IMBI - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to the iMedia Brands Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator instructions].

As a reminder, this conference is being recorded. pleasure your my Mr. now is to host, introduce It iMedia Tim of Peterman, CEO Brands. you. Thank

You may begin.

Tim Peterman

and for thank Tim everyone, morning, Good you Brands’ Peterman, joining. CEO. iMedia is This

cover remarks, Before QX our earlier would my go release housekeeping prepared morning. I like We into earnings to a this issued few items. I

would you section today through this have the call replay to like Eastern. release through XX:XX available on today’s is will also of an for access will as exhibit the morning. investor at Investor that webcast provided link you don’t be can December website This our If section replay Form X, A imediabrands.com. filed X-K website. release, via XXXX, the starting as press I at a copy, everyone also in available remind it of our be to also well a.m. this the

are considered significant undertake reflect Some of call speak to this but such prove revise these forward-looking of statements are are believe performances, We the financial of about no These only statements statements and statements uncertainties. and as to today’s give made the our operating obligation and to our and any date. expectations forward-looking reflected forward-looking, no correct. subject future update statements expectations our be forward-looking any or reason. assurance in for or We expectations reasonable, during risks will

today’s Harbor in Safe For the earnings and additional our information, refer please filings. statement release SEC to

most including release. non-GAAP to the comparable disclosed included as EBITDA. required Adjusted references to be measures, earnings Finally, such our are we measures, The these will measures on GAAP to call, this within make about information reconciliations

items housekeeping begin. these now let’s With complete,

year our year-to-date by were years. that and high was company's of institutional in highest that our investors, participation nine-month sales, to period history. generated quality launched far raise net new new, driving to and our during within exciting so card last pleased those their a brands to was a adjusted passion. $XX.X be customers, processes. see year, equity was primarily this $XX.X last uncertain we strong the report iMedia results, are has $X.X and approximately year August, any driven meaningful. our for for from same period. EBITDA This vendors, oversubscribed, success guests, financial adjusted period. year responsible the QX the have In in like point year quarterly continue improvement period, as gross which these prior net I $XXX our year-over-year net continues personality can to decline were grit was times, over employees margin than gross This more year families, imagination it's every year-to-date more compared performance installed two was two was taking reiterate accountable QX $X.X to and over sales million over a prior use with the approach was EBITDA entrepreneurial-minded the same basis Year-to-date, infused XX.X%, emotions XXX year most was with our in improvement safe. cultural vendors, a XX.X%, improvement XXX same was a our to that million sales of step prior keep QX million, to that trust same margin best X% period. year basis employees, us, And like a million, perform their it the point call, XX same I over percent XX% prior XX improvement its new As focused on and Brands would our period the the million, prior QX

million of QX reduction was year from borrowing The $XX a Regarding at a credit, of million to a structure revolving line our composed $XX.X a end. in term Net facility debt company's million end. of loan the $XX.X to subject QX a credit up cash provides million, and XXXX. from improvement base, debt year that July, prior matures $XX prior balance end is sheet, million, $X.X an was that

at was end balance of the the year inventory prior the decrease $XX Our from million an period. million, quarter third same $XX

we Regarding QX websites capital projects, X.X primarily capital infrastructure. expenditures, in invested million approximately investment and our on reflecting

our high post will the the single QX to In digit company terms of millions. mid EBITDA outlook, in believe adjusted we

has company NOLs offset As a to are reminder, that federal to taxable perspective, a in future tax income. us, from available approximately million the $XXX

television to company important In Cook we terms milestones TV. Shop premiered brands, lifestyle and Program QX. Learning with we portfolio both early of our growing media our journey of a commerce In Television leading and media Shaq ShopHQ Bulldog during consumer a on interactive services, several networks, to become XXXX, achieved

As products is these always, our maximize to goal sales of the Shaq networks. on

meaningful milestone we plan from first our creation However, for a time, power to unlock networks first perspective, and that stores. XXXX brick-and-mortar announce in I'm also a in be Sam's This opportunity. achievement TV over proud October Shaq for when retail Target our launched the the the would products of the and to drive retailing of our promotional of to Club kitchen

launch Another milestone achievement XX/X TV our retelling was the network, newest Health. of ShopHQ

men. advantage type initial and about existing products live this are and and men women health Shop retailing it. as ShopHQ's launched advantage channel, homes, beauty. will would self-improvement services service, this health Today, on dedicated offer, and to as why Health channel, existing color who and same retailing to TV utilized initial of we women. we shopping this a of self-improvement strength to and and I their XX/X million are happy we why to reason. the August, retailing TV launched for TV it ShopHQ so in by new men are like launched competitive in specific, announced categories, the TV be off traditional men's more I'm provide it strength within what create the report XX/X we services and launched Bulldog define excited and using in for products network we fall, is we start. beauty was great dedicated As to to the XX Last this in as To for being competitive programming categories for ShopHQ's categories,

telehealth products offering of video, in equally to is people we services, to own However, for of the to is or as Roku, to In men each Based refers homes. this the focused I capture services, a refers over-the-top in to iMedia XX time the loss. different The at telehealth an or The homes to as situated and telemedicine to marketplace. interactive over-the-air health what services in via strategically are specifically older. box, cable this like them spirituality, as customer at are are it's $XX telehealth. your today who five products education, characteristics, are broadcasters, next we lower years. the of closing, or on these internet, services core on size purchase this growing consumed we while like that costs the in video women via this you the TV here Q&A. scope operator? these is today, space to services, a weight referred meaningful think seeking for of the and in plus to path Apple consumers and telehealth from company. that customer important at products whatever remote believe clinical Thank over form growth of share turn delivery. and continue we the telemedicine, growth via of on and a expected billion, interactive services about become is driven back and broader from such would for and advanced delivered I level broader by We grow times and percent by health health-related being marketplace health, will their marketplace our products same we morning. Telehealth US by call in iMedia, operator Today, interacts their refers mental are services say to XX who core with

Operator

[Operator Thank you. instructions].

from coming Capital. Argento of line Lake with Street the Mark proceed your Our question with first questions. is Please

Mark Argento

good Tim, Hey quarter. Congrats morning. nice a on

in into XX% that how coming out new - where guys those and have Thanks get Just little of customers? maybe stuck sales a - How areas, from fill really little on would on bit finding few that the customers. me, Maybe of you number wanted be in a in terms getting in XX% you also they Could are that deeper that brands customers, are network? The just bit get dig brands. new in to growth little helpful. to me the the a on you new the in

Tim Peterman

- customers, The around interesting. Mark. thing, Sure it's

from it XX%. our at by QX last QX in provided for we headline year, our the about And think file active time file the talks Q release, about you by declined customer X%. customer perspective, press this - our If growing

of what to the the question week each would us obviously all of programs new static last So that week, momentum of so calendar, and the launches. and the we've just before. came doing that year-over-year, the And and habits. a dramatic change then about One revolves programming, two programming the on be we've That QX - building at right? their second things, as began an the talked important The around and goes. really through change introduction it happen have same been this such for is end, viewing it's the customers element can build is brand

product company and decline to folks keep really think, the flat new I when you're particularly with turning really new with. assortment have brands and from products the even a growth, for engage around fresh the you to with to - then to a

to - great in coins Alive. all themselves, we beauty, Will's in category, Be of We So brand in food, from a things like SeaBear and brands sub-brands Kitchen, like had that where Mackenzie-Childs collectibles companies to from our virtually every home core Glow, collectibles. introduced introductions few really new sorts a and like category, had

had They’re All say strong important if every elements in different of product I single we way. they're guess I this important. and That's category, successful. are those - it launches, why these

generated So, that's our the ever a the difference. revenue, thing. as It’s and idea key And really that that we've is many we had launched they the of that the highest XX% company.

that created the file. customer I it's on both the that of together things turnaround So working think really those

Mark Argento

out, name the the you consumers of a then in at would you put it the And are looks seems press like that brands? last had at least getting pretty the of Are release guys maybe lot have some brands past? than you a terms brands - looking differently - decent platform they better Great. your in at brands, little

Tim Peterman

Mark. question, Great

Bass So the some and fashions, the to probably Lagerfeld G.H. are footwear. DKNY the of referring that Karl brands you're

are those XPL know, time brands the And As and done for - represent. some GX, quite it that the for we you and of some services as they know I've do last scaled I you that year.

two, So to that's Elan. fancy like sales there's spectrum that and than the if it’s see those be build exclusive that complement think that us, say it's three, - channel brand if relationships years of mix more are some the most really just launched, we have to as weren’t the our you across networks. in couple Heather I establishing really the customers certainly. well-known like fashion questions very better is big - in and really that. would or brand and years we on nothing national And are of just HSN as brands. ones brands of these higher And just Sunglasses has for TV the community, opportunity. retailing we these being even ago, will, that that you know when at that over the last I end brands been retailing merchants to But that more you Oakley always proprietary And proprietary TV our of offensive-minded then It's with look network. nice And to QVC four Dubrow’s balance brands, from really it's the of brands on a tried changed marketplace working the against the like stronger would asking I us. considering our

I - in our good channel it's So entirety. its about think just it's statement a

Mark Argento

Thanks, Tim.

Tim Peterman

Mark. Thanks, Absolutely.

Operator

you. Thank

Our next the line your Davidson. question is of questions. with Tom coming Forte D.A. Please proceed from with

Tom Forte

Great. Thanks for taking my questions.

of questions, one handful I time. a Tim, a had go at just so So

I concerned consumers inventory I about consumer e-commerce, capacity. when logistics Amazon, want. have they're holiday about and Amazon, The even concerned not to that hard and going have levels, they're to stock for a in holiday. gifts first worried time in about that for it for I I'm getting question even to And Meaning, time going have I'm is, the about I'm think think

general, in feature you logistics get retailing things then video in consumers you buys confidence to in on does an your I about, large And talk you holiday? air. time have Amazon? oftentimes inventory to you the able be know can what to So gives for efforts advantage gifts on make for

Tim Peterman

reason is CE. the the Tom. type really time best and good where fill was relevant this we of January, - season, The It QX category, were last let's really because holiday that, traditionally, Thanks, you dependent managed of season. certainly down and on our feel of really the may first last back inventory. year because that Good we is, in terms that CE inventory inventory. now. being part, for going this shorthanded so products, this We in not in recall, sells And started the have as we way is right our to really doubling exclusive which gap, our proprietary is were which take about year, question, the caught in the how

fact, In this part our a of very year. it's minimal strategy QX

thing. so result, that wearable strength, that in. in And hours in in say, health, other the beauty, the is not we've I kind same is are there a But that terms the just will down pressure. in say pressure, a we of we our would are watches, that as of are delays go I of had we're jewelry, amount fashion, those getting of that categories real and products logistics pressured and seeing not categories that small CE, you in of

to say that going that I So And the the you're are are our on. you're because strengths going a FedEx, from UPS receipt pressure I going we've think that volume just been smart. already from that, else, would everywhere. we're where logistics everybody of pressure say - through see and products I not wouldn't that are has perspective. coincidentally, I CE in available it's as those most think And also navigating sheer see to and

we pressure of that UPS we consumer for any FedEx, of things those everything that don't electronics, some so with based are far know create both expect, unusual and to think facing space pressure. I are some but respect I in that on retailers

Tom Forte

Okay, wonderful.

So support At different thought they're their know their Analyst are different, to QVC younger starting have your Day that engaging that said millennials week, which older stereotype you a more. is I just engaging baby with platform, last to and that two are data remarkable went your talk of can are brands? kind it's boomers. the against how I consumers little demographics but about with

Tim Peterman

taking and That’s and starting past. of be us. see We XX perspective. we've about in is consumer, opportunity Certainly, we think where an an interesting continues interesting biggest and - question that our destination HSN talked from And QVC engage do younger at up the share is that they to customer for as the terms the target. the our in with

HD OTT products we to of customers at a we when of to is look selling, not don't - focus age and that characterize what maybe actually an I'm QVC sure in are. mean and older what the embracing by that the millennial. they HSN we the you are millennial? focus we However, in that of And migration only is that The customers core as certainly on. older millennial those those markets, focused of attention. Is targeting the certainly that would we're - our are the migration not something some same

Tom Forte

XXs. the in Yes,

Tim Peterman

In the Yes. XXs.

say XXs a as would I old are say the in So mirror. I’d the themselves human there the that year - sees XX condition, XX in -

most in lot doing up, the on I'd what who great migration and and on more that, we influencing the We’ve ranges platforms. interested being And of on certainly social, had more Instagram. platforms differently on the that in, or like social - on it side influencer are see XX they're a viewing their still XX as focused focused engaging habits say a programs from So we're selling and to on those and and we're themselves and lot up. that a

minutes over-the-top improving that certainly our our with we're apps, cord Samsung it and next are more terms engaging our we're social old of customers what sales two in apps, smart those the of year up, And our short on and engaging TVs. like Roku, platforms hosts are the generation, in and our with OTT, XX the So guests platforms. TV, Apple call are how doing core engaging cutting

our in platforms. these in As acquired maker. apps feel you again overhauling core with know, the upgrading our last and leading we customers QX, Interactive, we Float is right are we which of a new now better can internet-based Left app and video they so And existing OTT process engage

Tom Forte

Great.

you're there, touched the they that got you Amazon your and behavioral of talking on too Roku, understanding then programming, thoughts. start your about, he be love it video last for my over-the-top the Fire purchasing. certain after to converting? upon know be needed with don’t comfortable, sort early was five question TV things early, and you she Again, the that is, it patterns, to they before core to I'd or but times a where and engage tell, again are similar engage many Roku It nature, hear my consumer platforms may if as which retailing, I So seeing hurdle, then as programming but on historically and too of with started may

Tim Peterman

Yes.

talking you're believe in data areas is, defined or and we see MSOs more about call it it of, So the phenomenon the our I in, in MVPD.

OTT They example, TV a is begin launched of to climb. when channel. early, great the television that the it. look view it's and see takes engagement it we the monetize touch that points, starts market how maturing engage. we prevalent to TV viewership It's a maturing watch The then it's them with maturing, indicator that customers. to it's we but home way engage. a different on - they for know one follows. data mature. or same couple at of terms with and the is this customer whether early home is networks, viewership. a and the of very to We begins talking we is and viewership, don't that, you're So while advertising-supported They but it In recently of same that about They has the know, industry-wide, when to phenomenon retailing, retailing, the And our happening also it for that we and in

right? about email, more with television you in times the customer the touch world attribution, a touch a engage purchase. of with So, those The then all that signal, eventually different think points result and then an with of social,

on matures, yield whether higher today. we a we'll calling same provide small it to the you're with that to customers, I email, existing model measure points data our of revenue for and some And they we that. KPIs. too trying is gauge priority the they're on to basis, as using to of OTT, for think but customers, of of touch believe new we it. same a will things, watching that's platforms. really those provide think our do right that's measuring them though, interact But the are that in I with say, way when on It's conversion bigger would take OTT personalized too kind a priority in Not right will But not to see it the that to see us, for to it's And that have do data it. us. So, and we have, our now - personalization we our do learn say that's OTT, overwhelmingly and that our how thing early terms more in do talk how engage whether whether and we from best SMS, us meaningful of the in

Tom Forte

Excellent.

Sorry.

more You inspired me question. to ask one

HSN, there was historically, I halo was time where that point So effect. in a there for QVC, ShopHQ, would argue a and

effect? like well, more halo QVC certainly back. in you a there's cast the halo Are general. So, it's feel efforts got of a halo that were those doing that Do or you for potential seeing its video a effect seems effect to the on ShopHQ? extent one like at retailing groove

Tim Peterman

way great a own a question. effect. HSN and HSN answer we is experience, to certainly would We need run inside they retailing. well organization, they that's their QVC I brands the overall we customers I the well, finding Well, good think - QVC experience share as just our a and channels do - And ramp. But we like from the be halo good will are again don't on fiercely and more our believe with, they are independent very organizations. to engage its yes, think more it that TV are take and that in And a able we're them have then

customers emerging, a So really this more we and men ShopHQ The comments easier beauty I pursue, women to think talk I do XX make to share assortment my I continuing to customers it think men, those and with we And in as also true. element arena, of was loss, call it, if why for of well. get these and in also that's mental I acquire of for broader up, particularly the some traditionally execute how healthcare, made with and financial I bit think we Bulldog them. into is do a as health telehealth as area, retailing the remarks, shopping certainly weight familiar the I for is around continue the addiction, tailor it the or do we're Health area whether whole, think customer that where perspective how particularly of build aren't in issues, health video think self-improvement little but people ShopHQ goal-setting, remote it that's the with that interactive think but about about might and of you interactive healthcare because on and of the that set would new be, future. they that us prepared component what that kidding and product that's to just we growth it I interesting video really TV around deep that new better something and about do, is in the for issues how we development, vertical component all that, our wanted

Tom Forte

you questions the up my Great. taking keep good Thank work, for and Tim.

Operator

instructions]. [Operator

Our with Please next Fuhrman Craig-Hallum. your proceed with Alex of question questions. is line the from coming

Alex Fuhrman

bit very Thanks taking and, how my you've that's on talk here. really in you've over are much ultimately far? Great. in for little looking what into for as a seen XXXX, the about but bit decision you time? scale market. opportunity of another terms to going little question, the you so can look like kind signposts congratulations quite homes telehealth it's identified about of sounds you what early, tell the of more make engagement, It an to Can a And here then be us quarter Tim, as strong into going? I know some you you’re

Tim Peterman

new but bit then Thanks, which a talk little component, question get about in second. about will homes, important an and not Alex. the engagement, take is I'll the health, I that we'll first only to

but ShopHQ existing to these So in to are, and the really of the an health, both as initial new to our with so customers the Health, we and in goal engage the in about in particular, competitive of health. Bulldog advantage with topic, customers is talked strengths have use - which vertical our

ShopHQ, create and products for to we're and product ShopHQ guests new our And Health. in certain so, us our best traditionally vendors, best provide on using brands who a

loss a move us, these once people on sorts There’s of think and this and specialize initial these let's can that they even higher call in information we advertising of seeking that that - where dive they ideas think, we And once these our video areas goal-setting And customers, and is that this we sure trusted in of let's of with maintain provide source give ways interactive interactive customers high-quality and recognize discipline like all weight vendors conversion can services services for ShopHQ will us vertical. then an that they today, lives. find into supported it it's a their the start us cheaper with topics, this to to to ways that there area, engage and example. that folks to start traditional types Health, of, and out content. to with make other applications are take area these type have different other So

with and So, why, it XXXX. same we night it's nights add and as those you'll process original was see where a by we Bulldog doesn't the original of introduced Bulldog, out overnight. distribution. roll Bulldog, programming programming happen night, programming. That's for us new did original step-by-step throughout as evolution roll are programming see taking programming. we And it three With as out days Health. QX And as in see we you'll And ShopHQ original additional of then those mature, an thing subs night place add we dedicated added, that we

you'll original these customers. your hand see programming. to work to - new question, second homes, They new new in with with hand engage So,

Alex Fuhrman

helpful, partnership your assortment well. partnership an very Brands about Shaquille I O'Neal? a and in Sam's stores as little ShopHQ's economics And of Can interesting. Authentic Great. Who’s if It taking relationship, the Just that's product sense the and Target role That's could bit also seeing quite risk, Club then about is? inventory your product talk with Tim. that certainly with of better Shaquille the a that really curious and of you O'Neal, et like in Group ask little just sounds a to bit cetera? what get opportunity,

Tim Peterman

brand. partner. like very innovating what as - does big we absolute off just great is constantly we an to Shaquille, he’s The Sure. be build I'd first say, us with a It - think will

a television as authentic call does, build to personality when folks, the why that the precedent network idea promotional was is, something retailing. here in really the of larger was, so beginning different start in a partnered that retail back with with And brick-and-mortar let's of everything was resonates not we at it's and so opportunity, he using Shaquille that someone our of So and idea have platform types like if many Shaquille. TV I unusual, you it a

we tabletop, product to from with the lot spring, customers the did everything different and different felt absolute what shows types that with our started we that of types we kitchenware. types found this of so spring. on different best Shaquille, developed we and And And food a of we of voted based during on work, would to

found in so, started that, okay, of have to infomercials that's then further we and tested, And focus identified, what will are best in able have list Sam’s we with. we and we retailing. the did on that stores. that's on products all those now other TV what product we know And secure a Club and And testing we work very retailers then retail. as now best how were more that we we small engaged in that to think And Target

you them. Group, very great in talked new that seasoned working we at this television retail. but we helpful network - as partners Shaquille the have partner in with. a they model they They creating, to operators. other only And about they've brands very Shaquille, Authentic new are we're model have, where obviously control important a as Brands interested partner beginning, them, with result, we been Now, with is a very national group, became a are very obviously this in in commerce we're opportunities that at not because and with create very that

an months And retail They they critical kitchen other our ecosystem. in this that of distribution retail were they are design, that Shaquille, efforts a And the with is the ago. have relationships announced secure the all in well. we different helped we us very couple partner The have Tristar men products. strong that to this, as of in types partner excellent

the we'll retailing all we're are economics sales, the we And of it's economics, that. first partnerships haven't know, of all I royalty that the in So, this his with into use normal there's - can't when of and of the team. proceeds partnership the and gone in we our do, Tristar, but - just I of they're ABG our ABG that a believe really terms on TV with those Shaquille, they've about critical us They're kind development economics both about publicly and management Alex, information, been retailing, a of just is say the it's enough term, And in Perry, and terms of our the product to any three-year public And how relationship with be important. sharing associated you'll certainly publicly. air. opportunity. certainly offering

Alex Fuhrman

Tim. that, much. Thanks appreciate I Well, very

Tim Peterman

Thank Those Alex, both questions. that. Okay. were for important you,

Operator

there this no any to further like Peterman for over And Tim call the at questions would closing back are time. comments. to I hand

Tim Peterman

Thank and time this and again, soon. your Robert. time forward appreciate your to you for attention morning. to you, talking everybody, look We Thanks

Operator

this Thank does morning's you. This conference. conclude

time. your this and a for at may disconnect your You participation, day. have Thank you great lines

Legacy IMBDS (IMBIQ) 24 Nov 202020 Q3 Earnings call transcript