IMBI - Earnings call transcript Q4 2017

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Operator

Greetings and welcome to EVINE Live Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only-mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Michael Porter. you. Thank

begin. may You

Michael Porter

thank joining and today. you morning us for Good

thoughts CEO, call and Peterman. Joining our and financial his issued highlights today's performance. earnings with our will Bob our Bob follow Tim provide and Tim me on of CFO, release is earlier Rosenblatt; the morning. business and our will We operational on our COO this

evine.com. through Investor our If release, you at copy not Relations a our of have earnings the do section you obtain news website may

any Some we subject update are significant forward-looking these statements refer the will of information. that the and We reasonable, considered our as today's forward-looking and give reflected no future risks These speak statements forward-looking any call the for during this release earnings performance of our about date. to such prove statements make our uncertainties. and or section believe expectations be and to reflect forward-looking to but SEC today additional We in to publicly of revise statements filings financial only expectations Safe Please obligation or operating Harbor undertake are are assurance in our our statements reason. and for expectations correct. no

disclosed information comparable disclosed measures information required financial reconciliations most exhibit to filings X-K the Investor about in the included SEC are the to this adjusted website. to our Form the these of earnings also release. our measures Relations an release can EBITDA. certain call includes GAAP non-GAAP through be of earnings be The on as that section the accessed is Finally, such The measures including

to would like I to Now over the call Bob. turn

Bob Rosenblatt

some recognize that our share today results I years that how back of be said annual drive to $X.XX other shareholder I When beginning per believe everyone. that I'm improve executing team our goals, has fiscal earned. our and and for the understandable quarter my admit that was Thanks, income to first example million, had people we've fiscal of majority we adjusted and Michael and been $X that latest was in the net per the skeptical. in constituents adjusted financial our stock to After on two I at with shared constituents initial pleased earnings our our to consistently of credibility when annual value. and XXXX report share to are I time XXXX the progress XXXX, were fourth continue morning vision From senior and good generated EBITDA consistently XXXX operational made. XX EBITDA was positive doubled years. we for the of

will we first X is XXXX and customer share. building in these this merchandising space. about last revenue our We X price are bit stock years during with backhalf successes the of not of X-year especially talk like That some through because prior but yet experience growth have XXXX, we high center, significantly I'm being we've we system year, built a we return million that have these implemented improved fourth of made, compared improved in management to best-in-class by not needed I'd interest paying our we third at XX%. television revenue dramatically launched quarter we a shareholder customer ultimately specifically state-of-the-art of our successes our only profitability signal positioned growth This in believe third basis. our more in significant the digital XXXX plan was the the years. by opportunity and to our will a fully our assortments and go-forward flow lead have the market a our be encouraged improved creation advanced have and team, optimistic said, successes high this definition, beginning off about the value for increased cash also more on term are management about soon and growth in combined $XX quarters we year warehouse specifics through sheet reflected progress that turnaround better sheet begin to years profitability the service, when and loan reflected X robust demonstrated current us expanded balance revenue a performance. We fourth achieved fulfillment combined of technologies, fiscal our past balance These

opportunity did as initially of model by hoped of unique real-time. us based we with one more and allow sales quarter, business the building to was on to significant the not benefits progress the We we to made response the Although we to the and shareholder much design this in to great our on react grow focus customers growth thus read in as Company have fourth value. literally where

had For example, marketing a defined into support it. contribution plan we plan continue merchandising holidays, within the we a Heading strong operate to well margin our and to disciplines.

As Prior these with indirect promotional in introducing we've direct aggressive profitability. low products revenue margin disciplines, recent to there but significant resulted also in lower competitors. to discounting and other would have seen we holiday periods, by promotions this and would in drive was participated higher activity have

continue our to appropriate we stick mix with strategy, be of deliver opportunistic contribution levels margin. product quarter to This to our with

remained revenue shareholder within strengthens trust the less and our resulted with of proposition, plan. customer our we higher as those customers lifetime on especially increases this for just in than and growth profits the value the expected, in base delivers than past. share This importantly, for originally the wallet Although

the will on our versus long-term focus revenue this not at customer to to and before, position Company's take financial would journey, Company. said that added overall be I've the if loyalty and profits profitability we continue in of point As

These brands. year. new Bose prior these brands in XXX% During multiple compared increase new launches an the Seiko to in and quarter, such increase crossed brands we and new by as the XX% watches. delivered launched highlighted of sales brand X new X known in categories Combined, quarter and new customers fourth launches the were

very some iconic of the are of were family to quarter. Sharif designers EVINE most in Handbags we to fourth Sharif Additionally, recognized world. welcome the the alongside the excited in designs handbag

we brands. Our product core portfolio to improve as build continue to on continues our

introduced appeared also to Miss new time line Kermit and the on Sesame Muppets and new Invicta Disney collection Muppet EVINE series to of the included TV. live engaging characters. addition made unique Piggy character This EVINE many Invicta's a launch collections. newest Street to featuring successful for These of exclusive timepieces in watches, pieces theme We help of collection exclusive time the

with Thor Punisher, our to collection Panther, and The added Black also Marvel We iconic other characters.

newest to partners only our product continues Victoria's delivers during of and that launch features her Case. Victoria case creative was to the seek crystal vendor our Skyblue loyal and covered encompass quarter high proud and is merchandising designs EVINE by in Swarovski team adore. Wieck she that by and Apple I Zirconia Watch. collaborative a of This to consistently example Another the was the Watch the efforts following jewel Apple quality is market exclusive designed an creations beautifully customers that of

We back-end from results three. our quarter by sequentially in strong. subscription combined continue quarter were fueling during the during and subscriptions improving the quarter the and businesses XX% a to the front-end We growth grew our XX% focus reported on

by our fueling sequentially the the We during reported subscription to front-end the the back-end from quarter combined business in focus XX% improving subscriptions a were our We on and and QX. during quarter continue XX%, grow growth results strong.

the during which growth help continued back-end quarter fiscal grew XXXX. will subscriptions alone Additionally, subscriptions front-end XX% fuel the in in

to don't profitable margin As particularly need they a perspective sales. as incremental generate contribution reminder, a back-end use from subscriptions airtime to are valuable

experience launched new Apple's of technology shop. they We also continue choose seamless native geared app a customer download to a recently how to available creating our enhance for toward more app iOS and mobile our store regardless in

increase points. focus digital, We XX.X% year-over-year our frictionless as continue experience fourth on making to possible. is the In this of XXX basis as were customer of sales the quarter, an

For sales in was of basis were a digital as sales digital to biggest was our XX.X% last priority which percentage of an of increase points within an XXXX. to basis sales, increased the XXX increase XXX compared fiscal which fourth quarter fiscal XX.X% our of digital Mobile year. points from XXXX,

digital XXXX. relevant For fiscal was fiscal Facebook more compared media like becoming platforms of points of were basis content. distribution of XX.X% XXX is with social sales sales the more and on to XXXX, YouTube which increase Viewership and mobile an live

Facebook was for During YouTube is our watched the on content versus and quarter. X,XXX days, this the a third fourth quarter, over XX% increase

We also access generated in both million across views platforms. of X

increase we on and in minutes increase in an Facebook YouTube. XXX% watched on XXXX, During saw XX% impressions

Regarding our purchase shopping increase enjoy with us customers frequency file, X% and in customer continue how tell reflected in quarter. much to the EVINE they it's fourth our in current

to compared is compared top for XXXX. X.Xx full revenue growth and are X% per XX% full our to two growth, a year, last a year our the with a strategy the reached For XXXX to increase year, year, file customer there fiscal frequency over here. components in increase that's our Along fiscal reestablishing priority and purchase

is improved [ph] launch spend, reform first brand learning, campaigns, programs, digital applied marketing social new which will new increasing initiatives The including machine customer embrace various our campaigns. systematic acquisition targeted and

customer will serve reactivation growth The other towards thread to efforts by continued and price. competitive compass component sharp customers high that life-time is the common right time components a value have email. and will programs. already helping customer right the use propensity at a the our include with focus customer right product increase is the identify These prioritizing analytics of on Both retention between personalization all as efficient strong modeling, the at will and and to maintain

to like Now, highlights I go-forward would on strategy. our provide some

strategy using our customers commerce has delight direct-to-consumer our valuable proprietary continue have our increasing on to mentioned fully is omni-channel changed and primary out to built and I tenants as last As and strategy to provider our goods surprise exclusive three to EVINE this leading designed platform, call, not of shareholders. and video position we our and a

programming First, grow our for to continue our will products strong is pipeline and muscle, both. we

women even brands. larger to Savannah We providing Combined, time education Through online an personal average drive real-life offerings by back of journey. Sweet a Sizzle returned the every very XX%. with on of slots to facilitate X end After and Paula this at Our X assortment Season programming, X product air solutions. intimacy Deen fixed shows viewership topics confidential successful these January. monthly outperform creating and with our of experience by the Mornings, EVINE trailblazing demand initiatives their excited X-hour of Tuesday an the bring her Dark and Style Home continue also Season and after Sunday X, has Season to builds a popular on and Season were After programming on in nights. mornings, Backed by Dark EVINE safe and advice with the Wakeup on on Saturday on platform highest

a with content their calendar and programming strong integrated on our device that complement the seamless to their is to convenience. customers our at and our platform consume goal Our allows of choice

business and generation art television, commerce. the media, as social combination as model interactive of such and of science what next on other we video Our community, well will as mobile, the consider platforms advertising the of interactive rely and

will grow our we distribution. Second, content

here was a to XX% growth by new Our distribution definition add neighborhoods. fiscal we to HD high of million will In over increase continue our compared the end in which channels be XX the grew XXXX. to XXXX, homes

platform, on homes, As productivity to to mature AT&T increase XX% a HD an sales see per on it U-verse and launches maturity. expect time Verizon upwards HD at these our FiOS of the takes but channels new reminder, in prior based we

commerce growth distribution to parity in in Universe there HD content sales XX XXXX supports Channel access would for million get us opportunity improving us over is allows more. networks. additional to the which our with homes Our The fiscal even plan video for other and

generated on the we quarter, growth quarter. sessions XX% HD increase in over users Roku, fourth distribution In the addition emerging to sequentially when and more compared fiscal grow Apple base Fire our of several development XX% under number In platforms channels and TV. over-the-top number Amazon we such to these concepts a customer launching have to using of in XXXX, the as third platform the

to performance while sales grow. Third, the positioning continue engine deliver profitable to

in call margin, contribution content detail. of foundation generation strong Tim and our over flow. in having on walk long-term. to results EBITDA, a free net now will focus income We the I financial, believe to distribution to and operational, the most adjusted through continue will the Tim? We cash pass our more value provides profit

Tim Peterman

from quarter. Thanks, highlights Bob. the the start I'll with

to fiscal increase prior year was As a weeks year an million, year weeks XXXX. compared XX-week when reminder, year XX-week quarter the year sales had XX were compared last XX Consolidated for of X.X% our a to fiscal net to which a fourth fourth and fourth our quarter was for $XXX.X compared quarter.

category. quarter basis higher Our increase was related year-over-year. selling the XX% jewelry was was modest particularly XX This rate which in in prices, average to return the up points

Our was our year-over-year. This home quarter average CE selling attributable ASP increase to X% increases in price was $XX, in the a categories. watches, primarily and jewelry,

percentage strong sales home quarter during Our basis to points The and period. relatively reflects during margin XX.X%. our XX electronics slight gross decreased holiday category the the decrease consumer

an non-fulfillment and general by and driven asset Our operating improvement optimization expense driven as rate $X.X fourth expense was in was a decreased dollars quarter rate which reduction depreciable this Depreciation Operating year. which XX% from year-over-year consistent fourth having in expense, $XX.X year-over-year points distribution this by our sales XX.X% despite administrative in expense continued million extra expenses totaled is expense basis program quarters both expenses variable with XX This decreased year. and operating of by quarter our a down million, slightly net week prior base. to last and expenses.

Lastly, sale million we contributed the operating on our Boston Station a of $X.X recognized expense the that to year-over-year TV decline.

Better the the logistics our costs sales our was group, approximately key point Variable year, Bureau's finalist year, solutions report in credit net second to our customer payments areas. improvements XX a Torch fulfillment to and all I'm variable had the Business a improvement for for basis expenses were center, operational for of continued a within group, for performance includes proud Award In the primary and was driven business last solutions that year, by which was in our X.X% functions, As compared X.X% group. great functional case ethics. consecutive total all our the EVINE which efficiency we customer quarter

for an years. Our X Better Business A-plus has been Bureau's rating over

the sold. we have the over post-sales to of by in the success support customers sale to continue improvement indicates units our live point this metric driven addition, and our XX We to This service points In customer which we compared In improving customer fourth need implement data voice is the our customer to grounded calls our less and at improved which responsiveness agent decision our by refining of continued rate support. intelligence quarter last customer. by measures of year. basis post deploying continue for the the making our reflects fourth of program sales quarter contact voice

logistics knowledge. sales over resulted opportunities live continue in better and fourth efforts in in to technologies in we of fulfillment our close with year of cost last benefits our reap during solution an we XXX the In compared our unit continue center quarter to quarter In our per to our addition, the the help green of fourth quarter year. rate facility. fourth center, the agent increase convert into the add-on upgraded last and improved XX% as of WMS new building training These fourth points basis quarter by

fourth by card customers our measured throughput to label and wide leverage by the our private our credit most per last to group, to improved quarter building through center and our compared addition, fulfillment XX% units In the promotions. continue credit payments provide we exclusive loyal hour differentiated labor In processed year.

Christmas this XX-days During our the offered promotion viewership to quarter fourth and and that event urgency. day included a new unique we drive each of

Our our while fees. card also private loyalty reduce and label credit interchange tool remains card helping an credit other processing important to

on penetration this to pleased the basis card that were points increase I'm the we calendar during year. XXX able So by

of million distribution are important homes our of the HD our in the over growth. end mentioned, fourth homes. million in content remain quarter Bob of than As and XX our We now XX one more end long-term efforts to near tenant most is as

in fiscal XXXX. the expect increase to number continue of HD We channels to

in several In the launching compared a of we the on and grow users to these have growth fourth and and this a generated distribution Amazon quarter, under Bob when the Fire, addition emerging number HD as quarter. of our platforms XX% customer in more concepts base channels earlier, third TV. using to mentioned to number we Roku, increase as year, over-the-top development such XX% sequentially In sessions Apple platforms

in and YouTube a on momentum the metric increase year EBITDA combined which third year. as We quarter throughout continues quarters sales nascent, increased of to fourth million last this over quarter while generated platform in XX% audience. was grow fourth Additionally, X.X approximately to of Improvement gave XXXX. the both still and our in adjusted the compared XX%

For the entire million, $XX was increase. year, in fourth the $X.X Interest our was XX% adjusted million quarter. EBITDA an year-over-year expense

GACP. interest cash about XXXX should to fiscal interest loan quarter we fully end foreseeable rate annually based for XXXX. future taxable we $X about do us is high not we quarter which taxes perspective, million the tax NOLs with on offset During decrease federal interest our income current to a term in available approximately in as interest per for have paid as rates, $XXX federal expense. off a expected be pay our Accordingly, of XX% From expect the fiscal our future to million the of of run

and newly Jobs NOLs overall, affect to will Act and have significant Tax the our addition, In ability Cuts of on not XXXX a impact enacted will our available needed the when Company. utilize not

from which balance approximately to the year the Turning third with we of the ended no quarter. $XX end sheet; million the was of change cash

had end of additional total unused facility credit availability PNC liquidity $XX revolving on of $XX us an our at Bank with the million million of We which also approximately year. gave the

definition and closed to use further of the proprietary our of were impact pay used positive the for the able the was additional million received the a of intend plan. resulted which which deferred transaction our subsequent the remaining debt. loan Station, quarter loss the FCC of high term we receive ahead homes. for with on quarter, of The invest TV asset, capital and tax benefit working GACP interest in Boston transactions to down $X.X gain and portion of to in exclusive we the we cash a purposes in the in and fourth the recognition reversal sale complete to on relating the During fourth to proceeds interest this on WWDP, and of initial licensed and high new the carriage our extinguishment These brands net impact high tax long-term includes liability sale in

the quarter down compared inventory X% year. which is at for $XX Our million last to finished

to efforts appropriate We supply continue to our us of to about good feel inventory. chain manage and merchandising help levels

In growth growth to that X% This XX-weeks compared remind year of XXXX, to in XX-weeks fiscal terms be XXXX Because the the to has X% X% to for in fiscal expect XX-week basis. you fiscal full extra on sales we basis on because of I'll full equates XXXX range over a this, reported a outlook first year XXXX. the our in to XXXX. of X% week XX-week normalized

growth We of expect adjusted would which to to $XX be EBITDA $XX X% in be to XX% the million million year-over-year.

to in expect invest $XX the also million during capital year. to We $X expenditures about million

our As Bob market. indicated, we undervalued we being is believe still are pleased the by performance financial and it with

are on flow driving growth. We both, revenue in profitability and cash focused free continued

three together, take Bob areas shareholder focus expect we With come continue to your of are these to happy As that to questions. return. increase I and our

Operator

[Operator Instructions].

is question Lake Mark Street Argento Capital with from Markets. Please first Our proceed.

Mark Argento

of what -- the a growth the in it us little the peel peel made onion sounded of to a for could maybe little onion guys you strategy kind terms wanted the in the pivot just holidays revenue that quarter, activity the thing I was happened kind like promotional there? you bit, on of

Bob Rosenblatt

and us build so obviously you in can manage try to you for at we in what your you you drive, exactly important matter to terms to sure it able you the right. that what possible. good choice a forward able go our make no plan important wanted, the have how to was strongest platform that's be growth; the at appropriate point, always actually in to think most being is thing that of Sure, want leaning is, We, can way our

a saw of of be for the no of then and in was reason to at I lot that, retail wait expectation the -- lot from for our doing wait made contribution on this of that back knew that saw they're we knew be building as bunch being us to certain strongest we are juncture HSN, just customer position merchandise; were that a to also said, brands, we on ourselves giving the we be good that, of that there We real certain And towards margin decided is President when be this next we for and able and going were and decision to -- going in where a we able manage we cutting you growth direct our reduction a which kind to really position and able non-direct a third long-term. reason the good -- when based in are is do is when that. to to So we going of there the promotions to competition to lot, And for an to year. we do really items your costs the able cash come. time bunch order year if cut the we comes to do possible no I away

on to we made went of promotional So of not actually it, direct people choice piece the our while of do a the in couple very the competition hard so.

Mark Argento

out was of more kicked And there shipping free promotional the activity in it -- of was prices activity there; December? was the promotional on kind products, lower the it what month that in

Bob Rosenblatt

to started biggest that there you I as in ended going and sold and be terms merchandise noticed and process lower our competitors the certainly promotions we and is different that some was in shipping in It by they lot what know, some up last already competition guess with with went of past; me lot to they that that order was of were out able and drive to a it that trying they either to and bought us did they drive clear on the already handling was it the and handling so even shipping merchandise stuff looked year had in additional clearance be giving web was their promotions piece that possible meant of had to lower we that they our a in trying the where free reduction it. it able to even if -- EBITDA and merchandise mixed of choose and best reduction price, a that. not bag, over that situation be as get some Then they been though to to we to saw the sales inventoried a and they an of along a were to out way do in drive has

Mark Argento

in in when alternative And the terms look viewership, but OTT you obviously in engagement terms that trends terms of out then the total Facebook, television digital, year-over-year are channels, of you about basis? the seeing you channel, others through teens talked are other down in core the similar and at of some viewership, you What of are opportunities; channel? traditional guys a on seeing viewership there

Tim Peterman

are television Nielsen There any core, customer adopter and X-X early they the our seen on watching ago. but for asking customer are they study about X that cable our core are the last If than continues air. on year mindful a impact important cutting or about more to getting haven't are via was the those next very still not that the watching talked although primarily the the Obviously, actually were you're or on as to be platforms, we about they and relates introduce ourselves television our an they years on platform nascent, they are so to to over-the-top core really overall and unplugging we years it very material continue that. viewership on

really interested platforms. presence So our those seen that in -- haven't anything regard in although growing material are that very on we we

Bob Rosenblatt

to little to to the point that web penetration are but more that being up; we're to more platform, -- bit value are going people buying it's be is on never us thing and retail when that the average doing e-commerce people other now the Mark, we on in programs aps little on upsells are activity we amount seeing lot and a that that a a that and of activity we've cross-sells mind subscription do way to our and and so be seems to talk the because lot before able to a we're easier now simplistic, because on seeing we've bit something made more buy digital the of for be items more on and other really of lot regarding able more some and the that have real will, not to that could And item there e-commerce we going focus to us a be one do to of is a on we get paying cultivate seems areas that than we're those to e-commerce able merchandise is anything earlier I'd if having we that, just we our found we products and without part attention for up accretion for e-commerce the business.

Operator

is Capital Please [ph] from Craig-Hallum Group. next Mark from Our question proceed.

Unidentified Analyst

how application talk pipeline just seeing real-time proprietary if more main the watches XXXX XXXX, maybe have little wondering just in things in been to much going next the of queue and you've been maybe you some of the raising brands to in was the focuses I [ph] be one so compared kind and of on extensions? that's could both discuss

Bob Rosenblatt

we lot Yes, the we've when either people a they the to the that's more really now us seen been story and able the no of saw this being exclusive we own our of to are more easiest and coming as and year by for and us much for we the come gross more it this and to us being gives much see to more in of of become the have able the that our build gives more an into growth, margin opportunity be really companies us under-distributed quarter in the longer brands ultimate to brand bricks-and-mortar terms used to label item in what how knowing vertical. margin will terms amazing proprietary much prices is the lot for to a in much, opportunity bricks-and-mortar amount brands private much is science along growth with helps vertical merchandise of a in own an buy the contribution how as what much also over that us obviously, telling towards at they brands held and our the story, and and driving not to of much the years stages stages and and different carrying is next really of that. able people to manage the as last and being as at be that everybody have two are of it looking sell-through, knowing places to knows much -- coming going of being growth to to; and develop do that which ultimate start been to we better to by to lot that brands us buy be because And are able

in jewelry probably accessories the gotten in seen the to And have exclusive not double and is have them them, core with apparel us if proprietary see you them area lot lot news come only in products help we've So we but past. and are a the and a a which somebody with that more and area that well tripling to sourcing in to more of would area this as we've and actually actually will of those the merchandise of the year or opportunity at I that also who that. of brilliant we more brands -- on obviously assist the competency apply significant have amount and for known we we say

to ultimate continue be we the and to benefits right the expect percentage the of we time. because be grow ultimate at merchandise margin to As of you -- to gross the able part contribution gross margin able most the grow amount the that right at considerably if to it, margin order

look able we that as So the be opportunity as that the say have grown the I at years side that over that and we last [indiscernible] merchandise on probably on to gross biggest feel the opportunities to one percent two one you guys plan biggest being we've really of margin areas. seen would and our to is have continuing of --

Unidentified Analyst

so basis And HD how ramp these maturity pipelines, of added you channels, of just similar and that wondering uplift. old of accepted; these mentioned of seen years X% of November, the what it to a top to you're kind maturity you before from on far kind couple stages? -- see kind you that next what or similar get seems just ramp then, and in that you've you out over the some On internally homes building do to

Tim Peterman

matures we -- it in for X% X%, over to it how normal our first moving like into Regarding this website, XX and it investor around website a from illustrates slowly traditional have distribution question we've then question it's months, versus is really, so in a that other our IR and a XX experience it as in launches traditionally fairly a indexing through we're our we've XX% really maturity of your HD of out so presentation about -- that begins put what there heard X%, zero indexing carriage our where the happen great couple seen from our we moves Verizon it out timeline what in times, does. HD, matures from that chart XXC to it relation and of to

the we've So number and XX the ones work mature only we're we're about we're XX very the XXXX now on in not to as about begin recent will growth that so top we and And again think in year, bullish that of for when third launched as and the on that of we November prospects this why the more to continue then 'XX. excited these spring second in we quarter, drive add our in line. but we're in the because going know growing DHD, in that to is growth stagger mature most

platforms, media show our different small the of OTT particularly of and so in are those still it's it's our terms on that we're are them they on but said, engagements In those in to still that's showing we're that's different showing, small and clips, consuming programming of we're interested they why types ways that linear demographic and to it's are again, kinds XX/X front in for and in generation customers different video that our whole being be not of new folks and that important shorter platforms. are and for what of us we're programming that learning forms just they a

Operator

[ph] Instructions] [Operator proceed. is Please Our from B.Riley Eric FBR. next with question

Unidentified Analyst

a low top but promotions to came competitive impacted 'XX; Also million work trying your to I and in shows dig it results that growth adjusted environment million. the look in going what million the a the $XX so guidance and in the a underlying versus you're still were, EBITDA at in to was very to of little bit kind touching there and deeper understand point compete not it out range $XX into for quarter and drivers the $XX line of

So like not expectations. it well results go growth, unprofitable still trends the excluding revenue decision seems to are the after underlying below even

better? maybe So me that understand help little a

Bob Rosenblatt

can manage able in us, came and guess the strong I which said we front and not are a had I the to absolutely day in regarding as sure earlier in are in that and that the sweep -- that terms end is Tim plan of on made the going to we focus am when looking right platform Again, as build that going building X-year we back be challenges on in to in building to point you order but decision we what we're said consistent to not Tim quarter-to-quarter website. foundation I'll to we our At this you turnaround have. our know, continue on a strongest we we building of first of the

in run. but right, side parameters, story quarter-to-quarter came this right is parameters the within a came about lower the all the this you're right is we in and not we of about a So building, on

I although we're comfortable that comfortable of we're certainly So with direction appreciate feel going that very controlling the that. the question, we and felt we where true, since

Tim Peterman

plan, balance we've been in sheet, the about time, do has that launched turnaround in period work think where Profits just make we're the year. the doubled of of 'XX you have we second completing When that drive really to X-year prep the sales. HD, all we've done strengthened

the Comcast Michael product, Henry on building was and of it HD. when we it about about was important, a the profitability year, goals but completing second So others getting great assortment the thought content of of distribution in equally

-- well building XXXX. in third expectations we are to going us so was been So our This is the we've metric, in but is, and that the didn't most our in is risking important what metric we achieving in year, that we're year our revenue goals not positioned come sure of make grow trade-off that to for benefit the see the profitability understand important this XXXX. QX below is we to make was working two most in growth revenues

Unidentified Analyst

lowest goal the ship that's X% into of maybe in couple customers of the right the kind part get years it a that of was maybe drill XX% channels HD as fourth I referring your of product mix the the the what into lift. customers big that well actually customers quarter I drive seemed in stabilize the a to kind and in that if customers and less done going that's when level out that like the at in completely helping existing of move of big drop the rollout of XX% of obviously been understand getting down the you that new kind also these, getting metrics, there. rollout; in past -- customers; customers of there, in or sales to a repeat a towards pretty is Is more now is there. But one then for a than level and because you driving HD kind with or surprise contrast that four is households, total years,

Bob Rosenblatt

and that a continuation you To anything is your journey. do again, point, it was the

we to was And able lowest trade-off able at value of really in that contribution are. lifetime we to customers hour what personalization vendor by continued as level which determine to get have order the we towards be more win. financially to that, as that in that we in move felt possible best best be to ourselves can set do to by position detail and to margin the We the of is get looking able the by be

were did we to know this not that going profitable, although So do. felt to move we're we strongly some that customers out the thing right was that

much we have the to -- time answer TVs after to has that the moved are HD we're that have willing -- of go the onto analog but think say it's go back, longer and let be it's people on I neighborhoods money and customers. frankly I'll able digital safe have out HD to digital -- to but it and customers to to of worthwhile almost to until everybody go a the didn't moved get had HD as the long side clear to go to people -- no able on our piece it's the -- we're we they September that the neighborhoods to those our be able the -- HD a rollout lot was we did platform Tim equipment think ago us because these getting homes, spend

going process is that through. So it we're a again,

Tim Peterman

of and more build in being going came see going revenue to see down down, answer was This all revenue about customers we're Consumer but customers. is lifetime off the complete, XX easy hardwork task customer those a content that move we is it existing but when acquisition from an content of the the want increased your forward fall our down attracting answer to and you late build customers the that distribution in profitable, as is the purchase say less to will are question the to not the not growing profile million yes. with we're From margin model of low our is CE, be the to about why revenues come frequency that X-year has that's that product new XXXX. where To and for timing and will it and to that's distribution working loaded that very think of that. customers together this we're out moving now customers Electronics only and a out and -- you the spring take so new to element of we're It's have find on like point, take of baseline adding wins and was 'XX you ubiquitous directly, higher when I is we order plan, going fall, at down 'XX, planned we're so your important value

Unidentified Analyst

question; for expectations missed help to add the Did you I know this of it. I've year? on HD don't give kind Final comments channel if any us

Tim Peterman

want universe MORE, available with which and [ph] did our million us called We that believe of HD for universe. and talk we we to more $XX negotiate is bring on to I homes the did, was it was additional about them and

XXXX. clip you $XX a year can routed see and prestanding replicate of million As we've again that in hope million we to $XX to

Operator

turn reached Ladies we call session. for end to our over Bob like would have Rosenblatt and of to closing the I gentlemen, back the question-and-answer remarks.

Bob Rosenblatt

now hopefully is we're confidence that so about and where we Thanks And we've other started for thank we amazing than to and say and able amazing we've has be been much. were, to look don't we going you been you so we the support to an of about much transparent XXXX. I built. terms to where all to have journey are much. where in transparent being this -- forward your Thank build where -- able able quarter-after-quarter

Operator

concludes conference. This today's

And your you time. for thank may participation. disconnect this lines You at your

Legacy IMBDS (IMBIQ) 15 Mar 182017 Q4 Earnings call transcript