Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 11, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001013706 | |
Entity Registrant Name | Wilhelmina International, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36589 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2781950 | |
Entity Address, Address Line One | 5420 Lyndon B Johnson Freeway, Box #25 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 214 | |
Local Phone Number | 661-7488 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | WHLM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,157,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 10,861 | $ 11,998 |
Accounts receivable, net of allowance for doubtful accounts of $1,808 and $1,612, respectively | 9,713 | 9,467 |
Prepaid expenses and other current assets | 300 | 181 |
Total current assets | 20,874 | 21,646 |
Property and equipment, net of accumulated depreciation of $1,252 and $1,216, respectively | 344 | 307 |
Right of use assets-operating | 3,594 | 3,565 |
Right of use assets-finance | 123 | 138 |
Trademarks and trade names with indefinite lives | 8,467 | 8,467 |
Goodwill | 7,547 | 7,547 |
Other assets | 308 | 322 |
TOTAL ASSETS | 41,257 | 41,992 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 4,070 | 4,306 |
Due to models | 7,779 | 8,378 |
Contract liabilities | 0 | 270 |
Lease liabilities – operating, current | 471 | 385 |
Lease liabilities – finance, current | 63 | 62 |
Total current liabilities | 12,383 | 13,401 |
Long term liabilities: | ||
Deferred income tax, net | 980 | 985 |
Lease liabilities – operating, non-current | 3,346 | 3,310 |
Lease liabilities – finance, non-current | 68 | 85 |
Total long term liabilities | 4,394 | 4,380 |
Total liabilities | 16,777 | 17,781 |
Shareholders’ equity: | ||
Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued at March 31, 2023 and December 31, 2022 | 65 | 65 |
Treasury stock, 1,314,694 shares at March 31, 2023 and December 31, 2022, at cost | (6,371) | (6,371) |
Additional paid-in capital | 88,794 | 88,770 |
Accumulated deficit | (57,550) | (57,709) |
Accumulated other comprehensive loss | (458) | (544) |
Total shareholders’ equity | 24,480 | 24,211 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 41,257 | $ 41,992 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 1,808 | $ 1,612 |
Property and equipment, accumulated depreciation | $ 1,252 | $ 1,216 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Common stock, shares issued (in shares) | 6,472,038 | 6,472,038 |
Treasury stock, shares (in shares) | 1,314,694 | 1,314,694 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Revenues | $ 4,484 | $ 4,548 |
Revenues | 4,484 | 4,548 |
Operating expenses: | ||
Salaries and service costs | 2,880 | 2,652 |
Office and general expenses | 1,080 | 709 |
Amortization and depreciation | 51 | 59 |
Corporate overhead | 244 | 254 |
Total operating expenses | 4,255 | 3,674 |
Operating income | 229 | 874 |
Other expense: | ||
Foreign exchange loss | 18 | 6 |
Interest expense | 1 | 3 |
Total other expense | 19 | 9 |
Income before provision for income taxes | 210 | 865 |
Provision for income taxes: | ||
Current | (56) | (30) |
Deferred | 5 | (96) |
Provision for income taxes, net | (51) | (126) |
Net income | 159 | 739 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | 86 | (174) |
Total comprehensive income | $ 245 | $ 565 |
Basic net income per common share (in dollars per share) | $ 0.03 | $ 0.14 |
Diluted net income per common share (in dollars per share) | $ 0.03 | $ 0.14 |
Weighted average common shares outstanding-basic (in shares) | 5,157 | 5,157 |
Weighted average common shares outstanding-diluted (in shares) | 5,157 | 5,157 |
Service [Member] | ||
Revenues: | ||
Revenues | $ 4,476 | $ 4,541 |
Revenues | 4,476 | 4,541 |
License Fees [Member] | ||
Revenues: | ||
Revenues | 8 | 7 |
Revenues | $ 8 | $ 7 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2021 | 6,472 | (1,315) | ||||
Balances at Dec. 31, 2021 | $ 65 | $ (6,371) | $ 88,580 | $ (61,238) | $ (23) | $ 21,013 |
Share based payment expense | 0 | 0 | 55 | 0 | 0 | 55 |
Net income | 0 | 0 | 0 | 739 | 0 | 739 |
Foreign currency translation | $ 0 | $ 0 | 0 | 0 | (174) | (174) |
Balances (in shares) at Dec. 31, 2022 | 6,472 | (1,315) | ||||
Balances at Dec. 31, 2022 | $ 65 | $ (6,371) | 88,770 | (57,709) | (544) | 24,211 |
Share based payment expense | 0 | 0 | 24 | 0 | 0 | 24 |
Net income | 0 | 0 | 0 | 159 | 0 | 159 |
Foreign currency translation | $ 0 | $ 0 | $ 0 | $ 0 | $ 86 | $ 86 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2021 | 6,472 | (1,315) | ||||
Balances at Dec. 31, 2021 | $ 65 | $ (6,371) | $ 88,580 | $ (61,238) | $ (23) | $ 21,013 |
Share based payment expense | 0 | 0 | 55 | 0 | 0 | 55 |
Net income | 0 | 0 | 0 | 739 | 0 | 739 |
Foreign currency translation | $ 0 | $ 0 | 0 | 0 | (174) | (174) |
Balances (in shares) at Mar. 31, 2022 | 6,472 | (1,315) | ||||
Balances at Mar. 31, 2022 | $ 65 | $ (6,371) | 88,635 | (60,499) | (197) | 21,633 |
Balances (in shares) at Dec. 31, 2022 | 6,472 | (1,315) | ||||
Balances at Dec. 31, 2022 | $ 65 | $ (6,371) | 88,770 | (57,709) | (544) | 24,211 |
Share based payment expense | 0 | 0 | 24 | 0 | 0 | 24 |
Net income | 0 | 0 | 0 | 159 | 0 | 159 |
Foreign currency translation | $ 0 | $ 0 | 0 | 0 | 86 | 86 |
Balances (in shares) at Mar. 31, 2023 | 6,472 | (1,315) | ||||
Balances at Mar. 31, 2023 | $ 65 | $ (6,371) | $ 88,794 | $ (57,550) | $ (458) | $ 24,480 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income: | $ 159 | $ 739 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization and depreciation | 51 | 59 |
Share based payment expense | 24 | 55 |
Loss on foreign exchange rates | 15 | 6 |
Deferred income taxes | (5) | 96 |
Bad debt expense | 45 | 43 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (312) | (829) |
Prepaid expenses and other current assets | (117) | (103) |
Right of use assets-operating | 205 | 119 |
Other assets | 15 | (3) |
Due to models | (621) | 94 |
Lease liabilities-operating | (91) | (119) |
Contract liabilities | (270) | (535) |
Accounts payable and accrued liabilities | (233) | (300) |
Net cash used in operating activities | (1,135) | (678) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (73) | (15) |
Net cash used in investing activities | (73) | (15) |
Cash flows from financing activities: | ||
Payments on finance leases | (15) | (17) |
Net cash used in financing activities | (15) | (17) |
Foreign currency effect on cash flows: | 86 | (113) |
Net change in cash and cash equivalents: | (1,137) | (823) |
Cash and cash equivalents, beginning of period | 11,998 | 10,251 |
Cash and cash equivalents, end of period | $ 10,861 | $ 9,428 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Basis of Presentation 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 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, 2022. not may |
Note 2 - Business Activity
Note 2 - Business Activity | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 2. Business Activity 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, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3. New Accounting Standards In June 2016, 2016 13 Financial Instruments -Credit Losses (Topic 326 2016 13 2016 13 December 15, 2022, first 2023, not |
Note 4 - Foreign Currency Trans
Note 4 - Foreign Currency Translation | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Foreign Currency Disclosure [Text Block] | Note 4. Foreign Currency Translation The functional currency of our subsidiary in the United Kingdom is the British Pound. Assets and liabilities are translated into U.S. dollars at the exchange rates in effect at each balance sheet date. Results of operations are translated using the weighted average exchange rates during reporting periods. Related translation adjustments are accumulated in a separate component of stockholder’s equity and transaction gains and losses are recognized in the consolidated statements of operations and comprehensive income when realized. |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 5. Commitments and Contingencies On October 24, 2013, January 6, 2014, August 11, 2014, March 3, 2014, “may Plaintiffs retained substitute counsel, who filed a Second and then Third Amended Complaint. Plaintiffs’ Third Amended Complaint asserts causes of action for alleged breaches of the plaintiffs' management contracts with the defendants, conversion, breach of the duty of good faith and fair dealing, and unjust enrichment. The Third Amended Complaint also alleges that the plaintiff models were at all relevant times employees, and not not not October 6, 2015, May 26, 2017. three five two May 24, 2018. August 16, 2017, On June 6, 2016, August 16, 2017. September 29, 2017, May 10, 2018. July 12, 2019, On May 1, 2019, July 12, 2019, By Order dated May 8, 2020 ( The Company believes the claims asserted in the Shanklin Litigation and Pressley Litigation are without merit and intends to continue to vigorously defend the actions. Nonetheless, an adverse outcome in either case is at least reasonably possible. However, the Company is presently unable to reasonably estimate the amount or range of possible loss in either case. Therefore, no March 31, 2023 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 6 - Income Taxes
Note 6 - Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6. Income Taxes Generally, the Company’s combined effective tax rate is high relative to reported income before taxes as a result of certain amortization expense, stock based compensation, and corporate overhead not not three not not At March 31, 2022, 19 third 2022, not three 2022, no March 31, 2023. may As of March 31, 2023, no |
Note 7 - Treasury Shares
Note 7 - Treasury Shares | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | Note 7. Treasury Shares During 2012, 2013, 2016, may may not may From 2012 March 31, 2023, first three 2023, |
Note 8 - Related Parties
Note 8 - Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 8. Related Parties 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. The Company’s corporate headquarters are located at the offices of NCM. The Company utilizes NCM facilities on a month-to-month basis at $2.5 thousand per month, pursuant to a services agreement entered into between the parties. The Company incurred expenses pursuant to the services agreement totaling $7.5 thousand for the three March 31, 2023 2022. not March 31, 2023. |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 1.4 |
Note 7 - Treasury Shares (Detai
Note 7 - Treasury Shares (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | 135 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2016 | Mar. 31, 2023 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 1,500,000 | 1,000,000 | 500,000 | ||
Stock Repurchase Program, Additional Shares Authorized (in shares) | 500,000 | ||||
Treasury Stock, Shares, Acquired (in shares) | 0 | 1,314,694 | |||
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) | $ 4.85 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 6.4 |
Note 8 - Related Parties (Detai
Note 8 - Related Parties (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party [Member] | |||
Operating Lease, Expense | $ 7,500 | $ 7,500 | |
Services Agreements [Member] | |||
Related Party Transaction, Monthly Rent | $ 2,500 | ||
Lessee, Operating Lease, Liability, to be Paid | $ 0 |