- Earnings call transcript Q3 2022

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Operator

Hello and welcome to iMedia Brands Inc. third quarter 2022 earnings call. At this time, all participants are in a listen-only mode. If anyone should require Operator assistance, please press star, zero on your telephone keypad.

As a reminder, this conference is being recorded. pleasure President, the Deputy my Alex over now Vice Wasserburger, General is to call turn to It Counsel. Please go ahead, Alex.

Alex Wasserburger

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

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

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

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

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

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

Tim Peterman

tough with obvious and Thank - morning today it’s good a out you environment the everyone. start I’ll there. Alex,

did Russian struggling some the like extended and we the like we Some challenges conflict. not, economy, expected, U.S.

million Because actually this buildings gain on working that transaction $XX models, an prioritize debt, our like three in are all of short our fundamental our investors I’d significantly I it positioned In in and topics we exceed working consumer-centric at risks risks point, are have then. liquidity, in $XX million Last of - positive job to we we markets confident our real remain iMedia’s today: risks target year-to-date in to $X in sell we capital. we in our we all and our business close start management reduction and X, right today tax-free. From that capital, this estate LOI of loans. still year transaction a We with radar, to $XX a which have end. debt talked our this four to $XXX date, management we February, three reduction and we this million. roughly in million. On will in we a million debt working by for sale-leaseback our transaction. close will by have of firm reduced our a day investments explained February, stated know capital. term improved in about $XX year debt $X a capital liquidity Although To executed in by Therefore, to working year our means during this million year understand roughly debt risk nature, goal From plan perspective, and million security, in capital goals we working had capital QX December. say these I’m is intellectually used excited NOLs, generated rises with November perspective, our our for seem

of $XX debt or ABL increases to million loan, to our our capital to plan working million $XX.X XXX% proceeds, remaining our of estimated in positioned retire which short In use our loan term we by to million we Green million reduce growth. net our terms fund $XX and our the $XX This combined, are in target. of use means roughly the reduce the Lake

complete, let’s TV, discussion in environment our and likely into how we update be will great. next television to ShopHQ, Our Shop customer perspective report this core, alone here our our interest each be and challenging savings turn that Health, networks: Bulldog company $X customers we our ShopHQ important over that network, With are XXXtv, card From for will our before is move engaging an several overall million. quarters.

earnings continue KPIs what price in they that they turning to and improve revenue doing €XX.X, ending conversation growth our margin viewership unlike QX’s For increase quarter, posted over earnings turned out strategy be of we environment. year-over-year selling call, previous net XX% customer very over iMedia their in I’d the and seventh successive as German ending by optimize our to QX, negative increase XXXtv, of as fast which ongoing the price vibrant only was our not a than promotional A its discussed and growing spite leadership was QX the doing activity it average upcoming and Kuom, pleased XX%, on Eberhard QX’s successful. QX’s which successfully lower in In energy their our many the one profitability. couple €XXX, under CFO today Today, inventory very means balance, was inventory per about the the file to of demonstrate doing this inventory, will improve and profitability. it start QX talking QX’s was progress President, quarter with its in are increase and X% to of engagement, a COO, our to and they’re customer new points, foundational company’s like the to last call, QX. economy impact merchandise today Germany. a conflict’s success: XX% Michael margins, elements of Russian I’m and drive share with television resources, network Hoinka,

to lower QX Michael so great In staffing than were staffing and addition, costs, QX off a hats costs who Eberhard, doing are XX% job.

core I’m they - for headed in widget an are January. to working also this to - is growing In soft Manuel a amazing to who or their their technology job lead, shopping ShopHQ and technology launch early with Margianna their addition make December team, Michael doing an auction are the Eberhard by and going business, attempt [ph], bringing

Q&A very excited talk We’re this during we that session. the about and about opportunity can more

turn the now to for of number and team season level attention with for brands and as holiday a our is well of great great schedule new unbelievable the shows, brands returning ShopHQ an our prepared a of inventory, there Let’s customers.

brands feel about As International. revenues brands over a Grant matter their fact, to of aggregate we to $XX the who Gems including returning attract and million past, return. Danny Giraud, are in Seo, Vogue, continue great for and we generated Joyce former Naturally Elizabeth us, ShopHQ these annual in In En

completed decided be and same be we did with did that that or selling the as to end QX. we in relationship promotional QX the it important ShopHQ, Also with either based shut decision consumer the marketplace but activity it done to online our we has of we down, strategy It drive type Our we of to QX engagement retailers, made in very as related dominate component. O’Neal. capital with in some sell our in with won’t allocation businesses will our like an will other a process on disciplined result, efforts to a smaller QX teams ShopHQ Shaquille

we really charge not one there, in you be I was perfect would for was non-cash and this contract a the both incurred have wish to one-time parting force for ABG best. we XXXX, a felt just fit a the best felt our million QX. rather absolutely but audience; than about those that team, of Shaq’s this in business early we In say we this amicable fit nothing Sometimes surprised, products is conjunction in an Shaq however, Back termination, times. of things sides. great and and them with are $XX

Dish very again channels we excited and Finally, same read team we XXX. the occupied as some I’m our enough Dish can’t Dish things recent yesterday best the on before, about in channels two sure to be engaging customers platform. of and ShopHQ are I our re-launched with say on you the good release, on XXX

our a Now softer better. driven little a operating quarter. like and third Shaq up our give Revenue perspective, about an write-off. were the bit costs anticipated our we by $XX you the adjusted From perspective and in financial I’d performance on administrative overall was EBITDA general was to little than expense my million,

of Dish million reduction the carriage year the this were that content our charter from present $X Health and year primarily not related and to distribution costs, year. costs this In is terms distribution last of selling Bulldog and

third $XX.X included Our charge. was again million share. net quarter loss or per This Shaq $X.XX the million common $XX

$X.X was resources total Regarding cash end of liquidity million. unrestricted and of capital as the QX,

use complete reduce As working NOLs our use offset QX. our I debt to sale-leaseback the gain and capital. is We increase plan mentioned, of in tax transaction we proceeds the $XX expect previously to to to and planned million

million, to prior period. season reporting increase for be sales we and is the which X% net quarter fourth approximately over Regarding X% over of million, of year decline anticipate expect our year we period. EBITDA is promotional; same same XXXX, the holiday the the $XXX approximately a adjusted a which prior $XX reporting accordingly, anticipate challenging We outlook

positive to quarterly share per XXXX. in We earnings post expect continue to QX

anticipate reporting full approximately of full $XXX the X% which a is revenue increase to For year, we XXXX. year million, compared

X% adjusted decline XXXX to a prior $XX EBITDA We full million, compared report expect to of year year.

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

Operator

[Operator from instructions] Our first is coming Thomas Forte Davidson. DA today question from

line Your live. now is

Thomas Forte

question Great, one and follow-up. thanks. One

call are customer as video you time is the core Recession that Can applicable? follower better than, customers weakness think retailing the affecting Wal-Mart any category, more XXXX it you held challenging, XXXX, how this in a been there’s that the other the macroeconomic target environment periods up long of your periods resilience, - or Great such customer. of compare versus were As historically other

Tim Peterman

Sure Tom. great It’s a question.

as arm, e-commerce. advertising that XXXX, our even has have this XXXX better are that and supporting also expectations well, catalyst brands, which take because not this here, step to in we what well balance, advertising, streams: growing television. very outperform, opportunity they’ve and networks we today at advertising and IMDS, on-air for so year, advertisers general, more is been itself we’re as least our say, continues digital If about believe and doing and although and you really as done we helps company outperform television this different that a that come on, a a building are performance That think three networks revenue by and T-commerce previous offering affected than and television as T-commerce, for really back than is and as our year certainly in

TV back carriage, the we very Germany, centric & are margin that. that we that retailing and XXXtv, disruption these to one, three say, pressures pretty revenue A opportunity feel number example, that very four things we, to spent withstand were or X% Germany streams is a more results we step our promotional have retail. that down, how we and to or about in to networks able like right ShopHQ U.S. balanced the We take margin that was So streams. centric disruption to QX. withstand in in for balanced, revenue our through our it in last a Banks, business of okay, from to while years the to gives so are When solid, and some you revenue TV durability is was framework by it, and margin this another Dish so of this margins speak in therefore television certainly was flat us macroeconomic - by from same. that’s three good and about the going have the environment, surprises margin the and Christopher in IMDS, are I’ve by an down gross getting improvement challenging that already that just like decline each very environments, these the by model constructing how QX even facing promotional the very supported environment have talked in more network, in and reason surprise had Dish went its was year-over-year a maintain but

Thomas Forte

in you, do how think opportunities Dish, and of ShopHQ then Thank to how improve you’re your about the carriage? on cost a for now back your and potentially as future you that do follow-up, think carriage the you again about

Tim Peterman

distribution ShopHQ’s reducing content a is entire As about, sales. percent secret really our the growth our Tom, percent of profitability net we’ve of--well, around of costs as talked

It in to also the just us it’s make isn’t HD centered we’re to Our an being renewals of forward about about promoted, driving distributors Dish the Each to was core neighborhood. renewal cost important our sure reducing of for productivity. step sure cost the in the the We ShopHQ. our we’re in make productivity the both future in always future. that about increasing with work is but cost, and

Shop about In networks TV. our Bulldog it’s addition, ShopHQ Health, smaller -

to progress years ago, we’re All It making net is distribution contribute a smaller of a of began, as our well sales. three a because in costs distributor, strategies the is those we all content know, two as that bringing revenue flagship, ShopHQ it drive journey from percent--you down as those productivity and know, our of as down the as each cost year in networks, you percent - critical. cost

XX XX already distribution that to as mid digits, the to will low single we in the cost next of they’re a place ShopHQ XXXtv a in their content example, net in For months. has be, already the so believe percent sales

Thomas Forte

Tim. you taking Thank my for questions,

Tim Peterman

Tom. Thanks

Operator

next Street question today The from coming from is Mark Capital. Argento Lake Thank you.

now line is Your live.

Mark Argento

quick the as were about a now onion could little the it hoping just customers units Tim, move up on down, the a a Hey into seeing actually bit, customers peel are right holidays. ASPs couple talk you’re like pretty up. year-over-year you nicely basis, ones. with little what bit Maybe a just looks you Was

Tim Peterman

you’re do is business free The price to XX make, the and know, pick, every and to that are see from customer and to model or at ship us, AOV, we pack what and to XXXtv’s that were on move make customer simply and half for both critical to quarter of single was when see again are was were of and the to ASP middle ASP XXXX. they is so categories we numbers That is, between - the bringing we today’s doing XXXtv units XXXtv fix. profile, challenges move--the These Sure point need ShopHQ, start ASP into need have their saw selling sure or doing call which I’ve we growing we’re that secret same is--that’s up just when ShopHQ, not they a at we catalyst to but what returned one year the five ShopHQ path is again. do and average--you average their the expertise in today’s in, spring That would the XXXtv what fundamental consumer important the ASP even - shipping, model with things the noted for the was not from doing things that that that at we there as know disrupting start they’re the business away thing, the units, and will aggregated we get seeing fix of around the exciting I soft That’s down a Mark. the the value, about we’re will in in or instead of and which featured we core thing talk promotional be to sauce exactly ShopHQ shopping the beyond gamification shift is same auction so us that units of widget to as we of how things was of launch units. of we auction that calm and events fixing it, units head we’re well do the travel. their experience ShopHQ top when next $XXX, XXXtv, down four I of it opportunities give you’ll way will we and that doing engage you in I’ll or strategy the top one tweak is the first as

Mark Argento

from follow-up perspective, and Just into of consumers relative on here business you domestic are are think about feeling you an what your the mix inventory how some a product holidays? to movement towards gravitating

Tim Peterman

Great have the question. read you one to Always thing, room.

that four you what like a what customer that that call items it around of that once. of come Those think and timely, inventory you’re years, I bet imagination it the big you of the can capturing and and only the lot important that and those customers often was if taking electronics the on, you’re is customer that’s wrong last, in the wrong, thing we the is reason most wants idea get of so customers, on in. the consumer that risky it’s around sitting discovered

of We Christopher as in great some feel the because for a ShopHQ, us the and still saw We months, wearable round, were the we elements core focus stuff on waiting for we’re You mousetrap first really margins. shipments ’XX of there in these we avoid better for internally other is year Banks, feel it’s the the of and ShopHQ really season, do like some get and we’re on sold have, - those we from the sell holiday that we we so & we is that which The and been strategy. brands cars ’XX that and electronics, stuff late Last do we of and example. of in nine that and drones move of Banks. well gaming to electronics the shape the can do consumer we consumer for have ’XX only in position holiday had products to the and Christopher low just holiday great able out in stuff of things, logistics. in, some season we like & the our all is--so season some and fun have other quarter and be selection for the

Mark Argento

there even sheet balance potentially as doing you $XX would way of me, there, With the closed prohibiting long prioritizing--you small question roughly at that’s deal is on that point equity there bit much liquefying capital hopefully market at you buyback little as about you now, talked once here? but of amount sort potentially from of buying had a you a million, cap the prohibit some from go Last Is any get dollars possible. would the stock? guys know, anything anything from back sale-leaseback, guys a a and allocation this the

Tim Peterman

that Great the on the No, all question. right debt focused It and reduction time. now wrestle obviously is transaction. we closing with the we’re one

board of value what do we’re to and doing would that’s with that up. of large--as In liquidity an terms where the it’s buybacks and how think a they we the certain itself I talk - a it, between so am as would value, is to call the for Outsiders have opportunities additional think when done, it our on comes certain the and liquidity about stakeholders, going But work there buybacks. certainly In subscriber and book, additional The it all our IRR the that the a that relates what at name what the deployed, one-time to we stock talked it, call impact opportunity, the about be we’ll enterprise I large disconnect make and business, events, where we’ve was through. time equity they--I circumstances, very X,

Mark Argento

Thanks and good luck.

Tim Peterman

Mark. Thanks

Operator

you. Thank

is question Eric next coming from Our Riley Wold from B. Securities.

line is now live. Your

Eric Wold

morning included of when about may board what the on to Any you expected alludes that plans out I you can the is that approved the fourth maybe off first then talk in kind than Thank anything that was for how you. this. separately? questions. you may know, couple have played Good come guess have forward, and first Tim. going plan--you press if that A better, sale-leaseback, versus a a [indiscernible] there thought, release out not worse building

Tim Peterman

yes, and morning, good question. great Eric,

obviously had moved and into are of all their centers we’re sorts of August-September with Riley, one Those not, as the frame and who or in valuable, moving offers. Bowling and that that in where, our particularly balance distribution area velocity know, where that Prairie, of firm so the continue important. very time Green there’s and was though the woods the disconnect, in we’d reduce us concern distribution of the were country our in has expand with the obviously in, credit we competitive large We more is reach reaches we the liquidity sold much were the belief we there the at partnered where highest when Eden a forward we of what inbound market’s and million, return to large partner were very market, debt was moved risks debt, be were area time Taking turning around the that’s October--really and even giving and obviously in was percent of and U.S. with it. million, of back believe that market in our we a traffic cap that start? the and to felt market because the again, that a them, that’s did we many would by we more the cash at them about of those my area ways interest and a when you as of at that around liquidity to and very us step then a some pre-announced four sheet $XX out even and that day. the right it into that our going of partner there that’s and talk time buildings, that’s Let’s I out so networks of frame, also have the and looking disconnect in one the us $XX the customers having estate demonstrate B. than in real the August-September, we so buildings, say, it to We happy company’s Taking buildings higher walk make the answer, and September-October stronger the such country for. was deploying cash that operate all into you the fair more two all value started then have, driving there there’s

make Eden sale-leaseback at to closing, three we and it’s can that doesn’t of of that have you price, price second to continue market margin we Minnesota, and part chunk we sale-leaseback building not sure and trust. for we the making. when good office right here our price, know body good really remember, that maximize be that We’ve own. Once always you will our transaction so and bring and a when has look a balance want it’s to partner a lease you’re of putting for that our we because But at partner you make level. work There’s payments we good to in this the lowering sure had into that with time, up look really with had a are not that we lease we structures of QX, in We’re restructured need, as transaction move that don’t doing you’re Prairie, the it QX. you in, cost that - to a be. sale-leaseback the and the that of four need has a buildings you in a business the been that We between

just to sell going We’re that outright. building

Eric Wold

Got the on can inventories look flow secondly and range, obviously it, the EPS I helpful. about--you’re quarter flow, between levels, guess QX. million you as positive more and $XX you could it cash core up quarter fourth QX, you the in like what connect that in on think business? dots the EBITDA cash in EBITDA fourth inventory operating in for the in expectations reaffirming moved Then think specifically,

Tim Peterman

capital will driven we we’ll think capital we tumultuous inventory do QX levels earlier, that million, in management that think the year-to-date also Sure. same about inventory by like come times, we the something working $X type that’s even well capital, and in something talked we really When working the of feel and do be levels about of so you increase we--as the working down. will

on our our first the management capital reduce the to three-year in you If accounts our which amount working of percent lot effort Value of XX note our Value sales our that’s was is three a receivable, a XXXX, we’ve ours basis, what from as XX, of around quarters been and carrying, that so know, decrease under that high really believe Pay, of strategy of into use down customers there Pay, the Value installment we’re--you up-front, inventory as think sales reduction that Pay moved we’re the you of so to cash be going Eric. working about is and producing your more either. we the affecting know, range, is When our if QX, for question, about and don’t that’s capital answers XX going that something management the the intentional is that also is to--you we’re QX, sales driver in and

Eric Wold

It Tim. does. I appreciate it, thanks

Tim Peterman

Okay, thank you.

Operator

Thank you.

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

is line live. now Your

Alex Fuhrman

very Tim, your channel very you back? wanted you to the how imagine but those come placement, back be with return Can time can performing to helpful. you originally, full for I in to process now taking with unfolded us how in you productivity, Dish about my can bit how off would be has were little Is customer probably Thanks to original it in - sense takes to question. expected of would return the I much of that of how back ask channels line that Dish about Dish. give you us it a know, or have you color long provide and to for, bounce you’re talk a any that

Tim Peterman

Alex. thing, Sure

the stick would is get in with We’re but we good and like But by seen they’re had to today IEC in my are--you very back hours, big decision but of small time It’s which great had think this all is to and we about know, really. a because, were at like they USA face, with our you traditionally--and job both partners costs. different year we’re before we’re year spent the company terms of terms we’re managing when our place velocity of the but so the scripts the it of go seen much be got biggest now, lower stick who are renewal we to, prepared a that. end a that of case felt with so critical one early have I before. that terms time guns takes about seeking, not might in this when where it, that so we of tough and it’s be so to happened, company content and to for have seeking. non-renewal, XX to that as guided back to they knew fastest Dish, where made, and knew you’ve then--for and that’s that to it expect, didn’t we challenge. the to Food, also obviously we worst treatment, middle Gregory, only we a We’ve would we right? we Jessica can done HDTV distribution then in that you we as percent treatment migration to realize a the why year only be distribution performance have we about and priority a get of levels. you I’ve going and June once our a the would sales, even the they it was a have that to SyFy, bigger how is to Network needed making year, Dish were stated, to content with lower Dish the the at their costs encouraged which the from that traditionally to tell networks and distribution, happen to be we content big I’ve a are a say Dish doesn’t runs the overnight. or this when scenario, live elements up distribution, has networks, there We very we now not knew the good, too been I’ve These for guns we our coming strategy that our It’s what component sure

I through we’d talk We’re really a going years, going the and with lot channel not right, as getting of there were go we’re just we five, to channels about able a XX we’re that that to was same the partners so that say we been Dish. it that’s and were Dish though them on able good conflicts do. through, all wanted we we months, of both happened again something strategy slots big painfully all were and can’t we down with and for working I as are nobody sit expecting were so than through, making to then again six expected, Like these sure what said, resolved that sign-up the Disney wanted even place going through same customers other that once a about, as faster we long was we We and it, but the were process the finding Dish. to. I guide before. say was was to the towards the that have we it to felt were team at there and what that of enough and

Alex Fuhrman

in do aggregate helpful, Great, Thank to to the as Tim. the but lease and relates that’s really ’XX, numbers you debt-related reduction about to sale-leaseback, presumably just that I you know for it early is in payments as to that. a interest it’s what expense? going the consider for numbers talk

Tim Peterman

this positive like our we expense the we a you well. revenue, structure, I when think in is the year point, important to now had an the then the pieces file, and then tipping put customer thing for races. about as then first to about QX, our off and We to fix XXXX EPS together at we’re the and being business if fix you we’re A talked Alex, and ago, that is performance, Yes will. half our revenue--first had the

XX--you mentioned you that to If either lost net next four what’s the does loss be know, to performance you we’ve integration $XX to pieces XX Call think write-off and the the date, related year-to-date that Well, not income, but integration is acquisitions our you then us about I and have again the it the good about made million it’s half XXXX, you about year. and I those about like or business that all $XX related if but year very compelling below-the-line one-time we’ve the or million, year-to-date, there it and is in costs the core year-to-date what’s of of the next something net of million it net happen earlier. of income going $XX of news costs, down costs Shaq range hear not this. loss, income That we to works well, year? really break a think say, a picture in

chunk, earlier, date, biggest an year we’ve in non in the not again, million $XX we we’re But really the chunk why coming - other and beginning at year it’s XX. in million of and would as non-cash paid high, that talked million, target of that’s the in issue. and the next The interest about you February $XX why XX the doubling be the too $XX mentioned established that’s amort, it we to at that comp depreciation, cash, stock

talked core We additional drop the of range, million so the expect sale interest $X along on in proceeds you perspective. before, our the structure the are and all terms fixing capital that an about profitability depending these other we’re profitable year I’ve as on from also today how use pretty elements effect you of core excited to sale-leaseback, business the see at That’s the way, $X those fixes assets and multiplier our to fixing and the of the from million balance It look onion business--you elements complexities alone the peel know, so here one-time if also we the field mentioned, are, with the the sheet we the that is we’re strategy. just I is next interest players the in as events, significant. means why as as that of

what are important It’s three through that’s - the That’s was excited that of for any not why television having durability together four and get seeking XXXX, was we networks. revenue about XXXX. that done. what are we we’ve messy, phase, We’re to acquisitions our streams more about

Alex Fuhrman

That’s terrific. Thanks Tim. very much,

Tim Peterman

Thanks Alex.

Operator

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

Tim Peterman

and soon. a talk and holiday we’ll to their happy today, for want time thank again have everybody just I

Operator

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

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

Legacy IMBDS (IMBIQ) 22 Nov 222022 Q3 Earnings call transcript