iMedia Reports Fourth Quarter and Full-Year 2021 Results

Q4 Net Sales were $194 Million, a 55% Increase Over Same Prior Year Period

2021 Full Year Net Sales were $551 million, a 21% Increase Over 2020

MINNEAPOLIS, March 22, 2022 (GLOBE NEWSWIRE) -- iMedia Brands, Inc. (the “Company”) (NASDAQ: IMBI, IMBIL) today announced results for the fourth quarter and full-year ended January 29, 2022.

“Q4 was another exceptional quarter and 2021 was a transformational year,” said Tim Peterman, CEO of the Company. “Our demonstrated abilities to capitalize on the convergence of entertainment, advertising and ecommerce continue to accelerate our growth opportunities.”

Fourth Quarter 2021 Consolidated Highlights:

  • Net sales were $193.8 million, a 55% increase, or $69.0 million, over the same prior year period.
  • Gross margin was 38.3%, a 270 basis-point improvement over the same prior year period.
  • Net loss was $5.0 million or $(0.23) per common share, compared to the same prior-year period net loss of $2.7 million or $(0.21) per common share. The Q4 2021 net loss included $1.5 million of transaction, settlement, and integration costs, compared to $0.3 million in same prior year period.
  • Adjusted EBITDA was $15.1 million, a 79.9% increase, or $6.7 million, over the same prior-year period.
  • Our total 12-month rolling active customer count, as of January 29, 2022, grew by 55.3% compared to same prior-year period, driven by the continued strong customer growth from ShopHQ, Christopher & Banks and from the addition of the 123tv customer file.
  • As previously announced, the Company closed its acquisition of 123tv in November 2021 for an enterprise value of $93.0 million.
  • As previously announced, beginning with Q4 2021, the Company is reporting three operating segments, Entertainment, Consumer Brands and Media Commerce Services.

Consolidated Fourth Quarter and Full-Year 2021 Financial Highlights:

                           
    For the Three-Month Period Ended     For the Twelve-Month Period Ended
Description   January 29,
2022
  January 30,
2021
  Change     January 29,
2022
  January 30,
2021
  Change
                           
Net Sales   $ 193.8     $ 124.8     55 %     $ 551.1     $ 454.2     21 %
                           
Gross Margin %     38.3 %     35.6 %   270 bps       40.4 %     36.8 %   360 bps
                           
Net loss attributable to non-controlling interest $ (0.7 )   $ -     N/A     $ (1.0 )   $ -     N/A
                           
Net loss attributable to shareholders   $ (5.0 )   $ (2.7 )   86 %     $ (22.0 )   $ (13.2 )   (66 %)
                           
EPS   $ (0.23 )   $ (0.21 )   (12 %)     $ (1.14 )   $ (1.23 )   8 %
                           
Adjusted EBITDA   $ 15.1     $ 8.4     80 %     $ 41.6     $ 23.9     74 %
                           


Segment Fourth Quarter and Full-Year 2021 Financial Highlights:

                                     
      For the Three-Month Period Ended   For the Three-Month Period Ended  
      January 29, 2022   January 30, 2021  
                                     
              Media               Media      
          Consumer   Commerce           Consumer   Commerce      
      Entertainment   Brands   Services   Consolidated   Entertainment   Brands   Services   Consolidated  
                                     
Net Sales   $ 165.4     15.1   13.2   $ 193.8     $ 122.0     0.6     2.2     $ 124.8    
                                     
Gross Profit   $ 63.5     7.3   3.4   $ 74.2     $ 43.3     0.4     0.7     $ 44.4    
                                     
Operating Income (Loss) $ (1.8 )   0.7   0.8   $ (0.3 )   $ (1.2 )   (0.2 )   0.1     $ (1.4 )  
                                     
Adjusted EBITDA   $ 11.6     1.9   1.6   $ 15.1     $ 8.4     (0.2 )   0.1     $ 8.4    
                                     
                                     
      For the Twelve-Month Period Ended   For the Twelve-Month Period Ended  
      January 29, 2022   January 30, 2021  
                                     
              Media               Media      
          Consumer   Commerce           Consumer   Commerce      
      Entertainment   Brands   Services   Consolidated   Entertainment   Brands   Services   Consolidated  
                                     
Net Sales   $ 478.9     44.3   27.8   $ 551.1     $ 445.5     2.2     6.6     $ 454.2    
                                     
Gross Profit   $ 192.6     22.0   8.1   $ 222.6     $ 163.9     0.9     2.3     $ 167.1    
                                     
Operating Income (Loss) $ (13.5 )   1.6   1.2   $ (10.7 )   $ (6.3 )   (1.6 )   (0.1 )   $ (7.9 )  
                                     
Adjusted EBITDA   $ 32.5     5.6   3.6   $ 41.6     $ 25.2     (1.5 )   0.2     $ 23.9    
                                     


 

Entertainment & Consumer Brands Segments’ Q4 and Full-Year 2022 Key Operating Metrics:

    Entertainment + Consumer Brands
                           
    For the Three-Month Period Ended     For the Twelve-Month Period Ended
Description   January 29,
2022 (a)
  January 30,
2021
  Change     January 29,
2022 (a)
  January 30,
2021
  Change
                           
 Net Unit Sales (000s)     4,754       1,749     172 %       10,014       6,531     53 %
                           
 Average Selling Price (ASP)   $ 36     $ 64     (44 %)     $ 48     $ 62     (23 %)
                           
 Return Rate %     17 %     15 %   (190 bps)       16 %     15 %   (150 bps)
                           
Total Customers - 12 Month Rolling (000s)     1,585       1,021     55.3 %       1,585       1,021     55.3 %
                           
                           
    Entertainment + Consumer Brands
                           
    For the Three-Month Period Ended     For the Twelve-Month Period Ended
% of Net Merchandise Sales by Category   January 29,
2022 (a)
  January 30,
2021
  Change     January 29,
2022 (a)
  January 30,
2021
  Change
Jewelry & Watches     37 %     43 %   (630 bps)       41 %     41 %   10 bps
Home & Consumer Electronics     22 %     21 %   100 bps       17 %     16 %   110 bps
Beauty & Health     21 %     25 %   (420 bps)       22 %     32 %   (1020 bps)
Fashion & Accessories     21 %     11 %   960 bps       21 %     12 %   900 bps
                           
Total     100 %     100 %           100 %     100 %    
                           


(a) For the three-month and twelve-month periods ended January 29, 2022, period-over-period comparison of the key operating metrics above are impacted by the addition of Christopher & Banks and 123tv, particularly the ASP metric because 123tv’s ASP is below $25.

Liquidity and Capital Resources:

As of January 29, 2022, total unrestricted cash was $11.3 million.  The Company also had an additional $11.4 million of unused availability on its revolving credit facility.Outlook:

For the first quarter 2022, we anticipate reporting net sales of approximately $156 million, which is approximately 38% growth over the same prior year period.  We anticipate reporting adjusted EBITDA of approximately $9 million, which is approximately a 11% increase over the same prior year period. Our guidance includes our expectations that the Russia-Ukraine conflict will continue to have a negative impact on the German economy and that we will continue to experience unusually high logistics costs due to COVID-19.

For the full-year 2022, we reiterate our previously provided 2022 guidance. We anticipate reporting revenue of approximately $675 to $725 million, adjusted EBITDA of approximately $50 to $60 million and we anticipate reporting positive quarterly earnings per share beginning in the back half of 2022.

Conference Call:

The Company will hold a conference call and webcast on Tuesday, March 22, at 8:30 a.m. Eastern time to discuss its financial results for the fourth quarter and full year ended January 29, 2022.  CEO Tim Peterman and CFO Monty Wageman will host the conference call and webcast.

  • Date: Tuesday, March 22, 2022
  • Time: 8:30 a.m. Eastern time (7:30 a.m. Central time)
  • Toll-free dial-in number: 1-877-407-9039
  • International dial-in number: 1-201-689-8470
  • Conference ID: 13727442
  • Webcast link: iMedia Brands 4Q earnings webcast

Please call the conference telephone number 10 minutes prior to the start time.  The conference call and webcast will be broadcast live and available for replay via the investor relations section of the Company’s website at www.imediabrands.com. A replay of the conference call will be available after 11:30 a.m. Eastern time on the same day through April 5, 2022.

  • Toll-free replay number: 1-844-512-2921
  • International replay number: 1-412-317-6671
  • Replay ID: 13727442

About iMedia Brands, Inc.

iMedia Brands, Inc. (NASDAQ: IMBI, IMBIL) is a leading interactive media company capitalizing on the convergence of entertainment, ecommerce, and advertising. The company owns a growing, global portfolio of entertainment, consumer brands and media commerce services businesses that cross promote and exchange data with each other to optimize their consumer engagement experiences and to position the company as the leading single-source partner to television advertisers and consumer brands seeking to entertain and transact with customers.

Investors:
Ken Cooper
kcooper@imediabrands.com
(952) 943-6119

Media:
press@imediabrands.com
(952) 943-6125

iMEDIA BRANDS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
             
       January 29,      January 30,
    2022     2021  
    (Unaudited)      
ASSETS              
Current assets:              
Cash   $ 11,295     $ 15,485  
Restricted Cash     1,893        
Accounts receivable, net     78,627       61,951  
Inventories     116,256       68,715  
Current portion of television broadcast rights, net     27,521       19,725  
Prepaid expenses and other     17,632       7,853  
Total current assets     253,224       173,729  
Property and equipment, net     48,225       41,988  
Television broadcast rights, net     74,821       7,028  
Intangible assets and goodwill, net     126,440       2,359  
Other assets     19,067       1,533  
TOTAL ASSETS   $ 521,777     $ 226,637  
LIABILITIES AND SHAREHOLDERS’ EQUITY              
Current liabilities:              
Accounts payable   $ 89,046     $ 77,995  
Accrued liabilities     44,388       29,509  
Current portion of television broadcast rights obligations     31,921       29,173  
Current portion of long term credit facility           2,714  
Current portion of operating lease liabilities     2,331       462  
Current portion of seller's note     14,410        
Deferred revenue     427       213  
Total current liabilities     182,522       140,066  
Long term broadcast rights liability     81,268       7,358  
Other long term liabilities     25,087       1,497  
Long term credit facility     87,034       50,666  
8.50% Senior Unsecured Notes     74,075        
Total liabilities     449,986       199,587  
Commitments and contingencies              
Shareholders' equity:              
Preferred stock, $0.01 per share par value, 400,000 shares authorized; zero shares issued and outstanding            
Common stock, $0.01 per share par value, 29,600,000 shares authorized as of January 29, 2022 and January 30, 2021; 21,571,387 and 13,019,061 shares issued and outstanding as of January 29, 2022 and January 30, 2021     213       130  
Additional paid-in capital     538,628       474,375  
Accumulated deficit     (469,463 )     (447,455 )
Total shareholders’ equity     69,379       27,050  
Equity of the non-controlling interest   $ 2,412     $  
Total equity   $ 71,791     $ 27,050  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 521,777     $ 226,637  
             



iMEDIA BRANDS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
                       
                       
          For the Three-Month Periods Ended   For the Twelve-Month Periods Ended
                       
          January 29,   January 30,   January 29,   January 30,
            2022       2021       2022       2021  
Net sales   $ 193,809     $ 124,797     $ 551,134     $ 454,171  
Cost of sales     119,607       80,407       328,518       287,118  
      Gross profit     74,202       44,390       222,616       167,053  
      Margin %     38.3 %     35.6 %     40.4 %     36.8 %
Operating expense:                
  Distribution and selling     49,606       32,820       158,512       129,920  
  General and administrative     14,019       5,178       38,589       20,336  
  Depreciation and amortization     10,879       7,322       35,606       24,022  
  Restructuring costs     -       451       634       715  
    Total operating expense     74,504       45,771       233,341       174,993  
Operating loss     (302 )     (1,381 )     (10,725 )     (7,940 )
                       
Other income (expense):                
  Interest income     75       1       199       3  
  Interest expense     (5,482 )     (1,317 )     (11,727 )     (5,237 )
  Loss on debt extinguishment     -       -       (663 )     -  
    Total other expense     (5,407 )     (1,316 )     (12,191 )     (5,234 )
                       
Loss before income taxes     (5,709 )     (2,697 )     (22,916 )     (13,174 )
                       
Income tax (provision) benefit     (64 )     (15 )     (110 )     (60 )
                       
Net loss     (5,773 )     (2,712 )     (23,026 )     (13,234 )
                       
Less: Net loss attributable to non-controlling interest   (735 )     -       (1,018 )     -  
                       
Net loss attributable to shareholders   $ (5,038 )   $ (2,712 )   $ (22,008 )   $ (13,234 )
                       
Net loss per common share   $ (0.23 )   $ (0.21 )   $ (1.14 )   $ (1.23 )
                       
Net loss per common share                
    ---assuming dilution   $ (0.23 )   $ (0.21 )   $ (1.14 )   $ (1.23 )
                       
Weighted average number of                
common shares outstanding:                
      Basic     21,563,924       12,982,514       19,362,062       10,745,916  
      Diluted     21,563,924       12,982,514       19,362,062       10,745,916  
                       


IMEDIA BRANDS, INC.
AND SUBSIDIARIES
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
 
  For the Three-Month Period Ended January 29, 2022
   
      Media    
    Consumer   Commerce    
  Entertainment   Brands   Services   Consolidated
         
Net Loss       $ (5,038 )
Adjustments:        
Depreciation and Amortization         11,797  
Interest, net         5,407  
Tax         65  
         
EBITDA (as defined) $ 9,473   $ 1,607     $ 1,151   $ 12,231  
         
         
A reconciliation of EBITDA to Adjusted EBITDA is as follows:      
EBITDA (as defined) $ 9,473   $ 1,607     $ 1,151   $ 12,231  
Adjustments:        
Transaction, Settlement and Integration costs, net (a)   751     291       470   $ 1,512  
Costs related to Kentucky Tornado   429     -       -     429  
Non-Cash Share-Based Compensation   935     -       -     935  
         
Adjusted EBITDA $ 11,588   $ 1,898     $ 1,621   $ 15,107  
         
         
         
  For the Three-Month Period Ended January 30, 2021
   
      Media    
    Consumer   Commerce    
  Entertainment   Brands   Services   Consolidated
         
Net Loss       $ (2,712 )
Adjustments:        
Depreciation and Amortization         8,281  
Interest, net         1,316  
Tax         15  
         
EBITDA (as defined) $ 6,943   $ (166 )   $ 123   $ 6,900  
         
         
A reconciliation of EBITDA to Adjusted EBITDA is as follows:      
EBITDA (as defined) $ 6,943   $ (166 )   $ 123   $ 6,900  
Adjustments:        
Transaction, Settlement and Integration costs, net (a)   314     -       -     314  
Non-Cash Share-Based Compensation   733     -       -     733  
Restructuring Costs   451     -       -     451  
         
Adjusted EBITDA $ 8,442   $ (166 )   $ 123   $ 8,398  
         
         
         
IMEDIA BRANDS, INC.
AND SUBSIDIARIES
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
         
  For the Twelve-Month Period Ended January 29, 2022
         
      Media    
    Consumer   Commerce    
  Entertainment   Brands   Services   Consolidated
         
Net Loss       $ (22,008 )
Adjustments:        
Depreciation and Amortization         39,361  
Interest, net         11,528  
Tax         110  
         
EBITDA (as defined) $ 23,966   $ 3,282     $ 1,744   $ 28,991  
         
         
A reconciliation of EBITDA to Adjusted EBITDA is as follows:      
EBITDA (as defined) $ 23,966   $ 3,282     $ 1,744   $ 28,992  
Adjustments:        
Transaction, Settlement and Integration costs, net (a)   3,121     2,304       1,843     7,268  
Costs related to Kentucky Tornado   429     -       -     429  
One-Time Customer Concessions   341     -       -     341  
Loss on Debt Extinguishment   663     -       -     663  
Non-Cash Share-Based Comp   3,320     -       -     3,320  
Restructuring Costs   625     8       -     634  
          -  
Adjusted EBITDA $ 32,466   $ 5,594     $ 3,587   $ 41,647  
         
         
         
  For the Twelve-Month Period Ended January 30, 2021
         
      Media    
    Consumer   Commerce    
  Entertainment   Brands   Services   Consolidated
         
Net Loss       $ (13,234 )
Adjustments:        
Depreciation and Amortization         27,978  
Interest, net         5,234  
Tax         60  
         
EBITDA (as defined) $ 21,315   $ (1,472 )   $ 195   $ 20,038  
         
         
A reconciliation of EBITDA to Adjusted EBITDA is as follows:      
EBITDA (as defined) $ 21,315   $ (1,472 )   $ 195   $ 20,038  
Adjustments:        
Transaction, Settlement and Integration costs, net (a)   1,200     -       -     1,200  
Non-Cash Share-Based Comp   1,960     -       -     1,960  
Restructuring Costs   715     -       -     715  
         
Adjusted EBITDA $ 25,190   $ (1,472 )   $ 195   $ 23,913  
         

 

(a) Transaction, settlement and integration costs for the three-month period and twelve-month period ended January 29, 2022, includes transaction and integration costs related primarily to the Christopher & Banks, Synacor and 123tv transactions.


Adjusted EBITDA

EBITDA represents net income (loss) for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. The Company defines adjusted EBITDA as EBITDA excluding non-operating gains (losses); executive and management transition costs; one-time customer concessions; restructuring costs; cost related to the Kentucky tornado; non-cash impairment charges and write downs; transaction, settlement, and integration costs, net; rebranding costs; and non-cash share-based compensation expense. The Company has included the “adjusted EBITDA” measure in its EBITDA reconciliation in order to adequately assess the operating performance of its television and online businesses and in order to maintain comparability to its analyst's coverage and financial guidance, when given. Management believes that the adjusted EBITDA measure allows investors to make a meaningful comparison between its business operating results over different periods of time with those of other similar companies. In addition, management uses adjusted EBITDA as a metric to evaluate operating performance under the Company’s management and executive incentive compensation programs. EBITDA and adjusted EBITDA are both non-GAAP measures and should not be construed as an alternative to operating income (loss), net income (loss) or to cash flows from operating activities as determined in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be construed as a measure of liquidity. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of the comparable GAAP measure, net income (loss) to adjusted EBITDA in this release. 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This document may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact, including statements regarding the expected impact of high logistics costs and the impact of the Ukraine & Russia conflict are forward-looking. The Company often use words such as anticipates, believes, estimates, expects, intends, seeks, predicts, hopes, should, plans, will, or the negative of these terms and similar expressions to identify forward-looking statements, although not all forward looking-statements contain these words. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): variability in consumer preferences, shopping behaviors, spending and debt levels; the general economic and credit environment, including COVID-19; interest rates; seasonal variations in consumer purchasing activities; the ability to achieve the most effective product category mixes to maximize sales and margin objectives; competitive pressures on sales and sales promotions; pricing and gross sales margins; the level of cable and satellite distribution for the Company’s programming and the associated fees or estimated cost savings from contract renegotiations; the Company’s ability to establish and maintain acceptable commercial terms with third-party vendors and other third parties with whom the Company has contractual relationships, and to successfully manage key vendor and shipping relationships and develop key partnerships and proprietary and exclusive brands; the ability to manage operating expenses successfully and the Company’s working capital levels; the ability to remain compliant with the Company’s credit facilities covenants; customer acceptance of the Company’s branding strategy and its repositioning as a video commerce Company; the ability to respond to changes in consumer shopping patterns and preferences, and changes in technology and consumer viewing patterns; changes to the Company’s management and information systems infrastructure; challenges to the Company’s data and information security; changes in governmental or regulatory requirements; including without limitation, regulations of the Federal Communications Commission and Federal Trade Commission, and adverse outcomes from regulatory proceedings; litigation or governmental proceedings affecting the Company’s operations; significant events (including disasters, weather events or events attracting significant television coverage) that either cause an interruption of television coverage or that divert viewership from its programming; disruptions in the Company’s distribution of its network broadcast to customers; the Company’s ability to protect its intellectual property rights; the Company’s ability to obtain and retain key executives and employees; the Company’s ability to attract new customers and retain existing customers; changes in shipping costs; expenses related to the actions of activist or hostile shareholders; the Company’s ability to offer new or innovative products and customer acceptance of the same; changes in customer viewing habits of television programming; logistics costs including the price of gasoline and transportation; and the risks described from time to time in the Company’s reports filed with the SEC, including, but not limited to, the Company’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.


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Source: iMedia Brands, Inc.