Xcel(XELB) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total top-line revenues grew 32% in Q3 2019 compared to the same period in 2018, with a year-to-date increase of 19% [10][31] - Net revenues for Q3 2019 reached $10.9 million, an increase of approximately $2.6 million or 32% over the prior year quarter [26] - Net loss for Q3 2019 was approximately $0.1 million or $0.01 per diluted share, compared to net income of $1 million or $0.05 per diluted share for the prior year quarter [29] - Non-GAAP net income for Q3 2019 was approximately $1.2 million, down from $1.9 million in the prior year quarter [30] Business Line Data and Key Metrics Changes - The interactive television business performed well, particularly the Isaac Mizrahi brand, with successful collaborations [14] - The wholesale apparel business saw increased sales and improved margins, with positive industry feedback on new collections [15] - The Judith Ripka e-commerce and wholesale business continued to show strong growth [17] Market Data and Key Metrics Changes - The company has proactively sourced the majority of its products outside of China to manage tariff impacts, with no tariff impact on the jewelry business [16][17] - The company launched several collaborations, including a successful collection with New Balance and a partnership with Sesame Street [19][20] Company Strategy and Development Direction - The company is transitioning from a licensing model to an advanced technology-based operating model, focusing on growth opportunities through acquisitions and organic expansion [12][13] - The acquisition of the Longaberger brand is seen as synergistic with the company's existing portfolio and sales strategy [21][22] Management Comments on Operating Environment and Future Outlook - Management acknowledged macro headwinds in the jewelry business but emphasized effective cost management [14] - The company expects continued growth in wholesale and e-commerce to lead to increased gross profit margins and higher earnings [39] Other Important Information - The company incurred costs related to potential acquisitions during Q3 2019 [23] - As of September 30, 2019, the company had unrestricted cash and cash equivalents of approximately $5.9 million, down from $8.8 million at the end of 2018 [37] Q&A Session Summary - No questions were taken during the earnings call due to ongoing activities related to potential acquisitions [3]