IMBI - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to the iMedia Brands Second Quarter 2022 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. I would now like to turn the conference over to your host, Mr. President Financial Vice Brands. for Senior Zielecki, and Officer Chief iMedia Tom you. Thank

You may begin.

Tom Zielecki

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

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

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

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

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

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

Tim Peterman

Thank Tom you, good morning and everyone.

goals. choppy bullish of strategy brands even has our building made short a core that our in long-term road I in that have on four to growth moment, in Although customer in our the a and few the in sturdiness XX% will progress times abilities a term our revenue more our resulted on we achieve in bumps growth me did uninterrupted discuss XX-month our economic file

our we networks NFL and in we've the new sold fourth our over Kim NFL on by partnership Invicta. brands Kim Beauty of This of and more the few Pro exclusive and are for X-X-X.tv year body. Diver, fully For GLAMAZON launched for and Talika, the performer QX first Forces, watches XX exciting brands globe. networks. registered our makeup artist line. new the cosmetics A as LifeVac, seen a new launched beauty the whose and units was XX,XXX this ShopHQHealth during ShopBulldogTV across Invicta color these year on NFL It Invicta, with our and example, brand when all a work television instantly across with Baker, II been TV row launched and Networks aired a many TV examples returning classic watches a than launched skin, August. quarter. GLAMAZON inclusive our top medical eight already Television in broadcasts ShopHQ has and device in a Coalition network one FDA launched Bolt. of multiple is shows big for chocking premiered has device Class rescue and a bath used July emergency French in celebrity in founder well-established collections; featured

strong We creates locations business Banks on television store to generating popular drives programming in the again, its XXXX driven a its XX% awareness season, the by outperformed & ShopHQ CB Christopher platform. Our five at retail that XXXX performance sales growth net our over for digital $XX the the million spring season. on and is this that expectations compared success believe

from to a continues advertising profitability perform well business iMDS revenue also perspective. and online Our

their usage perspective to for visitors. services provider as monthly of products. generate iMDS ISP exclusive iMDS' homes million renewals, addition, ISP X.X of these on million that To of these just their successfully scale In unique U.S. website renewed and some the hosting website deals of advertising provide secure XX clients and for its cable these iMDS top collectively about on providers cable the hosted continued average and X

I let's earlier, about In terms the talk term those bumps of short in each. road mentioned revenue that

we It to less DISH the to bottom the term deals. goal hit couldn't top of was we hit overall strategic remember DISH our not the less to the ShopHQ's profitable renew short renewal, happen carriage pain We on agree increasing profitability didn't to the by and replacing achieve because line chose Regarding to decided line the us. terms. worth so

terms and quarter. ShopHQ will will DISH being renewal achieve its that for of said, our we targets partner network. will carriage find has over out profitability the television together, DISH ours spot years with a another figure if been fourth replacement that fill And Now expect great we XX in agreeable I then and don't, does

Regarding further To resources business, we simply third television marketplaces. iXPL iMedia networks, our consequence flagship exited ShopHQ yield a or four that This simplify was we ideas. we we were parties, pick, service LaVenta improve, end the and out our will from brands. tactics our Churchill to we to TheCloseOut.com bad as sense two said, smallest revenue mean businesses distracting offered and our time and which work vendors two and at day it pivot that second decide which is to complexities, improve and we our ship capital our often to reasons; these attention online of focus processes as doesn't simplicities intense and to make a QX, on and OurGalleria.com, during It it's bump, develop Every businesses and ShopJewelryHQ emerge. our a these is pack businesses Most didn't or exit our simplification small four here goals core or relentless because the allocation intense team. exit. financially sometimes best often to our means and failed of for

increasingly opportunity nationally in distributed We our network which Russian Regarding that this our X-X-X.tv be television conflict, impacting XX it's is also the million term to that one to not our believe in we sales television last control, is yes, Germany, it is speed Germany's bump, near plus but expect short-term. homes. for

and in Europe third For heavily the the economy German exporter in the perspective, oriented, the largest largest is world. export

So the that challenges disproportionately today the impacting are German logistic and continuing you economy. delays see

In addition, its about X.X% and these is GMP because to strong to in of Germany of that of decline also that is a sanctions. Germany XX% energy. Russia estimated lot exports industries use

our do and rising pressures is automobile these are concern X-X-X.tv not spending and moving inflation retailing in example, build is manufacturing, shopping we which with discretionary our For general their at really Germany engagement ShopHQ, marketplace an and equally soft Germany. the said, implementing German war the lightning with services in synergies to plan We and here pace, important launch we X-X-X.tv. U.S. the X.X% that the being a That fall is coupled building shopping far here continuing those also suffering gamification team on travel consumer this the for spending, from believe businesses television the prices the to away energy both rate widget auction to the about economic U.S. digital impacting disrupt consumers, in at in with what

more. for of and to course to review must Churchill turn once it guidance our provide financials over third I the Before Tom quarter, our quote I

it you the Use or driver, then have pile to be an clever. to a don't again. and subtle hit once, come If make, important hit point try point back

mobile on to interactive in grow the I compelling, These streams three to like entertainment us on a monetize it may unique a revenue and here traverse arise to of customer I all brick designed mortar stream. over demographic at advertising. revenue in opportunities these any ability focused first that, by capture points the another centers separate logistics and boomer allows revenue in business each age party that turn go. iMedia same three advertising, and and core to believe With our We pain here our times begins customer on streams, linear us and delivery and will call rise that So uncertain digital television, our connected to eCommerce, Tom. stream, at customer services, of this data strategy TV, platforms, also online, XX. our helps Like Tom? costs grow the revenue company social, eCommerce as retail one

Tom Zielecki

morning, good Thanks, Tim everyone. and

increase this in posted the million gross same a decrease XXX prior recessionary year. prior quarter the, $XXX same we flowing was sales keep year XX% the primarily For over the our margin period. QX the versus by basis increase in decision quarter, a expectations margin sales, sales, to XX% posted prior in period. ShopHQ point we a net economy. Year-to-date This the term XX.X%, $XXX driven our net near is in year million to over during gross adjust

customers performance Banks, into performances at which file As our primarily and XX%, addition of accounts. the Tim X-X-X.tvs ShopHQ, XX-month was customer at mentioned, & Christopher rate driven our by solid increased

$X.XX Our-XX $XX per from XX%. month reductions quarter. and QX X-X-X.tv, included file our in excluding resulting staffing loss or charges common This by share. million the $X was customer divestitures grew in one-time million

our the Tim pleased million, $X approximately third we the are for is same Thank decrease prior over which year growth reporting and XX% is you reporting of approximately prior approximately I million, anticipate adjusted EBITDA this net We a outlook same to time any now of over questions. period. morning. sales take $XXX Regarding quarter, your the approximately X% which anticipate for year period.

Operator

Please your James with Instructions] question. from with of question first Victoria Thank you. comes [Operator Our line Davidson. the D.A. proceed

Victoria James

Thank Good for question. my you morning. taking

future? got I've enabling is confidence retailing ShopHQ do its gives peers, and like the can continue to you one what video in to the what HSN the is So such you QVC, and first outperform as so that

Tim Peterman

in Hi Victoria, you of thank your this you great earlier for It's seeing conference question. the week.

network. what how streams these think So It's is television about strategy you in when this just economy, linear different enterprise with a of ShopHQ available has talked like challenges its together, we working nationwide have revenue our ShopHQ about it else. everybody we and and

However, with. complimentary than have remain otherwise that we us work is, would be more that durable that assets the things help the

that which addition support the For advertising platform, products to our is many to example, digital form advertising of we television create the we have, have digital exposure. in opportunities to dedicated iMDS,

outs. is pressures combat ways brand we at try is great understand do that come cross their these ways another with where that to That's a to customers chomping and can the So many was think they style promotion where can the to & economy just helpful always they million Banks clothing the the and again bit it. that XXX about as very so buy Christopher with to, example.

had above beyond what being normal have would growth And so creates on XX ShopHQ and it that around a brand for launch that path years. customers because X million a been

QVC that's brand or assets that Jewelry unique anomalies we don't television whether have e-commerce, other you the Banks model, And or distribution any when support Christopher to happen are in the really advertising when competitors two of in disproportionally, the whether so & growing those that's have TV. like that at

So in just feel with economy. have these overcome all moments what would we in model be it. our otherwise It's help our we from different not It's stocks the us unusual respect don't pressure rather bonds. portfolio than just that that

Victoria James

if your volatility, and current Fantastic. would handling can more, the also maybe I my inflation? market second thoughts then -- is customer? on sneak be, give the And and stock How home in she question you stock changes core just price can in one your market

Tim Peterman

Victoria. Thanks,

about So that really on this all get me, business. because wax like was core pitch softball customer, here our which talk about a for is to I we in

primarily reported today, focused our is on but have is has variety would impacted and in what as that grew our grow experience female, you you're us ShopHQ well. a she, also again, as at in seeing The for customer file size and customer the our right, which growth brands isn't of demographic, on total XX younger XX%. sheer primarily by XX our the reasons, and if just our core results customer same starts When data I some we're is I example. what say, of are file of men really as demographics, will we demographic the but months at helped with of and least the All ShopHQ the

position faster. German peak the by -- XX% I'll let just X-X-X.tv a about look zero, we and much started Remember it, grew a were doesn't apples-to-apples, take growing year then we're now and and in years me just Now ago negative retailer, for we U.S. out at and into TV that in happen the overnight. a be half to and to of

call negative elements. of about consecutive concerned want past They're from So the upcoming say or about it. this about I've they Census about whatever core you Bureau the the we're those economy last about to engaging recession with boomer talked as you quarters But are they could XX GDP the was election. U.S. concerned the that years, concerned XX% over certainly, concerned what that in customer growth, the two the are grown

as of things a mall. the that you're have All the retailing, emotional to folks those used TV different digital income experience as in they're not into the than of concerning, view even are a impactful but retail discretionary the my going or are which fundamentally flat or not less experience when of is engagement

So seen along group that their precedent tough, certainly well. as one has has that's this ways, in set everybody that's more react it's age the to and going pass that in emotional engagement, that along shall they're boomer but that it boomer, with discretionary with economy's a income isn't like time. This before the in

Victoria James

so you time your morning. much Thank for this

Tim Peterman

Victoria. Thanks

Operator

you. Thank

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

Mark Argento

take time now can know, a you bit you where done you you business had around the, maybe have? grow talk think have guys are the stand some right reductions, Hey, Tim at and just and headcount Tom, equivalents, Can at at full the quick think you heads Tom, you or level little you a that ones. with guys you a and you I couple mentioned about you

Tim Peterman

It Hey, talking release was the is thanks and Mark, that, question. Tim, this that the that for in I such. about was

in some on to be there again, our expense priorities. work. debt this positive And us make we last we model sure Those to to million. QX, has QX. growing business and our were business $XX you've innovate everybody our positive QX, and all innovate about historical have to that brands. EPS couple March as four way QX, of a priorities As four we and from the three million things to is mean target pivot in grow or which consequences known year, understood, about about our reducing core those being it's that used $XX consequences years It's talked when reductions wanted our $XX in million in our It's about of the EPS it these

same is it So as in lot are I not, but a with trying thing is is doing them looking where we directions, of at a you're not even less to successful. analogy, It use things. think do hate of about the it buggy is the but people certain such some course oriented staffing whip, reinventing to pat we just idea of the of reductions, move performance how

example, it meant for to move the to when static a So in programming calendar we viewership. was ShopHQ, that which reason did we build

big to same week see host So and internally to products same the were consumers and able a on minute that costs. patterns. function builds not reshape consequence us how allows operating same That the it a as would that viewership we we the reduce was same show that were also the be able have we every changing that our to way staffing with

of doing over we about the staffing doing differently. And you for over the that's cost, we demonstrated this again, idea it EPS our towards more what March isn't QX do It's really reductions, about is and when company we've which and precedent for with think it ShopHQ. So as about less.

So your hopefully answers question. that

you range, terms could of on as In in would percent put to and think was to wanted would business a assumption. information. provide say don't of a we that be But a say you really evolves, XX% if [indiscernible] staffing, the there that I I realistic it XX% average that

Mark Argento

through? then doing I because doing million mentioned walk lease a sitting balance just Great, kind a you sale today, know kind that's of where you've $XX sheet helpful. us back, us actually in remind And just cash. of the you're had

Tim Peterman

Mark. Certainly

service has a a year to hit, company to year priorities pieces high the little of $XX this be came in and I revenues million was, I'd that X.X we of revenues, before, terms make talked last together ratio. million and as bit call say, we like advertising in year, to one revenues scale out $XX the below of could our it, We'd debt. sure is put we too eCommerce As that

the about net that going in million I'm inventory, path. $XXX inventory believe, in be I to it would We a march that remember that movement can call and so we from the going QX one year tell So this successful for were sorry, end with the which been cash reduce the million, started year million million $XXX is us. $XXX end was we're it of and year at inventory down creating funded at through on that be to through our excess year. at in our $XXX we has debt, through the to movement source. we were $XXX at, the talked million, reducing and QX of That and I of revenue. you

important had that do we Another beginning given the maximizing it raise going and was half the of we QX source to economy the back something and profitability our to to think important, go that the with and equity was then was of we us is just felt what was on company. at the the timing

so you the and debt took that picture our we I say million net our right call of $XXX million. now, would is call at picture end net at QX of took, it if say get would as QX So that the they your end our debt $XX $XXX to million,

be of result get that. before, until have term year times election debt, better renew DISH but in And not $XX the as And is we're a lot an there So to I've our DISH, our priorities end consequences. of to know a in we a coming, are our there. would said million halfway very right quarters with I million terms. example And of $XX get this the the the important because to of terms is journey disruption the short reduction but some to that

goals, So getting being QX leverage important down these important are and reach for those ratio. to EPS us all very in primary us X.X very two positive our it's because that below

Mark Argento

Great, I appreciate it. Good luck.

Tim Peterman

Thanks Mark.

Operator

you. Thank

next the question. B. Please Eric Riley comes your Our Wold from of line Securities. proceed with with question

Eric Wold

out how that. $XX kind this number, the that, morning. Couple flow and about, set EBITDA questions, interest million two on I adjusted balance walk those last just us year Good shake you. follow from thinking to kind one, the of of, you Thank the each all a to of all questions sheet a carriage payment, of other? guidance guess question expense from on cash and Can compared

Tim Peterman

Eric, so from you hear Well, nice again. to

what think adjusted is, our question income? net I the elements are between EBITDA exist and the that

Eric Wold

More, more cash flow, just pure cash.

Tim Peterman

Okay.

So, well when think which today. management, capital talk working putting cash the you're is we flow, you then what about free in about

year, would free to that of before. in the cash us I important are, reduction think we important year about accomplish because the one, avoid that we had is about the we delays So the the quite of at of logistic of say incurred flow, buildup last cash use of bit to if end inventory, you a things for as talked inventory

then about you to non-cash cash the flow there talked normal was important. So probably broadcast free amortization element EBITDA the before the about of is reduction working obviously business called overall a that we've single think And that capital then cash That's moving going cash our into debt that opportunity. charges. down then rights. have be excess in create biggest to you back think is piece levels When about that to and driving adjusted

we the fairly the secure were because were in rights QX to to these down. time, be secure same broadcast QX place to quickly cable on XXXX, was, rights that because broken to the we QX, that same cash remember that over dial. paid continue and carriers this placement, the secure you'll ShopHQ coming pretty we in see as rebuild see You'll And will amortization

elements more carrying requirement because it because So guarantee the And all money, again. in a new a the at us viewership, programming, back a they're have years to keep less making spot that our video us a and now again, the we the money are company three more the brands, MSOs we are make. making incentivized later, with had of now of the shot ShopHQ, building service to back those success great are ISPs the

cash we've When think see net mindful is, a element obviously explain XXXX, in we income something and be That as that that into debt, you'll will that, or well. what net We direct, way. think of is move as down we're about our move well. difference come talked about to I So adjusted from an or going but we you interest EBITDA, you'll free but with flow, swinging non-pendulum event. a as we've non-Camelot what down very see XXXX it a -- tried very very isn't always is between

could year debt about plus interest down is same and So well. going to $XX be net -- to the then this our come as reduction of $XX will next come year, the

the are free hopefully your to flow proxy you cash income or elements net and want between those So on answers that EBITDA question adjusted -- use. whatever the and that's, if

Eric Wold

number to helpful. you $XX you of in number So of an EBITDA instead kind walk dollar of would of actual can million have amount? the Do that's be? cash flow of elements for No, the actually point to we what kind kind that

Tim Peterman

being we main element that inventory. working to up, of could track say is the it's it we which to on report And us that two now, then is disclosed, type talk and now you down, that's $XX expect the to I'd capital, Well, for good a on the EBITDA. revenue track adjusted although given right our working the we've call certainly something about the us assumptions but for pretty capital, that that million and What any year net we just ever have continue. the year. happy and of debt KPIs, you right really card are with provided guidance the like and not capital working cash provided afterwards you haven't could And

be should that So helpful.

Eric Wold

you four million kind annualized one, of good in four I negative then contributing question, annualized the would a kind I a is know noted impact businesses still combined that have the EBITDA million-ish as to guess Got are a sales quarter, shutdown EBITDA numbers final an a those of were a four And it. mode? times $XX that quarter. that just and in you build basis to $X the for been on in basis, they quarterly seven or

Tim Peterman

that's for remarks, yeah, mean marketplaces were very really businesses Great brutally they CloseOut TCO, capital lower the They're of in say original businesses. as go about, to brands, I that question, and reasons the and partnership would cash and as on In time And those it's networks. say exited so I are it the scale partners. process that the we selling our doesn't answer these allocation was -- end profitability of back that proxy actually mentioned bad. the the interest TCO good TV and of so to which in, or the resources, fine even sorts the our again, a that it's my when I yes is, rate, focus, talked we management's focused core question stayed particular, the on. on at. things, But were just run your look our business four to as will we, we We about not attention. our

of presence personalities. we're a on e-com that the stronger take is ShopHQ. even X monthly unique, we actually remember to really advertising dual over of platform what up Instead were which more advantage traffic our of marketplaces, a on two new advantage two to ShopHQ can to those taking OurGalleria, take much strategy drive had personalities different doing opening million

marketplace wood arrow more on versus one behind putting multiple we're concept. So this shooting arrows

next we best day In of management the networks, and and and ShopHQ, grow time the LaVenta we core are of that XX is still with along from and attention we to the that resources believe impact core ShopHQ and the do, terms Those XXXtv. but the networks which love ideas use may is these that Health really brand, one months are Jewelry still over Bulldog. the

we at then you as being expectations us see particular consequence, exit. four decided during, day our at capital does they in pivot the was these met, our end QX, time a were beginning of QX, are as at and So to look the -- allocation of it the

Eric Wold

Helpful, thank you.

Tom Zielecki

Yep. Thanks Eric.

Operator

Our Please from [Operator Fuhrman question. proceed Group. with line Instructions] you. Alex Thank of your Craig-Hallum question comes Capital next with

Alex Fuhrman

you or And then just DISH your went if the users, that on on helpful? I to Great, carriage here? counted be Tim, maybe content an back in sense about rate other are thanks for to color providers, I taking that carriage any there with not thinking, the decision how of would committed guess DISH, carriage bit could my And if you've viewing long-term down business was business online ask you short end the in now learnings pretty your renew carriage your to about to term, really little with biggest the you any to wanted be the questions. had or DISH the made DISH, that how time any a were operating much, of from also option can are getting on share DISH? without on road, that factor it recapture able

Tim Peterman

Great I'll try one. them piece to one questions, Alex. by

then what this reduce to being talked that, make have of it about our doing we're DISH start so our about, to as those to first decisions their we transparent with; needs the years, focus rate think way costs, about is your we we've DISH of So to to Like and great really if us but is to I example, for consequence just the about tough decisions our ShopHQ goal talked have for we it. tough year, really carriage about explain rate. a is, great we're for DISH, that, platform. just question, going is have and your about carriage partner, was priorities we to been trying of costs. and which said, achieve not XX we've And around reducing answer a of another a a on negotiation result

partners about in do want us we earlier? and rate, forecast the as I to expectations? for there, put why in very on down put I the That's I I manage of I it together event can't, from when term that Do QX, out process a a the we come but is it being QX, QX, I Yes. talked in And self-fixing some Alex. do. so then it on DISH that, think reason will solve

never out sorts have learnings going one look it. opportunities wow, and distribution to the all No years XX that's go, wants And revenue there. of last We in that's down. The the is, it's at of dropping why has this painful, company DISH right? done

to So decisions we're long-term fix the shareholder this a is for contact issues. full come growth with making that little full because contact hard the might these

carriage. about to We are in companies replace cost. carriage of that and replacements for the I discussions the sorts potential don't with all want

We I won, all certain, data it have and that there's is the enough or budgeted broadcast that come in cannot if if that this air the with. world, know DISH section platform then the satellite for is, the say, we in world, of sorts grow we Once okay, the over with for growing other of MSO that opportunities a there's U.S. video can in in terms consumption broadcast to isn't The the be world. decision until fastest.

OTAs, it's gotten growth is talk something we've that think about about well and as what over-the-air response looking people as get cord-cutting, the is on a significant. talk platform just You what pretty the that. and the, we're is in about -- don't OTV And XX% at they it, great it

it a avenues we'll it's don't to them. think for We've really for let pass. an multiple to But an we bring not said, point our in been believe to It's It out. a reach issue. not, is consumers, but we good partner there's figure transparency. opportunity DISH wanted like out for is partners. So long-term I We we our want video

Alex Fuhrman

Tim. in that just makes coming due any following agreements has explanation, And terms? then Great, that, carriage any there And talk those are in next there have sort generally a of on Thanks sense. year? that rate or you that of for the really, been trend have a other just that can major renegotiations up gone, you how lot about

Tim Peterman

you on and And DISH? for our happening. No, probably renewal. coming there's see low or low this probably, was profitability imminent why is why of carriage you end when the nothing for DISH all up not on the end of that's about think

platforms but term that and great All short coming very are be there of about good other them -- question. renewals would we are of no up and feel

Alex Fuhrman

very Okay, that's Tim. helpful. Thanks

Tim Peterman

Thanks Alex.

Operator

this and no there Ladies for final at the turn time. further comments. gentlemen, any I'll to Mr. Peterman floor you. questions are back Thank

Tim Peterman

you want soon time look everybody quarter. forward seeing to you very to for again, say We again a just today. your thank about I in

Operator

Thank you. This concludes conference. today's

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

Legacy IMBDS (IMBIQ) 24 Aug 222022 Q2 Earnings call transcript