IMBI - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the iMedia Brands Inc. Fourth Quarter and Full Year 2020 Earnings 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. pleasure [indiscernible] my Controller. now is to Corporate introduce It Thank you.

You begin. may

Unidentified Company Representative

for and this issued everyone, morning, joining. morning. thank earlier Good release you We earnings our QX

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

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

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

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

call Tim the over our to Now CEO, iMedia Peterman. Tim? I'll Brands' turn

Tim Peterman

on same Brands be QX its safe. employees, card to it and prior-year was I morning increase the rate prior-year years. QX EBITDA families an begin Monty. a us. these grew to improvement strong same reiterating XXXX vendors, XX%, uncertain focused of customers that would $X.X for keep period. new continues iMedia every this million guests million for customers, million, X% their the to during can Thank $XX.X and metric another step period times adjusted like was QX to compared growth taking report you, this the $XXX in seven was revenue highest net by QX to compared

balance was Regarding cash our million, improvement QX prior-year $X.X the sheet, period. a same million $XX.X from

company As of a facility XX% of that it's had a At loan which today in line composed line a base credit term $XX on same was XXXX. matures to million a credit, reminder, the July provides the borrowing prior-year $XX the debt $XX of XXXX, company's the period. million QX to subject of that is structure outstanding a of a million and end credit decrease or compared

QX, decrease the period. of In loan addition, on $XX.X which its term or million the at compared outstanding million the was to end an $X.X XX% had company same prior-year

balance prior-year inventory $XX QX the decrease a million XX% to was period. Our compared same

Regarding website investments capital quarter, projects, approximately to million our during the capital $X.X primarily reflecting infrastructure. expenditures, spent and and we on the upgrades

to $XX.X of million Full million the expenses our reductions QX continued $XX.X XX% expenses decreased million. expense's These reflect or expense impact discipline. million. $X.X leaner decreased $XXX XX% XXXX our operating organization year Regarding meaningful or positive expenses, operating to

performance. consistent results that QX also As strong full are like our results as with these are, would to XXXX note these I year

that million accounts XX-plus new accrued generated period. improvement cash same payables the improvement Full-year $XX company company's roughly to period. annual and a million the and For year compared to EBITDA, million in $X.X a for reduction the debt cash the highest $X.X flow highest the in revenue, $XX in compared and We the $XX.X adjusted brands in million reduction history. full-year posted from XXXX, liabilities. flow annual a prior-year million a number percent same improvement Full prior-year of example, million, XXXX of was the operations the which year revenue $XX XX% a net our was company's launched annual XXXX in free is million, merchandising $XX.X

New XX% customer same growth was compared for to XXXX prior-year period.

in a the it's addition, was compared in three customer Gross new file point XXXX for full-year ShopHQ was in it's home period international products. the consumers for In for brick-and-mortar television to period. same XXX company the only television for to basis to and and promotional was ShopHQ XXXX. test retailers margin US. prior-year first FDA time first growth prior-year to national COVIDXX growth first at it point ShopHQ platform same generate consecutive that's the the and the XXXX, the compared grew an QX quarters authorized since the was to network basis team's offer retailer XXX demand

namebrand company of XXXX, company Left additional and brands; XX, financial XXXX our exclusive J.W. contributed iMedia brands networks; over banks and XX, equity following; million. television, in products a For two to approximately deep television in inventory sales ShopBulldogTV recently, accomplished business the XXXX a offers digital, acquired Capital, a we online launched totaling services. [ph]. in results, products marketplace and and Shop grow on how ShopHQHealth we've entered discount passionately into marketplace, with to example on leading Ourgalleria. want oversubscribed partnership from Shaq and where channels day the consumer a all drive and interactive Float lifestyle strategy raise, back We a ReStore $XX.X step brick-and-mortar. stock television to an licensing On a are OTT kitchen centers the common including company commerce networks, Christopher online in work well global controlling closed February TheCloseOut, the catalog target operate March at Hulme media Hilco On XXXX and company that successfully our stores acquire available two company its XX, interest called nationwide. we've today growing I every February our million consumer Club consumers portfolio new on $X.X and discounts. new Most which as will media building staff reiterate Since Taking Sam's as growth May

Regarding and of the in our accelerate in growth what with consistent we distribution our In continued increase works. of programming innovation footprint, merchandising experiences. DNA XXXX, XXXX the our are priorities, offerings while try we know our XXXX, to they to markets. high-definition We'll the company television networks larger penetration will customer's revenue particularly continuing improve

profitable Shop revenue iMedia [ph] in key brands. our We'll networks model drive online proprietary innovative business leveraging iMedia's success other with marketplaces power. our will of We on it by the promotional by television growth capitalize deploying

to iMedia' programming to lunch services. existing compelling and leverage accelerate we our our television opportunistically and scale ability streaming OTT commerce will profitably media services We will

company QX revenue the to X% X% anticipates the In terms our of compared growth same prior-year period. and XXXX posting between outlook,

posting In company $XX adjusted XXXX. million million addition, the guidance between in in least million and and that EBITDA company anticipates QX full-year adjusted at the reiterates $X for the its earlier $XX EBITDA

revenue morning. to for a ability the say are offset As $XXX Q&A. to a excited growth. about are over NOLs our approximately to that time federal Operator? closing, in income. back would we reminder, has from million operator like the company perspective, I In I to turn and this you consistent, that Thank your annual to future the tax profitable, available deliver for taxable call optimistic will us

Operator

you. [Operator instructions] Thank

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

Tom Forte

Sure.

quarter Tim and So year. one I've congrats on follow-up. one the and the question

how & So of TheCloseOut Banks, talk you first website my sort vision remarks, Christopher brands? about your you question prepared and into this overall fit in those on touched your but iMedia can for initiative

Tim Peterman

brands there's are networks, is we're services. what brand and Both have then and and our of the really agenda the television building three our and the of our is strategy. of doing lifestyle that about building about commerce think out Banks There here, you media parts you the consumer of commerce different If we services. the our really TheCloseOut described building of businesses Christopher media consumer there

note. of we we spring, launched a XXXX a ads the think we The because build in brand we consumer Hulme ShopHQ's we XXXX, we our and two launched bulldog, segment, and in take well we file with ShopBulldogTV of and and Health, that who with about that we of started effort right each networks have acquired net competitive two area began we last our 'XX do and when spring of late launch J.W. strength launched really mix. began with you If advantage last and in. back We then XXXX, to were those of merchandising Shack categories very second that step May think in television started first The was customer new then

but them talk partners a move Hilco agenda, with brand. opportunity who us I'd Fredericks think to bank's team and Dan Rubin, our consumer and brand. little and exciting. the think Restore the about certainly you those an partners third are you three have which is a about Nortman, for be Banks The and if bridge Christopher all operators, bit why As team, Ben it banks to model for Christopher Ian so for Banks think different taking it's to we the we're Capital's great involved great that Banks, Each of really we about build Christopher us first like exciting would within

first excited So about. we're of that's the why part

Kelly that up excited is it same to you aboard side Banks, Banks team they led by years. been the for hired we've our Christopher brand are customer have we're folks have moved we the from that go working we on to I who today. and of of they us have is very well is strong. proprietary it. second share so Christopher that it the It the team as Christopher [indiscernible] The XX the [ph] there, excited. building. her table the and strategically bring build same sharing that a the top part very also is profile, Kelly, The female as us have just merchandising customer marketing to Eisinger to Banks from going leading working to the have our couple started to am the on Christopher Kathy exciting addition we we're so helping with help team obviously is think a reason they her what is a When on guy operator but from Banks about why team in of about excited XX they that's through leader around have

these show of strong our be platform economic promotional but involved. is form elements easing it we're wouldn’t opportunity promotional launching what month complement certainly All our a have use to next say is platform, able magic, us everybody already for to for are they to I television

ship, package, is brand, our consumer together. benefits build our services, within brand loyalty from we do, they commerce these consumer work building traditional services and to in media So important pick, promotion are, these we and brands every segment Christopher all our three creative Banks and that brand our media our whatever programs, or segments,

on moving explanation from into Christopher So move an Banks let's as CloseOut.

mail the men's for for shopping think service. how bulldog exact really talked we telemedicine. our move a think with strategy products service mail general ShopHQ into, personalities about and is and television women’s for you and marketplaces. ShopBulldog when into men's online service we telehealth area with the our We're about men we So networks products deep women of services a ShopHQHealth, service that strategy doing from of into shopping products we When products again deeper is the for go very and distinct and really same a shop about and service and services and

know you is more branding marketplace whereas call, of totally of it end, it's it's of you big, think these it's reach personality Both customers goes is will. to discount Galleria, in feminine, we but much type price marketplaces personalities much are feel branding market different with into those or is a like the a it a a in aggressive, more it last of it the marketplace, TheCloseOut more So is and do higher we the very launched as much type has real -- following those that a way to way online I marketing, but a if it, discounts, more personality Galleria.com we fall our deeper different a of reverent feel. more different our efficient

your So question if I'll stop that answers there and Tom. see

Tom Forte

helpful. Very

impacted So pandemic how to follow-up I sales my generate you top of about of has growth to ability talk on then year's you performance? and to last investors wanted Tim for the your remind iMedia remind

Tim Peterman

look just question. the answer Maybe as best metrics to is do we thing at the that

start with merchandising So mix. I'll

in we with we moved for going health telehealth their really look being As to own was we health on current for that last around COVID and move all in a QX know customers shift the our and these more at again of a began idea and see things hot different as issues about in all evolution an be our to there is offer felt telemedicine through QX dramatically would and year bit sorts and our the this product way this look of customers, out that everybody levels you that we test can accelerated personal as you XX%. navigating was customers, But quarter our you home shareholders pandemic beauty were mix, situation. and and by pretty began as journey the merchandizing that of at in all best

XX%. time of because we in our So and QX only health beauty certainly were at was the XXXX, demand addressing that

mix QX move but QX, QX it XX% was was the health then and you to then up and as only we through watch moved beauty in and it XX%. QX in So if XX%

in brands demonstrated So QX mix we've one-time in and spike levels by move beauty the products and that hot what new very and long marketing in categories time time revenue in and and a COVID-related system our course and health. was everything growth the through that first that's our the a XX% ordinary event minds the all that our would and in with because customers only in else its of are being a

us with for the as a would isn’t comfort give or pressure an say KPIs products strong those So issue very lapping that of us. really the QX health we

and mix businesses the shareholders that QX is QX. in want spike health just a that products have normalized, but been addition also year very busy were for also be launching high to also last not acquiring remember we've now to In QX, was new around after at in

of So both opportunity goes ways. the lapping

XX% where the we you COVID to what get if are that very levels lift but today, and here the Banks not through Closeout had are think last All QX lapping ShopHQHealth obviously to brand and QX from hot from from beginning. of launched into new So last launched pressure the last us about year. done now QX. done from well in year and that has you we call in of year. is half again for QX The we're moving the from the was then XX% forward year that with back the not we anything QX Christopher really

QX. year, end QX that's what marketplace are higher to that because able launched thing QX, gross moved feel of and culture and my a is Our as through that us make being Most QX organization are the make importantly, into Galleria, we lean we're know we've we as doing those very established margin. and believes something the we've turnaround, things good last a the move QX, the fixed revenue that us financial and prepared in that about those but elements in fundamental about driving produce we've this, all the remarks online in growth of optimistic discount the is feel about consistent XXXX I we said

Operator

Thank you.

comes Mark next line Street Argento Our question of proceed the Lake with with Please your Capital. from questions.

Mark Argento

is over of next We've the of those free improvement Christopher Do the transactions couple ones. particular balance the to third that continuing how the mentioned reinvestment, kind do with recall flow to And Banks pull of follow-up transactions talk recently, a nice the opportunity a about of of in year, but the thanks? and one play almost terms maybe types I in Just you there sheet, portfolio? balancing Shaquille watch see a out brands. bit obviously opportunity operating more your deal little like the through cash these a to to two quick just you bigger of on you’ve capital quarter it got year to looks that pay like sheet, that balance see on or then the on a raise your with an

Tim Peterman

see what with think our I Banks and starting Christopher to unfolding. with strategy you're yeah, So is Shaquille

do XXX available ShopHQ XXXX obviously opportunity Shakeel to for of we're brick-and-mortar Club platform strategy national over our like it a to this we that, figure experience consumer force, how that with in to home do strong our the have addition and to using scale started sales we then well a and using ship the Sam's million package and target opportunities of stores, very doing platform. So out drive platform, in even

can those word build really of has of would elements it, do kitchen be promotional back assets other a a that end do have when can other a scale the because the kind then ship the then to use brand All product, make the have both guess lack you like critical. fit power the company elements television our are for it of power, other Shakeel back front all it and digital of better that like of I can like and no platform brand we a end no we the

the of we So sense. Christopher all strong we're and partners is opportunity the they Hilco partnership Restore in partner reason when these doing Banks. why of it as so with flow it's that to now The again constantly are partnership that again of knowhow operators a we expect with and I take that mentioned replicate we makes and a group and Capital good, are

that the immediately to traditional customers on our much had from as backend share we Christopher them Banks, of they elements these makes say, when So file. I had sense, business there shared customer reasons. when Banks, did expensive very do, the well. different the of to and that media all same a with it are everything services upside complement has we like be and strong and Christopher we

ShopHQ proprietary back all forth. Christopher Our that print, proprietary and different very the things are go styles, customers the in Bank' interested with

give it, for do think because very mean for a we lot advantage be brands have a come yes, unfair our of model these brands because really each here sense for So I That demonstrating going going can assets particular for group our to we're there across that -- to but selective were that of why of growth. that brand makes us our reasons iMedia. pursue an about these they that we're all brands when brand sense that makes of we're to doesn’t table,

yes, something of. So do more we that expect is to that

that -- the regarding Mark to let see move So if just question. on before sheet, I balance your answers me

move did talk really the set of base, the borrowing partner, I a let's a hind line sheet, remarks. term is balance glorious taking the a set as note, have borrowing $XX the term of down that significantly we XXXX that's to down, So credit, We the that million well our and from until. as enough which note. the the we did as down term the loan attention the gave balance work table in T&T outstanding did I'd have moving not -- next say it base sheet side about we of the balance And our credit me we prepared significant borrowing net a was let move a great line base then in and

don't And paying will as that is move right either. matter a so believe opportunity, process when we think we we of the interest like we but XXXX, we we be about as think zero answer debt but through don't

of we a and they and continue is. pay certainly last designed did we vendors we'll flow down Certainly opportunities give so other working improving what were some look with for to equity debt. that at existing to different that of on our sure We with each for business with distinct the our optimal at raise margin were make weren’t much. advantage would the us continuing and So these do the reason raises XXX% unfair like payment really fall's the the mix to vendors an we terms that to and ways that thought focusing

distribution talked television we're anything but more that working is we for the remarks much raises each but really about So -- high-definition network. first our capital capital second what how again about we not if part. on for working prepared was In raise, designed want its in so the our was reason, my of focused

that, linear we and what through OTT up, Top, obviously the immediately to is there So going as on different that is Over ecosystem high-definition the are MVPDs things as are into enough do after move those and internet payment landscape, but often we the what the the about focused based we're XXXX penetration starts would that to around and those folks call in between jump there difference and are after who go ecosystem, we the is for our particularly move are talk way feel like between the is everybody MSO terms the customers customers the of XXXX, certain and not definition that. go neighborhood markets are high that high

when that to market want make productivity and we market HD our in changes done carriage, those evidence a demonstrated sure have the particularly a make in it the move So in top growth as that we have balance in over XX to big we time. through this drives we sheet XX% XX%, past we've market

accelerating something it’s bullish from months the in out standard important over I'm before the just customers we're it the we XX on and evidence today that out that more for saying that They're at last that's move definition have in of priority OTT, are it and more reason and also not MVPD do hanging such very XXXX. and to we these moving an call neighborhood. HD us that's So

opportunistic growth that down in revenue just complete and we're So your will the question? rather pay margin of be if balance using the answers for deployed in sheet, than that cash a debt

Operator

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

Alex Fuhrman

that merchandising year the certainly tremendously continues maturity talk typically does from platform they're new the about and curve a about brands a on like Can your you that quality like launched seems and you contributing the strong a wanted brands it business, and that I little have the launch the Well you Is bit or new and from bring when period, when thank more what brands your of take improve perspective it to two maybe to you there commentary bigger historically. a big the ask in upfront congratulations a my kind and taking turnaround. to as for caliber curious and like on to question honeymoon then ShopHQ do new build to just phase or does you a a and promotion of year brand? that start you it you’ve brands level when kind they a doing, that new the maybe evolving been brands brands? do have the at launch typically they bigger been seen of fit that better in curve differently because they're higher than you you’ve or past, maybe sounds

Tim Peterman

so let's Alex how step and a about last and so of revenue, from saw that reason new when brands, say sure, back XX% us takes year it take many it time. we our talk some you was the

and can so we produced expectation able the we that brand. in make is you involved of really anticipate if the how priority new the It the developing we they're and happened. brands, to magic, building the XXXX, if for to magic us really growth think to new brands, XXXX. sure since her When of new has less some anything time no in in was hasn’t back a or we merchants and quite there were that do really and the vendor been all half on or is million XXXX, these and That are no a in distributed 'XX 'XX us $X launch a brand 'XX we're brand. building is down exclusive launching So top to there successful fighting then comes over them that that brand

AL year [indiscernible] the the did marker a Invicta's whether well trying we with that vendors in in example, each do concept, about new it's so wave has to not do for with about really new leader It's is that blocking innovation of or a that we our it We're for being continually that history brand and constant building it's around a tele to understood partner well different had product launched offers areas and different that with vendor, and years. been XXXX hoping to relevant most going tried of new development. that's So did vendors in that of so and constant reason home it's for that in tackling every and in and remains style that that that that new XX-year's what product understood and to a logic market areas. five one products partner next and is

just we the into in to a and that why the have to notion that it and of to runs is we all who as our we've the runs we've with about relationship to the and build products that we of not continue that product they a there together minimum, in [ph] and launch vendors areas as fashion different view, policies it but not as aggressive common five launched well. areas So to we for saying brand have feel a here, have products our and we in I -- on a and of just for good an migration well have want and of hour. other the use an they say point brands us means it's them sure a tabletop and all area bringing how building can't certain to available XXXX one have an did brand and in and have a that listen, our to only it not brand, we price and runs about out market who in places three of brand product large realistic core in Lee distribution listen with our this home, example jewelry going a that's great collaborated and just is area? in brand we're to that beauty very by organization does about about hour on be Kathy different in that assortment there not hour MacKenzie-Child this vendor that So Dustin brand put leaders or constantly merchandizing a where Today expectations towards know as that the amazing the those their of and hope home expectation where this build platform fragrances, out space all they're that enough wide team company types they're value we're is assortment and spend by relevant enough with all hey, what on, that to order throw the committed new Great new when say

a we recent lifecycle fundamentals better the differently think is brand any pave brand why that actually organize new the we launching its last history that we the that of new So years. six over put there with faced is on new those of of It company do to help will brands give chance the launches we're success. the

let stop new Alex. answers on and question the there that see your me brands So if

Alex Fuhrman

to ask see makes That maybe it fourth can was however does. to up strong and wellness. Tim. helpful size And help not of It us quarter That's wanted of your health then just and opportunity great were sense explain, by and categories the results here. you really I driven I kind to also if that health could, number wellness just

innings in the when how does we're but you urgency off of that customer final take five and the business mirror? that view be little at pandemic covering and to where just out, you the three, that facial But again half sales now or bit opportunity do four, years out, category that the second think make like here, speaks about least pandemic view in think trying years strength be or file of the three, the a of is that game of four, your of that rear when will things presumably the five I certainly business. the overall about to how the think hopefully

Tim Peterman

Sure pandemic. Alex, the dug it before even we've into

a So yes, I agree with you XXX%.

sorts QX going Let specifically health. always and categories of won't that in because of QX, there much of which are to fitness element spiritual, just last even stronger on many as acute or of would say now we for that products seven an was big for the There development as so health just is more it we're at within and eight in areas us the area so product is mix mental you be health look those it financial, health, an of planning But genetic, year. one that see from QX with shorter other you fast me the UV XXXX what to of lifecycle is that we COVID-related the of we're start is or products that -- a that telehealth that six notion arena. within the focused that, affirmative, than around -- are lifecycle would all you lighting, has say nothing some

We opportunity unusual of an it's there doctor. things testing it's home many do different say testing direct to types be that will home our year. COVID and just consumer are about so in There treatments they in than are based wouldn’t I go going seasonality, and their about I'll -- on more comfortable come and not to testing. environment people buying will even come flu that category that There go and it's think products say and categories based So on that be a

blip. we're homes, the the layer that in selling there talked all category service don’t is we have that products, What considerable very in to information about as it relates in and very always COVID-related health isn’t of number bump don't they on a streaming items our in really we to distribution we're to we a as in the entertainment of health both something So people. still continue interested we're things drop an in the that be It services. to use grow and road more that than anything are the considering in bullish

in Q&A that information today that people example something going health many on are a basis, to that for health, types well. The means opportunities, no rise the is in we're doctors a to podcast of many there seeking can by coincidence. So as are capitalize

now question. that see we So us of I'll answers going as see exciting physical and It's products, lot it's ways your XXXX. you will roll in be from a and to of if about more there stop that but out

Operator

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

Tim Peterman

new team, here [ph] again Dan, out Banks a Ian is and [ph] businesses their to Bristow Brands. just the Certainly the like family close again that day into doing certainly appreciate with that and everybody you team I morning. time everything this for Mauricio brought I'd the at Thanks we're we iMedia thing welcome Kelly us. our Ben, fits very do are the thank for and with very partners well Christopher as for saying think as banks big new

already just stylus the If interacting that we're customer and a as last what digital great million the with it with arena really shop core and excited year, with HQ also in that we're such you Christopher about base calling revenue $XXX our within were well. Banks' think we're is doing there about a virtual platform something customer

So for we'll But you soon. about we'll that everybody your talk and talk thank time again in QX.

Operator

teleconference. you. does today's Thank conclude That

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

Legacy IMBDS (IMBIQ) 23 Mar 212020 Q4 Earnings call transcript