Howard Brous

Howard Brous asked for an indication of potential revenue for 2026.

Answer

Robert D'Loren, Founder, Chairman, and CEO, stated that the company has not provided specific guidance but referred to two analyst reports for a sense of potential revenue. He highlighted top-line royalty revenue as a key metric, noting that royalties in the PE world trade at 7-8 times royalty and 15 times EBITDA, implying a significant asset value for Xcel Brands' IP. He suggested that achieving the company's goals could imply $100 million of value on royalty flows.

Howard Brous asked for an outlook on Xcel Brands' potential revenue for 2026 and insights into the valuation of the company's intellectual property.

Answer

Robert D'Loren, Founder, Chairman, and CEO of Xcel Brands, referred to existing analyst reports for 2026 revenue guidance, noting a conservative view and another consistent with internal goals. He highlighted a significant disconnect between the company's market capitalization and the implied asset value of its intellectual property, which he estimates could be $45-$50 million based on royalty multiples (7-8x top-line royalty) and potentially $100 million if the company achieves its goals for new brand categories.

Howard Brous questioned management's comfort level with analyst consensus for 2025 EBITDA, the potential impact of new transactions on 2025 results, and the apparent valuation disconnect given the company's low EBITDA multiple and high asset value.

Answer

CEO Robert D'Loren expressed comfort with the existing analyst EBITDA range for 2025 (between $4.4M and $8.6M), noting performance will be driven by the Halston license and new deals. He acknowledged the attractive valuation, stating, 'We believe that just the Halston contract alone is worth 5x our market cap,' and agreed that the stock price is incredibly low given the embedded value of the company's intangible assets.

Howard Brous of Wellington Shields & Co., LLC asked for management's view on forward analyst estimates, inquired about the types of brands being onboarded to the Orme platform, and commented on the CEO's recent personal stock purchases.

Answer

Executive Robert D'Loren expressed comfort with analyst estimates for the upcoming year, contingent on continued growth and the Halston brand ramp-up, stating the current stock price does not reflect the company's potential. He highlighted that Orme is targeting aspirational and luxury brands, mentioning DL1961 as an example. Regarding his stock purchases, D'Loren affirmed they reflect his strong belief in the company's strategy and future.

Howard Brous from Wellington Shields LLC asked for more visibility on the timing and potential revenue from critical infrastructure opportunities, specifically in schools, and inquired about the timeline to reach breakeven.

Answer

President, CEO & Director Tony Scott noted that for school safety solutions, the sales cycle appears quick, with purchasing decisions often made in the fall and winter. He anticipates longer sales cycles for other critical infrastructure like utilities. Regarding breakeven, Scott declined to give a specific date but stated it is a daily focus and that a couple of large contracts could get them there quickly. He emphasized the goal is to build sustainable, long-term profitable business.

Howard Brous of Wellington Shields LLC asked for clarification on the anticipated production ramp-up for the DFLAW facility and the associated revenue expectations from now through 2026.

Answer

Mark Duff, President, CEO & Director, detailed the DFLAW ramp-up plan. He stated that once operations begin in Q4, the facility will run at about 40% capacity, which Perma-Fix estimates could generate $2 to $3 million in monthly revenue. From there, the facility is expected to ramp up over the following 18 months toward 70-80% operational capacity, with full capacity potentially yielding $70 to $80 million in annual revenue for Perma-Fix.

Howard Brous asked for clarification on the Hanford contract's duration, suggesting it is effectively a 35-year opportunity extending to 2060, far beyond the initial 10-year term.

Answer

Executive Mark Duff confirmed the long-term nature of the Hanford cleanup, citing a published estimate of $400-$600 billion over the next 50 years. Duff clarified that current contracts are shorter (10-15 years) but will be re-competed. He noted that the grouting program, which is essential for closing 22 tanks, is still several years from being fully defined by the Department of Energy (DOE).

Howard Brous asked for an outlook on revenue and margin opportunities for 2025 and 2026 across several key projects, including PFAS, DFLAW effluent, the USS Enterprise, and grouting, as well as the ITDC contract and international operations in Germany and Mexico.

Answer

Mark Duff, Executive, detailed the outlook for each opportunity. He projected $3-5 million in PFAS revenue for 2025, with DFLAW effluent revenue beginning in Q3 2025. He noted that details on the West Valley and USS Enterprise contracts are limited as they are in protest or open procurement phases. Duff also confirmed approximately $7 million in expected revenue from international contracts in Mexico, Canada, and Germany between Q4 2024 and Q2 2025, which helps mitigate risks from potential government budget delays.