{"id":526589,"date":"2021-08-11T08:33:25","date_gmt":"2021-08-11T12:33:25","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/wilhelmina-international-inc-reports-results-for-second-quarter-2021\/"},"modified":"2021-08-11T08:33:25","modified_gmt":"2021-08-11T12:33:25","slug":"wilhelmina-international-inc-reports-results-for-second-quarter-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/wilhelmina-international-inc-reports-results-for-second-quarter-2021\/","title":{"rendered":"Wilhelmina International, Inc. Reports Results for Second Quarter 2021"},"content":{"rendered":"
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\u00a0<\/p>\n

\n Exhibit 99.1<\/strong>
\n \n <\/p>\n

\n Second Quarter Financial Results<\/strong>\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\u00a0<\/td>\n\n Q2 21<\/strong>\n <\/td>\n\n Q2 20<\/strong>\n <\/td>\n\n YOY<\/strong>
\n
\n Change<\/strong>\n <\/td>\n		\n Q2 21<\/strong>
\n
\n YTD<\/strong>\n <\/td>\n		\n Q2 20<\/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\u00a0<\/td>\n$<\/td>\n14,510<\/td>\n$<\/td>\n4,528<\/td>\n220.5%<\/td>\n$<\/td>\n26,486<\/td>\n$<\/td>\n19,080<\/td>\n38.8%<\/td>\n<\/tr>\n
\n Operating Income (Loss) <\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n891<\/td>\n\u00a0<\/td>\n(3,140)<\/td>\n128.4%<\/td>\n\u00a0<\/td>\n991<\/td>\n\u00a0<\/td>\n(4,779)<\/td>\n120.7%<\/td>\n<\/tr>\n
\n Income (Loss) Before Provision for Taxes<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,423<\/td>\n\u00a0<\/td>\n(3,177)<\/td>\n144.8%<\/td>\n\u00a0<\/td>\n3,717<\/td>\n\u00a0<\/td>\n(4,778)<\/td>\n177.8%<\/td>\n<\/tr>\n
\n Net Income (Loss) <\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,121<\/td>\n\u00a0<\/td>\n(2,700)<\/td>\n141.5%<\/td>\n\u00a0<\/td>\n3,342<\/td>\n\u00a0<\/td>\n(5,360)<\/td>\n162.4%<\/td>\n<\/tr>\n
\n EBITDA** <\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,679<\/td>\n\u00a0<\/td>\n(2,856)<\/td>\n158.8%<\/td>\n\u00a0<\/td>\n4,268<\/td>\n\u00a0<\/td>\n(4,136)<\/td>\n203.2%<\/td>\n<\/tr>\n
\n Adjusted EBITDA**<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,135<\/td>\n\u00a0<\/td>\n(2,838)<\/td>\n140.0%<\/td>\n\u00a0<\/td>\n1,504<\/td>\n\u00a0<\/td>\n(3,377)<\/td>\n144.5%<\/td>\n<\/tr>\n
\n Pre-Corporate EBITDA**<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,333<\/td>\n\u00a0<\/td>\n(2,600)<\/td>\n151.3%<\/td>\n\u00a0<\/td>\n1,947<\/td>\n\u00a0<\/td>\n(2,830)<\/td>\n168.8%<\/td>\n<\/tr>\n
**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, Aug. 11, 2021 (GLOBE NEWSWIRE) — Wilhelmina International, Inc. (Nasdaq:WHLM) (“Wilhelmina” or the “Company”) today reported revenues of $14.5 million and net income of $1.1 million for the three months ended June 30, 2021, compared to revenues of $4.5 million and net loss of $2.7 million for the three months ended June 30, 2020. For the six months ended June 30, 2021, Wilhelmina reported revenues of $26.5 million and net income of $3.3 million compared to revenue of $19.1 million and net loss of $5.4 million for the six months ended June 30, 2020. During the three and six months ended June 30, 2021 and 2020, the novel coronavirus (COVID-19) pandemic had a material impact on revenues. In recent months, the Company\u2019s revenue has trended positively as the cities where it operates are reopening and COVID-19 vaccination rates increase.<\/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 spread rapidly throughout the United States and the world. As the global impact of COVID-19 continues, Wilhelmina\u2019s first priority has been to protect the health and safety of its employees and talent. To help mitigate the spread of the virus and in response to health advisories and governmental actions and regulations, the Company has modified its business practices and has implemented health and safety measures that are designed to protect employees and represented talent.<\/p>\n

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 saw a significant reduction in customer bookings, resulting in a negative impact to revenue and earnings. While bookings remain below pre-pandemic levels, during the second half of 2020 and the first half of 2021, bookings increased from the preceding months.<\/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, some of which have had to close stores in the United States and internationally due to the spread of COVID-19. Some of these customers have filed for bankruptcy 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 model talent have been quarantined 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 resume and clients increase booking requests, may make it difficult for talent to be available when and where they are needed. The B.1.1.7 (Alpha) and B.1.617.2 (Delta) variants of the COVID-19 virus, which are believed to spread easily and quickly, have resulted in increased local restrictions and mandates in the cities in which the Company operates. While these disruptions are currently expected to be temporary, there continues to be uncertainty around the duration.<\/p>\n

Although some clients have increased activity and bookings recently, 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 operations there. Since Wilhelmina extends customary payment terms to its clients, even as bookings resume, there is likely to be a lag in cash collections. 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 its access to additional financing. Net losses during 2020 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 decline in the Company\u2019s stock price would reduce its 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, in order to efficiently manage the business and maintain adequate liquidity and maximum flexibility:<\/p>\n