EXHIBIT 99.1

Wilhelmina International, Inc. Reports Results for Second Quarter 2017

Second Quarter Financial Results

  • Revenues for the three months ended June 30, 2017 were $18.3 million, a decrease of 17.9% compared to the same period prior year.
  • Operating income was $73 thousand for the three months ended June 30, 2017, a decrease of 92.5% compared to the same periods of the prior year.
  • Net loss was $52 thousand for the three months ended June 30, 2017, compared to net income of $0.6 million in the same period of 2016.
  • EBITDA decreased 75.6% to $0.3 million for the three months ended June 30, 2017 compared to $1.1 million in the same period of 2016.
  • Pre-Corporate EBITDA decreased by 56.5% to $0.7 million for the three months ended June 30, 2017 as compared to $1.6 million in the same periods of the prior year.
 
(in thousands)
Q2 17

Q2 16
YOY
Change
Q2 17
 YTD
Q2 16
 YTD
YOY
Change
Total Revenues$18,285 $22,269(17.9%)$37,436 $43,686(14.3%)
Operating Income 73  970(92.5%) 174  1,068(83.7%)
Income Before Provision for Taxes 22  1,016(97.8%) 43  1,081(96.0%)
Net (Loss) Income (52) 577(109.0%) (43) 453(109.5%)
EBITDA*   273  1,118(75.6%) 540  1,287(58.0%)
Adjusted EBITDA* 439  1,267(65.4%) 881  2,154(59.1%)
Pre-Corporate EBITDA* 674  1,550(56.5%) 1,462  2,730(46.4%)
*Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

DALLAS, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) ("Wilhelmina" or the "Company") today reported revenues of $18.3 million and net loss of $52 thousand for the three months ended June 30, 2017, as well as revenues of $37.4 million and net loss of $43 thousand for the first half of 2017. The decreases in revenues when compared to the same periods of the prior year were primarily due to a decrease in core model bookings, which was partially offset by an increase in core model bookings in London, the Company’s new office in Chicago, and the Celebrity division. Decreased operating income was primarily the result of decreases in service revenues outpacing reductions in operating expenses. As a result, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA also decreased during the first half of 2017 compared to the same period prior year.

Mark Schwarz, Executive Chairman of Wilhelmina, said, “dramatic shifts impacting retail and advertising markets appear to be changing client’s spending patterns and also influencing our competitors’ behaviors, further contributing to a difficult period.”

William Wackermann, Chief Executive Officer of Wilhelmina, said, “The first half of 2017 has been challenging for many of our retail and fashion clients and, as a result, Wilhelmina saw less than optimal results for the quarter. As the marketplace continues to evolve, We are committed to leadership through our vision of building new digital revenue opportunities in both our core modeling and developmental businesses.”

Financial Results

Net loss for the three and six months ended June 30, 2017 was $52 thousand and $43 thousand, or $0.01 and $0.01 per fully diluted share, compared to net income of $0.6 million and $0.5 million, or $0.10 and $0.08 per fully diluted share, for the three and six months ended June 30, 2016.

Pre-Corporate EBITDA was $0.7 million and $1.5 million for the three and six months ended June 30, 2017, compared to $1.6 million and $2.7 million for the three and six months ended June 30, 2016. 

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, 2017 and 2016.

(in thousands) Three months ended
June 30,

  Six months ended
June 30,

  2017  2016  2017  2016 
Net (loss) income$(52)$577 $(43)$453 
Interest expense 28  -  57  - 
Income tax expense 74  439  86  628 
Amortization and depreciation 223  102  440  206 
EBITDA$273 $1,118 $540 $1,287 
Foreign exchange (gain) loss 14  (3) 36  (7)
(Gain) loss from unconsolidated affiliate 9  (43) 38  (6)
Share-based payment expense 143  81  267  158 
Certain non-recurring items -  114  -  722 
Adjusted EBITDA  $     439 $    1,267 $   881 $  2,154 
Corporate overhead 235  283  581  576 
Pre-Corporate EBITDA  $   674 $  1,550 $  1,462 $  2,730 

Changes in net income, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and six months ended June 30, 2017, when compared to the three and six months ended June 30, 2016, were primarily the result of the following:

  • Revenues net of model costs decreased for the three and six months ended in June 30, 2017 by 15.4% and 14.5% primarily due to a decrease in core model bookings during the first half of 2017;
     
  • Salaries and service costs decreased by 4.6% and 9.2% for the three and six months ended in June 30, 2017 primarily due to severance paid to the Company’s former Chief Executive Officer and another employee in 2016, and changes in personnel to better align the number of employees at each Wilhelmina office with the needs of each geographic region, and more effective management of T&E during the first half of 2017;
     
  • Office and general expenses remained relatively stable for the three months ended in June 30, 2017, despite increased in legal services costs. For the six months ended in June 30, 2017, the office and general expenses decreased by 15.7% primarily due to expenses incurred during the first half of 2016 for executive recruitment and non-income taxes;
     
  • Amortization and depreciation expense increased by 118.6% and 113.6% for the three and six months ended in June 30, 2017, primarily due to the Company’s accounting and reporting software being put in service during the fourth quarter of 2016; and
     
  • Corporate overhead expenses decreased by 17.0% for the three months ended in June 30, 2017, primarily due to lower corporate legal. For the six months ended in June 30, 2017, corporate overhead remained relatively stable despite higher corporate travel costs.
WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
 
  (Unaudited)   
  June 30,
2017
   December 31,
 2016
      
ASSETS     
Current assets:     
  Cash and cash equivalents $3,319   $ 5,688 
  Accounts receivable, net of allowance for doubtful accounts of $1,962 and $1,646, respectively  17,747     16,947 
  Prepaid expenses and other current assets  315     847 
  Total current assets  21,381     23,482 
        
Property and equipment, net of accumulated depreciation of $1,923 and $1,525, respectively  3,286     3,206 
Trademarks and trade names with indefinite lives  8,467     8,467 
Other intangibles with finite lives, net of accumulated amortization of $8,569 and $8,527 respectively  168     210 
Goodwill  13,192     13,192 
Other assets  115     164 
        
TOTAL ASSETS $46,609   $ 48,721 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities:       
  Accounts payable and accrued liabilities $4,349   $ 4,781 
  Due to models  12,632     14,217 
  Contingent consideration to seller - current  -     97 
  Term loan - current  513     502 
  Total current liabilities  17,494     19,597 
        
Long term liabilities:       
  Deferred income tax liability  1,528     1,567 
  Term loan - non-current  1,888     2,147 
  Total long-term liabilities  3,416     3,714 
        
Total liabilities  20,910     23,311 
        
Shareholders’ equity:       
  Preferred stock, $0.01 par value, 10,000,000 shares authorized; none issued  -     - 
  Common stock, $0.01 par value, 12,500,000 shares authorized; 6,472,038 shares issued at       
  June 30, 2017 and December 31, 2016  65     65 
  Treasury stock, 1,090,370 at June 30, 2017 and December 31, 2016, at cost  (4,893)    (4,893)
  Additional paid-in capital  87,603     87,336 
  Accumulated deficit  (57,091)    (57,048)
  Accumulated other comprehensive income  15     (50)
Total shareholders’ equity  25,699     25,410 
        
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $46,609    $  48,721 
        



WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES 
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME 
For the Three and Six Months Ended June 30, 2017 and 2016 
 (In thousands, except per share data) 
(Unaudited) 
  
  Three Months Ended  Six Months Ended 
  June 30,   June 30,  
  2017   2016   2017   2016  
Revenues:            
Revenues $18,285   $22,242   $37,408   $43,632  
License fees and other income  -    27    28    54  
Total revenues  18,285    22,269    37,436    43,686  
                 
Model costs  12,946    15,955    26,645    31,064  
                 
Revenues net of model costs  5,339    6,314    10,791    12,622  
                 
Operating expenses:                
Salaries and service costs  3,528    3,697    7,164    7,886  
Office and general expenses  1,280    1,262    2,432    2,886  
Amortization and depreciation  223    102    440    206  
Corporate overhead  235    283    581    576  
Total operating expenses  5,266    5,344    10,617    11,554  
Operating income  73    970    174    1,068  
                 
Other income (expense):                
Foreign exchange gain (loss)  (14)   3    (36)   7  
  Gain (loss) from unconsolidated affiliate  (9)   43    (38)   6  
  Interest expense  (28)   -    (57)   -  
  Total other income (expense)  (51)   46    (131)   13  
                 
Income before provision for income taxes   22    1,016    43    1,081  
                 
Provision for income taxes: (expense) benefit                
  Current  (65)   (354)   (125)   (367) 
  Deferred  (9)   (85)   39    (261) 
  Income tax (expense)  (74)   (439)   (86)   (628) 
                 
 Net income (loss) $(52)  $577   $(43)  $453  
                 
Other comprehensive income (expense):                
  Foreign currency translation income (expense)  20    (23)   65    (38) 
  Total comprehensive income (loss)  (32)   554    22    415  
                 
Basic net income (loss) per common share $(0.01)  $0.10   $(0.01)  $0.08  
Diluted net income (loss) per common share $(0.01)  $0.10   $(0.01)  $0.08  
                 
Weighted average common shares outstanding-basic  5,382    5,845    5,382    5,844  
Weighted average common shares outstanding-diluted  5,404    5,857    5,404    5,857  
                 

                                                               

 
WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
For the Six Months Ended June 30, 2017 and 2016
(In thousands)
(Unaudited)
 
  Six Months Ended
June 30,
    2017   2016 
Cash flows from operating activities:     
Net income: $(43)  $453 
Adjustments to reconcile net income to net cash used in operating activities:       
  Amortization and depreciation  440    206 
  Share based payment expense  267    159 
  Deferred income taxes  (39)   261 
  Bad debt expense   79    20 
Changes in operating assets and liabilities:       
  Accounts receivable  (879)   (4,178)
  Prepaid expenses and other current assets  532    (179)
  Other assets  49    98 
  Due to models  (1,585)   2,098 
  Accounts payable and accrued liabilities  (432)   816 
  Contingent liability to seller  (97)   - 
Net cash used by operating activities  (1,708)   (246)
        
Cash flows from investing activities:       
  Purchases of property and equipment  (478)   (751)
Net cash used in investing activities  (478)   (751)
        
Cash flows from financing activities:       
  Purchases of treasury stock  -    (45)
  Repayment of term loan  (248)   - 
Net cash used in financing activities  (248)   (45)
        
Foreign currency effect on cash flows:  65    (38)
        
Net change in cash and cash equivalents:  (2,369)   (1,080)
  Cash and cash equivalents, beginning of period  5,688    4,556 
  Cash and cash equivalents, end of period $3,319   $3,476 
        
Supplemental disclosures of cash flow information:       
  Cash paid for interest $57   $- 
  Cash refund of income taxes $69   $34 
        

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 and executive officer compensation, legal, audit and professional fees, corporate office rent and travel.

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, 2017 filed with the Securities and Exchange Commission on August 10, 2017.

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. (www.wilhelmina.com):

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 www.wilhelmina.com and follow @WilhelminaModels.

CONTACT: Investor Relations
Wilhelmina International, Inc.
214-661-7488
ir@wilhelmina.com


The following information was filed by Wilhelmina International, Inc. (WHLM) on Thursday, August 10, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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