Xcel Brands, Inc. Announces Second Quarter and First Half 2019 Results • Six Month Net Revenues of $19.4 Million, up 13% from the Prior Year Period • Six Month GAAP Net Income of $2.0 million, Diluted EPS of $0.11 • Six Month Non-GAAP Diluted EPS of $0.13, Adjusted EBITDA $3.7 million NEW YORK, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company, today announced its financial results for the second quarter ended June 30, 2019. Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “We are pleased with our second-quarter top-line revenue growth, the improvements we are making in our products and the benefits we are experiencing from our integrated technology platform. Our first half results are as expected, and we believe we will continue to experience revenue growth and improved operating results for the second half of 2019 despite recent challenges raised by the current tariff situation. In addition, our strong balance sheet provides Xcel with significant flexibility to navigate complex industry dynamics, while pursuing opportunities to expand our scale.” Second Quarter 2019 Financial Results Net revenue increased to $9.1 million, a net increase of approximately $0.6 million, or 8% over the prior year quarter, primarily driven by sales from the apparel and jewelry wholesale and e-commerce operations. Gross profit decreased $0.9 million to $7.4 million from $8.3 million in the prior year quarter, primarily attributable to lower net licensing revenue. GAAP net income was approximately $1.9 million, or $0.10, per diluted share, compared with a GAAP net loss of $(0.1) million, or $(0.01) per share, for the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the current quarter and prior year quarter was approximately $1.0 million or $0.05 per diluted share, and approximately $1.7 million or $0.09 per diluted share, respectively. Adjusted EBITDA was approximately $1.6 million, compared with approximately $2.2 million in the prior year quarter. 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 ("GAAP"). 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 June 30, 2019 remained strong, with stockholders' equity of approximately $103 million, cash and cash equivalents of approximately $6.3 million, and working capital, exclusive of current portion of operating lease liability, of approximately $9 million. In addition, during the current quarter, the Company recognized a $2.9 million gain on the reduction of contingent obligations related to the C Wonder asset acquisition and reduced contingent obligations on the balance sheet accordingly. First Six Months of Fiscal 2019 Financial Results Net revenue increased to $19.4 million, a net increase of approximately $2.1 million, or 13% over the prior year six month period, primarily driven by sales from the apparel and jewelry wholesale and e-commerce operations. Gross profit decreased $1.0 million to $15.8 million from $16.8 million in the prior year six months, primarily attributable to lower net licensing revenue. GAAP net income was approximately $2.0 million for the six months ended June 30, 2019, or $0.11 per diluted share, an increase of $1.6 million, or $0.09 per diluted share from the prior year six months, representing an increase of more than 400% in GAAP net income and EPS from the prior year period. After adjusting for certain cash and non-cash items, non-GAAP net income for the six months ended June 30, 2019 was approximately $2.5 million, or $0.13 per diluted share, compared with $3.4 million, or $0.18 per diluted share in the prior year six months. Adjusted EBITDA for the six months ended June 30, 2019 was approximately $3.7 million, a decrease of $0.7 million from the prior year period. 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 ("GAAP"). 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. Conference Call and Webcast The following conference call information has been updated since the August 2, 2019 release announcing Xcel’s reporting date. The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details at 9:00 a.m. Eastern Time on Thursday, August 8, 2019. 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 10134176.


The following information was filed by Xcel Brands, Inc. (XELB) on Monday, August 12, 2019 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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