XELB - Earnings call transcript Q1 2022

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Operator

Hello and welcome to Xcel Brands First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that reproduction of this call in whole or in part is not permitted without prior written authorization of Xcel Brands. And as a reminder, this conference call is being recorded. I would now like to turn the call over to Andrew Berger of SM Berger & Co. Andrew. you, Thank

begin. now You may

Andrew Berger

first the Good evening, appreciate all joining We out Officer, Commission, everyone Financial Officer, on Robert quarter webcast, file And us website is release the you company's XX, access you which This on Chairman ended and call participation the a www.xcelbrands.com. and with should March Investor and XX, the company's Vice have and Jim available Seth Treasury, for and Chief by thank on XXXX. quarterly With Development will earnings its your Relations Business a had well. in that safe be The for XXXX, release of on today being interest, and went are D'Loren; are XX-Q company and the Exchange Burroughs. ago. us. Executive short and at Form everyone, while and Haran; will call quarterly replay and be report report of the Executive Chief President the website. Securities May available By addition, will now, to hope

of time. and means or said otherwise. today's forward-looking change most factors are begin, explained obligation information, uncertainties to statements. that contain events, mind of whether Before All annual dynamic call result from are publicly in any keep is with certain filed nature as risks recent new materially at Xcel company's the that update, differ report or undertake today. to this SEC. will risk statements, what forward-looking in here call please we could the These in revise cause geopolitical results any statements not materially subject and to on forward-looking does actual macroeconomic discussed any the future expectations could environment, detail current The a

diluted measures income, as Finally, today's to non-GAAP certain please financial refer non-GAAP call earnings and adjusted on will EBITDA. per non-GAAP such note that, share net management

comparing uses the period to of period Our a metrics in operations. on company's performance from as to to assist trends and of results management measures to relating basis, non-GAAP these identify business operating performance, consistent

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Robert D'Loren

will discuss Thank for and some results you call CFO, quarter after of Jim more opening the first XXXX our you, today's us. the start by financial Andrew. quarter, which, joining Haran, Good everyone, followed remarks I will some operating thank for detail. with our highlights for in evening,

it generating when in retail brands; no our is long-term XXXX, television, as to there with growth retail annual strategy, million we direct have in and of Xcel of under a able over have increase materially $XX million position design, platform been pleased to the a our past to production We over very we through as and on brand than focused stream driven our example ability value and Isaac response Mizrahi now better our is sales. XX hard achieve success live worked Brands on the that driving media as sales consumer well acquired brands years the are in $XXX both, brands generated

We currently for the are leading being upon shopping happening opportunities types planned pipeline are new driven growing by projects considered, that or of working screens. brands, our multiple now primarily rapidly and based a Xcel within types either platform as and livestream the on projects businesses, at we experience, existing of on all are positioning all

to first company's line EBITDA $X.X the Now, highlights a had adjusted quarter year a loss which net revenues flat year-over-year. just million XX%, continue than few was to or first show In from from was the The higher strong last and We with quarter loss we top quarter to under of $X.X million line XXXX. a our million compared of at of year, million nearly of $X.X loss $X turning our million. first results. last XXXX, $X growth is top revenue

to We business. in hard working to operating going growth costs are continuing drive forward reduce while new

respectively, a As mentioned last warehouse QX the the revenues same with last up strong the and XX% impacted adjusted fourth the for loss us basis. given QVC, Also, fourth million fire materially $X.X quarter quarter challenging our net for XXXX shows $X.X on our gross year comparative business. earnings and call, and recovery of of was which XXXX million on respectively. improved profit and net X% EBITDA at

retail well Lori wholesome current the extremely brand, in we to been just showing fall Goldstein, expect and Goldstein sell-throughs showing finalized QVC, which we Lori development strong XXXX. Gold to by our remain at soon. has and announce performing will our brands retailers continued new partnerships new be growth brand, Our we and which on with brands at strong under

quarter Longaberger continues in live stream new brand doors gain to the accounts Judith primarily by driven around opening with digital to micro our show driven strategy. and nano soon. first Our is Ripka Vegas at and independent retailers new traction And casino jewelry momentum, continuing strong Las shows the influencer and two opened country XX

opportunities TV trends, for our we brand our that that present profitability new to with will and in opportunity well both, significant current businesses will hope as announce as We based the business we year. to expect existing Also, our expect XXXX company and beyond HSN upon that return multiple also this interactive a us QVC with brands, soon.

our lurk design the past i.e. two uncertainty, us priorities in for to years we we closing, and benefiting economic important supply the thing. management is our untapped This continued headwinds our companies asset well social what are exist us will opportunities. positions design, as Also, pressure asset know investments products us chain now focus have reimagine crystal Our world, are may stand and drive as and to we and ahead. In fund focus investments with We dealing rich believe costs; values on well significant to development flexibility develop technology, of even taught and and globally product industry grow balance the our that combined as in in we position greatly strong our that we business result, who both the despite pursuing any media our are face and more sheet financial materials our and to entertainment, industry. people, in to values and current new our in that live company. shopping, clear, keep in logistics we raw and great believe we with businesses to industry, the to streaming, growth margin a and one due need and are,

for turn financial quarter the Now, I'd the to Jim to like and over to call the year. discuss results our

Jim Haran

to from XXXX. ended XX, related quarter briefly prior the supply the the Total the of Goldstein a from the for had was of of good quarter, well aged discuss evening, and results current our Gross [ph] March inventory, financial approximately the of the the product XXXX everyone. quarter. representing and year for portion I'll for XXXX. Bob, XXXX, approximately chain April primarily costs which $X.X approximately XX% margin XX% revenue increased an XXXX of and $X.X we sales quarter, the in in the logistics in million Thanks, XX% first million, as declined Lori or to reserved increase in first quarter sell-off in and first driven from brand by as acquisition global primarily quarter

quarter; expenses in quarter, increase the including prior non-cash were trademark costs brand $X.X was Goldstein the additional Our Lori million operating million expense. million of $XX.X with primarily $X.X by the $X.X up current associated for driven this amortization from million

the for due to multiple in and current environment, costs. logistics providers the inflationary most vendors shipping, economic from cost increases and reflect notably expenses service quarter operating Additionally, various warehousing the current area of

$X.X of approximately at in first the and was net environment. quarter $X.X to $X.XX We minus the best Overall, our as was quarter. XXXX. consistent current compared which actively for interest control balance our the Adjusted due and will first per have agreement April of first entered $X.XX loss and Interest or quarter the loss the increase we the or $X.X the with non-controlling approximately quarter of and than XXXX excluding share for that share, with or $X.XX EBITDA in quarter million was $X.X share, end in with year quarter. XXXX. term and million year-over-year to basis, current with minus our for or costs per prior $X.XX higher of current amend million loan per for resulted $X.X million a these manage XXXX the previous $X.X term the compared compared the continue minus relatively can million per million non-GAAP both, in debt. expense On in quarter was $X.X share current and This interest finance new rate XXXX, outstanding principal higher was loan negative prior minus million a net into we

reminder, EBITDA non-GAAP EPS, diluted terms. a non-GAAP net adjusted and As unaudited income, non-GAAP are

our Form with directly the Our reconciliation XX-Q of these earnings a measures. present and release comparable press most GAAP items

company net March of of to approximately current capital of equivalents obligations. excluding our million XX, and as $X.X the balance million, and portion sheet, unrestricted of had lease our positive cash the cash $X.X XXXX, working Turning

to with And like year. Our XXXX was based our over we fiscal to the company return of on closing, bank that, latest would back end for Bob. the Bob? lastly, I forecast project XXXX turn to XX, on the $XX.X in million. to profitability debt that by And the current will approximately continue March call

Robert D'Loren

our This Jim. remarks. you, Operator? concludes Thank prepared

Robert D'Loren

Ladies you for interest Thank gentlemen, your today. continued appreciate in you, support your We and thank time Brands. operator. and Xcel greatly

As always, healthy. stay well fit, eat be and

Operator

This concludes you. conference. today's Thank

disconnect. now may You

Xcel Brands (XELB) 24 May 222022 Q1 Earnings call transcript