{"id":379667,"date":"2020-11-12T08:33:32","date_gmt":"2020-11-12T13:33:32","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=379667"},"modified":"2020-11-12T08:33:32","modified_gmt":"2020-11-12T13:33:32","slug":"wilhelmina-international-inc-reports-results-for-third-quarter-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/wilhelmina-international-inc-reports-results-for-third-quarter-2020\/","title":{"rendered":"Wilhelmina International, Inc. Reports Results for Third Quarter 2020"},"content":{"rendered":"
\n

\n Third<\/strong>
\n Quarter Financial <\/strong>
\n Results<\/strong>
\n \n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n<\/tr>\n
\n (in thousands)<\/strong>\n <\/td>\n\n
\n Q3<\/strong>
\n 20<\/strong>\n <\/td>\n		\n
\n Q3<\/strong>
\n 1<\/strong>
\n 9<\/strong>\n <\/td>\n		\n YOY<\/strong>
\n
\n Change<\/strong>\n <\/td>\n		\n Q3<\/strong>
\n 20<\/strong>
\n
\n YTD<\/strong>\n <\/td>\n		\n Q3<\/strong>
\n 1<\/strong>
\n 9<\/strong>
\n
\n YTD<\/strong>\n <\/td>\n		\n YOY<\/strong>
\n
\n Change<\/strong>\n <\/td>\n<\/tr>\n
\n Total Revenues<\/strong>\n <\/td>\n$<\/td>\n10,545<\/td>\n$<\/td>\n17,241<\/td>\n\u00a0<\/td>\n(38.8<\/td>\n%)<\/td>\n29,625<\/td>\n\u00a0<\/td>\n$<\/td>\n57,245<\/td>\n(48.2<\/td>\n%)<\/td>\n<\/tr>\n
\n Operating<\/strong>
\n Income<\/strong>
\n (Loss)<\/strong>\n <\/td>\n		\u00a0<\/td>\n114<\/td>\n\u00a0<\/td>\n(149<\/td>\n)<\/td>\n176.5<\/td>\n%<\/td>\n(4,665<\/td>\n)<\/td>\n\u00a0<\/td>\n488<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Income (Loss)<\/strong>
\n Before Provision for Taxes<\/strong>\n <\/td>\n		\u00a0<\/td>\n107<\/td>\n\u00a0<\/td>\n(173<\/td>\n)<\/td>\n161.8<\/td>\n%<\/td>\n(4,671<\/td>\n)<\/td>\n\u00a0<\/td>\n399<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Net <\/strong>
\n Income (Loss)<\/strong>\n <\/td>\n		\u00a0<\/td>\n22<\/td>\n\u00a0<\/td>\n(166<\/td>\n)<\/td>\n113.3<\/td>\n%<\/td>\n(5,338<\/td>\n)<\/td>\n\u00a0<\/td>\n176<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n EBITDA** <\/strong>\n <\/td>\n\u00a0<\/td>\n422<\/td>\n\u00a0<\/td>\n151<\/td>\n\u00a0<\/td>\n179.5<\/td>\n%<\/td>\n(3,714<\/td>\n)<\/td>\n\u00a0<\/td>\n1,373<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Adjusted <\/strong>
\n EBITDA*<\/strong>
\n *<\/strong>\n <\/td>\n		\u00a0<\/td>\n411<\/td>\n\u00a0<\/td>\n197<\/td>\n\u00a0<\/td>\n108.6<\/td>\n%<\/td>\n(2,966<\/td>\n)<\/td>\n\u00a0<\/td>\n1,538<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Pre-Corporate EBITDA*<\/strong>
\n *<\/strong>\n <\/td>\n		\u00a0<\/td>\n556<\/td>\n\u00a0<\/td>\n448<\/td>\n\u00a0<\/td>\n24.1<\/td>\n%<\/td>\n(2,274<\/td>\n)<\/td>\n\u00a0<\/td>\n2,372<\/td>\n*<\/td>\n\u00a0<\/td>\n<\/tr>\n
* Not Meaningful
**Non-GAAP measures referenced are detailed in the disclosures at the end of this release.<\/td>\n<\/tr>\n
\u00a0<\/td>\n<\/tr>\n<\/table>\n

DALLAS, Nov. 12, 2020 (GLOBE NEWSWIRE) — Wilhelmina International, Inc. (Nasdaq:WHLM) (“Wilhelmina” or the “Company”) today reported revenues of $10.5 million and net income of $22 thousand for the three months ended September 30, 2020, compared to revenues of $17.2 million and net loss of $0.2 million for the three months ended September 30, 2019. For the nine months ended September 30, 2020, Wilhelmina reported revenues of $29.6 million and net loss of $5.3 million compared to revenue of $57.2 million and net income of $0.2 million for the nine months ended September 30, 2019. During the three and nine months of 2020, the novel coronavirus (COVID-19) pandemic had a material impact on revenues. The decrease in revenues when compared to the same periods of the prior year was primarily due to postponement and cancellation of bookings by many of Wilhelmina\u2019s customers while non-essential business activities were barred in the cities where the Company operates, as well as the closure of the Wilhelmina Studios division in the fourth quarter of 2019. The increase in net income for the third quarter of 2020 was due to a reduction in operating expenses from the Company\u2019s cost savings initiatives, partially offset by lower revenue net of model costs. The increase in loss for the nine months ended September 30, 2020 was primarily due to the decrease in revenues net of model costs, partially offset by a decrease in operating expenses.<\/p>\n

\n COVID-19 Pandemic<\/strong>\n <\/p>\n

On March 11, 2020, the World Health Organization declared the outbreak of novel coronavirus (COVID-19) as a pandemic, which has spread rapidly throughout the United States and the world. The Company\u2019s revenues are heavily dependent on the level of economic activity in the United States and the United Kingdom, particularly in the fashion, advertising and publishing industries, all of which have been negatively impacted by the pandemic and may not recover as quickly as other sectors of the economy. There have been mandates from federal, state, and local authorities requiring forced closures of non-essential businesses. As a result, beginning in March 2020, the Company has seen a significant reduction in customer bookings, resulting in a negative impact to revenue and earnings. During the third quarter of 2020, bookings increased from the preceding months, but remained significantly below pre-pandemic levels.<\/p>\n

In addition to reduced revenue, business operations have been adversely affected by reductions in productivity, limitations on the ability of customers to make timely payments, disruptions in talents\u2019 ability to travel to needed locations, and supply chain disruptions impeding clothing or footwear wardrobe from reaching destinations for photoshoots and other bookings. Many of the Company\u2019s customers are large retail and fashion companies, which have had to close stores in the United States and internationally due to orders from local authorities to help slow the spread of COVID-19. Some of these customers have filed for bankruptcy in 2020 and others may be unable to pay amounts already owed to the Company, resulting in increased future bad debt expense. These customers also may not emerge from the pandemic with the financial ability, or need, to purchase Wilhelmina\u2019s services to the extent that they did in previous years. Some of our model talent have been quarantined with family far from the major cities where Wilhelmina\u2019s offices are located, and also away from where most modeling jobs take place. Many U.S. and international airlines have decreased their flight schedules which, as economic activities resumes and clients increase booking requests, may make it difficult for our talent to be available when and where they are needed. While these disruptions are currently expected to be temporary, there continues to be uncertainty around the duration.<\/p>\n

Postponed and cancelled bookings related to the pandemic contributed significantly to reduced revenues and increased operating losses during the first nine months of 2020. Although some clients increased activity and bookings during the third quarter of 2020, rising COVID-19 infection rates in cities where Wilhelmina operates could lead to a slower economic recovery in those markets, and possible additional business closings or local mandates that could slow the recovery in our operations there. Since Wilhelmina extends customary payment terms to its clients, even as bookings resume, there is likely to be a lag before significant cash collections return. In the meantime, the Company continues to have significant employee, office rent, and other expenses.<\/p>\n

Reduced outstanding accounts receivable available as collateral under the Company\u2019s credit agreement with Amegy Bank has limited access to additional financing. Net losses in recent periods have also impacted compliance with the financial covenants under the Amegy Bank credit agreement, further impeding the Company\u2019s ability to obtain additional financing. Since the pandemic began, many stock markets, including Nasdaq Capital Market where Wilhelmina\u2019s common stock is listed, have been volatile. A further decline in the Company\u2019s stock price would reduce our market capitalization and could require additional goodwill or intangible asset impairment writedowns.<\/p>\n

The Company has taken the following actions to address the impact of COVID-19 and the current recessionary environment, in order to efficiently manage the business and maintain adequate liquidity and maximum flexibility:<\/p>\n