DALLAS, May 15, 2012 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (OTCQX:WHLM) (the "Company") today reported total revenues of $13.5 million for the quarter ended March 31, 2012, compared to $13.9 million for the quarter ended March 31, 2011.
The net income applicable to common stockholders was $210,000 or $0.00 per fully diluted share for the quarter ended March 31, 2012, compared to a net income of $637,000 or $0.00 per fully diluted share for the quarter ended March 31, 2011.
The net income for the quarter ended March 31, 2012 includes before tax charges of $396,000 for amortization of intangible assets and depreciation and $408,000 for corporate overhead. The net income for the quarter ended March 31, 2011 includes before tax charges of $447,000 for amortization of intangible assets and depreciation and $272,000 for corporate overhead.
Gross billings for the three months ended March 31, 2012 increased approximately $1,081,000, or 7.6%, to approximately $15,320,000, compared to approximately $14,239,000 for the three months ended March 31, 2011. During the three months ended March 31, 2012, the Wilhelmina Companies experienced a decrease in gross billings across the core modeling business of approximately 1% and an increase in gross billings in the WAM business of approximately 130% compared to gross billings generated by the respective divisions during the three months ended March 31, 2011. Gross billings of the WAM division represented approximately 15% of total gross billings for the three months ended March 31, 2012, compared to approximately 7% for the three months ended March 31, 2011. During the three months ended March 31, 2012, gross billings of the various boards of the core modeling business experienced positive growth ranging from 3% to 79%, and certain boards experienced negative growth ranging from -9% to -37%, compared to the three months ended March 31, 2011. Beginning in November 2011, monthly revenues from the core modeling business have been down slightly on a year over year basis. The Company continues to focus on cutting costs, recruiting top agents when available and scouting and developing new talent.
During April 2012, the Company reached an agreement with a former talent with respect to the modification of payment direction terms under existing endorsement agreements negotiated by the Company between such talent, certain customers and, in some cases, the Company. In connection with such modifications (which did not change amounts to which the Company is entitled in respect of such agreements), the Company and former talent also executed mutual releases relating to the parties' former representation arrangements. In connection with the foregoing endorsement contracts, the Company was carrying deferred revenues as of March 31, 2012 of approximately $716,000, all of which will be recognized in the quarter ended June 30, 2012 as a result of the April 2012 agreement.
In a further effort to provide investors with additional information regarding the Company's results of operations, the Company is disclosing Adjusted EBITDA, which is computed as operating income before depreciation and amortization and corporate overhead at the holding company level. Adjusted EBITDA is a non-GAAP financial measure, defined as a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles ("GAAP") in a company's statements of operations, balance sheets or statements of cash flows. Pursuant to the requirements of Regulation G, the Company provides a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
Although Adjusted EBITDA represents a non-GAAP financial measure, the Company considers Adjusted EBITDA to be a key operating metric of the Company's business, and uses Adjusted EBITDA in its planning and budgeting processes and to monitor and evaluate its financial and operating results. The Company believes that Adjusted EBITDA is useful to investors because it provides an analysis of financial and operating results using the same measure that the Company uses in evaluating itself. The Company believes that Adjusted EBITDA also provides stockholders and potential investors with a means to evaluate the Company's financial and operating results against other companies within the Company's industry. However, the Company's calculation of Adjusted EBITDA may not be consistent with the calculation of this measure by other companies in the Company's industry.
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to 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 GAAP.
The following table reconciles operating income under GAAP (in thousands) (as reported in the Company's SEC filings) to Adjusted EBITDA for the quarter ended March 31, 2012 and 2011.
| Three months ended | ||
| March 31, | ||
| 2012 | 2011 | |
| Operating Income | $ 333 | $ 754 |
| Add: Corporate overhead | 408 | 272 |
| Add: Amortization of intangible assets and depreciation | 396 | 447 |
| Adjusted EBITDA | $ 1,137 | $ 1,473 |
Adjusted EBITDA for the quarter ended March 31, 2012 decreased approximately $336,000, or 22.8%, as a result of a slight decrease in gross billing for the core modeling business and an increase in compensation costs in connection with employment contracts for certain former employees.
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 quarter ended March 31, 2012 which was filed May 15, 2012 with the Securities and Exchange Commission.
Forward-Looking Statements
This report contains certain "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and information relating to the Company and its subsidiaries that are based on the beliefs of the Company's management as well as assumptions made by and 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 its subsidiaries or Company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, the interest rate environment, governmental regulation and supervision, seasonality, changes in industry practices, one-time events and other factors described herein and in other filings made by the Company with the SEC. Based upon changing conditions, 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 intend to update these forward-looking statements.
About Wilhelmina International, Inc. and Wilhelmina Artist Management (www.wilhelmina.com/">www.wilhelmina.com):
Through Wilhelmina Models and its other subsidiaries including Wilhelmina Artist Management, Wilhelmina International, Inc. provides traditional, full-service fashion model and talent management services, specializing in the representation and management of leading models, entertainers, artists, athletes and other talent to various customers and clients including retailers, designers, advertising agencies and catalog companies. Wilhelmina Models was founded in 1967 by Wilhelmina Cooper, a renowned fashion model, and is one of the oldest and largest fashion model management companies in the world. Wilhelmina Models is headquartered in New York and, since its founding, has grown to include operations located in Los Angeles and Miami, as well as a growing network of licensees comprising leading modeling agencies in various local markets across the U.S.as well as in Panama and Thailand.
Website: http://www.wilhelmina.com