Xcel Brands Q2 2017 financial results: Net Revenues of $8.4 Million

  • Company Expanding its Presence in Dillard’s
  • Second Quarter Net Revenues of $8.4 Million
  • Second Quarter GAAP Net Income of $0.2 Million
  • Second Quarter Non-GAAP Net Income of $1.5 Million; Adjusted EBITDA of $2.3 Million

NEW YORK, 2017-Aug-10 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a media and brand management company, today (Aug. 09, 2017) announced its financial results for the second quarter and six months ended June 30, 2017.

Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel commented, “We are focused on providing solutions to help retailers navigate the complex transformation underway within our industry.  I am pleased by the continued growth in our department store business as our retail partners work with us to implement these solutions.  After the successful launch of our H Halston brand at Dillard’s this March, I am excited that we will be expanding our relationship with Dillard’s by launching our IMNYC Isaac Mizrahi brand this September.”

Mr. D’Loren continued, “The performance of our interactive television business remains strong.  The trends within our interactive business are improving with increased productivity per minute, and higher show achievement rates in our apparel businesses.  Xcel is well positioned to capitalize on the ongoing transformation that is impacting many of our markets as a result of the unique platform we have created and I am encouraged by the direction we are headed.”

Second Quarter 2017 Financial Results
Total net revenues for the second quarter of 2017 were $8.4 million, down approximately 8% from $9.1 million in the prior year quarter. This was primarily attributable to lower revenue associated with the C Wonder brand which is transitioning away from QVC and from the exiting of the LCNY license agreement in July 2016, both previously reported.  These were partially offset by higher revenues from our wholesale and department store businesses as we increase the number of stores our brands are sold in and expand our short-lead production platform in our department store business into more product categories.

GAAP net income was $0.2 million for the quarter ended June 30, 2017, or $0.01 per share, compared with a net loss of approximately ($0.1) million, or ($0.00) per share on a diluted basis, in the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the quarter ended June 30, 2017 was $1.5 million, or $0.08 per diluted share, compared with $1.9 million, or $0.10 per diluted share in the prior year quarter.

Adjusted EBITDA for the quarter ended June 30, 2017 decreased approximately $0.4 million to $2.3 million, compared with $2.7 million for the same quarter in the prior year.

The Company achieved significant growth in Non-GAAP net income and Adjusted EBITDA for the past two consecutive quarters, as the Company’s strategy of focusing on its own brands and the growth of the short lead production platform continues to improve results.

First Six Months of Fiscal 2017 Financial Results

Total net revenues for the six months ended June 30, 2017 were $16.8 million, down approximately 4% from $17.5 million in the same period in 2016. The decrease was attributable primarily to lower revenues associated with the management and design of the LCNY brand, partially offset by the previously mentioned higher revenues from our wholesale and department store businesses.

GAAP net loss was approximately ($0.2) million for the six months ended June 30, 2017, or ($0.01) per share, compared with net loss of ($0.1) million, or ($0.01) per share on a diluted basis, for the six months ended June 30, 2016. After adjusting for certain cash and non-cash items, non-GAAP net income for the six months ended June 30, 2017 was $2.7 million, or $0.14 per diluted share, compared with $3.1 million, or $0.16 per diluted share, for the same period in the prior year.

Adjusted EBITDA for the six months ended June 30, 2017 decreased approximately $0.5 million to $4.2 million, compared with $4.7 million for the same period in the prior year.

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, 2017 remained strong, with stockholders’ equity of $107.0 million, cash and cash equivalents of $7.6 million, and working capital of approximately $10.8 million.  During the current six months, the Company reduced its senior term debt by $5.3 million to $20 million, with a remaining $0.5 million principal payment due over the balance of 2017.

Conference Call and Webcast

The 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 Wednesday, August 9, 2017. 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 888-857-6931. 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 8379955.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a media and brand management company engaged in the design, production, licensing, marketing, 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through interactive television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

Forward Looking Statements
This 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, 2016 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.

Non-GAAP net income and non-GAAP diluted EPS are non-GAAP unaudited terms. We define non-GAAP net income as net income, exclusive of stock-based compensation, non-cash interest expense from discounted debt related to acquired assets, gain on the reduction of contingent obligations, loss on extinguishment of debt, non-recurring facility exit charges, certain discrete tax items related to vesting or exercise of stock-based awards, and net income or loss from discontinued operations. 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 before stock-based compensation, interest and other financing costs, loss on extinguishment of debt, gain on the reduction of contingent obligations, income taxes, other state and local franchise taxes, depreciation and amortization, non-recurring facility exit charges, and net income or loss from discontinued operations.

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 they provide supplemental information to assist investors in evaluating our financial results. 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 non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA in a different manner than we calculate these measures. 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.

For further information please contact:
Andrew Berger
SM Berger & Company, Inc.
216-464-6400
andrew@smberger.com

Source: Xcel Brands, Inc.

Xcel Brands announces strong performance in 1Q 2017

  • Company Reports First Quarter Net Revenues of $8.4 Million
  • First Quarter GAAP Pre-Tax Income of $0.1 Million; GAAP Net Loss of $0.4 Million
  • First Quarter Non-GAAP Net Income of $1.1 Million; Adjusted EBITDA of $1.9 Million
  • Company Announces Successful Launch of H Halston brand at Dillard’s

NEW YORK, 2017-May-12 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a media and brand management company, today (May 09, 2017) announced its financial results for the first quarter ended March 31, 2017.

“We are pleased by the strong performance of our interactive television business during the first quarter of 2017,” said Robert W. D’Loren, Xcel’s Chairman and Chief Executive Officer. He further stated, “We continue to refine our short lead production platform in our department store business and are excited to announce the successful launch of our H Halston brand at Dillard’s.”

First Quarter 2017 Financial Results
Total net revenues for the first quarter of fiscal 2017 were $8.4 million, up approximately 1% compared with the prior year quarter. This was attributable to higher revenues from interactive television and Quick-Time-Response department store initiatives, largely offset by the expiration of the LCNY agreement in July 2016.

GAAP net loss was $(0.4) million for the quarter ended March 31, 2017, or $(0.02) per share, compared with a net loss of less than ($0.1) million, or ($0.00) per share, in the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the quarter ended March 31, 2017 was $1.1 million, or $0.06 per diluted share, compared with $1.2 million, or $0.07 per diluted share in the prior year quarter.

Adjusted EBITDA for the quarter ended March 31, 2017 decreased approximately $0.1 million to $1.9 million, compared with $2.0 million for the quarter ended March 31, 2016.

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 March 31, 2017 remains strong, with stockholders’ equity of $106.1 million, cash and cash equivalents of $10.2 million, and working capital of approximately $10.5 million.

Conference Call and Webcast
The 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 Tuesday, May 9, 2017. 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 800-231-9012. 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 4482351.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a media and brand management company engaged in the design, production, licensing, marketing, 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through interactive television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

Forward Looking Statements
This 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, 2016 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:
Jeff Sonnek/John Mills
ICR
646-277-1263
Jeff.Sonnek@icrinc.com / John.Mills@icrinc.com

Source: Xcel Brands, Inc./globenewswire

Xcel Brands management team to present at the Bank of America Merrill Lynch 2017 Consumer and Retail Technology Conference

NEW YORK, 2017-Mar-06 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a brand management and media company, today (March 02, 2017) announced Robert W. D’Loren, Chairman and Chief Executive Officer, and Seth Burroughs, Executive Vice President of Business Development and Treasury, will present at the Bank of America Merrill Lynch 2017 Consumer and Retail Technology Conference.

The presentation will be on Wednesday, March 15, 2017 at 1:50 PM ET and can be accessed live over the Internet hosted at the “Investor Relations” section of the Company’s website at www.xcelbrands.com and will be archived online.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a brand management and media company engaged in the design, production, licensing, marketing, 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

For further information please contact:

Hunter Wells / John Mills
ICR
646-277-1246
Hunter.wells@icrinc.com / John.mills@icrinc.com

Source:  Xcel Brands, Inc./globenewswire

Xcel Brands to present at the 2017 ICR Conference on January 10th in Orlando, Fl

NEW YORK, 2017-Jan-04 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a brand management and media company, today ( Jan. 03, 2017) announced Robert W. D’Loren, Chairman and Chief Executive Officer, and Seth Burroughs, Executive Vice President of Business Development and Treasury, will present at the 2017 ICR Conference.

The presentation will be on Tuesday, January 10, 2017 at 12:00 PM ET and can be accessed live over the Internet hosted at the “Investor Relations” section of the Company’s website at www.xcelbrands.com and will be archived online.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a brand management and media company engaged in the design, production, licensing, marketing, 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

For further information please contact:

Hunter Wells / John Mills
ICR
646-277-1246
Hunter.wells@icrinc.com / John.mills@icrinc.com

Source: Xcel Brands, Inc./globenewswire

Xcel Brands, Inc. announces the appointment of Christina Caruso as Creative Director for the Judith Ripka brands

NEW YORK, 2016-Dec-08 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) is pleased to announce Christina Caruso as Creative Director for the Judith Ripka brands.

With 15 years of experience in fashion accessory and jewelry design, Caruso joins the team to collaborate with Chief Designer, Judith Ripka on all Judith Ripka labels and further extensions of the brand. Additionally, Caruso will appear frequently on QVC as a presenter of the brand’s exclusive collection for the television network. Ripka and Caruso will work together to evolve the brand’s designs while continuing to reflect the latest trends and tastes of modern women.

Robert W. D’Loren, Xcel’s Chairman and Chief Executive Officer stated, “Christina will be a huge asset for both our QVC business and the future brand projects. Her natural design sensibility and taste level echoes what Judith has created over her 38-year history in jewelry design. I am confident Christina will excite those loyal to the brand while attracting new customers through her extensive knowledge and experience in jewelry and accessory design.”

Judith Ripka, Chief Designer of Judith Ripka products, commented, “Christina’s entrepreneurial background resonated with me and the way in which I started my business. Her past work and her passion for jewelry design made her the perfect fit for this position. I’m so thrilled that Christina is joining the team and I’m truly excited to see the future of the brand with her creative direction.”

Newly appointed Creative Director, Christina Caruso commented, “Judith Ripka has inspired me as an entrepreneur from very early in my career. She is a legend in jewelry design, whose work I have admired for so long. To work alongside her and the amazing Judith Ripka team is such an honor.”

Xcel Brands, Inc. (NASDAQ:XELB) is a brand management and media company engaged in the design, production, licensing, marketing 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder and Highline Collective brands, pioneering an omnichannel sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

Judith Ripka started her acclaimed career in 1977 and since its inception her global brand has become known for its impeccable quality and distinctive and refined designs. Both the 18k Gold collection and a Sterling Silver collection are in fine jewelry stores worldwide.  Ms. Ripka was a pioneer in interactive TV, debuting a collection on QVC in 1996 and more recently on The Shopping Channel in 2014.  Ms. Ripka serves as the Chief Designer for Judith Ripka brands, overseeing design and design direction. Among her many milestones, Ms. Ripka was chosen as one of “The Leading Women Entrepreneurs of the World” and received the DeBeer’s Award for Outstanding Jewelry Design.

Christina Caruso is the Creative Director and QVC on air guest for Judith Ripka. With 15 years of experience in fashion accessories and jewelry design, she has collaborated with Judith Ripka on invigorating the brand with the latest trends suited for a modern woman. Previously, Christina consulted as Design Director for major brands including Isaac Mizrahi Collection and Banana Republic’s jewelry and sunglasses division. Christina’s passion for the industry motivated her to teach Accessories Design to students at two renowned fashion universities in New York City: Fashion Institute of Technology and Parsons School of Design. She gained additional acclaim as a TV personality while she was an accessory design contestant on Lifetime’s Project Accessory in 2011. Christina embodies Judith Ripka’s entrepreneurial background and love for jewelry design, having founded her own namesake fashion jewelry and accessory line which was featured on Sarah Jessica Parker in Sex and the City.

Contact:

Quin Acciani
Senior Manager
Lividini & Co
646-433-2067
quin@lividini.com

Stephanie Taylor
PR Associate
Xcel Brands, Inc.
347-727-2483
staylor@xcelbrands.com

Source: Xcel Brands, Inc./globenewswire

Xcel Brands announces third quarter 2016 revenue growth of 14% vs same period previous year

  • Company Reports Double-Digit Quarterly Revenue Growth of 14% to $8.3 million;
    Year-to-Date Revenue Growth of 28% to $25.8 million
  • Third Quarter 2016 GAAP Net Income of $0.1 million; Non-GAAP Net Income of $1.3 million
    Year-to-Date 2016 GAAP Net Loss of ($0.02) million; Non-GAAP Net Income of $4.6 million
  • Third Quarter Adjusted EBITDA Growth of 5% to $2.3 million;
    Year-to-Date Adjusted EBITDA Growth of 12% to $7.1 million

NEW YORK, 2016-Nov-12 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a brand management and media company, today (Nov. 10, 2016) announced its financial results for the third quarter and nine months ended September 30, 2016.

“We are pleased to report double-digit top-line growth for the quarter and year-to-date,” said Robert W. D’Loren, Xcel’s Chairman and Chief Executive Officer. “Despite lower than expected growth in the interactive television channel during the quarter, we believe that the strength of our brands and our unique business model, including our design, marketing, and Quick Time Response (QTR) production platforms, will continue to drive growth despite a challenging retail environment. To that end, we are excited by the early results of our Quick Time Response design and production platform and our partnership with Hudson’s Bay Company, and we expect to announce new retail partnerships in the QTR department store business for Spring 2017.”

Third Quarter 2016
Total revenue for the third quarter of fiscal 2016 increased 14% to $8.3 million, compared with $7.3 million for the prior year quarter.

GAAP net income was $0.12 million for the quarter ended September 30, 2016, or $0.01 per share, compared with net income of $0.03 million, or $0.00 per share, in the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the quarter ended September 30, 2016 was $1.3 million, or $0.07 per diluted share, compared with $1.4 million, or $0.08 per diluted share, in the prior year quarter.

Adjusted EBITDA for the quarter ended September 30, 2016 increased by 5% to $2.3 million, compared with $2.2 million for the quarter ended September 30, 2015.

The net income, non-GAAP net income and Adjusted EBITDA results for the quarter reflect the Company’s judicious management of its operating expenses, while continuing to invest in the future.

First Nine Months of Fiscal 2016
Total revenue for the nine months ended September 30, 2016 increased 28% to $25.8 million, compared with $20.2 million in the same period in 2015.

GAAP net loss was ($0.02) million for the nine months ended September 30, 2016, or ($0.00) per share, compared with net income of $1.8 million, or $0.11 per diluted share, for the nine months ended September 30, 2015. After adjusting for certain cash and non-cash items, non-GAAP net income for the nine months ended September 30, 2016 increased 11% to $4.6 million, or $0.24 per diluted share, compared with $4.2 million, or $0.26 per diluted share, for the same period in the prior year.

Adjusted EBITDA for the nine months ended September 30, 2016 increased by $0.8 million or approximately 12% to $7.1 million, compared with $6.3 million for the same period in the prior year.

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 September 30, 2016 remains strong, with stockholders’ equity of $102.6 million, cash and cash equivalents of approximately $15.2 million, and working capital of approximately $14.4 million.

Conference Call and Webcast
The 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 10, 2016. 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 877-440-5803. A replay of the conference call will be available on the Company website for 30 days following the event and can be accessed at 877-870-5176 using replay pin number 3962922.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a brand management and media company engaged in the design, production, licensing, marketing, 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering a ubiquitous sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 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.com

Forward Looking Statements
This 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, 2015 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.

Contact:

Hunter Wells / John Mills
ICR
646-277-1246
Hunter.wells@icrinc.com
John.mills@icrinc.com

Source: Xcel Brands, Inc./globenewswire

Xcel Brands, Inc. announces multiple new licenses across its owned brands

NEW YORK, 2016-Nov-10 — /EPR Retail News/ — Xcel Brands, Inc. (NASDAQ:XELB) is pleased to announce multiple new licenses across its owned brands as licensees look to pursue growth in categories complementary to Xcel’s successful quick time response (QTR) apparel programs at Lord & Taylor and Hudson’s Bay stores.

CEO and Chairman of Xcel Brands, Inc. Robert W. D’Loren remarked, “With the rise of a ‘see-now-buy-now’ consumer shopping mentality and the need to respond to trends as they happen, Xcel created an innovative solution to bring exclusive brands to our department store partners in a quick time response format. The rapid growth of these apparel programs has generated excitement within the licensing community across numerous complementary categories. With these new partnerships we will continue to build meaningful lifestyle brands under the IMNYC Isaac Mizrahi and H Halston labels.”

New licensees under the Isaac Mizrahi brand include tech accessories and luggage, with product set to retail in Spring 2017.  Xcel Brands, Inc. entered into a licensing agreement with Bytech NY Inc. for tech accessories for smartphones, PCs, tablets, and personal audio across the Isaac Mizrahi New York, IMNYC Isaac Mizrahi, and Isaac Mizrahi Live! labels. Xcel also entered into a licensing agreement with Longlat Inc. for a collection of hard and soft luggage under the Isaac Mizrahi New York and Isaac Mizrahi Live! labels.

New licensees under the H Halston brand include sleepwear and intimates, legwear and slippers, and non-optical sunglasses and readers.  Xcel entered into a licensing agreement with Komar for women’s sleepwear and intimate apparel under the H Halston and H by Halston labels, with product expected to launch in Spring 2017.  Xcel entered into a licensing agreement with Gina Group LLC for women’s hosiery, socks, and legwear; men’s socks; children’s hosiery socks, and legwear; and men’s and women’s slippers under the H Halston and H by Halston labels, with product launching beginning in Spring 2017. Xcel entered into a licensing agreement with B. Robinson for a line of non-optical sunglasses and readers under the H Halston and H by Halston labels, with product launching in 2016.

Xcel has also entered into a license under its Judith Ripka jewelry brand for fashion bedding, bath, decorative pillows, window panels, and valences through a license with Bentex Group Inc./ Indecor LLC. The products will be sold at specialty retailers under the Judith Ripka Home label beginning in 2017.

Xcel Brands, Inc. is a brand management and media company engaged in the design, production, licensing, marketing 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 and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering an omnichannel sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce 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 a team of over 100 professionals focused on 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.com

Isaac Mizrahi has been a leader in the fashion industry for almost 30 years.  Since his first collection in 1987, Mr. Mizrahi’s designs have come to stand for timeless, cosmopolitan, style.  He has been awarded four Council of Fashion Designers of America (CFDA) awards, including a special award in 1996 for the groundbreaking documentary “Unzipped.”  Mr. Mizrahi is Chief Designer overseeing design and design direction for the IMNYC Isaac Mizrahi, Isaac Mizrahi New York and ISAACMIZRAHILIVE! labels, which are divisions of Xcel Brands, Inc.  In 2016, Mr. Mizrahi launched his new collection IMNYC Isaac Mizrahi exclusively at Hudson’s Bay and Lord & Taylor department stores.  Previously, in 2009, Mr. Mizrahi launched ISAACMIZRAHILIVE! apparel and accessories on QVC.  In addition, television audiences have come to value Isaac’s media presence through his roles on “Project Runway All Stars” for Lifetime, “The Fashion Show” for Bravo and his own series for both Oxygen and the Style Network.

Roy Halston Frowick was the creator of luxury American fashion, whose groundbreaking designs still influence and inspire us today. Founded in the 1960’s, the HALSTON label took the fashion industry by storm. Originally known for his innovation in millinery, Halston used his signature materials of jersey, cashmere and suede to reinvent the jumpsuit, the shirtdress, and the classic caftan, permanently leaving his mark on fashion. The 1970’s and the era of Studio 54 became synonymous with Halston’s designs. Soon after, he was named “the premier fashion designer in America” by Newsweek. His strong connection to pop culture was evident through his friends and clients, which included Andy Warhol, Bianca Jagger, Elizabeth Taylor and Anjelica Huston. Halston went on to create one of the best-selling fragrances of all time in his signature tear-drop shaped perfume bottle designed by Elsa Peretti. Halston created strong codes that are quintessential to the brand even to this day, as a new team of innovators continue to evolve the HALSTON legacy through the H Halston and H by Halston collections. The H Halston brand, exclusive to Lord & Taylor and Hudson’s Bay, offers true feminine glamour with effortless daywear, footwear, and accessories that easily transitions from work to cocktails.  The H by Halston brand, exclusive to QVC, is made up of versatile, minimalist daywear and accessories in functional fabrics and materials essential for building a chic, contemporary wardrobe. Global celebrity stylist and style authority Cameron Silver is the Fashion Director of the H Halston and H by Halston brands.

Judith Ripka is an American luxury jewelry brand that appeals to women of impeccable taste worldwide. Over the brand’s 37-year history, it has become known for an immediately identifiable design DNA rooted in a timelessness and tradition which will appear forever modern.  Known as the Queen of Hearts, Chief Designer Judith Ripka incorporates a matte finish, texturing, vibrant color, and, of course, hearts into almost every design.  Available in fine jewelry stores around the world and at judithripka.com, Judith Ripka Ltd. 18k Gold and Sterling Silver designs have been worn by notable celebrates such as Cindy Crawford, Kate Hudson and Rose Byrne.  Judith Ripka Ltd. was ranked as one of the top five fine jewelry brands in the US by Women’s Wear Daily in 2013, and is perceived as one of the most desirable and trusted luxury jewelry brands in the world. The brand also designs an accessible luxury line under the Judith Ripka jewelry label which has been exclusive to QVC since 1997.

For further information please contact:

Stephanie Taylor
Public Relations Associate
staylor@xcelbrands.com
347-727-2483

Source: Xcel Brands, Inc./globenewswire