IMBI - Earnings call transcript Q1 2022

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Operator

Greetings and welcome to the iMedia Brands First Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Tom Zielecki, Senior Vice President and Chief Financial Officer for iMedia Brands. Thank you.

You may begin.

Tom Zielecki

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

IR not as copy, replay link website press have it do this via exhibit you If a the X-K Form call on News release also website. as section filed of release will to This available the through A of you today's section our the our imediabrands.com. provided IR webcast the in at morning. is well an of the access may be

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

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

Finally, the adjusted Please measures, to we on earnings non-GAAP to about our information for most to EBITDA. comparable release further GAAP including refer such call, reconciliations will these make this references as measures measures.

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

Tim Peterman

everyone. morning, and Tom you, good Thank

compared grow media commerce Services our its to better at on to Digital this and we performed remains segment, off a Within XXXX. and XX% services by We revenue than on our plan advertising start business, iMDS, least are services good digital XXXX to or iMedia flagship track expected year.

services. existing our progress to new with continue clients digital and we clients renewing attracting importantly, see for More

signed In fact, Lumen a Technologies. weeks agreement with we a new renewal ago, multiyear few

secure segment, edge of and Lumen that $XX with digital a one and security, through monetizing provider, and on Internet U.S.-based shopping our service web know, content portal for solutions. plus platforms. providing our with omnichannel aid track & data. e-commerce consumers on also iMDS' revenues expected advertising scaling users of to by solutions remains most support desktop many their Banks, and flagship at advertising Consumer Lumen iMDS billion businesses web solutions providing XXXX. grow Brands its leading brand, cloud, and innovative support platforms you and retaining, and in will XX% solutions network communication in As experiences highly next-generation and is collaboration better services, performed and mobile Christopher containing content, will least value-added the fastest compared and managed Lumen be engaging fully apps to a XXXX Within communication than

All the as an and to services, In operating development those estimated our launch I segment, grow each what our continues us recent and evolution to not we have all raise logistic opportunities XXXX. turn, may t-commerce, our interactive social, separate economy. advertising performed and streams, share to revenue with enables demographic expectations may of our company one revenue XXXX entertainment same Entertainment now our first-party recent e-commerce, that in television like have X balance another on delivery this additional engagement sheet highlights note physical digital of gives in ShopHQ QX in and the in this boomer in designed X-X-X.tv regarding potential advantage deliver catalog In part insight addition, travel revenue revenue provide about about capture monetize consumers would some while below us linear I which, and to to to to streams networks, believe track and new advertising. strategy, business that date that ongoing our streams U.S. including like online, related and in stores. data. in and Consumer and website that X-X-X.tv Within on television, namely like short, business-to-business traverse here These plan. customer had a a our our X first quarter platforms, an our plan business compelling like on revenue focused how ability stream of on unique we progress XXXX being e-commerce to arise times working cross-promote arise launch costs our the the to to the in flagship segment, our plans model to stream service headwinds We capture would consumer concerns we debt centers data and these growth capital said, now t-commerce Brands within equity our I'd our like fits consolidated bit report talk bit like historically. multiple to over-the-top

debt senior in Our over reduce reduce designed time interest strategy methodical fashion. leverage is and expense net a to ratio our our

XX% X.X XXXX the to from XXXX, our about then and centers plan For to which debt each year ratio debt will the of XXXX. X.X raise. reduce to XX% growth senior and specifically, end a by fiscal reduce just equity of inventory for at X-plus profitability XXXX net years we're of from by about senior as our our our QX and XXXX, leverage optimization, increasing cash to More levels generated of completed on end our targeting

expenses. three, QX customers inventory level ability our get back our million expense of and television capital $XX to reduced our is suppliers. X-X-X.tv an we increases our reduction we Number for operating QX, million distribution two, XXXX, at of reduces year. to raise cash levels driven fiscal the by to $XX reduce provide about seller strengthen $XX our $XX.X service and ahead QX debt. that not by which bring end ShopHQ, In plan XXXX to by and our just million and note in to by of increased debt generated our debt working additional deliver by the down $XX inventory negotiated of & the during driven expenses, did will and in profitability taken year-over-year million we means by year approximate at this million following: million primarily million XXXX, in completed number reduction equity to ShopHQ in approximately short-term our $XX Specifically, price of fiscal $XX payable in XXXX, the by one, million to level requirement. other In the about the million ShopHQ Banks from reduction to end intentionally the year. QX, also our delays logistic impact Number renegotiated to inventory the of $X Four, Christopher increased $XX this ensure by reduction a operating QX and May,

million financings XXXX. related in $X.X $X which in do to be other also XXXX onetime QX The we I XXXX, like XXXX. our expect to million would note that again expenses will and payable incurred roughly we not in acquisitions in occur to

is XXXX, our fiscal planned the normal with from our For reduction generated management. ShopHQ's additional fund debt increased plan cash to and working capital profitability

their of and Regarding our made and drive judgment raise, levels invasion economy was not U.S. chain associated global remainder supply to may the global The The same issues. rising a and exacerbate indicators assessment global since the financial improve of Michigan's consumer policy worsen create XXXX. performing lowest a even Russia's current uncertainty. of conditions lowest that Ukraine of ago on to belief since at XXXX. reading continues COVID-related is the durables this recently lockdowns of buying XXXX. U.S. timing of to continue reached for inflation U.S. is throughout completed year already We economic mortgage consumers' sentiment the May challenging based assessment call indicated continue will level XXX we significant equity monetary do. as since relative consumers of sanctions lowest all XXXX. its the at to rates. macroeconomic China's you see and the situation report year-to-date its And S&P increased University its the our

this see detail not and we a we We absorb dilutive and this share instance, our achievement believe do in XXXX short-term XXXX the raise. one will per lightly. the driven effect recognize likely will of midterm dilution U.S. subject this by than additional our growth sensitive goals believe more take today explained market always we we volatility more fall addition, the In is of In elections. and accelerate

when will his more like Before operated finance new company Tom, complexities his Chicago. provide who welcome judgment I pace. for from and family growing confident the our direct-to-consumer already I already us XXXX detail I QX jungle. and turn him Minneapolis introduction I met rapidly He new Tom, added us for our see a I to in my trust the and hired in performance provide I a has has appreciate and I as the know Chicago. Tom. tackle here help accounting the to the will himself him, would am and he future. I outlook opportunities regarding brief I of help over it to business, his of we Tom for XXXX, and to CFO a team He capture remainder to talent relocated of

Tom Zielecki

words like about would journey a and at join with and relocated to why everyone. few I'm iMedia excited morning, Tim good why start Brands. to I Thanks, I this here

shareholder I've one entrepreneurial love success First, Tim's a an ingredients, missing were I I and mantra mantra these. or discipline of builds also they that seen will companies value, how all I how seen have fail grid. that this company's firsthand X say requires operating culture, because

compelling. our data beginning things each term; allocation targets the continually and investors business our disciplines on are: the to X proactive service, top help but is term can management, like place our to what I to lenders, and the organization to cross-promote on what meaningful want I deliver two, drive Second, boomer one, demographic. and we to through There capital it's strategy here join streams our run. shareholders, to an the how To capital, are I a ensure ensure immediate working believe we in optimization. our separate strengthen to expense a revenue with both priorities focused our are debt X including employees focuses today share that at and day long same balance many near me, share CFO treasury vendors, of to exciting my is operational sheet,

margin we that year. iMDS, results, highlights few start. that by XX report I'd rate rates The pleased did impacted than are the mentioned, decrease lower like are prior hit point basis off versus ShopHQ. as QX margin financial to a is is and cover. I the a gross sales to X-X-X.tv good historically Regarding Tim mix. a to Gross we XX.X%, Tim have

by to products customer great solid performances strongest ShopHQ The the taking testing ASP, X-X-X.tv, actions and counts. Banks file the For the driven are XX-month which improve increased & brands XX% and Christopher including X-X-X.tv. rate, ShopHQ, addition increased at at we customer of was performance margin on X-X-X.tv's

$XXX net XX% outlook increase the Regarding adjusted we which We approximately approximately year anticipate a over quarter is our growth $XX second the prior sales reporting million reporting the same XX% approximately is approximately period. prior which year for same anticipate of XXXX, over million EBITDA period. of

For in reporting year, back our specifically revenue in full million, approximately earnings XXXX $XXX of XXXX, approximately the to previously adjusted million anticipate reiterate we beginning We quarterly XXXX, million of share fourth the anticipate reporting $XX $XXX half guidance. and reported we quarter. positive EBITDA to $XX the of per million

to Thank federal from $XXX Tim now pleased take I income. offset us million As for approximately are have in available tax a this a perspective, to taxable future NOLs your we to time questions. any morning. and you that are reminder,

Operator

first Our Instructions] question Davidson. [Operator of the with Forte line Tom comes from D.A.

Tom Forte

Great.

follow-up. question have and one one I So

in challenges given short including So economic the etcetera? challenges, you gave I X why you inflation, conflict, list year full guidance, you've original you're highlighted have bullets explain Ukraine-Russia laundry emerged outlook, retaining first your question of is, that snappy your can have after the the

Tim Peterman

consumer Markets all Thanks, well you think the our same is our revenue as a talked have about approach resiliency one bit in Tom. when as them, the each I and the there particular X about Capital The Day. Certainly, the -- that challenge at QX a challenges of different these to more other. elasticity focused of allows us in with about area demographic and we versus streams, on talked little

consumer advertising, & overperformed X-X-X pressure you business, ShopHQ our and overperformed advertising our So from started Yet distraction. against our as the quarter to iMDS, in QX, think later Christopher about Banks expectations. see just certainly, digital

So our be then XXXX what we we to last these factors when might again. it related about already all initial put it thought reiterated in surprises Christmas guidance out season,

we good million, about out before these about We all we still good $XXX it that million out. and margins to feel We put EBITDA the things still we $XXX about. the So put feel there. think the

surprises. anticipate we some we're So

we're the other in forecast. some We later like also X-X-X of businesses the our that are surprises that, in meaning have our aren't on side that even launching travel there fall

So that there. sure things other that those could tried brief meet are to we the our as as and achieve move seek expectations again I'm direction be I also pretty as was in I -- to guidance.

Tom Forte

it. appreciate I

So of aiming and portfolio are considering additional for. for some of financial M&A. your current on on targets thoughts current strategic structure my follow-up question, construction you're today give about you Can the you your you your the and where talked

Tim Peterman

Tom. question, Great

So think about it this way.

the perspective, debt we our been about X sheet ShopHQ, Banks, catalysts $XX million to about X our catalysts, range. for that talked Christopher that us about are talking talked about targets the balance in make months. million achieving before, driving a X we we've for have that From out X-X-X.tv, laid Those we As Day. reduction on growth & need iMDS. Markets X, X, We've a the $XX Capital bullish

positive to do And people I we on it strengthen to regard, was execute, our time why then. in it's we the most any call raised What we because of I more we hasn't in and to and make that QX in in it how XX-plus exactly certainly XXXX been M&A equity is our only done XXXX. it, XXXX, we importantly, meant wanted which in are balance done the give need that deliver more that why equity although so was not exactly today to raise laying EPS hasn't did we this the don't spend assets the out done anticipating or that years, sheet need what have, digest been described do since understanding sure

in growth. things those execution. It's future don't about accelerate share that achieve think M&A important any will driven equity type our we very we see right our activity now. only We So which per of by all

Operator

next line question comes Markets. of Street Mark from Capital Our the with Argento Lake

Mark Argento

inflation margin. on a just Tom, Obviously, of dynamic ones. your the in really quick pricing a to I renegotiate wanted bit And also, seller a I was little that note. I'm you'd not the performance pricing as beaten getting know believe I directly X-X-X.tv. understand that model just guys. able to be you talk retail couple of about and that? mentioned then little were terms And to pinched you of the just Maybe assuming more up traditional on if the related

Tim Peterman

Yes.

about earnings and environment around with been reporting case, to -- discipline competitors our our have think folks in within continue able times, the to fixed we will retail to the provided talked lot and certainly, to just did and even So how of not But that headwinds nimble IMUs we So a folks gross gross we our guidance. space from were journey, Other pressures, right? that are their on types certainly margins businesses market's were what why a a and other minimum do. process it. quickly real that of floors, deliver are have back enough. enough capital adjust XXXX our a and we revenue receipts do been in have That's margins the as perspective

the at new they is for do to room in have order what inventory. burn they through inventory to make to margins lower the much So have

little Ours is is nimble. a -- our bit model more

to but our months lead committed. shortly. where businesses long have X and not jewelry, watches, We as they of much Beauty, a are cost you're dynamic businesses as few a are lot out

flexibility retailers see some mix out better the of the on that margin to merchandising our us gives ability there. that than you So also maintain

seller do anything renegotiation doesn't the to of of with have performance. it the X-X-X.tv's In note, no, terms

blocking as to terms us, We we with well have we're time in just quite been to normal do with and with the direction seller what very it tackling. them to going has came to as talking finally going. This about some We've were pleased the for and do. we're just

think because lender here goals. is in vendor relationships is we I a We really and the have on to all perspective. partners strong we're perspective, focused a of the journey what together aligned that and speaks this it from everybody built similar flexibility from that

pivot So it's dictates. the as very easy to move market and

Operator

Our from Capital Group. with Craig-Hallum Instructions] question line next [Operator Fuhrman the Alex of comes

Alex Fuhrman

can us brands was wondering back new of year I pipeline little the Tim, heading holiday that about if have tell a the you into for the of the bit season. you half

the if any done this with strong availability supply last everything couple it years continue with have are guys You on of there brands to going over and launching that great for going you're job highlighting if year? new particular to the looks like spending, be and chain just new the have brands a wondering consumer you category of holidays

Tim Peterman

brands since of did existing became to more Thanks to order white history we versus were every XXXX, existing the Alex. question. we develop key back growth that in we year on actually X The and where thing, how testing X we as a -- became of try programming and it lost key we've ago, try a for when left. revenue, change would was put and our do to gotten calendar. And trade a used just big we it in to able several outside that brand. drive positive, XXXX a we have back When customer the certainly calendar. from that to customer result talked our difference years to bigger see launching our an years, you third-party we order about space XXX-plus these not we That's where with were to years capture that vendors we every the important have as this to And brands network, to move to our our result, we the saw on brands more where launch where Sure drive years, they order new need. a in fit some as vendors up ground worked our any our over ShopHQ actually would last

vendor bring brands, brand, and what part create to them an they have we in, to that because for. where other they and mix about every organization space we So grow bring to capabilities to our product of what want they their we believe their to white can be other it's priority have grow

have think done all this what is are the what when categories. do not we which that which something best at its brands, new just we're you new we fall, launch we mature. to or the one in and the launch we brands brands. wearable So wouldn't out too, is historical done think pattern give sorts the to haven't of time to since core -- and we to about often going a call where we're categories But did, and I enough we it two

fall. this being we business. into we're we realistic to thoughtful make chance about to a make behind So When it we enough evolve put a sure a sure has bring on, very reoccurring want wood brand arrow to the

that's this fall. And our so focus for big

as us brands from be launch. the these of I more but hear on they in You'll that provided color new we months. haven't will really coming any yet

Alex Fuhrman

years? if really & ask the that Okay. that I helpful. about wondering the Christopher of strong of And growth closer really back seems obviously, brick Banks. you. to brand I & mortar? Banks like strong kind That's think few on over back performer this than how think big I more this opportunity but brand next been one mean, rebuild has I years? you for to with next TV really couple a is historically presence sales of for can mean, do It Christopher and there How year. you volume just to a then its get mean an could

Tim Peterman

it Sure catalysts. thing, main our is X X Alex, of

$XXX So business that business XXX-plus because by let's a year, this Christopher was over brick-and-mortar & table. beginning its And model, retail model set last million of of the at driven tipped experience. was Banks at stores retailer right? the primarily

not model is something believe business we that in. Now

that is Our experience OTT whether what television, driven your we television believe. but home is of by television, getting in every day business television, model that's linear

that driver just have. believe this We don't So physical in it's It's television, do. we experience personal not that stores. is you this experience, video, the this

the relaunched that and profitable and April last think which about about is million you of Ohio. lot actually we Canton, fall, revenue, stores $XX produced year, talk of year, let's then Christopher our March, capturing complement Coon that Pennsylvania; the from we So tape Indiana; reopened did television, with Rapids and existing back Banks revenue of Branson, that a Greensburg, last stop in in very in tale customers Wayne, to Fort a Missouri; Minnesota; have strategy & the X exciting, last standing

remember, reason performing strong were that reopened our it make that the and that stores reason we & Banks, sure those we model. the from acquired to same it complement very have to of the All Christopher its reason a to believe we business in it strong reason sizing customer. the its is as core our everything for is customer core we has being and fabrics the But proprietary

our media with high having we use can make we we're of sure all share can. it, to data as assets to as So conversion cross-promote

at how So $XX talked as about talked growing from it we million grow you by XXXX, would and We there. it about talked then XXXX XX%. about us in we look

our requirement lot have ambitions retail in how we retail to but as a our our it a some about X If or maybe we from we opening stores complement. not the the growing X you more are fall stores, XX% includes in are possibly a it's in that opening range. again and And -- and guidance, have we not what a XX% guidance, think exploring but X, have again,

make digital customer our profitable we on of bullish think it beginning can to tipped the television brand. for the overall of shareholders. model you the X physical we important that brand million at through just they get replace we when doing So over will We our they stores that $XXX entire were X as and back and about and next before the the year. years, to the are And think over think last more driving media the

Operator

session. Mr. any our concludes that turn floor for the gentlemen, comments. and back Ladies question-and-answer Peterman final I'll to

Tim Peterman

look just thank morning time forward to like for sharing results I this to our would I and QX everybody soon. the for

Operator

concludes conference. today's This

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

Legacy IMBDS (IMBIQ) 24 May 222022 Q1 Earnings call transcript