Xcel Brands, Inc. (NASDAQ:XELB) Q1 2023 Earnings Conference Call May 18, 2023 5:00 PM ET Company Participants Andrew Berger - SM Berger & Company, Inc. Robert D'Loren - Chairman and Chief Executive Officer James Haran - Chief Financial Officer Conference Call Participants Howard Brous - Wellington Shields & Co. LLC Anthony Lebiedzinski - Sidoti & Company Debra Fiakas - Crystal Equity Research Operator Please be advised that reproduction of this call in whole or in part is not permitted without prior authori ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of Registrant as specified in its charter) | Delaware | | 76-0307819 | | --- | --- | --- | | (State or Other Jurisdiction of | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of Registrant as specified in its charter) | Delaware | 76-0307819 | | --- | --- | | (State or Other Jurisdiction of | | | Incor ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $11.3 million, an increase of approximately $3.9 million or 52% from the prior year quarter [24] - For the nine months ending September 30, 2021, total revenues increased approximately $7.9 million to $29.8 million or 36% over the prior year period [25] - Net loss excluding non-controlling interest was approximately $1.1 million for the current quarter, compared to a net loss of $0.4 million for the prior year quarter [29] - Adjusted EBITDA for the current quarter was $1 million compared with $1.4 million for the prior year quarter [30] Business Line Data and Key Metrics Changes - Revenues from the licensing business were up 31%, while net wholesale and direct-to-consumer sales increased over 100% for the quarter compared to Q3 2020 [12] - Total interactive TV licensing revenues were up 27% in Q3 compared with the prior year quarter [15] - Non-interactive TV licensing business was up 77% this quarter compared to the prior year quarter [16] - Judith Ripka and Longaberger combined e-commerce sales were up approximately 150% compared to the prior year quarter [17] - Wholesale apparel was up approximately 56% compared to the prior year quarter [20] Market Data and Key Metrics Changes - The interactive TV business is performing well, with apparel and jewelry sales being a bright spot for QVC [14] - Longaberger's active stylist membership is up 50%, and over 250,000 email subscribers were added to direct-to-consumer businesses through Q3 [17] - The Judith Ripka wholesale jewelry business is up dramatically at over 400% compared with last year [21] Company Strategy and Development Direction - The company expects continued acceleration and expansion across all divisions and distribution channels [13] - Live streaming is seen as a significant growth driver, with plans for additional events in 2022 [22] - The company is focused on recruiting nano-influencers to drive sales, particularly for the Longaberger brand [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in all distribution channels and anticipates a strong finish for the year [22] - The ongoing COVID-19 pandemic has impacted the business, but management believes they are emerging from its effects [30] - Management expects that 2022 will be the year when investments in direct-to-consumer and wholesale businesses start contributing to profitability [36] Other Important Information - The company had unrestricted cash and cash equivalents of approximately $4 million as of September 30, 2021 [31] - Total debt at September 30, 2021, was $25.2 million, with bank debt net of cash approximately $21.2 million [32] Q&A Session Summary Question: When will investments in direct-to-consumer and wholesale businesses start contributing to profitability? - Management indicated that if it weren't for COVID, profitability would have been achieved in 2020, and they expect 2022 to be the year for profitability [36] Question: How is the Longaberger brand performing? - Longaberger is growing at a dramatic rate, with double-digit growth monthly, and management is optimistic about its future [40] Question: What is the status of the $75 million financing and potential acquisitions? - Management is actively looking for acquisition opportunities that fit their parameters and expects to find suitable options in 2022 [43] Question: Can you provide a comparison for the quarter versus 2019? - Management did not provide specific 2019 comparisons during the call but offered to share that information privately [50] Question: Any updates on the C. Wonder brand with Walmart? - A live stream event with Walmart for C. Wonder is planned for March 2022, which management believes will be beneficial for both parties [51]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | --- | | (State or Other Jurisdiction of | (I.R.S. Employer | | Incorporation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-37527 XCEL BRANDS, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0307819 | | --- | ...