IMBI - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the iMedia Brands First Quarter 2021 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Monty Wageman, Corporate Controller. sir. ahead, go Please

Monty Wageman

have for this and website morning. Brands, Eastern this like for our would through Corporate website. call starting this also will XXXX I section to as do release available replay Time. will everyone A.M. it everyone exhibit filed may X-K also Monty the an via imediabrands.com. through QX to today be This This our Wageman, today's earlier News in not you on if be as iMedia Controller. our also provided press replay morning, webcast XX:XX well Form X, copy, thank morning, IR June the you joining. access IR available you of is of earnings a remind at at Good the link release We the A is section issued release

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

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

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

Tim turn to like of would Peterman. I the CEO the iMedia over Tim? Brands, to Now call

Tim Peterman

US walk metric in I this for strategic in go financial the years. entertain QX our we the achievements same single launched quarter television was brands Revenue across quarter by compared driven in the for Thank our source QX part and recent becoming rate with $XXX.X QX before another and increase XX.X%, leading million, map advertisers our an year XX% by road gross growth partner to morning, to for transact was networks. period. QX seeking customer deeper margin everyone. QX was the a But through seven performance, grew a provider I to that's to XX year over into two XX% want And us. to and of EBITDA to MVPDs, iMedia the improvement million of same customers $X.X using interactive reached the using period. and prior period. XXX basis today adjusted the million, which largest good our interactive $X.X is video strong video. company's satellite television, active during broadcasters, concentration the was million file We scaled the total compared roughly point core new marketplace and telcos customer reach that the linear same at you, prior demographic improvement Monty believe is This year via prior our providers. highest XXX largest homes was

and five-year in who women by is more they than noted at shows only by to published thereafter, old. traditional women XX XXXX As are it demographic linear demographic quarterly how today state watch least television updated demographic did that our ago. five-plus years at continues in primarily study the core Nielsen's who are XX years least customer TV years this Nielsen the customer And is iMedia's of Study old, and particularly,

its acquired customer also or or to demographic. what CTV launch of content today many our we OTT large accelerate that engage Over TV also in engage to marketplace iMedia's streaming platform. its Float with we accelerate offer a services distribute with or XXXX, also single However, SaaS Internet-based customers to a new believe concentrations calling a Left monetize to to Float and/or one-day Connected why leading scaled short a abilities to iMedia's and two OTT Left OTT factual The own be Top ambitions will service SVOD, enable core monetize years, ecosystem within interactive video source Left their AVOD interesting the advertisers video own That e-commerce. and are Float it efficiently is create, content. OTT

devices strengthening were in TV the television watch the at linear Nielsen's hours on traditional day mindful each CTV. Today, distribution about XX Connected old quickly noted least As future. years XXXX, of state I'm in linear minutes to we service proud Internet XX wins OTT and are of compared viewers recent prioritize our QX television capabilities or our two linear report approaching TV, six television to only CTV to aggressively Therefore, streaming the efforts, arena. while our for

new our broadcast US. RNN, First, affiliation largest agreement the with the group in independent

want obtaining field markets, in Boston in that these Francisco, help the level Houston we Los eight The XX that the of most. $XX an our San marketplace ShopHQ. D.C., and bigger of billion us that TV Dallas, additional today, Philadelphia, the York a against revenue annual As QVC retailing really oligopoly will high-definition are City, homes between we Angeles, flagship and markets is we playing matter is top previously New network television Washington share XX stated, million HSN have our US competition

a affiliation broadcast have this carriage growth us believe in in year. and provides with markets, catalyst RNN beginning CBS of ShopHQ Our HD NBC QX also over-the-air to position ABC, great stations the revenue and low what affiliates next these homes like new we which national the is to drive significant also in channel represent which

experiences and previous HD these in will as on markets lift from within lift iMedia Entrepreneur Dick in from will this based and be range as initially with revenue to from XXXX RNN's important opportunities. XX% for ShopHQ group partnership much distribution television navigate revenue estimate scratch will that months who X% a us, station French, built Our experience media RNN as launches founder an future collaboration XX its XXXX. we

In has the systems launches. addition, only cable channel linear on television previous consumers' since HD today preferences neighborhood HD to iMedia and in increased believes satellite the watch their the company's

Our second Christopher strategic recent Banks. is & win

Hilco compelling to brand our how positioned brands. group old leading efficiently collaboration single to Our let's this shipping in is Because partner to concludes help customer that will leading opportunity, did the its experience acquire and a iMedia product collaboration retail and of advertisers a build brand believe XX-plus to managers digital accelerate brand's leverage more while like back demonstrates with promotional strategic national directly its performance. brick-and-mortar partner. source And as and words, a brand power complete other promote providing with this Hilco with center. fulfillment from managers television authentic In and consumer a we strong also two O'Neal now view becoming covered, those to partnership iconic iMedia iMedia wins Hilco QX their brand financial we uniquely our realize into delve that XXXX, are Shaquille we year single-source customer

last broadcast operating completed channel were were related million, driven $XX distribution an increase XX% not amortization and fees, expenses by million in our to the negotiated yet Our million, which primarily of $X.X year. of and QX in by successfully until rights increase QX placement ShopHQ or $X.X

an revenue payable XXXX The accounts compared compared sheet, to by net year growth reduction million, its debt or considering company QX prior for QX net for cash inventory a in when million was compared million our the million $XX.X $XX to the XX% million prior year reduced its period. $XX reduction the is period. was prior year also $XX.X improvement from by also the in QX level same balance period. prepared meaningful $XX.X $XX debt company period. increase Regarding same to QX million, when the to year same prior same increasing This

Regarding capital expenditures.

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

Regarding our outlook.

$X least QX, year period prior of $XXX anticipates performance. decline the and unusually roughly in year which to adjusted prior compared revenue EBITDA approximately company to the revenue, million For same period X% due million of the reporting high a is revenue at

EBITDA guidance. $XX XXXX, reporting and $X increase For the million, company's anticipates year approximate is million $XX which adjusted million between the from company year previous an full full the

$XXX addition, growth to of XX driven million an and compared is the at HD anticipates new Banks. In ShopHQ's revenue late homes launching which growth by company Christopher year least is primarily the full revenue reporting year of and June XXXX X% full & million, in

for into to will iMedia, for turn at morning. over be to as I operator our time the the back call revenue stage. times As would that to a like federal to tax closing, from say in $XXX taxable perspective, a reminder the has million company to important Operator? available we I NOLs are In this you income. here future Q&A. Thank continue your these move offset growth approximately that us

Operator

Thank a [Operator you. Instructions]. session. conducting now We’ll be question-and-answer

from is coming question Davidson. D.A. Forte first Our today Tom from

line Your now live. is

Tom Forte

quarter. Congrats on Great. the

So, one follow-up. question and one

for conversion that job viewership to what conversion comparison core if customer and was linear rates wanted connected I versus talking TV? the lower TV. linear signs the OTT wanted So or you're versus are rates of the that seeing for of connected I in TV you signs about connected did seeing improvement know if you're is a television. my know current for great impression case to of TV any your

Tim Peterman

Thanks Tom.

to advertising or So dominated it in develop really conversion that arena no, The any e-commerce way. is you're has is CTV right. lower. whole experience is absolutely yet Yes, our really is interesting. the And mature by marketplace

gold, the think the in interesting move and consumption. something streaming these we the is important, about have content And have the can today right? that of we jewelry, into deeper it fact-based have all to this we content in the content area. that the we categories is that that and think about mining we as three this of interesting factual content into the then is into As we streaming people move we're interesting call whether you pieces, do you well You space, very making that's distribution move elements consumer fashion, that content think we that different we would

and the have the as or you've or these very as that as nascent Xumo, conversion and then in have numbers devices metrics, services you're quickly that services, in TV got to these certainly Within a these not find converting right, Roku these like devices in services they you linear distribution, like are Pluto is. but the trying fast-growing

We that it conversion responding it The with format obviously do It's evolve is engaging to we to XX a where format in rate. areas that's our To in order apps currently evolve the to has it. also that And way really that's with from where a right? to linear begins shorter. different. you that years it's those get way our to catch along affect that have is conversion long doing. the to but core reformat XX customer in then today So are the which consumption enables in that format. shorter taken to don't content to conversion, up, experience think the consumer right the consumer catch adopt it also with and part, float order are lagging. in it the where and that those will in And the get is up the up format that to begins sits, you're consumption trust left the will drive that think have rates it plus The it until is and bring the think Those personalized. last and with will conversion we and have we're absolutely those subsidiary television. making to The really they And that consumption. to is comfortable

Tom Forte

Great. done to lot sheet. for balance make today your improve opportunities then a to improvements? you've question, And What my do follow-up you further see materially

Tim Peterman

we're with to asset distribution we other of we vendors base, think taking about we as certainly feel We that XXs net And make in the we think the Yes. the good now lots boot right that assets certainly, opportunistically don't I the to and than see our debt building relationships balance of advantage in is today. question. compared opportunities sure anything the but collateral right of them. Interesting sheet want we're have our we call our about that high have

feel we where we So, good are right about now.

Tom Forte

Thanks Tim. question, Great. for my taking

Tim Peterman

Thanks, Tom.

Operator

you. Thank

next from today is from Our Mark Markets. question coming Street Capital Argento Lake

live. now is line Your

Mark Argento

Good nice a Hi. Tim. Congrats quarter. morning on

segments can for well, a wanted well maybe of a dig and to through talk you the performing that in you? are bit on launched But on know Just quarter. bunch a that see some you in areas little maybe brands I you brands maybe little performing

Tim Peterman

Sure thing. Yes. Mark. Thanks

working year. So, well than we've kind for that last quarter. several every through a talked XX-plus And of in of launched we've better much some that really in about walk releases, pace those. several is brands ones the and us the are in as And I'll category, are

was arena beauty EWheels, to launch So, a performer there. us fitness and vibrating whole about from, continue excited the those Contours high have Reduce we've of the at for mobility of the the area, more and certainly platforms in opportunities and massage Rx home, has that well. continues strong demand. been for categories we're converting the health, the with Therapeutics product Everything massagers to introduced Fat-Fast of really foot done and as health as be, very all us and more in and and a well to become Within Medic a

Perez well. jewelry Jorge really has done On side, the jewelry by

Boots, the us. certainly done Sohna Burning has XX as Karat Gold fashion Man's well side, Jewelry really the even really footwear for Durango as well. footwear well have On done

introduction going done activewear and our better but that this the And spring. this was that even well the is happy launch in Banks do are with Christopher month to activewear think Activewear, as to Meta lines. has in we certainly, well. that's & We fall, So, past

as these now. things It's calls. we're working there's Mark right? the a to then never So, at providers the thing, just And driving of brands engage that and that seeing And we last It's brands launching we're we've different the multitude lots begin time demand yield are are the today them customer. conversion we sharing to about, it the and that a I about the building strongest mature lot create constant same talked ones will that fall. the of how forward, finding The of opportunities talked that that on that's one today. pieces. and fall right a launched higher continue in It's

to continues service, ShopHQ as that us and Shop work Bulldog So, well Health. does for the Bulldog

specialties well. verticals those deeper as also performing of those into move All we are

have, that encouraged ShopHQ, the we not answer of and Does them, that introductions going deeper ShopHQ and fun the vertical across focus the Bulldog, of by into on also put the only of the networks So if we're question? we will, the your personalities, brand Health. but you Shop of that balance the areas

Mark Argento

you and customers active absolutely. if drill XX% in brought active achieving customer that some there do what And with customers? just to growth, then see talk able the down existing are they are resonating? of customers? you specific And to kind on marketing Yes, back? that through new wanted Are you campaigns How Were growth? you you go of customer reactivate these type

Tim Peterman

only and Mark, question, to this. tell can Great I you slowly, go the way is on

at in you our So every moved quarter. single if back of and starting you pattern, from XXXX, we've May how look -- watch

about our brand. to was XXXX, But had the talked every things important margin among the we equally had our quarter. we new margin, thing move around points As to other first XXX do merch merchandising and gross we up profit single in

at you're that see it performance new when in a that suddenly. was -- talked of certainly, and early down to in And and growth. churn. down It you I years file, and back health, it's when from certainly, decline from months It now a took look XX-month that growth go to it's didn't QX, then could you starting arrest for But where happened then came less as back you'll it all X%. it the the driving success. you the XX%, high-double-digits that. consistent and and XX So, again, started about, trends, think customer before was see customer the to proxy file consistent moving, it reactivation. happened from this And XXXX. if you're QX, really all profitably. look that those to now only down as business we revenue arresting to you model came an each grow as less you as we've came And And Certainly, And through quarter to it the customers. to you from customer about quarter every watch -- happen see in growth file and last overnight year, that less negative. it decline XXXX, begin place from, X.X in XX%, got but came the because perspective, And each

We when where the Fashion, category. that's have Beauty, question the And occurred. of that in -- Jewelry, you if see wearables think a let history And so primarily, Mark. reengagements performance And strong those your about there. stop me answers

Mark Argento

for It's of a a you pot everything little little there.

just is one follow-up Thanks. materially for world carriage the how about us different that answers maybe, deals some of the and with you're So it, on it tell struck thinking just the of new carriage that then, and deal. yeah, any legacy R&N, me. you've deal structurally know The can done that quick order? you than That's you I kind

Tim Peterman

weren't HD I, talk that's -- question. a it, them even major cable HD we us. to just markets for it's get big and Yeah. the wasn't homes, a could of pay about The hoping these Mark, which, entrance bandwidth if available R&N markets The afforded the I'd in was weren't these that great in to and some -- in chance a have wasn't deal just this. into we there. very

to, forward. So, effort as it sometime. And partner finish Dick opportunity one happy we've get for Christian very with working that, across on for and us line. we to, quite on important been the And and move happy this,

same additional channel where perspective, In placement and of an the us as portion fee is you amortization fee, annual time, for about what agreement, you channel then, an the to And term which, before of channel the have immense portion $X to relate you the the which that drop absolutely all can viewership, disruption know, in fee, is the during channel a placement a you in accounting it we to terms have rebuild as expect making to channels that is placement buying. placement remains critical, it service structure we because, the $X to sure similar in been doing, of rebuild move we've affiliate From around the million of the portion. channel million viewership. the the

structure in And the can't we a the position, impact, done feel the what past. just positive I unique. distribution, create start low-channel what we've mature, the the only is is these They creating to was scale, with year, And Except going the right? lift. this services viewership. half with that a enough, this HD not in us, very is So, because this for of at about, emphasize they this similar talking I distribution, that of, back was the

XX just then the are HD And begin from they And buying. And they're more-and-more to process, watch and So then listening then, it. watch they're where it neighborhoods days view TV, actively to And more. they they months. takes that remaining people to XX anywhere maturation engage.

so, expect bids And good we this. from

Mark Argento

you. Thank

Tim Peterman

Mark. Thanks

Operator

Thank you.

next Our Capital Fuhrman is question from Group. today Alex from Craig-Hallum coming

Your line is live. now

Alex Fuhrman

question. chance Great. and be about you can the any a recently. brand for Just the CBK years & Banks? fairly of the that, think Wanted you as you? then, a two, of look a feel ultimately Banks you more strong business out. a three How much partnership congratulations damage think the the to That year. the start year, Thanks now half And hood? curious, the to of your brand? guidance business Christopher very did Christopher get get this how resonate? is, $XXX for looking still to under for had sense with brand back doing you & Do a big think, to like e-commerce really bankruptcy about you've feel you taking my of on strong million was a Do Do

Tim Peterman

a are with. to was our we & after Thanks had brand over first, being Alex. for The partnership tipped which Banks of still their reason unique its still Christopher brand years. these have folks understand we why then I'll how about well business. to closing that, yes, everything retail today great has XX-plus reason And in out about now, more we call excited Hilco, is a $XXX began million we And around made make own XXX-plus and unique been strong, fit a January. so And it that patterns, build. Hilco They great for being with It brand the group designs. was that's question, Great -- was its patterns stores. and proprietary it and had resonates

where $XXX surprised can digital retail be with talked it million call it to that do way. this that of platform. we this next than won't bigger start was million takes let's would happen time the make that the right that million we enterprise digital So amount sure about as right it won't moving we're $XXX with And year, year. with build if we was, the $XXX we forward platform -- It to

a of got store here Minnesota, the you've platform, Missouri is that in So this on. Coon outlet. just past And already here We've in customers building strongest Minnesota where where with we're of full a also Rapids price reopened stores their is. weekend. that loyal as an digital And Branson opened group two great there's as performing well and

us. think well and have are vendors are from job XX you brand that all [indiscernible] is the engaged Those product also the for employees we with we vendors. development if the has which the that years marketing, with the several hired, customer with that which with is with work merchandising as key the continue forward XX GX critical have great the and to So, done other marketing and been to to as moving digital a we've the great about that to

experience. are we earlier & we Bank we did was Banks on and about that TV & remarks, So, a my in talked bullish on launch Christopher as Christopher great

brick-and-mortar the being not different footprint. of we growth, television to on strategy when the that We of with are in we'll our believe retail strategy retail, going think component. able in brick-and-mortar large about notes experience. -- think homes and think is a the some be the Clearly, a development that engaging to bus. and the do customers this of the of their as driving to is than our on We complement brand XXX with is omnichannel the you ways retail. customer the the engage replicate small and the lots be customer. replacement We have But We the interactive digital rather driving million the on of bus is in relying ShopHQ video retail with our for

Alex Fuhrman

Great. then, helpful, That's float I of one results? to and does to really that's to about, of small imagine business global but really you, a would the some the national left. Tim. brands float impressive for partnering become retail your that with meaningful overall I point, there's that starts if And their left still design relative At very engine has business, applications. inflect side to could growth ask what been a really some start and drive that been higher really

Tim Peterman

Alex. question, Great

a which a So, very space. highly within as a you produce there is has our this stack platform, this segment. management strong and to small emerging Great left major customers TV space, team flow correct engage you're approach on companies, to commerce business is OTT said, in apps services everything space, component that with a our customizable media they entertainment technology working connected their inside

have robust And as as and component, a their robust we ad want arena. so, would advertising say, app yet. that build be taking as it we they streaming our ops to they component. to sure would ops agree, want to expertise make we're we And their us in isn't platform factual about, using we are this we And help talked content as services

-- make stop a technology a that can sure, also their one they to are Something that service partners. service clients

them supply their clients which a help us, the client -- can So they new because a their business, service they one deal side and our the an side view the important providers, us marketplace way to suppliers that in can takes more navigate move was with in quickly. be stop of grow is one demand it would it and

streaming is how about And there's tell would that Certainly, ask that recently of services service content. into you programming a if business? just I our a that, become which that. our factual two going pieces of so, to about the this be the you material strategy, -- quickly streaming talked part is when in there's you business can moving --

So, CuriosityStream on there's based which company called a content. Hendricks started factual that by again started discovery, John

the will factual those content today be for in services, also produce we niche services. important We particularly believe that streaming

together operations, combined distribution is So we it float statements question. create services. connected and think creates well than space faster materiality of and as ad capabilities develops Float streaming your a platform as going as our just own helps in development the like to the more services, less streaming or financial the to just If business answer to our our services that TV Left just this fat

Alex Fuhrman

Thanks does. very much, Tim. That

Tim Peterman

Thanks, Alex.

Operator

Thanks.

question Next D.A. from Tom Davidson. Forte from follow-up a is

Your line is now live.

Tom Forte

gross for And Great. about Thanks. of the you sustainable? follow-up in Can One extent drivers talk me, the margin Tim. quarter? to what the is improvement

Tim Peterman

I can. Yes, Tom, great question.

is see margin answer there -- don't a gross ideally gross are XX% question, margin on in We the of first, the and range. of based to the which our higher margin. So gross is gross question fashion mix, we broader the certainly the higher occasions jewelries -- business broader

within jewelry is the rate high call and its in finding fashion we in for jewelry created of higher again so footing QX, watches. certainly, And XX% us. a the And those concentration it have unusually gross did quarter. margin And

I So properly growth. we it can say would scale modeling so the revenue XX from range in think perspective, back about we a

margin, be we would a this seeking business high quarter. every are from an not unusually So to model perspective replicate that one

Tom Forte

for follow-up Great. question. my Thanks taking

Tim Peterman

Tom. Thanks,

Operator

floor question-and-answer closing any to over turn our end the for to Thank session. I'd comments. management of like reached you. further or back We've

Tim Peterman

Thank forward and our Thank everybody's you. talking we then. we the appreciate look time And you to appreciate again to as next and we quarter do we questions always and you.

Operator

today's teleconference Thank you. and That does webcast. conclude

time thank You a may you this day. disconnect and participation have for your your line today. wonderful at We

Legacy IMBDS (IMBIQ) 25 May 212021 Q1 Earnings call transcript