ended September 30, 2019 decreased by 12.4% and 5.1% primarily due to decreases in bookings in the Wilhelmina Studios division and core model bookings in the United States, partially offset by an increase in core model bookings in the London office and bookings from the Aperture division. The decrease in core model bookings in the United States was primarily due to staff turnover; -- Salaries and service costs for the three months ended September 30, 2019 decreased by 6.1% primarily due to a decrease in employee salaries and a reduction in share based payment expense. Salaries and service costs for the nine months ended September 30, 2019 were relatively stable; -- Office and general expenses for the three and nine months ended September 30, 2019 decreased by 2.3% and 9.4%, primarily due to reduced rent expense, computer expense and bad debt expenses, as well as the reclassification of certain lease payments as amortization expense under new lease accounting rules; -- Amortization and depreciation expense for the three and nine months ended September 30, 2019 increased by 17.9% and 21.7%, primarily due to new equipment being placed in service in recent months and certain lease payments previously included within office and general expenses now being classified as amortization under new lease accounting rules; and -- Corporate overhead expenses for the three and nine months ended September 30, 2019 decreased by 15.8% and 6.8%, primarily due to lower securities compliance costs.

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share data)

(Unaudited) September December 30, 31, 2019 2018 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 5,521 $ 6,748 Accounts receivable, net of allowance for doubtful accounts of $1,484 and $1,791, 12,083 11,901 respectively Prepaid expenses and other current assets 274 197 - ------- - - ------- - Total current assets 17,878 18,846 - ------- - - ------- - Property and equipment, net of accumulated depreciation of $4,032 and $3,264, 2,103 2,567 respectively Right of use assets-operating 1,602 - Right of use assets-finance 129 - Trademarks and trade names with indefinite lives 8,467 8,467 Other intangibles with finite lives, net of accumulated amortization of $8,720 and 17 53 $8,684, respectively Goodwill 13,192 13,192 Other assets 113 114 - ------- - - ------- - TOTAL ASSETS $ 43,501 $ 43,239 - ------- - - ------- - LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 3,824 $ 5,071 Due to models 8,840 8,809 Lease liabilities – operating, current 1,125 - Lease liabilities – finance, current 94 - Term loan – current 750 623 - ------- - - ------- - Total current liabilities 14,633 14,503 - ------- - - ------- - Long term liabilities: Net deferred income tax liability 654 631 Lease liabilities – operating, non-current 623 - Lease liabilities – finance, non-current 44 - Term loan – non-current 1,435 2,000 - ------- - - ------- - Total long term liabilities 2,756 2,631 - ------- - - ------- - Total liabilities 17,389 17,134 - ------- - - ------- - Shareholders’ equity: Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued at September 30, 2019 and December 31, 2018 65 65 Treasury stock, 1,301,917 and 1,264,154 shares at September 30, 2019 and December (6,320 ) (6,093 ) 31, 2018, at cost Additional paid-in capital 88,420 88,255 Accumulated deficit (55,853 ) (56,029 ) Accumulated other comprehensive loss (200 ) (93 ) - ------- - ------- - Total shareholders’ equity 26,112 26,105 - ------- - ------- - TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 43,501 $ 43,239 - ------- - ------- -

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)For the Three and Nine Months Ended September 30, 2019 and 2018 (In thousands, except per share data)(Unaudited)

Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- 2019 2018 2019 2018 -------- - -------- - -------- - -------- - Revenues: Service revenues $ 17,224 $ 19,143 $ 57,199 $ 59,425 License fees and other income 17 10 46 40 - ------ - - ------ - - ------ - - ------ - Total revenues 17,241 19,153 57,245 59,465 Model costs 12,534 13,777 41,166 42,524 - ------ - - ------ - - ------ - - ------ - Revenues, net of model costs 4,707 5,376 16,079 16,941 - ------ - - ------ - - ------ - - ------ - Operating expenses: Salaries and service costs 3,266 3,478 10,571 10,509 Office and general expenses 1,042 1,067 3,301 3,643 Amortization and depreciation 297 252 885 727 Corporate overhead 251 298 834 895 - ------ - - ------ - - ------ - - ------ - Total operating expenses 4,856 5,095 15,591 15,774 - ------ - - ------ - - ------ - - ------ - Operating (loss) income (149 ) 281 488 1,167 - ------ - - ------ - - ------ - - ------ - Other expense: Foreign exchange gain (loss) 3 (17 ) - (64 ) Interest expense (27 ) (26 ) (89 ) (73 ) - ------ - - ------ - - ------ - - ------ - Total other expense (24 ) (43 ) (89 ) (137 ) - ------ - - ------ - - ------ - - ------ - (Loss) income before provision for income taxes (173 ) 238 399 1,030 - ------ - - ------ - - ------ - - ------ - Provision for income taxes (expense) benefit: Current (47 ) (80 ) (200 ) (220 ) Deferred 54 50 (23 ) (13 ) - ------ - - ------ - - ------ - - ------ - Income tax (expense) benefit 7 (30 ) (223 ) (233 ) - ------ - - ------ - - ------ - - ------ - Net (loss) income $ (166 ) $ 208 $ 176 $ 797 - ------ - - ------ - - ------ - - ------ - Other comprehensive expense: Foreign currency translation adjustment (76 ) (24 ) (107 ) (56 ) - ------ - - ------ - - ------ - - ------ - Total comprehensive (loss) income (242 ) 184 69 741 - ------ - - ------ - - ------ - - ------ - Basic net (loss) income per common share $ (0.03 ) $ 0.04 $ 0.03 $ 0.15 Diluted net (loss) income per common share $ (0.03 ) $ 0.04 $ 0.03 $ 0.15 Weighted average common shares outstanding-basic 5,176 5,309 5,189 5,353 Weighted average common shares outstanding-diluted 5,176 5,318 5,189 5,361

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the Three and Nine Months Ended September 30, 2019 and 2018 (In thousands)(Unaudited)

Accumu lated Additiona Common Stock Treasury Stock l Accumulated Other Shares Amoun Shares Amount Paid-in Deficit Total t Capital Compre hensiv e Loss ------ ---- --------- ---------- -------- ----------- - ----- ---------- Balances at December 31, 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,892 $ (56,885 ) $ 4 $ 26,183 2017 Share based payment - - - - 109 - - 109 expense Net income to common - - - - - 225 - 225 shareholders Purchases of treasury - - (6 ) (36 ) - - - (36 ) stock Foreign currency - - - - - - 43 43 translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at March 31, 6,472 $ 65 (1,096 ) $ (4,929 ) $ 88,001 $ (56,660 ) $ 47 $ 26,524 2018 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 87 - - 87 expense Net income to common - - - - - 364 - 364 shareholders Purchases of treasury - - (7 ) (46 ) - - - (46 ) stock Foreign currency - - - - - - (75 ) (75 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at June 30, 6,472 $ 65 (1,103 ) $ (4,975 ) $ 88,088 $ (56,296 ) $ (28 ) $ 26,854 2018 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 84 - - 84 expense Net income to common - - - - - 208 - 208 shareholders Purchases of treasury - - (100 ) (706 ) - - - (706 ) stock Foreign currency - - - - - - (24 ) (24 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at September 6,472 $ 65 (1,203 ) $ (5,681 ) $ 88,172 $ (56,088 ) $ (52 ) $ 26,416 30, 2018 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ -

Accumul Additiona ated Common Stock Treasury Stock l Accumulated Other Shares Amoun Shares Amount Paid-in Deficit Compreh Total t Capital ensive Loss ------ ---- --------- ---------- -------- ----------- - ------ ---------- Balances at December 6,472 $ 65 (1,264 ) $ (6,093 ) $ 88,255 $ (56,029 ) $ (93 ) $ 26,105 31, 2018 Share based payment - - - - 64 - - 64 expense Net income to common - - - - - (109 ) - (109 ) shareholders Purchases of treasury - - (4 ) (24 ) - - - (24 ) stock Foreign currency - - - - - - 28 28 translation ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ - Balances at March 31, 6,472 $ 65 (1,268 ) $ (6,117 ) $ 88,319 $ (56,138 ) $ (65 ) $ 26,064 2019 ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ - Share based payment - - - - 52 - - 52 expense Net income to common - - - - - 451 - 451 shareholders Purchases of treasury - - (25 ) (149 ) - - - (149 ) stock Foreign currency - - - - - - (59 ) (59 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ - Balances at June 30, 6,472 $ 65 (1,293 ) $ (6,266 ) $ 88,371 $ (55,687 ) $ (124 ) $ 26,359 2019 ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ - Share based payment - - - - 49 - - 49 expense Net loss to common - - - - - (166 ) - (166 ) shareholders Purchases of treasury - - (9 ) (54 ) - - - (54 ) stock Foreign currency - - - - - - (76 ) (76 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ - Balances at September 6,472 $ 65 (1,302 ) $ (6,320 ) $ 88,420 $ (55,853 ) $ (200 ) $ 26,112 30, 2019 ----- - -- ------ - - ------ - - ------ - ------- - - ---- - - ------ -

The accompanying notes are an integral part of these consolidated financial statements.

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWFor the Three and Nine Months Ended September 30, 2019 and 2018 (In thousands)(Unaudited)

Nine Months Ended September 30, ---------------------- 2019 2018 -------- - ------- - Cash flows from operating activities: Net income: $ 176 $ 797 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Amortization and depreciation 885 727 Share based payment expense 165 280 Deferred income taxes 23 13 Bad debt (recovery) expense (1 ) 70 Changes in operating assets and liabilities: Accounts receivable (181 ) (296 ) Prepaid expenses and other current assets (77 ) (107 ) Right of use assets-operating 802 - Other assets 1 20 Due to models 31 (635 ) Lease liabilities-operating (854 ) - Accounts payable and accrued liabilities (1,038 ) 862 Net cash (used in) provided by operating activities (68 ) 1,731 - ------ - ----- - Cash flows used in investing activities: Purchases of property and equipment (304 ) (293 ) - ------ - ----- - Net cash used in investing activities (304 ) (293 ) - ------ - ----- - Cash flows (used in) provided by financing activities: Purchases of treasury stock (227 ) (788 ) Payments on finance leases (83 ) - Proceeds from term loan - 700 Repayment of term loan (438 ) (390 ) - ------ - ----- - Net cash used in financing activities (748 ) (478 ) - ------ - ----- - Foreign currency effect on cash flows: (107 ) (56 ) - ------ - ----- - Net change in cash and cash equivalents: (1,227 ) 904 Cash and cash equivalents, beginning of period 6,748 4,256 - ------ - ----- - Cash and cash equivalents, end of period $ 5,521 $ 5,160 - ------ - ----- - Supplemental disclosures of cash flow information: Cash paid for interest $ 88 $ 71 Cash paid (refund) of income taxes $ 5 $ (10 )

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA represent measures of financial performance that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). The Company considers EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA to be important measures of performance 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; and -- 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.

The Company’s calculation of non-GAAP financial measures may not be consistent with similar calculations by other companies in the Company’s industry. The Company calculates EBITDA as net income plus interest expense, income tax expense, and depreciation and amortization expense. The Company calculates “Adjusted EBITDA” as EBITDA plus foreign exchange gain/loss plus share-based payment expense and certain significant non-recurring items that the Company may include from time to time. The Company calculates “Pre-Corporate EBITDA” as Adjusted EBITDA plus corporate overhead expense, which includes director compensation, securities laws compliance costs, audit and professional fees, and other public company costs.

Non-GAAP financial measures should not be considered as alternatives to net and 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 generally accepted accounting principles.

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 third quarter ended September 30, 2019 filed with the Securities and Exchange Commission on November 12, 2019.

Forward-Looking Statements

This press release contains certain “forward-looking” statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company are based on the beliefs of the Company’s management as well as 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 Company management, are intended to identify forward-looking statements. Such forward-looking statements include, in particular, projections about the Company’s future results, statements about its plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. Additionally, statements concerning future matters such as gross billing levels, revenue levels, expense levels, and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or the Company’s future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of its business or its industry to be materially different from those expressed or implied by any forward-looking statements. 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 undertake any obligation to publicly update these forward-looking statements. As a result, no person should place undue reliance on these forward-looking statements.

About Wilhelmina International, Inc. (www.wilhelmina.com):

Wilhelmina, together with its subsidiaries, is an international full-service fashion model and talent management service, specializing in the representation and management of leading models, celebrities, artists, photographers, athletes, and content creators. Established in 1967 by fashion model Wilhelmina Cooper, Wilhelmina is one of the oldest and largest fashion model management companies in the world. Wilhelmina is publicly traded on Nasdaq under the symbol WHLM. Wilhelmina is headquartered in New York and, since its founding, has grown to include operations in Los Angeles, Miami, London and Chicago. Wilhelmina also owns Aperture, a talent and commercial agency located in New York and Los Angeles. For more information, please visit www.wilhelmina.com and follow @WilhelminaModels.

CONTACT: Investor RelationsWilhelmina International, Inc.214-661-7488ir@wilhelmina.com