Xcel(US:XELB)2021-11-16 02:52Financial 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]