Wilhelmina(US:WHLM)2025-08-13 11:58Revenue Performance - Service revenues for the three months ended June 30, 2025, decreased by 0.9% to $4.544 million compared to $4.584 million in 2024, while for the six months, revenues increased by 4.8% to $9.164 million from $8.747 million[53]. - Total revenues for the three months ended June 30, 2025, were $4.553 million, a decrease of 0.8% from $4.591 million in 2024, and for the six months, total revenues increased by 4.8% to $9.180 million from $8.762 million[53]. - Gross billings increased by 8.0% to $18.328 million for the three months ended June 30, 2025, and by 10.1% to $36.117 million for the six months compared to the same periods in 2024[66]. - Total revenues for the three months ended June 30, 2025, were $4.553 million, compared to $4.591 million for the same period in 2024[74]. - Gross Billings for the six months ended June 30, 2025, were $36.117 million, up from $32.799 million in 2024, representing a growth of approximately 10%[74]. Income and Expenses - Operating income for the three months ended June 30, 2025, was $101 thousand, a decline of 74.6% from $397 thousand in 2024, and for the six months, it decreased by 45.7% to $255 thousand from $470 thousand[60]. - Net income for the three months ended June 30, 2025, was $111 thousand, down 55.1% from $247 thousand in 2024, and for the six months, net income decreased by 20.7% to $268 thousand from $338 thousand[65]. - Salaries and service costs rose by 7.1% to $3.262 million for the three months and by 8.1% to $6.498 million for the six months ended June 30, 2025, primarily due to personnel hires[56]. - Office and general expenses increased by 8.6% to $945 thousand for the three months and by 12.1% to $1.912 million for the six months ended June 30, 2025, mainly due to higher legal expenses[57]. - Model costs for the three months ended June 30, 2025, were $13.775 million, compared to $12.385 million in 2024, an increase of approximately 11%[74]. Cash Flow and Liquidity - The cash balance decreased to $6.7 million at June 30, 2025, from $8.5 million at December 31, 2024, due to $2.1 million net cash used in operating activities[67]. - Net cash used in operating activities was $2.1 million, primarily due to increases in accounts receivable and prepaid expenses[68]. - The company believes it has sufficient liquidity to meet projected operational expenses and capital expenditure requirements for the next twelve months[69]. Tax and Financial Measures - The effective tax rate for the three months ended June 30, 2025, was 33.1%, a decrease of 30.9% from 47.9% in 2024, and for the six months, it was 31.5%, down 31.1% from 45.7%[64]. - The company utilizes non-GAAP financial measures such as Gross Billings and EBITDA to evaluate operating performance and provide insights to stakeholders[70]. - EBITDA for the three months ended June 30, 2025, was $149,000, down from $434,000 in the same period of 2024, indicating a decline of about 65%[76]. - Adjusted EBITDA for the six months ended June 30, 2025, was $348,000, compared to $568,000 in 2024, reflecting a decrease of approximately 39%[76]. Business Strategy - The company plans to expand its women's high-end fashion board and increase brand awareness among advertisers and potential talent[52]. - The company recognizes revenue upon the transfer of promised goods or services to customers, in accordance with ASC 606[79].