Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media
and consumer products company with significant expertise in
livestream shopping and social commerce, today announced its
financial results for the quarter ended June 30, 2023.
Robert W. D'Loren, Chairman and Chief Executive
Officer of Xcel commented, “Our second quarter financial results
reflect the initial success of our restructuring efforts. As a
result of these near-term actions, we have transformed Xcel Brands
into a modern, asset-light, and highly profitable social commerce
media and consumer products company. During the second quarter, we
announced exciting, new master licensing agreements with Jewelry TV
for our Judith Ripka brand, G-III Apparel Group for our Halston
brand, and One Jeanswear Group for our C Wonder brand. These
licenses are a tremendous opportunity to grow our brands in the
future, and will allow us to focus on developing, acquiring, and
growing brands that have dedicated social audiences, as well as the
upcoming roll-out of our groundbreaking social commerce
marketplace.”
Mr. D’Loren continued, “We have created a
powerful platform supported by compelling brands and partners that
will elevate our brands and drive highly profitable licensing
revenue for the Company. During the 2023 second quarter, we
significantly improved our operating results. In addition, we
believe we are well positioned to achieve positive monthly EBITDA
in the fourth quarter, while we have also de-risked the business in
a challenging retail environment and ended the second quarter with
no debt, $3.5 million in cash. This provides us with significant
flexibility to invest in our brands, support new growth
initiatives, including the upcoming release of our social commerce
marketplace, and drive meaningful value for our shareholders in
2023 and beyond.”
Second Quarter 2023 Financial
Results
Total revenue for the second quarter of 2023 was
$6.8 million, representing a decrease of approximately $1.7 million
(-20%) from the second quarter of 2022, but an increase of
approximately $0.7 million (+12.1%) from the first quarter of 2023.
The year-over-year revenue decline in the second quarter of 2023
was driven by a $2.7 million decrease in licensing revenue,
primarily attributable to the sale of a majority interest in the
Isaac Mizrahi brand in May 2022, partially offset by an increase of
approximately $1.1 million in net sales, largely due to the sale of
the Company’s Judith Ripka fine jewelry inventory to JTV in
connection with new contractual arrangements with JTV.
Net loss attributable to Xcel Brands for the
quarter was approximately $3.5 million, or ($0.18) per share,
compared with net income of $9.5 million, or $0.48 per diluted
share, for the prior year quarter, which included a $20.6 million
gain on the sale of a majority interest in the Isaac Mizrahi
brand.
After adjusting for certain cash and non-cash
items, results on a non-GAAP basis were a net loss of approximately
$1.7 million, or ($0.09) per share for the quarter ended June 30,
2023, and a net loss of approximately $3.6 million, or ($0.18) per
share, for the prior year quarter. Adjusted EBITDA improved
significantly on a year-over-year basis to negative $0.9 million
for the current quarter as compared with negative $2.8 million for
the prior year quarter. Adjusted EBITDA also improved by $1.1
million and $5.0 million as compared with the quarters ending March
31, 2023, and December 31, 2022, respectively, primarily as a
result of the restructuring of our business and entry into the new
long-term license agreements for our Judith Ripka, Halston, and C
Wonder brands.
Six Month 2023 Financial
Results
Total revenue for the current six-month period
was $12.8 million, representing a decrease of approximately $4.4
million from the prior year period of 2022. The year-over-year
revenue decline from the prior six-month period compared with the
current six-month period was driven by a $6.5 million decrease in
licensing revenue, primarily attributable to the sale of a majority
interest in the Isaac Mizrahi brand in May 2022, partially offset
by an increase of approximately $2.1 million in net sales.
Net loss attributable to Xcel Brands for the
current six-month period was approximately $9.1 million, or ($0.46)
per share, compared with net income of $6.0 million, or $0.31 per
diluted share, for the prior year six months, which included a
$20.6 million gain on the sale of a majority interest in the Isaac
Mizrahi brand.
After adjusting for certain cash and non-cash
items, results on a non-GAAP basis were a net loss of approximately
$5.3 million, or $(0.27) per share for the six months ended June
30, 2023, compared with a net loss of approximately $5.5 million,
or $(0.28) per share, for the six months ended June 30, 2022.
Adjusted EBITDA was negative $2.9 million, as compared with
approximately $3.7 million for the current year six months and
prior year comparable period, respectively, and represents an
increase of $5.9 million as compared with Adjusted EBITDA for the
prior six-month period ending December 31, 2022.
Balance Sheet
The Company's balance sheet at June 30, 2023,
reflected stockholders' equity of approximately $61 million, cash
and cash equivalents of approximately $3.5 million, and working
capital, exclusive of the current portion of lease obligations, of
approximately $6.0 million. The Company did not have any short-term
or long-term debt as of June 30, 2023.
Conference Call and Webcast
The Company will host a conference call with
members of the executive management team to discuss these results
with additional comments and details at 5:00 p.m. Eastern Time on
August 10, 2023. A webcast of the conference call will be available
live on the Investor Relations section of Xcel's website at
www.xcelbrands.com. Interested parties unable to access the
conference call via the webcast may dial 800-715-9871 or
646-307-1963 and use the passcode 1869992 and pin 2453. A replay of
the webcast will be available on Xcel’s website.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and
consumer products company engaged in the design, production,
marketing, live streaming, social commerce and direct-to-consumer
sales of branded apparel, footwear, accessories, fine jewelry, home
goods and other consumer products, and the acquisition of dynamic
consumer lifestyle brands. Xcel was founded in 2011 with a vision
to reimagine shopping, entertainment, and social media as one
thing. Xcel owns the Judith Ripka, Halston, LOGO by Lori Goldstein,
and C. Wonder brands and a minority stake in the Isaac Mizrahi
brand. It also owns and manages the Longaberger brand through its
controlling interest in Longaberger Licensing LLC. Xcel is
pioneering a true modern consumer products sales strategy which
includes the promotion and sale of products under its brands
through interactive television, digital live-stream shopping,
social commerce, brick-and-mortar retail, and e-commerce channels
to be everywhere its customers shop. The company’s brands have
generated in excess of $4 billion in retail sales via livestreaming
in interactive television and digital channels alone. Headquartered
in New York City, Xcel Brands is led by an executive team with
significant live streaming, production, merchandising, design,
marketing, retailing, and licensing experience, and a proven track
record of success in elevating branded consumer products companies.
www.xcelbrands.com
Forward Looking Statements
This press release contains forward-looking
statements. All statements other than statements of historical fact
contained in this press release, including statements regarding
future events, our future financial performance, business strategy
and plans and objectives of management for future operations, are
forward-looking statements. We have attempted to identify
forward-looking statements by terminology including "anticipates,"
"believes," "can," "continue," "ongoing," "could," "estimates,"
"expects," "intends," "may," "appears," "suggests," "future,"
"likely," "goal," "plans," "potential," "projects," "predicts,"
"seeks," "should," "would," "guidance," "confident" or "will" or
the negative of these terms or other comparable terminology. These
forward-looking statements include, but are not limited to,
statements regarding our anticipated revenue, expenses,
profitability, strategic plans and capital needs. These statements
are based on information available to us on the date hereof and our
current expectations, estimates and projections and are not
guarantees of future performance. Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and
other factors, including, without limitation, the risks discussed
in the "Risk Factors" section and elsewhere in the Company's Annual
Report on form 10-K for the year ended December 31, 2021 and its
other filings with the SEC, which may cause our or our industry's
actual results, levels of activity, performance or achievements to
differ materially from those expressed or implied by these
forward-looking statements. Moreover, we operate in a very
competitive and rapidly changing environment. New risks emerge from
time to time, and it is not possible for us to predict all risk
factors, nor can we address the impact of all factors on our
business or the extent to which any factor, or combination of
factors, may cause our actual results to differ materially from
those contained in any forward-looking statements. You should not
place undue reliance on any forward-looking statements. Except as
expressly required by the federal securities laws, we undertake no
obligation to update any forward-looking statements, whether as a
result of new information, future events, changed circumstances or
any other reason.
For further information please contact:
Andrew BergerSM Berger & Company, Inc.
216-464-6400andrew@smberger.com
|
Xcel Brands,
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Statements of Operations |
(in
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Net licensing revenue |
|
$ |
2,428 |
|
|
$ |
5,175 |
|
|
$ |
4,650 |
|
|
$ |
11,136 |
|
Net sales |
|
|
4,353 |
|
|
|
3,292 |
|
|
|
8,181 |
|
|
|
6,078 |
|
Net revenue |
|
|
6,781 |
|
|
|
8,467 |
|
|
|
12,831 |
|
|
|
17,214 |
|
Cost of goods sold |
|
|
3,800 |
|
|
|
2,570 |
|
|
|
6,493 |
|
|
|
4,250 |
|
Gross profit |
|
|
2,981 |
|
|
|
5,897 |
|
|
|
6,338 |
|
|
|
12,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, benefits and employment taxes |
|
|
2,241 |
|
|
|
5,236 |
|
|
|
5,706 |
|
|
|
10,089 |
|
Other selling, general and administrative expenses |
|
|
2,943 |
|
|
|
4,288 |
|
|
|
6,436 |
|
|
|
7,712 |
|
Total operating costs and expenses |
|
|
5,184 |
|
|
|
9,524 |
|
|
|
12,142 |
|
|
|
17,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss before other expenses, including non-cash
expenses |
|
|
(2,203 |
) |
|
|
(3,627 |
) |
|
|
(5,804 |
) |
|
|
(4,837 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, including non-cash expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,786 |
|
|
|
1,812 |
|
|
|
3,583 |
|
|
|
3,632 |
|
Gain on sale of assets |
|
|
- |
|
|
|
(20,608 |
) |
|
|
- |
|
|
|
(20,608 |
) |
Loss from equity method investment |
|
|
515 |
|
|
|
- |
|
|
|
1,030 |
|
|
|
- |
|
Gain on sale of limited partner ownership |
|
|
(351 |
) |
|
|
- |
|
|
|
(351 |
) |
|
|
- |
|
Loss on Lease Liability |
|
|
(445 |
) |
|
|
- |
|
|
|
(445 |
) |
|
|
- |
|
Other expense, including non-cash expenses |
|
|
1,505 |
|
|
|
(18,796 |
) |
|
|
3,817 |
|
|
|
(16,976 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income |
|
|
(3,708 |
) |
|
|
15,169 |
|
|
|
(9,621 |
) |
|
|
12,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense - term loan debt |
|
|
- |
|
|
|
479 |
|
|
|
- |
|
|
|
1,187 |
|
Other interest and finance charges (income), net |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
18 |
|
|
|
- |
|
Loss on early extinguishment of debt |
|
|
- |
|
|
|
2,324 |
|
|
|
- |
|
|
|
2,324 |
|
Total interest and finance expense |
|
|
(7 |
) |
|
|
2,802 |
|
|
|
18 |
|
|
|
3,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(loss) income before income taxes |
|
|
(3,701 |
) |
|
|
12,367 |
|
|
|
(9,639 |
) |
|
|
8,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit |
|
|
- |
|
|
|
3,178 |
|
|
|
- |
|
|
|
3,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income |
|
|
(3,701 |
) |
|
|
9,189 |
|
|
|
(9,639 |
) |
|
|
5,450 |
|
Less: Net loss attributable to noncontrolling interest |
|
|
(233 |
) |
|
|
(301 |
) |
|
|
(528 |
) |
|
|
(553 |
) |
Net
(loss) income attributable to Xcel Brands, Inc.
stockholders |
|
$ |
(3,468 |
) |
|
$ |
9,490 |
|
|
$ |
(9,111 |
) |
|
$ |
6,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share attributed to Xcel Brands, Inc. common
stockholders: |
|
|
|
|
|
|
|
|
|
|
Diluted net
(loss) income per share |
|
$ |
(0.18 |
) |
|
$ |
0.48 |
|
|
$ |
(0.46 |
) |
|
$ |
0.31 |
|
Basic net
(loss) income per share |
|
$ |
(0.18 |
) |
|
$ |
0.48 |
|
|
$ |
(0.46 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average common shares outstanding |
|
|
19,735,500 |
|
|
|
19,677,243 |
|
|
|
19,684,630 |
|
|
|
19,624,474 |
|
Diluted
weighted average common shares outstanding |
|
|
19,735,500 |
|
|
|
19,814,448 |
|
|
|
19,684,630 |
|
|
|
19,756,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xcel Brands,
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Balance Sheets |
(in
thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,507 |
|
|
|
$ |
4,608 |
|
Accounts receivable, net |
|
|
6,878 |
|
|
|
|
5,110 |
|
Inventory |
|
|
798 |
|
|
|
|
2,845 |
|
Prepaid expenses and other current assets |
|
|
554 |
|
|
|
|
1,457 |
|
Total current assets |
|
|
11,737 |
|
|
|
|
14,020 |
|
|
|
|
|
|
|
|
|
Non-Current Assets: |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
916 |
|
|
|
|
1,418 |
|
Operating lease right-of-use assets |
|
|
4,946 |
|
|
|
|
5,420 |
|
Trademarks and other intangibles, net |
|
|
44,590 |
|
|
|
|
47,665 |
|
Equity method investment |
|
|
18,165 |
|
|
|
|
19,195 |
|
Deferred tax assets, net |
|
|
1,107 |
|
|
|
|
1,107 |
|
Other assets |
|
|
25 |
|
|
|
|
110 |
|
Total non-current assets |
|
|
69,749 |
|
|
|
|
74,915 |
|
Total Assets |
|
$ |
81,486 |
|
|
|
$ |
88,935 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current
liabilities |
|
$ |
2,750 |
|
|
|
$ |
3,870 |
|
Deferred revenue |
|
|
922 |
|
|
|
|
88 |
|
Accrued income taxes payable |
|
|
555 |
|
|
|
|
568 |
|
Accrued payroll |
|
|
154 |
|
|
|
|
416 |
|
Current portion of operating lease obligations |
|
|
1,219 |
|
|
|
|
1,376 |
|
Current portion of contingent obligations |
|
|
1,400 |
|
|
|
|
243 |
|
Total current liabilities |
|
|
7,000 |
|
|
|
|
6,561 |
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
Long-term portion of operating lease obligations |
|
|
4,660 |
|
|
|
|
5,839 |
|
Long-term Deferred revenue |
|
|
4,207 |
|
|
|
|
- |
|
Contingent obligations |
|
|
4,996 |
|
|
|
|
6,396 |
|
Total long-term liabilities |
|
|
13,863 |
|
|
|
|
12,235 |
|
Total
Liabilities |
|
|
20,863 |
|
|
|
|
18,796 |
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
Preferred stock, $.001 par value, 1,000,000 shares authorized, none
issued and outstanding |
|
|
- |
|
|
|
|
- |
|
Common stock, $.001 par value, 50,000,000 shares authorized, and
19,700,656 and 19,624,860 shares issued and outstanding at June 30,
2023 and December 31, 2022. |
|
|
20 |
|
|
|
|
20 |
|
Paid-in capital |
|
|
103,715 |
|
|
|
|
103,592 |
|
Accumulated deficit |
|
|
(41,908 |
) |
|
|
|
(32,797 |
) |
Total Xcel Brands, Inc. stockholders' equity |
|
|
61,827 |
|
|
|
|
70,815 |
|
Noncontrolling interest |
|
|
(1,204 |
) |
|
|
|
(676 |
) |
Total Equity |
|
|
60,623 |
|
|
|
|
70,139 |
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
81,486 |
|
|
|
$ |
88,935 |
|
|
|
|
|
|
|
|
|
|
Xcel Brands,
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Statements of Cash Flows |
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
June 30, |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Cash
flows from operating activities |
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(9,639 |
) |
|
|
$ |
5,450 |
|
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation
and amortization expense |
|
|
3,583 |
|
|
|
|
3,632 |
|
Asset
impairment charges |
|
|
100 |
|
|
|
|
- |
|
Amortization
of deferred finance costs |
|
|
- |
|
|
|
|
156 |
|
Stock-based
compensation |
|
|
122 |
|
|
|
|
517 |
|
Allowance
for doubtful accounts |
|
|
- |
|
|
|
|
90 |
|
Proportional
share of trademark amortization of equity method investee |
|
|
1,030 |
|
|
|
|
- |
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
|
2,324 |
|
Deferred
income tax benefit |
|
|
- |
|
|
|
|
1,384 |
|
Net gain on
sale of assets |
|
|
|
|
|
|
(20,608 |
) |
Gain on sale
of limited partner ownership interest |
|
|
(351 |
) |
|
|
|
- |
|
Gain on
settlement of lease liability |
|
|
(445 |
) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(1,768 |
) |
|
|
|
(1,741 |
) |
Inventory |
|
|
2,047 |
|
|
|
|
(100 |
) |
Prepaid
expenses and other assets |
|
|
863 |
|
|
|
|
8 |
|
Deferred
revenue |
|
|
5,041 |
|
|
|
|
347 |
|
Accounts
payable, accrued expenses and other current liabilities |
|
|
(1,637 |
) |
|
|
|
205 |
|
Lease-related assets and liabilities |
|
|
(417 |
) |
|
|
|
(159 |
) |
Other
Liabilities |
|
|
- |
|
|
|
|
(224 |
) |
Net
cash used in by operating activities |
|
|
(1,471 |
) |
|
|
|
(8,719 |
) |
|
|
|
|
|
|
|
|
Cash
flows from investing activities |
|
|
|
|
|
|
|
Net proceeds
from sale of majority interest in Isaac Mizrahi brand |
|
|
- |
|
|
|
|
45,408 |
|
Net proceeds
from sale of assets |
|
|
451 |
|
|
|
|
- |
|
Purchase of
property and equipment |
|
|
(81 |
) |
|
|
|
(85 |
) |
Net
cash provided by investing activities |
|
|
370 |
|
|
|
|
45,323 |
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities |
|
|
|
|
|
|
|
Shares
repurchased including vested restricted stock in exchange for
withholding taxes |
|
|
- |
|
|
|
|
(442 |
) |
Payment of
long-term debt |
|
|
- |
|
|
|
|
(29,000 |
) |
Payment of
breakage fees associated with extinguishment of long-term debt |
|
|
- |
|
|
|
|
(1,511 |
) |
Net
cash used in financing activities |
|
|
- |
|
|
|
|
(30,953 |
) |
|
|
|
|
|
|
|
|
Net
(decrease) increase in cash, cash equivalents, and restricted
cash |
|
|
(1,101 |
) |
|
|
|
5,651 |
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash at beginning of period |
|
|
4,608 |
|
|
|
|
5,222 |
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash at end of period |
|
$ |
3,507 |
|
|
|
$ |
10,873 |
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
- |
|
|
|
$ |
1,032 |
|
Cash paid during the period for income taxes |
|
$ |
16 |
|
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Non-GAAP net income and non-GAAP diluted EPS are
non-GAAP unaudited terms. We define non-GAAP net income as net
income (loss) attributable to Xcel Brands, Inc. stockholders,
exclusive of amortization of trademarks, proportional share of
trademark amortization of equity method investee, stock-based
compensation, loss on extinguishment of debt, gain on the sale of
assets, gain on lease termination, asset impairment and income
taxes. Non-GAAP net income and non-GAAP diluted EPS measures do not
include the tax effect of the aforementioned adjusting items, due
to the nature of these items and the Company’s tax strategy.
Adjusted EBITDA is a non-GAAP unaudited measure,
which we define as net income (loss) attributable to Xcel Brands,
Inc. stockholders, before depreciation and amortization, interest
and finance expenses (including loss on extinguishment of debt, if
any), proportional share of trademark amortization of equity method
investee, stock-based compensation, gain on the sale of assets,
gain on lease termination, asset impairment, losses from
discontinued businesses and income taxes income taxes, other state
and local franchise taxes.
Management uses non-GAAP net income, non-GAAP
diluted EPS, and Adjusted EBITDA as measures of operating
performance to assist in comparing performance from period to
period on a consistent basis and to identify business trends
relating to our results of operations. Management believes non-GAAP
net income, non-GAAP diluted EPS, and Adjusted EBITDA are also
useful because these measures adjust for certain costs and other
events that management believes are not representative of our core
business operating results, and thus these non-GAAP measures
provide supplemental information to assist investors in evaluating
our financial results. Adjusted EBITDA is the measure used to
calculate compliance with the EBITDA covenant under our term loan
agreement.
Non-GAAP net income, non-GAAP diluted EPS, and
Adjusted EBITDA should not be considered in isolation or as
alternatives to net income, earnings per share, or any other
measure of financial performance calculated and presented in
accordance with GAAP. Given that non-GAAP net income, non-GAAP
diluted EPS, and Adjusted EBITDA are financial measures not deemed
to be in accordance with GAAP and are susceptible to varying
calculations, our non-GAAP net income, non-GAAP diluted EPS, and
Adjusted EBITDA may not be comparable to similarly titled measures
of other companies, including companies in our industry, because
other companies may calculate these measures in a different manner
than we do. In evaluating non-GAAP net income, non-GAAP diluted
EPS, and Adjusted EBITDA, you should be aware that in the future we
may or may not incur expenses similar to some of the adjustments in
this document. Our presentation of non-GAAP net income, non-GAAP
diluted EPS, and Adjusted EBITDA does not imply that our future
results will be unaffected by these expenses or any unusual or
non-recurring items. When evaluating our performance, you should
consider non-GAAP net income, non-GAAP diluted EPS, and Adjusted
EBITDA alongside other financial performance measures, including
our net income and other GAAP results, and not rely on any single
financial measure.
|
|
|
|
($ in thousands) |
Three Months Ended |
|
Six Months Ended |
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
2023 |
|
2022 |
|
2023 |
|
2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net (loss) income attributable to Xcel Brands, Inc.
stockholders |
$ |
(3,468 |
) |
|
|
9,490 |
|
|
$ |
(9,111 |
) |
|
|
6,003 |
|
Amortization
of trademarks |
|
1,525 |
|
|
|
1,525 |
|
|
|
3,045 |
|
|
|
3,039 |
|
Proportional
share of trademark amortization of equity method investee |
|
515 |
|
|
|
- |
|
|
|
1,030 |
|
|
|
- |
|
Stock-based compensation |
|
65 |
|
|
|
485 |
|
|
|
122 |
|
|
|
517 |
|
Loss on
extinguishment of debt |
|
- |
|
|
|
2,324 |
|
|
|
- |
|
|
|
2,324 |
|
Gain on
the sale of assets |
|
- |
|
|
|
(20,608 |
) |
|
|
- |
|
|
|
(20,608 |
) |
Gain on
lease termination |
|
(445 |
) |
|
|
- |
|
|
|
(445 |
) |
|
|
- |
|
Asset
impairment |
|
100 |
|
|
|
- |
|
|
|
100 |
|
|
|
- |
|
Income tax
benefit |
|
- |
|
|
|
3,178 |
|
|
|
- |
|
|
|
3,178 |
|
Non-GAAP
net loss |
$ |
(1,708 |
) |
|
$ |
(3,606 |
) |
|
$ |
(5,259 |
) |
|
$ |
(5,547 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
2023 |
|
2022 |
|
2023 |
|
2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Diluted
loss per share |
$ |
(0.18 |
) |
|
$ |
0.48 |
|
|
$ |
(0.46 |
) |
|
$ |
0.30 |
|
Amortization
of trademarks |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.15 |
|
|
|
0.16 |
|
Proportional
share of trademark amortization of equity method investee |
|
0.03 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
- |
|
Stock-based compensation |
|
0.00 |
|
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
Loss on
extinguishment of debt |
|
- |
|
|
|
0.12 |
|
|
|
- |
|
|
|
0.12 |
|
Gain on
the sale of assets |
|
- |
|
|
|
(1.05 |
) |
|
|
- |
|
|
|
(1.05 |
) |
Gain on
lease termination |
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
|
- |
|
Asset
Impairment |
|
0.00 |
|
|
|
- |
|
|
|
0.00 |
|
|
|
- |
|
Income tax
benefit |
|
- |
|
|
|
0.16 |
|
|
|
- |
|
|
|
0.16 |
|
Non-GAAP
diluted EPS |
$ |
(0.09 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.28 |
) |
Non-GAAP
weighted average diluted shares |
|
19,735,500 |
|
|
|
19,677,243 |
|
|
|
19,684,630 |
|
|
|
19,624,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
Three Months Ended |
|
Six Months Ended |
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
2023 |
|
2022 |
|
2023 |
|
2022 |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net loss
attributable to Xcel Brands, Inc. stockholders |
$ |
(3,468 |
) |
|
$ |
9,490 |
|
|
$ |
(9,111 |
) |
|
$ |
6,003 |
|
Depreciation
and amortization |
|
1,786 |
|
|
|
1,812 |
|
|
|
3,583 |
|
|
|
3,632 |
|
Proportional
share of trademark amortization of equity method investee |
|
515 |
|
|
|
- |
|
|
|
1,030 |
|
|
|
- |
|
Interest
and finance expense |
|
(7 |
) |
|
|
2,802 |
|
|
|
18 |
|
|
|
3,511 |
|
Income tax
provision |
|
- |
|
|
|
3,178 |
|
|
|
- |
|
|
|
3,178 |
|
State and
local franchise taxes |
|
23 |
|
|
|
- |
|
|
|
44 |
|
|
|
36 |
|
Stock-based
compensation |
|
65 |
|
|
|
485 |
|
|
|
122 |
|
|
|
517 |
|
Gain on
the sale of assets |
|
- |
|
|
|
(20,608 |
) |
|
|
- |
|
|
|
(20,608 |
) |
Gain on
lease termination |
|
(445 |
) |
|
|
- |
|
|
|
(445 |
) |
|
|
- |
|
Asset
impairment |
|
100 |
|
|
|
- |
|
|
|
100 |
|
|
|
- |
|
Losses
from discontinued businesses |
|
495 |
|
|
|
- |
|
|
|
1,728 |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
(936 |
) |
|
$ |
(2,841 |
) |
|
$ |
(2,931 |
) |
|
$ |
(3,731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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