Xcel Brands, Inc. Announces First Quarter 2021 Results
4:15 PM ET, 05/17/2021 - GlobeNewswire
First quarter net product sales of $3.5 million, rebounding 35% from the fourth quarterFirst quarter net loss of $2.5 million, or ($0.13) per share, on a GAAP basis; net loss of $1.5 million, or ($0.08) per share, on a non-GAAP basis Adjusted EBITDA of $(0.9) million for the quarter
NEW YORK, May 17, 2021 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company, today announced its financial results for the first quarter ended March 31, 2021.
Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “With the extraordinary events of 2020 now nearly behind us, our team has been hard at work during the first quarter of 2021 in not just rebuilding and recovering, but also expanding and growing the business. Our first quarter operating loss was primarily attributable to expected softness in our wholesale apparel business.”
“We are beginning to see signs of a recovery from the pandemic as momentum is picking up in the 2021 second quarter and we expect a return to growth in the third and fourth quarters of this year. We are encouraged by the opportunities and future potential we see in our direct-to-consumer and live-streaming businesses and our recent acquisition of the LOGO Lori Goldstein brand. We expect growth to accelerate beginning in the second quarter and our operating results to improve across our business in 2021,” concluded Mr. D’Loren.
First Quarter 2021 Financial Results
Total revenue was $7.8 million, a decrease of $1.7 million compared to the prior year quarter, primarily driven by the discontinuation of the licensing of the H Halston brand through QVC during the fourth quarter of 2020, and the Company’s transitioning of that brand to a wholesale supply model under arrangements with Qurate Retail affiliates and other interactive television networks. The economic impacts of the ongoing COVID-19 pandemic also negatively impacted both net product sales and net licensing revenues for the quarter.
Despite the decrease in revenues and gross profit on an absolute dollar basis, overall gross profit margins remained relatively flat year-over-year, while gross profit margins on product sales increased from 38% in the prior year quarter to 48% in the current quarter.
Net loss attributable to Xcel Brands was approximately $2.5 million, or ($0.13) per diluted share, compared with a net loss of $0.8 million, or ($0.04) per diluted share, for the prior year quarter. After adjusting for certain cash and non-cash items, results on a non-GAAP basis were a net loss of approximately $1.5 million, or ($0.08) per diluted share for the quarter ended March 31, 2021, and net income of approximately $0.2 million, or $0.01 per diluted share, for the quarter ended March 31, 2020. Adjusted EBITDA was approximately $(0.9) million and $0.7 million for the current quarter and the prior year quarter, respectively.
The Company's balance sheet at March 31, 2021 remained strong, with stockholders' equity of approximately $84 million, cash and cash equivalents of approximately $3.0 million, and working capital, exclusive of the current portion of lease obligations, of approximately $6.5 million
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