Wilhelmina International (WHLM) 10-Q 11 Aug 23 2023 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 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	Q2
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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 LBJ Freeway, Lockbox #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	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 10,943	$ 11,998
Accounts receivable, net of allowance for doubtful accounts of $1,931 and $1,612, respectively	9,965	9,467
Prepaid expenses and other current assets	214	181
Total current assets	21,122	21,646
Property and equipment, net of accumulated depreciation of $1,292 and $1,216, respectively	340	307
Right of use assets-operating	3,429	3,565
Right of use assets-finance	108	138
Trademarks and trade names with indefinite lives	8,467	8,467
Goodwill	7,547	7,547
Other assets	301	322
TOTAL ASSETS	41,314	41,992
Current liabilities:
Accounts payable and accrued liabilities	3,883	4,306
Due to models	7,815	8,378
Contract liabilities	0	270
Lease liabilities – operating, current	572	385
Lease liabilities – finance, current	64	62
Total current liabilities	12,334	13,401
Long term liabilities:
Deferred income tax, net	1,138	985
Lease liabilities – operating, non-current	3,187	3,310
Lease liabilities – finance, non-current	52	85
Total long term liabilities	4,377	4,380
Total liabilities	16,711	17,781
Shareholders’ equity:
Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued and outstanding at June 30, 2023 and December 31, 2022	65	65
Treasury stock, 1,314,694 shares at June 30, 2023 and December 31, 2022, at cost	(6,371)	(6,371)
Additional paid-in capital	88,819	88,770
Accumulated deficit	(57,564)	(57,709)
Accumulated other comprehensive loss	(346)	(544)
Total shareholders’ equity	24,603	24,211
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 41,314	$ 41,992

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts receivable, allowance for doubtful accounts	$ 1,931	$ 1,612
Property and equipment, accumulated depreciation	$ 1,292	$ 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
Common stock, shares outstanding (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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Revenues	$ 4,493	$ 4,699	$ 8,977	$ 9,247
Revenues	4,493	4,699	8,977	9,247
Operating expenses:
Salaries and service costs	2,979	2,697	5,859	5,349
Office and general expenses	1,063	693	2,143	1,402
Amortization and depreciation	56	47	107	106
Corporate overhead	246	222	490	476
Total operating expenses	4,344	3,659	8,599	7,333
Operating income	149	1,040	378	1,914
Other expense (income):
Foreign exchange loss (gain)	61	(110)	79	(104)
Interest expense	0	2	1	5
Total other expense (income)	61	(108)	80	(99)
Income before provision for income taxes	88	1,148	298	2,013
Provision for income taxes:
Current	56	(54)	0	(84)
Deferred	(158)	(173)	(153)	(269)
Provision for income taxes, net	(102)	(227)	(153)	(353)
Net (loss) income	(14)	921	145	1,660
Other comprehensive income (loss):
Foreign currency translation adjustment	112	(338)	198	(512)
Total comprehensive income	$ 98	$ 583	$ 343	$ 1,148
Basic net income per common share (in dollars per share)	$ 0	$ 0.18	$ 0.03	$ 0.32
Diluted net income per common share (in dollars per share)	$ 0	$ 0.18	$ 0.03	$ 0.32
Weighted average common shares outstanding-basic (in shares)	5,157	5,157	5,157	5,157
Weighted average common shares outstanding-diluted (in shares)	5,157	5,157	5,157	5,157
Service [Member]
Revenues:
Revenues	$ 4,486	$ 4,691	$ 8,962	$ 9,232
Revenues	4,486	4,691	8,962	9,232
License Fees [Member]
Revenues:
Revenues	7	8	15	15
Revenues	$ 7	$ 8	$ 15	$ 15

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, 2021	6,472	(1,315)
Balances at Dec. 31, 2021	$ 65	$ (6,371)	88,580	(61,238)	(23)	21,013
Net income						1,660
Foreign currency translation						(512)
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
Share based payment expense	0	0	55	0	0	55
Net income	0	0	0	921	0	921
Foreign currency translation	$ 0	$ 0	0	0	(338)	(338)
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 Dec. 31, 2022	6,472	(1,315)
Balances at Dec. 31, 2022	$ 65	$ (6,371)	88,770	(57,709)	(544)	24,211
Net income						145
Foreign currency translation						198
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
Share based payment expense	0	0	25	0	0	25
Net income	0	0	0	(14)	0	(14)
Foreign currency translation	$ 0	$ 0	$ 0	$ 0	$ 112	$ 112

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, 2021	6,472	(1,315)
Balances at Dec. 31, 2021	$ 65	$ (6,371)	88,580	(61,238)	(23)	21,013
Net income						1,660
Foreign currency translation						(512)
Balances (in shares) at Jun. 30, 2022	6,472	(1,315)
Balances at Jun. 30, 2022	$ 65	$ (6,371)	88,690	(59,578)	(535)	22,271
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
Share based payment expense	0	0	55	0	0	55
Net income	0	0	0	921	0	921
Foreign currency translation	$ 0	$ 0	0	0	(338)	(338)
Balances (in shares) at Jun. 30, 2022	6,472	(1,315)
Balances at Jun. 30, 2022	$ 65	$ (6,371)	88,690	(59,578)	(535)	22,271
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
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
Net income						145
Foreign currency translation						198
Balances (in shares) at Jun. 30, 2023	6,472	(1,315)
Balances at Jun. 30, 2023	$ 65	$ (6,371)	88,819	(57,564)	(346)	24,603
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
Share based payment expense	0	0	25	0	0	25
Net income	0	0	0	(14)	0	(14)
Foreign currency translation	$ 0	$ 0	0	0	112	112
Balances (in shares) at Jun. 30, 2023	6,472	(1,315)
Balances at Jun. 30, 2023	$ 65	$ (6,371)	$ 88,819	$ (57,564)	$ (346)	$ 24,603

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income:	$ 145	$ 1,660
Adjustments to reconcile net income to net cash used in operating activities:
Amortization and depreciation	107	106
Share based payment expense	49	110
Loss (gain) on foreign exchange rates	79	(104)
Deferred income taxes	153	269
Bad debt expense	82	79
Changes in operating assets and liabilities:
Accounts receivable	(659)	(2,412)
Prepaid expenses and other current assets	(33)	(116)
Right of use assets-operating	349	238
Other assets	21	(227)
Due to models	(563)	681
Lease liabilities-operating	(149)	(240)
Contract liabilities	(270)	(535)
Accounts payable and accrued liabilities	(423)	14
Net cash used in operating activities	(1,112)	(477)
Cash flows from investing activities:
Purchases of property and equipment	(109)	(18)
Net cash used in investing activities	(109)	(18)
Cash flows from financing activities:
Payments on finance leases	(32)	(33)
Net cash used in financing activities	(32)	(33)
Foreign currency effect on cash flows:	198	(412)
Net change in cash and cash equivalents:	(1,055)	(940)
Cash and cash equivalents, beginning of period	11,998	10,251
Cash and cash equivalents, end of period	10,943	9,311
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$ 49	$ 5

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 - Foreign Currency Trans

Note 3 - Foreign Currency Translation	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Foreign Currency Disclosure [Text Block]	Note 3. 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 shareholders’ equity and transaction gains and losses are recognized in the consolidated statements of operations and comprehensive income when realized.

Note 4 - Commitments and Contin

Note 4 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 4. 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 June 30, 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 5 - Income Taxes

Note 5 - Income Taxes	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 5. 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 June 30, 2022, 19 third 2022, not three 2022, no June 30, 2023. may As of June 30, 2023, no

Note 6 - Treasury Shares

Note 6 - Treasury Shares	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Treasury Stock [Text Block]	Note 6. During 2012, 2013, 2016, may may not may From 2012 June 30, 2023, first six 2023,

Note 7 - Related Parties

Note 7 - Related Parties	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	Note 7. 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 $15 thousand for the six June 30, 2023 2022. not June 30, 2023.

Note 5 - Income Taxes (Details

Note 5 - Income Taxes (Details Textual) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 1.5

Note 6 - Treasury Shares (Detai

Note 6 - Treasury Shares (Details Textual) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended	12 Months Ended	138 Months Ended
	Jun. 30, 2023	Dec. 31, 2016	Jun. 30, 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 7 - Related Parties (Detai

Note 7 - Related Parties (Details Textual) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Services Agreements [Member]
Related Party Transaction, Monthly Rent			$ 2,500
Lessee, Operating Lease, Liability, to be Paid	$ 0
Related Party [Member]
Operating Lease, Expense	$ 15,000	$ 15,000