Wilhelmina(US:WHLM)2022-05-11 20:30Financial Performance - Total revenues for the three months ended March 31, 2022, were $16,645, a 39.5% increase from $11,976 in the same period of 2021[11] - Service revenues increased to $16,638, up from $11,966, while license fees decreased slightly to $7 from $10[11] - Net income for Q1 2022 was $739,000, a decrease of 66.7% compared to $2,221,000 in Q1 2021[11] - Operating income rose to $874,000, compared to $100, reflecting improved operational efficiency[11] - Basic net income per common share was $0.14, down from $0.43 in the previous year[11] Assets and Liabilities - Total current assets decreased slightly to $19,173,000 from $19,200, while total assets decreased to $37,239,000 from $37,424,000[10] - Total liabilities decreased to $15,606,000 from $16,411,000, indicating improved financial stability[10] - Shareholders' equity increased to $21,633,000 from $21,013,000, reflecting a positive trend in equity growth[10] - Cash and cash equivalents at the end of the period were $9,428,000, down from $10,251,000, indicating a cash outflow[15] Tax and Valuation - As of March 31, 2022, the Company maintained a full $1.4 million valuation allowance against its deferred tax assets due to the impact of the COVID-19 pandemic[31] - The Company had federal income tax loss carryforwards of $0.8 million as of March 31, 2022[32] - The Company operates in high-tax states, including California, New York, and Florida, affecting its effective tax rate[31] Financing and Credit - The Company has a $3.0 million revolving line of credit with Amegy Bank, with borrowing capacity based on 80% of eligible accounts receivable[19] - The Company’s credit agreement with Amegy Bank includes a term loan of up to $1.0 million, of which $0.7 million was drawn for stock repurchases[20] Stock and Share Repurchase - The Company has repurchased 1,314,694 shares of common stock at an average price of approximately $4.85 per share, totaling approximately $6.4 million in repurchases since 2012[34] - The Company incurred expenses of $7.5 thousand for services provided by Newcastle Capital Management for the three months ended March 31, 2022[36] Legal Matters - The Company believes the claims in ongoing litigation are without merit and intends to vigorously defend against them[29] - The Company has been involved in legal proceedings, including class action lawsuits, but believes the claims are without merit and intends to defend vigorously[29] Business Operations - The Company’s primary business is fashion model management, with operations in New York City, Los Angeles, Miami, and London[17] - The Company has expanded its operations to include locations in Los Angeles, Miami, and London, in addition to its headquarters in New York City[17] Other Financial Adjustments - The company reported a foreign currency translation adjustment loss of $174,000 for the period[11] - The Company received a $1.8 million loan under the Paycheck Protection Program, which was fully forgiven, resulting in a $1.9 million gain recorded in Q1 2021[22]