Second Quarter Financial Results

(in thousands)
Q2 18

Q2 17
Q2 18
Q2 17
Total Revenues$20,596$18,285 12.6%$40,312$37,436 7.7%
Operating Income 522 73 *  886 174 * 
Income Before Provision for Taxes 473 22 *  792 43 * 
Net Income (Loss) 364 (52)*  589 (43)* 
EBITDA**   734 273 168.9% 1,314 540 143.3%
Adjusted EBITDA** 848 439 93.2% 1,557 881 76.7%
Pre-Corporate EBITDA** 1,108 674 64.4% 2,154 1,462 47.3%
*Not meaningful.  **Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

DALLAS, Aug. 10, 2018 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) ("Wilhelmina" or the "Company") today reported revenues of $20.6 million and net income of $364 thousand for the three months ended June 30, 2018, compared to revenues of $18.3 million and net loss of $52 thousand for the three months ended June 30, 2017.  For the six months ended June 30, 2018, Wilhelmina reported revenues of $40.3 million and net income of $589 thousand compared to revenue of $37.4 million and net loss of $43 thousand for the six months ended June 30, 2017. The increases in revenues when compared to the same periods of the prior year were primarily due to a increase in model bookings and contributions from new initiatives. Increased operating income was primarily the result of increases in service revenues compared to relatively unchanged operating expenses. As a result, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA also increased during the first half of 2018 compared to the same period prior year.

Mark Schwarz, Executive Chairman of Wilhelmina, said, “The Company’s results in the second quarter demonstrated an overall improvement in trends with growth in revenue, growth in earnings, $1.3 million in cash flows from operating activities and an ending cash balance of $4.6 million.  Year to date, including subsequent to the end of the second quarter, the Company has repurchased 112,138 shares at an average price of $6.97 for a total of $781,531. Inclusive of these purchases, since the 2012 initiation of the Company’s current repurchase program, 1,202,508 shares have been repurchased at an average price of approximately $4.72 per share, for a total of approximately $5.7 million.”

William Wackermann, Chief Executive Officer of Wilhelmina, said, “Wilhelmina had a strong second quarter driven by a solid performance in model bookings and growth in our Studio and Aperture businesses.  We continue to position the brand for future growth through innovation across talent categories. I am proud of our team and their efforts during the first half of 2018, and we will continue to push to make the second half a continued success.”

Financial Results

Net income for the three and six months ended June 30, 2018 was $364 thousand and $589 thousand, or $0.07 and $0.11 per fully diluted share, compared to net losses of $52 thousand and $43 thousand, or $0.01 and $0.01 per fully diluted share, for the three and six months ended June 30, 2017.

Pre-Corporate EBITDA was $1.1 million and $2.2 million for the three and six months ended June 30, 2018, compared to $674 thousand and $1.5 million for the three and six months ended June 30, 2017. 

The following table reconciles reported net income under generally accepted accounting principles to EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and six months ended June 30, 2018 and 2017.

(in thousands)Three months ended 
June 30,
 Six months ended
June 30,

 2018 2017  2018 2017 
Net (loss) income$ 364 $  (52) $ 589 $  (43)
Interest expense22 28  47 57 
Income tax expense109 74  203 86 
Amortization and depreciation239 223  475 440 
EBITDA$ 734 $  273  $ 1,314 $  540 
Foreign exchange loss27 14  47 36 
Loss from unconsolidated affiliate- 9  - 38 
Share-based payment expense87 143  196 267 
Adjusted EBITDA$ 848 $  439  $ 1,557 $  881 
Corporate overhead260 235  597 581 
Pre-Corporate EBITDA$ 1,108 $  674  $ 2,154 $  1,462 

Changes in net income, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and six months ended June 30, 2018, when compared to the three and six months ended June 30, 2017, were primarily the result of the following:

  • Revenues net of model costs increased for the three and six months ended June 30, 2018 by 6.6% and 7.2% primarily due to an increase in core model bookings and new initiatives that contributed to growth during the first half of 2018;
  • Salaries and service costs decreased by 1.6% and 1.9% for the three and six months ended June 30, 2018 primarily due to changes in personnel to better align the number of employees at each Wilhelmina office with the needs of each geographic region, a reduction in share based payment expense, and more effective management of T&E during the first half of 2018;
  • Office and general expenses decreased by 6.4% and for the three months ended June 30, 2018, primarily due to costs associated with reduced legal services. For the six months ended June 30, 2018, office and general expenses increased by 5.9% primarily due to increased legal expenses in 2018;
  • Amortization and depreciation expense increased by 7.2% and 8.0% for the three and six months ended June 30, 2018, primarily due to new equipment being placed in service in recent months; and
  • Corporate overhead expenses increased by 10.6 and 2.8% for the three and six months ended June 30, 2018, primarily due to higher stock exchange fees and SEC related legal costs.

Wilhelmina’s stock repurchase program enables it to repurchase up to an aggregate of 1,500,000 shares of common stock.  The shares may be repurchased from time to time in the open market or through privately negotiated transactions at prices deemed appropriate.  During the first six months of 2018, 12,138 shares were repurchased under the stock repurchase program.  As of June 30, 2018, an additional 397,492 shares could yet be purchased under the Company’s stock repurchase program.  Subsequent to June 30, 2018, an additional 100,000 shares were repurchased.  From inception to August 10, 2018, 1,202,508 shares have been repurchased. 

(In thousands, except share data) 

  June 30,
  December 31,
Current assets:     
Cash and cash equivalents $4,617   $4,256 
Accounts receivable, net of allowance for doubtful accounts of $2,192 and $2,171, respectively  15,095    13,627 
Prepaid expenses and other current assets  319    180 
Total current assets  20,031    18,063 
Property and equipment, net of accumulated depreciation of $2,786 and $2,349, respectively  2,806    3,039 
Trademarks and trade names with indefinite lives  8,467    8,467 
Other intangibles with finite lives, net of accumulated amortization of $8,646 and $8,608 respectively  90    128 
Goodwill  13,192    13,192 
Other assets  127    137 
TOTAL ASSETS $44,713   $43,026 
Current liabilities:      
Accounts payable and accrued liabilities $4,797   $3,985 
Due to models  10,590    10,190 
Contingent consideration to seller - current  -    - 
Term loan - current  537    524 
Total current liabilities  15,924    14,699 
Long term liabilities:      
Deferred income tax liability  584    521 
Term loan - non-current  1,351    1,623 
Total long-term liabilities  1,935    2,144 
Total liabilities  17,859    16,843 
Shareholders’ equity:         
Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued at         
June 30, 2018 and December 31, 2017  65    65 
Treasury stock, 1,102,508 and 1,090,370 at June 30, 2018 and December 31, 2017, at cost  (4,975)   (4,893)
Additional paid-in capital  88,088    87,892 
Accumulated deficit  (56,296)   (56,885)
Accumulated other comprehensive income (loss)  (28)   4 
Total shareholders’ equity  26,854    26,183 

For the Three and Six Months Ended June 30, 2018 and 2017
(In thousands, except per share data)

  Three Months Ended Six Months Ended
  June 30,  June 30, 
  2018   2017  2018   2017 
Revenues $20,580   $18,285  $40,282   $37,408 
License fees and other income  16    -   30    28 
Total revenues  20,596    18,285   40,312    37,436 
Model costs  14,905    12,946   28,747    26,645 
Revenues net of model costs  5,691    5,339   11,565    10,791 
Operating expenses:              
Salaries and service costs  3,472    3,528   7,031    7,164 
Office and general expenses  1,198    1,280   2,576    2,432 
Amortization and depreciation  239    223   475    440 
Corporate overhead  260    235   597    581 
Total operating expenses  5,169    5,266   10,679    10,617 
Operating income  522    73   886    174 
Other expense:              
Foreign exchange loss  (27)   (14)  (47)   (36)
Loss from unconsolidated affiliate  (22)   (9)  (47)   (38)
Interest expense  -    (28)  -    (57)
Total other expense  (49)   (51)  (94)   (131)
Income before provision for income taxes  473    22   792    43 
Provision for income taxes: (expense) benefit              
Current  (56)   (65)  (140)   (125)
Deferred  (53)   (9)  (63)   39 
Income tax expense  (109)   (74)  (203)   (86)
Net income (loss) $364   $(52) $589   $(43)
Other comprehensive income (expense):              
Foreign currency translation income (expense)  (75)   20   (32)   65 
Total comprehensive income (loss)  289    (32)  557    22 
Basic net income (loss) per common share $0.07   $(0.01) $0.11   $(0.01)
Diluted net income (loss) per common share $0.07   $(0.01) $0.11   $(0.01)
Weighted average common shares outstanding-basic  5,375    5,382   5,378    5,382 
Weighted average common shares outstanding-diluted  5,375    5,404   5,378    5,404 


For the Six Months Ended June 30, 2018 and 2017
 (In thousands)

 Six Months Ended
June 30,
Cash flows from operating activities:       
Net income:$589  $(43)
Adjustments to reconcile net income to net cash used in operating activities:       
Amortization and depreciation 475   440 
Share based payment expense 196   267 
Deferred income taxes 63   (39)
Bad debt expense 75   79 
Changes in operating assets and liabilities:       
Accounts receivable (1,543)  (879)
Prepaid expenses and other current assets (139)  532 
Other assets 10   49 
Due to models 400   (1,585)
Accounts payable and accrued liabilities 812   (432)
Contingent liability to seller -   (97)
Net cash used by operating activities 938   (1,708)
Cash flows from investing activities:       
Purchases of property and equipment (204)  (478)
Net cash used in investing activities (204)  (478)
Cash flows from financing activities:     
Purchases of treasury stock (82)  - 
Repayment of term loan (259)  (248)
Net cash used in financing activities (341)  (248)
Foreign currency effect on cash flows: (32)  65 
Net change in cash and cash equivalents: 361   (2,369)
Cash and cash equivalents, beginning of period 4,256   5,688 
Cash and cash equivalents, end of period$4,617  $3,319 
Supplemental disclosures of cash flow information:     
Cash paid for interest$46  $57 
Cash refund of income taxes$10  $69 

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA represent measures of financial performance that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). The Company considers EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA to be important measures of performance because they:

  • are key operating metrics of the Company's business;
  • are used by management in its planning and budgeting processes and to monitor and evaluate its financial and operating results; and
  • provide stockholders and potential investors with a means to evaluate the Company's financial and operating results against other companies within the Company's industry. 

The Company's calculation of non-GAAP financial measures may not be consistent with similar calculations by other companies in the Company's industry. The Company calculates EBITDA as net income plus interest expense, income tax expense, and depreciation and amortization expense.  The Company calculates “Adjusted EBITDA” as EBITDA plus foreign exchange gain/loss plus gain/loss from unconsolidated affiliate plus share-based payment expense and certain significant non-recurring items that the Company may include from time to time. The Company calculates “Pre-Corporate EBITDA” as Adjusted EBITDA plus corporate overhead expense, which includes director compensation, SEC compliance costs, audit and professional fees, and other public company costs.

Non-GAAP financial measures should not be considered as alternatives to net and operating income as an indicator of the Company's operating performance or cash flows from operating activities as a measure of liquidity or any other measure of performance derived in accordance with generally accepted accounting principles.

Form 10-Q Filing

Additional information concerning the Company's results of operations and financial position is included in the Company's Form 10-Q for the second quarter ended June 30, 2018 filed with the Securities and Exchange Commission on August 10, 2018.

Forward-Looking Statements

This press release contains certain “forward-looking” statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company are based on the beliefs of the Company’s management as well as information currently available to the Company’s management. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar import, as they relate to the Company or Company management, are intended to identify forward-looking statements. Such forward-looking statements include, in particular, projections about the Company’s future results, statements about its plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. Additionally, statements concerning future matters such as gross billing levels, revenue levels, expense levels, and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or the Company’s future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of its business or its industry to be materially different from those expressed or implied by any forward-looking statements. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not undertake any obligation to publicly update these forward-looking statements. As a result, no person should not place undue reliance on these forward-looking statements.

About Wilhelmina International, Inc. (

Wilhelmina, and its other subsidiaries, is an international full-service fashion model and talent management service, specializing in the representation and management of leading models, celebrities, artists, photographers, athletes, and content creators. Established in 1967 by fashion model Wilhelmina Cooper, Wilhelmina is one of the oldest and largest fashion model management companies in the world. Wilhelmina is publicly traded on Nasdaq under the symbol WHLM.  Wilhelmina is headquartered in New York and, since its founding, has grown to include operations in Los Angeles, Miami, London and Chicago. Wilhelmina also owns Aperture, a talent and commercial agency located in New York and Los Angeles. For more information, please visit and follow @WilhelminaModels.

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Wilhelmina International, Inc.