Wilhelmina International (WHLM) 10-Q 11 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 11, 2018
Document Information [Line Items]
Entity Registrant Name	Wilhelmina International, Inc.
Entity Central Index Key	1,013,706
Trading Symbol	whlm
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		5,376,040
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,564	$ 4,256
Accounts receivable, net of allowance for doubtful accounts of $2,209 and $2,171, respectively	15,141	13,627
Prepaid expenses and other current assets	243	180
Total current assets	18,948	18,063
Property and equipment, net of accumulated depreciation of $2,566 and $2,349, respectively	2,984	3,039
Trademarks and trade names with indefinite lives	8,467	8,467
Other intangibles with finite lives, net of accumulated amortization of$8,628 and $8,609, respectively	109	128
Goodwill	13,192	13,192
Other assets	132	137
TOTAL ASSETS	43,832	43,026
Current liabilities:
Accounts payable and accrued liabilities	4,146	3,985
Due to models	10,612	10,190
Term loan - current	530	524
Total current liabilities	15,288	14,699
Long term liabilities:
Deferred income tax liability	532	521
Term loan - non-current	1,488	1,623
Total long-term liabilities	2,020	2,144
Total liabilities	17,308	16,843
Shareholders’ equity:
Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued at March 31, 2018 and December 31, 2017	65	65
Treasury stock, 1,095,998 and 1,090,370 at March 31, 2018 and December 31, 2017, at cost	(4,929)	(4,893)
Additional paid-in capital	88,001	87,892
Accumulated deficit	(56,660)	(56,885)
Accumulated other comprehensive loss	47	4
Total shareholders’ equity	26,524	26,183
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 43,832	$ 43,026

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable, allowance for doubtful account	$ 2,209	$ 2,171
Property and equipment, accumulated depreciation	2,566	2,349
Other intangibles, accumulated depreciation	$ 8,628	$ 8,609
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	9,000,000	12,500,000
Common stock, shares issued (in shares)	6,472,038	6,472,038
Treasury stock, shares (in shares)	1,095,998	1,090,370

Statements of Operations and Co

Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Service revenues	$ 19,716	$ 19,151
Model costs	13,842	13,699
Revenues net of model costs	5,874	5,452
Operating expenses:
Salaries and service costs	3,559	3,636
Office and general expenses	1,378	1,152
Amortization and depreciation	236	217
Corporate overhead	337	346
Total operating expenses	5,510	5,351
Operating income	364	101
Other expense:
Foreign exchange loss	(20)	(22)
Interest expense	(25)	(29)
Loss from unconsolidated affiliate		(29)
Total other expense	(45)	(80)
Income before provision for income taxes	319	21
Provision for income taxes: (expense) benefit:
Current	(84)	(60)
Deferred	(10)	48
Income tax expense	(94)	(12)
Net income	225	9
Other comprehensive income:
Foreign currency translation income	43	45
Total comprehensive income	$ 268	$ 54
Basic income per common share (in dollars per share)	$ 0.04	$ 0
Diluted income per common share (in dollars per share)	$ 0.04	$ 0
Weighted average common shares outstanding-basic (in shares)	5,381	5,382
Weighted average common shares outstanding-diluted (in shares)	5,402	5,399
Service [Member]
Revenues:
Service revenues	$ 19,702	$ 19,123
License Fees and Other [Member]
Revenues:
Service revenues	$ 14	$ 28

Consolidated Statements of Cash

Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income:	$ 225	$ 9
Adjustments to reconcile net income to net cash used in operating activities:
Amortization and depreciation	236	217
Share based payment expense	109	124
Deferred income taxes	11	(46)
Bad debt expense	45	38
Changes in operating assets and liabilities:
Accounts receivable	(1,559)	(1,576)
Prepaid expenses and other current assets	(63)	500
Other assets	5	39
Due to models	422	413
Accounts payable and accrued liabilities	161	(1,079)
Contingent liability to seller		(97)
Net cash used by operating activities	(408)	(1,458)
Cash flows from investing activities:
Purchases of property and equipment	(162)	(254)
Net cash used in investing activities	(162)	(254)
Cash flows from financing activities:
Purchases of treasury stock	(36)
Repayment of term loan	(129)	(124)
Net cash used in financing activities	(165)	(124)
Foreign currency effect on cash flows:	43	45
Net change in cash and cash equivalents:	(692)	(1,791)
Cash and cash equivalents, beginning of period	4,256	5,688
Cash and cash equivalents, end of period	3,564	3,897
Supplemental disclosures of cash flow information:
Cash paid for interest	24	29
Cash refund of income taxes	$ 10	$ 69

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 1. The interim consolidated financial statements included herein have been prepared by Wilhelmina International, Inc. (together with its subsidiaries "Wilhelmina" or the "Company") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Although certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to those rules and regulations, all adjustments considered necessary in order to make the consolidated financial statements not 10 December 31, 2017. not may

Note 2 - Business

Note 2 - Business	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Nature of Operations [Text Block]	Note 2. The primary business of Wilhelmina is fashion model management. These business operations are headquartered in New York City. The Company’s predecessor was founded in 1967 one

Note 3 - New Accounting Standar

Note 3 - New Accounting Standards	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3. Accounting Standard Update (“ASU”) 2014 09, January 1, 2018,

Note 4 - Foreign Currency Trans

Note 4 - Foreign Currency Translation	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Foreign Currency Disclosure [Text Block]	Note 4. The functional currency of London is the British Pound. Assets and liabilities are translated into U.S. dollars at the exchange rates in effect at each balance sheet date, revenues and expenses are translated at average monthly exchange rates and resulting translation gains or losses are accumulated in other comprehensive income as a separate component of shareholders’ equity.

Note 5 - Line of Credit

Note 5 - Line of Credit	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 5. The Company has a credit agreement with Amegy Bank which provides a $4.0 $3.0 October 24, 2016. 80% $20.0 0.50% March 31, 2018, $0.2 $1.1 October 24, 2018. On August 16, 2016, $2.7 4.5% November, 2016, 47 60 October 24, 2020.

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 6. On October 24, 2013, January 6, 2014, August 11, 2014, March 3, 2014, “may not not not October 6, 2015, June 2016. May 26, 2017. three five two April 10, 2018. August 16, 2017, On June 6, 2016, August 16, 2017. September 29, 2017, April 20, 2018. In addition to the legal proceedings disclosed herein, the Company is also engaged in various legal proceedings that are routine in nature and incidental to its business. None

Note 7 - Income Taxes

Note 7 - Income Taxes	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 7. Generally, the Company’s combined effective tax rate is high relative to reported net income as a result of certain amounts of amortization expense, stock based compensation, and corporate overhead not not four March 31, 2018, $1.8 The U.S. Tax Cuts and Jobs Act was enacted on December 22, 2017 2018, 35% 21%

Note 8 - Common Stock

Note 8 - Common Stock	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 8. On July 7, 2017, June 13, 2017, 12,500,000 9,000,000

Note 9 - Treasury Shares

Note 9 - Treasury Shares	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Treasury Stock [Text Block]	Note 9. During 2012, 500,000 2013, 1,000,000 On August 12, 2016, 500,000 may 1,500,000 may not may From 2012 March 31, 2018, 1,095,998 $4.50 $4.9 first three 2018, 5,628

Note 10 - Related Parties

Note 10 - Related Parties	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	Note 10. The Executive Chairman of the Company, Mark E. Schwarz, is also the chairman, chief executive officer and portfolio manager of Newcastle Capital Management, L.P. (“NCM”). NCM is the general partner of Newcastle Partners L.P. (“Newcastle”), which is the largest shareholder of the Company. James Dvorak (Managing Director at NCM) also serves as a director of the Company. The Company’s corporate headquarters are located at 200 1400, 75201, $2.5 $7.5 three March 31, 2018 2017. not March 31, 2018 2017. The Company previously owned an unconsolidated 50% 14 December 9, 2016, March 1, 2017, $0.1 December 9, 2016 no

Note 5 - Line of Credit (Detail

Note 5 - Line of Credit (Details Textual) - Amegy [Member] - USD ($) $ in Millions	Oct. 24, 2017	Mar. 31, 2018	Oct. 23, 2017
Line of Credit, Extension of Maturity	2 years 255 days
Letters of Credit, Issuance Fee	47.00%		4.50%
Credit Agreement After Fifth Amendment [Member]
Debt Agreement, Borrowing Base Percentage of Collateral Modified From		80.00%
Debt Agreement, Covenant Compliance, Minimum Net Worth		$ 20
Credit Agreement After Fifth Amendment [Member] | Revolving Credit Facility [Member]
Debt Agreement, Maximum Borrowing Capacity		4
Line of Credit Facility, Additional Borrowing Capacity		1.1
Credit Agreement After Fifth Amendment [Member] | Term Loan [Member]
Debt Agreement, Maximum Borrowing Capacity		$ 3
Credit Agreement After Fifth Amendment [Member] | Term Loan [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		0.50%
Credit Agreement After Fifth Amendment [Member] | Standby Letters of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 0.2

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2018
Operating Loss Carryforwards, Total			$ 1.8
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		35.00%
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%

Note 8 - Common Stock (Details

Note 8 - Common Stock (Details Textual) - shares	Mar. 31, 2018	Dec. 31, 2017	Jul. 07, 2017	Dec. 31, 2016
Common Stock, Shares Authorized	9,000,000	12,500,000	9,000,000	12,500,000

Note 9 - Treasury Shares (Detai

Note 9 - Treasury Shares (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Aug. 12, 2016	Mar. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2013	Dec. 31, 2012
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	1,500,000				1,000,000	500,000
Stock Repurchase Program, Additional Shares Authorized	500,000
Treasury Stock, Shares, Ending Balance		1,095,998	1,095,998	1,090,370
Treasury Stock Acquired, Average Cost Per Share			$ 4.50
Treasury Stock, Value, Acquired, Cost Method			$ 4.9
Treasury Stock, Shares, Acquired		5,628

Note 10 - Related Parties (Deta

Note 10 - Related Parties (Details Textual) - USD ($)	Mar. 01, 2017	Mar. 31, 2018	Mar. 31, 2017
Wilhelmina Kids and Creative Management, LLC [Member]
Equity Method Investment, Ownership Percentage	50.00%
NCM [Member]
Due to Related Parties, Current, Total		$ 0	$ 0
Rent [Member]
Related Party Transaction, Monthly Rent		2,500
Services Agreements [Member]
Related Party Transaction, Expenses from Transactions with Related Party		$ 7,500	$ 7,500
Payments to Liquidate Enterprise [Member] | Wilhelmina Kids and Creative Management, LLC [Member]
Related Party Transaction, Amounts of Transaction	$ 100,000