{"id":746868,"date":"2023-04-12T06:03:21","date_gmt":"2023-04-12T10:03:21","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/imedia-reports-fourth-quarter-2022-and-full-year-2022-results\/"},"modified":"2023-04-12T06:03:21","modified_gmt":"2023-04-12T10:03:21","slug":"imedia-reports-fourth-quarter-2022-and-full-year-2022-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/imedia-reports-fourth-quarter-2022-and-full-year-2022-results\/","title":{"rendered":"iMedia Reports Fourth Quarter 2022 and Full-Year 2022 Results"},"content":{"rendered":"
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Subsequent to Year-End, Completes $48 million Sale-Leaseback. Reduces Debt by $53 million<\/p>\n

Fiscal 2022 Net Sales were $545 million, a 1% Decrease to Fiscal 2021<\/p>\n

Q4 2022 Net Sales were $134 million, a 31% Decrease to Q4 2021<\/p>\n

MINNEAPOLIS, April 12, 2023 (GLOBE NEWSWIRE) — iMedia Brands, Inc. (the \u201cCompany\u201d or \u201ciMedia\u201d) (NASDAQ: IMBI, IMBIL) today announced results for the fourth quarter and full-year ended January 28, 2023.<\/p>\n

The Company also announced that on April 10, 2023, it simultaneously completed its previously announced sale-leaseback transaction with Pontus Net Lease Advisors, LLC, a division of Pontus Capital (\u201cSLB\u201d), together with multiple supporting transactions that materially reduced the Company\u2019s level of debt outstanding by $53 million. The Company also entered into a forbearance agreement with its senior lenders for a period of six months from the SLB date, these events are defined collectively as its Debt Reduction Event (\u201cDRE\u201d).<\/p>\n

The Company\u2019s debt today, after giving effect to the DRE, is approximately $123 million, which is approximately 41% lower than the Company\u2019s $207 million debt level at the end of Q1 2022.<\/p>\n

\n Company\u2019s DRE Completed on April 10, 2023<\/strong>\n <\/p>\n

    \n
  1. \n Sale Leaseback Transaction (\u201cSLB\u201d)<\/u>: $48 million in gross proceeds from the SLB for three of the Company\u2019s four buildings. Net proceeds were $42 million after deduction of lease deposit and fees. B. Riley Real Estate advised the Company.<\/li>\n
  2. \n Private Investment in Public Equity (\u201cPIPE\u201d<\/u>): $3.5 million in gross proceeds from the Company\u2019s PIPE that closed on April 10, 2023. Several investors purchased notes in a private placement bearing 7.75% interest that are convertible upon satisfaction of certain conditions to common stock and warrants to purchase 0.85 shares of common stock. The conversion price per share of common stock and warrant to purchase 0.85 shares of common stock represents a $0.10625 premium to the average closing price of the Company\u2019s common stock on the 5-day period preceding April 10, 2023. The warrants are exercisable per share of common stock at 110% of the closing price on the date prior to entry into the purchase agreement. Certain iMedia Directors and the Company\u2019s Chief Executive Officer invested an aggregate of $300,000 in the PIPE. The Company will seek an increase in authorized shares at its 2023 annual shareholder meeting to provide sufficient shares to permit full conversion of this convertible debt.<\/li>\n
  3. \n Green Lake Term Loan<\/u>: The Company retired 100% of its $29 million Green Lake term loan.<\/li>\n
  4. \n 123.tv Seller Note Amendment<\/u>: The Company entered into an amendment to reduce $12 million of the outstanding principal amount of the $20 million 123.tv Seller Notes issued by iMedia & 123tv Holding GmbH and guaranteed by the Company (\u201c123tv Notes\u201d). As consideration for the amendment, the Company will pay $3.5 million in cash and provide the 123tv Noteholders with a 10% common equity grant in the Company\u2019s 123.tv business by April 30, 2023. In addition,\u00a0subject to certain conditions, the Company has until September 29, 2023 to make a $3.8 million cash payment to the 123tv Noteholders to reduce the remaining principal outstanding based on certain discounts depending on the date and amounts of the payments.<\/li>\n
  5. \n Application of SLB Proceeds to Senior ABL Facility<\/u>: The Company applied $12 million of the SLB proceeds to its ABL revolving line of credit in connection with the ABL forbearance described below, which is then available for reborrowing in accordance with the terms of the ABL revolving loan agreement.<\/li>\n
  6. \n Senior ABL Forbearance<\/u>: Effective upon closing of the SLB transaction, the Company executed its tenth amendment with its senior asset-based lenders (the \u201cLenders\u201d), under its revolving credit facility agented by Siena Lending Group LLC (\u201cABL Agent\u201d), for a six-month forbearance term that is extendable another three months at the Company\u2019s election upon satisfaction of certain conditions. The forbearance is intended to provide the Company adequate time to replace or refinance the ABL credit facility in fiscal 2023. Key terms of the forbearance amendment include removal of the Net Senior Debt Leverage Ratio covenant, an adjusted availability block, an amendment fee of $850,000, a 200-basis-point increase in interest rate, additional potential milestone fees and early termination fees, and application of $12 million of the new SLB proceeds to reduce outstanding borrowings under the senior ABL revolving line of credit and which is available for reborrowing in accordance with the terms of the ABL revolving loan agreement.<\/li>\n<\/ol>\n

    \n CEO Commentary \u2013 Tim Peterman, CEO<\/strong>
    \n
    \u201c2022 was a productive year but not an easy one. As we discussed during our Capital Markets Day in February 2022, our priorities this past year were to integrate our 2021 strategic acquisitions, reduce our content distribution expenses, and strengthen our balance sheet. We successfully completed the first two priorities, but the strengthening of our balance sheet was delayed until this week.<\/p>\n

    While we were pleased to finally complete our Debt Reduction Event, especially since we exceeded our original debt reduction goals, the delay created an unexpected liquidity challenge in Q4 that required the Company to shift its focus to maximizing short-term cash optimization opportunities to fund principal loan repayments on our revolver loan. This restricted our working capital and negatively impacted our Q4 financial performance.<\/p>\n

    With the Debt Reduction Event behind us, our teams are now focused again on the operational fundamentals that produced eight sequential quarters of strong financial performance, and I want to thank our employees and vendors who continue to demonstrate the entrepreneurial grit that makes our journey such a vibrant and durable endeavor.\u201d<\/p>\n

    \n Fourth Quarter & Full Year 2022 Financial Highlights and Recent Events: <\/strong>\n <\/p>\n