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Xcel Brands, Inc. (XELB)

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Neutralpattern detected
Previous Close1.0800
Open1.0800
Bid1.0700 x 3100
Ask1.0900 x 900
Day's Range1.0600 - 1.0900
52 Week Range0.4000 - 1.8600
Volume67,235
Avg. Volume387,612
Market Cap20.962M
Beta (5Y Monthly)2.07
PE Ratio (TTM)N/A
EPS (TTM)-0.4120
Earnings DateNov 12, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est0.85
  • How Should Investors Feel About Xcel Brands' (NASDAQ:XELB) CEO Remuneration?
    Simply Wall St.

    How Should Investors Feel About Xcel Brands' (NASDAQ:XELB) CEO Remuneration?

    This article will reflect on the compensation paid to Robert D'Loren who has served as CEO of Xcel Brands, Inc...

  • Xcel Brands, Inc. Announces Third Quarter 2020 Results
    GlobeNewswire

    Xcel Brands, Inc. Announces Third Quarter 2020 Results

    * Third quarter total revenues of $7.4 million rebounding 46% from the second quarter * Continued expense reduction actions; third quarter operating costs decreased more than $1 million year-over-year and product sale margins improved by 6% * GAAP net loss of $0.5 million, ($0.02) per share * Non-GAAP net income of $0.8 million, $0.04 per share * Adjusted EBITDA of $1.4 million NEW YORK, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company, today announced its financial results for the third quarter ended September 30, 2020.   Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “Despite the continued impact of the COVID-19 pandemic on our top and bottom line results, we are very pleased with our third quarter results and the rapid recovery of our Interactive TV business and improvement in our wholesale businesses.”Third Quarter 2020 Financial ResultsTotal revenue was $7.4 million, a decrease of $3.5 million compared to the prior year period, driven by lower product sales and lower licensing revenues of $2.3 million and $1.2 million, respectively. Our revenues primarily reflect lower sales by our licensees and retail partners as a result of an overall slowdown in economic activity related to the ongoing the COVID-19 pandemic. Despite the decrease in revenues and gross profit on an absolute dollar basis, overall gross profit margins increased from 73% in the prior year quarter to 83% in the current quarter.GAAP net loss was approximately $0.5 million, or ($0.02) per diluted share, compared with a GAAP net loss of $0.1 million, or ($0.01) per diluted share, for the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the quarters ended September 30, 2020 and September 30, 2019, was approximately $0.8 million, or $0.04 per diluted share and approximately $1.2 million, or $0.06 per diluted share, respectively. Adjusted EBITDA was approximately $1.4 million and $1.8 million for the current quarter and the prior year quarter, respectively.      Nine Month 2020 Financial ResultsTotal revenue was $22.0 million, a decrease of $8.4 million, driven by lower licensing revenues and lower product sales of $5.7 million and $2.7 million, respectively. Gross profit decreased by $5.8 million to $18.0 million from $23.8 million in the prior year nine months, but gross profit margins increased year-over-year. As with the quarter’s results, the decrease in our revenues was primarily caused by the COVID-19 pandemic, which included government ordered stay-at-home policies and retail store closures during the second quarter, as well as the continued overall slowdown in economic activity related to the pandemic.GAAP net loss was approximately $2.6 million, or ($0.13) per diluted share, compared with GAAP net income of $1.9 million, or $0.10 per diluted share, for the prior year nine months. The prior year nine month’s GAAP net income notably included a $2.9 million gain on the reduction of contingent obligations. After adjusting for certain cash and non-cash items, non-GAAP net income for the nine months ended September 30, 2020 and September 30, 2019, was approximately $2.1 million, or $0.11 per diluted share, and approximately $3.8 million, or $0.20 per diluted share, respectively. Adjusted EBITDA was approximately $3.9 million and $5.6 million for the current nine months and the prior year nine months, respectively.       See reconciliation tables below for non-GAAP metrics. These non-GAAP metrics may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to U.S. generally accepted accounting principles. Any financial measure other than those prepared in accordance with GAAP should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.The Company's balance sheet at September 30, 2020 remained strong, with stockholders' equity of approximately $97 million, cash and cash equivalents of approximately $4.8 million, and working capital, exclusive of the current portion of lease obligations, of approximately $8.7 million.Conference Call and WebcastThe Company will host a conference call with members of the executive management team to discuss these results with additional comments and details at 5:00 p.m. Eastern Time on Thursday, November 12, 2020. A webcast of the conference call will be available live on the Investor Relations section of Xcel's website at www.xcelbrands.com. Interested parties unable to access the conference call via the webcast may dial 1-877-300-8521. A replay of the conference call will be available on the Company website for 30 days following the event and can be accessed at 844-512-2921 using replay pin number 10149912.About Xcel BrandsXcel Brands, Inc. (NASDAQ:XELB) is a media and consumer products company engaged in the design, production, marketing, wholesale, and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded by Robert W. D’Loren in 2011 with a vision to reimagine shopping, entertainment, and social as one. Xcel owns the Isaac Mizrahi, Judith Ripka, Halston, and C. Wonder brands, and it owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through interactive television, brick-and-mortar retail, e-commerce and peer to peer channels. Headquartered in New York City, Xcel Brands is led by an executive team with significant production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. With an experienced team of professionals focused on design, production, and digital marketing, Xcel maintains control of product quality and promotion across all of its product categories and distribution channels. Xcel differentiates by design. www.xcelbrands.comForward Looking StatementsThis press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "ongoing," "could," "estimates," "expects," "intends," "may," "appears," "suggests," "future," "likely," "goal," "plans," "potential," "projects," "predicts," "seeks," "should," "would," "guidance," "confident" or "will" or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the "Risk Factors" section and elsewhere in the Company's Annual Report on form 10-K for the year ended December 31, 2019 and its other filings with the SEC, which may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.For further information please contact:Andrew Berger SM Berger & Company, Inc. 216-464-6400 andrew@smberger.com Xcel Brands, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (in thousands, except share and per share data)           September 30, 2020 December 31, 2019   (Unaudited)   Assets       Current Assets:       Cash and cash equivalents $4,783  $4,641  Accounts receivable, net  8,188   10,622  Inventory  723   899  Prepaid expenses and other current assets  1,426   1,404  Total current assets  15,120   17,566  Property and equipment, net  3,604   3,666  Operating lease right-of-use assets  9,019   9,250  Trademarks and other intangibles, net  107,675   111,095  Restricted cash  1,109   1,109  Other assets  297   505  Total non-current assets  121,704   125,625  Total Assets $136,824  $143,191          Liabilities and Equity       Current Liabilities:       Accounts payable, accrued expenses and other current liabilities $2,908  $4,391  Accrued payroll  618   1,444  Current portion of operating lease obligation  1,917   1,752  Current portion of long-term debt  2,850   2,250  Total current liabilities  8,293   9,837  Long-Term Liabilities:       Long-term portion of operating lease obligation  9,101   9,773  Long-term debt, less current portion  14,523   16,571  Contingent obligation  900   900  Deferred tax liabilities, net  7,165   7,434  Other long-term liabilities  224   224  Total long-term liabilities  31,913   34,902  Total Liabilities  40,206   44,739          Commitments and Contingencies               Equity:       Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding  -   -  Common stock, $.001 par value, 50,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively, and 19,231,040 and 18,866,417 issued and outstanding at September 30, 2020 and December 31, 2019, respectively  19   19  Paid-in capital  102,236   101,736  Accumulated deficit  (6,198)  (3,659) Total Xcel Brands, Inc. stockholders' equity  96,057   98,096  Noncontrolling interest  561   356  Total Equity  96,618   98,452          Total Liabilities and Equity $136,824  $143,191          Xcel Brands, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Operations (in thousands, except share and per share data)                 For the Three Months Ended For the Nine Months Ended   September 30, September 30,   2020 2019 2020 2019 Revenues             Net licensing revenue $5,236  $6,428  $15,378  $21,094 Net sales  2,155   4,504   6,590   9,277 Net revenue  7,391   10,932   21,968   30,371 Cost of goods sold (sales)  1,270   2,950   3,923   6,549 Gross profit  6,121   7,982   18,045   23,822               Operating costs and expenses             Salaries, benefits and employment taxes  2,968   4,045   9,798   12,038 Other design and marketing costs  706   797   2,336   2,352 Other selling, general and administrative expenses  1,642   1,356   5,027   4,014 Costs in connection with potential acquisition  (189)  126   (210)  231 Stock-based compensation  49   295   780   777 Depreciation and amortization  1,437   991   4,069   2,939 Government assistance - Paycheck Protection Program  (176)  -   (1,816)  - Property and equipment impairment  31   -   113   - Total operating costs and expenses  6,468   7,610   20,097   22,351               Other Income  46      46   2,850               Operating (loss) income  (301)  372   (2,006)  4,321               Interest and finance expense             Interest expense and other finance charges  304   330   897   968 Loss on extinguishment of debt  0   0   0   189 Total interest and finance expense  304   330   897   1,157               (Loss) income before income taxes  (605)  42   (2,903)  3,164               Income tax ( benefit) provision  (145)  137   (269)  1,280               Net (loss) income  (460)  (95)  (2,634)  1,884 Less: Net loss attributable to noncontrolling interest  (26)  -   (95)  - Net (loss) income attributable to Xcel Brands, Inc. stockholders $(434) $(95) $(2,539) $1,884               (Loss) earnings per share attributed to Xcel Brands, Inc. common stockholders:           Basic net (loss) income per share: $(0.02) $(0.01) $(0.13) $0.10 Diluted net (loss) income per share: $(0.02) $(0.01) $(0.13) $0.10               Weighted average number of common shares outstanding:             Basic weighted average common shares outstanding  19,231,040   18,975,265   19,078,453   18,839,424 Diluted weighted average common shares outstanding  19,231,040   18,975,265   19,078,453   18,840,149               Xcel Brands, Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)            For the Nine Months Ended    September 30,   2020 2019       Cash flows from operating activities       Net (loss) income $(2,634) $1,884  Adjustments to reconcile net (loss) income to net cash provided by operating activities:       Depreciation and amortization expense  4,069   2,939  Property and equipment impairment  113   -  Amortization of deferred finance costs  72   114  Stock-based compensation  780   777  Amortization of note discount  -   16  Allowance for doubtful accounts  1,054   (144) Loss on extinguishment of debt  -   189  Deferred income tax (benefit) provision  (269)  1,280  Net Gain on sale of assets  (46)  -  Gain on reduction of contingent obligation  -   (2,850) Changes in operating assets and liabilities:       Accounts receivable  1,380   1,182  Inventory  176   (87) Prepaid expenses and other assets  187   (14) Accounts payable, accrued expenses and other current liabilities  (2,403)  (1,744) Cash paid in excess of rent expense  (276)  (337) Other liabilities  -   (196) Net cash provided by operating activities  2,203   3,009          Cash flows from investing activities       Cash consideration for asset acquisition of the Halston Heritage assets  -   (8,830) Net proceeds from sale of assets  46     Purchase of property and equipment  (700)  (918) Net cash used in investing activities  (654)  (9,748)         Cash flows from financing activities       Shares repurchased including vested restricted stock in exchange for witholdong taxes  (187)  (24) Cash contribution from non-controling interest  300   -  Payment of deferred finance costs  (20)  (315) Proceeds from long-term debt  -   7,500  Payment of long-term debt  (1,500)  (3,742) Net cash (used in) provided by financing activities  (1,407)  3,419          Net increase (decrease) in cash, cash equivalents, and restricted cash  142   (3,320)         Cash, cash equivalents, and restricted cash at beginning of period  5,750   10,319          Cash, cash equivalents, and restricted cash at end of period $5,892  $6,999          Reconciliation to amounts on consolidated balance sheets:       Cash and cash equivalents  4,783  $5,890  Restricted cash  1,109   1,109  Total cash, cash equivalents, and restricted cash $5,892  $6,999          Supplemental disclosure of non-cash activities:       Operating lease right-of-use asset $797  $10,409  Operating lease obligation $797  $13,210  Accrued rent offset to operating lease right-of-use assets $-  $2,801  Settlement of seller note through offset to receivable $-  $600  Settlement of contingent obligation through offset to note receivable $-  $100  Issuance of common stock in connection with Halston Heritage assets acquisition $-  $1,058  Contingent obligation related to acquisition of Halston Heritage assets at fair value $-  $900  Liability for equity-based bonuses $93  $168          Supplemental disclosure of cash flow information:       Cash paid during the period for income taxes $58  $91  Cash paid during the period for interest $1,092  $1,108                        ($ in thousands)Three Months Ended Nine Months Ended  September 30, September 30, September 30, September 30,  2020 2019 2020 2019  (Unaudited) (Unaudited) (Unaudited) (Unaudited)  Net (loss) income attributed to Xcel Brands, Inc. stockholders$(434) $(95) $(2,539) $1,884   Amortization of trademarks 1,107   786   3,323   2,309   Non-cash interest and finance expense -   -   -   16   Stock-based compensation 49   295   780   777   Loss on extinguishment of debt -   -   -   189   Costs in connection with potential acquisition (189)  126   (210)  231   Certain adjustments to allowance for doubtful accounts 385   -   971   -   Property and equipment impairment 31   -   113   -   Gain on sale of assets (46)  -   (46)  -   Gain on reduction of contingent obligation -   -   -   (2,850)  Deferred income tax provision (benefit) (145)  137   (269)  1,280   Non-GAAP net income$758  $1,249  $2,123  $3,836                  Three Months Ended Nine Months Ended  September 30, September 30, September 30, September 30,  2020 2019 2020 2019  (Unaudited) (Unaudited) (Unaudited) (Unaudited)  Diluted (loss) earnings per share$(0.02) $(0.01) $(0.13) $0.10   Amortization of trademarks 0.06   0.04   0.17   0.12   Non-cash interest and finance expense -   -   -   -   Stock-based compensation -   0.01   0.04   0.04   Loss on extinguishment of debt -   -   -   0.01   Costs in connection with potential acquisition (0.01)  0.01   (0.01)  0.01   Certain adjustments to allowance for doubtful accounts 0.02   -   0.05   -   Property and equipment impairment -   -   0.01   -   Gain on sale of assets -   -   -   -   Gain on reduction of contingent obligation -   -   -   (0.15)  Deferred income tax provision (benefit) (0.01)  0.01   (0.02)  0.07   Non-GAAP diluted EPS$0.04  $0.06  $0.11  $0.20   Non-GAAP weighted average diluted shares 19,291,275   19,559,816   19,092,828   18,840,149                 ($ in thousands)Three Months Ended Nine Months Ended  September 30, September 30, September 30, September 30,  2020 2019 2020 2019  (Unaudited) (Unaudited) (Unaudited) (Unaudited)  Net (loss) income attributed to Xcel Brands, Inc. stockholders$(434) $(95) $(2,539) $1,884   Depreciation and amortization 1,437   991   4,069   2,939   Interest and finance expense 304   330   897   1,157   Income tax provision (benefit) (145)  137   (269)  1,280   State and local franchise taxes 41   38   124   159   Stock-based compensation 49   295   780   777   Costs in connection with potential acquisition (189)  126   (210)  231   Certain adjustments to allowance for doubtful accounts 385   -   971   -   Property and equipment impairment 31   -   113   -   Gain on sale of assets (46)  -   (46)  -   Gain on reduction of contingent obligation -   -   -   (2,850)  Adjusted EBITDA$1,433  $1,822  $3,890  $5,577                 Non-GAAP net income and non-GAAP diluted EPS are non-GAAP unaudited terms. We define non-GAAP net income as net income (loss), exclusive of amortization of trademarks, stock-based compensation, non-cash interest and finance expense from discounted debt related to acquired assets, loss on extinguishment of debt, costs in connection with potential acquisitions, certain adjustments to allowances for doubtful accounts, asset impairments, gain on sale of assets, gain on reduction of contingent obligations, and deferred income taxes. Non-GAAP net income and non-GAAP diluted EPS measures do not include the tax effect of the aforementioned adjusting items, due to the nature of these items and the Company’s tax strategy.Adjusted EBITDA is a non-GAAP unaudited measure, which we define as net income (loss) before depreciation and amortization, interest and finance expense (including loss on extinguishment of debt, if any), income taxes, other state and local franchise taxes, stock-based compensation, costs in connection with potential acquisitions, certain adjustments to allowances for doubtful accounts, asset impairments, gain on sale of assets, and gain on the reduction of contingent obligations.Both non-GAAP net income and Adjusted EBITDA for the current quarter and current nine months include certain adjustments related to allowances for doubtful accounts for account debtors that have filed for bankruptcy protection triggered by the impact of COVID-19. In addition, included in net income was $1.8 million of government assistance received through the Paycheck Protection Program under the CARES Act, which was recognized as a reduction to current quarter and current nine months expenses for which the program was intended to compensate, in the amount of $0.2 million and $1.8 million, respectively. The expense reduction from the PPP is not considered a reconciling item for purposes of the computation of non-GAAP net income and Adjusted EBITDA due to the fact that the PPP represents a cash benefit and is directly related to the Company’s operating expenses incurred. Such treatment is also consistent with the calculation of EBITDA for financial covenant compliance purposes under the Company’s term debt.Management uses non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends relating to our results of operations. Management believes non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA are also useful because these measures adjust for certain costs and other events that management believes are not representative of our core business operating results, and thus these non-GAAP measures provide supplemental information to assist investors in evaluating our financial results. The Company has incurred certain costs which it could have eliminated but elected not to do so in light of government assistance received through the Paycheck Protection Program under the CARES Act (the “PPP Benefit”), which represents a cash benefit directly related to the Company’s operating expenses incurred. Accordingly, the PPP Benefit is not considered a reconciling item for purposes of the computation of non-GAAP net income and Adjusted EBITDA. Adjusted EBITDA is the measure used to calculate compliance with the EBITDA covenant under the Xcel Term Loan. Non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA should not be considered in isolation or as alternatives to net income, earnings per share, or any other measure of financial performance calculated and presented in accordance with GAAP. Given that non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA are financial measures not deemed to be in accordance with GAAP and are susceptible to varying calculations, our non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate these measures in a different manner than we do. In evaluating non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA, you should be aware that in the future we may or may not incur expenses similar to some of the adjustments in this document. Our presentation of non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA does not imply that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA alongside other financial performance measures, including our net income and other GAAP results, and not rely on any single financial measure.

  • ACCESSWIRE

    XCel Brands, Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / November 12, 2020 / XCel Brands, Inc.