Wilhelmina International, Inc. (WHLM)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 delivered sequential improvement versus Q4 2023: revenues rose to $4.171M, net income turned positive at $0.091M, and diluted EPS reached $0.02, while year-over-year revenues declined 7.0% and EPS fell from $0.03 .
• Non-GAAP profitability metrics improved sequentially from Q4: EBITDA moved from a loss of $(0.116)M in Q4 2023 to $0.110M, and Pre-Corporate EBITDA rose from $0.166M to $0.381M; year-over-year these metrics declined versus Q1 2023 .
• Operating discipline was evident with office and general expenses down 22.7% year-over-year, offset by a 3.0% increase in salaries and service costs to align staffing with demand across offices and regions .
• Company did not issue quantitative guidance; catalysts for investor focus include sequential recovery in revenues and EBITDA, expense normalization (legal/computer costs), and liquidity supported by $4.734M cash and $6.670M short-term investments as of March 31, 2024 .
• Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable; therefore, a beat/miss assessment relative to estimates cannot be made (values unavailable from S&P Global).

What Went Well and What Went Wrong

What Went Well

• Sequential recovery versus Q4 2023: revenue up to $4.171M, positive net income of $0.091M, and EBITDA improved to $0.110M from a Q4 loss; Pre-Corporate EBITDA increased to $0.381M from $0.166M .
• Expense normalization: “Office and general expenses for the three months ended March 31, 2024 decreased by 22.7% primarily due to decreased legal expense, computer expenses, and other office related expenses” .
• Liquidity and financial flexibility: cash and cash equivalents of $4.734M and short-term investments of $6.670M at quarter-end support operations through cycle variability .

What Went Wrong

• Year-over-year top-line pressure and profitability compression: revenues down 7.0% to $4.171M, operating income fell to $0.073M (from $0.229M), EBITDA declined to $0.110M (from $0.262M), and diluted EPS fell to $0.02 (from $0.03) .
• Demand-related headwinds: “Decreased revenues in 2024 were primarily due to decreased commissions on bookings in the Company’s core modeling and Aperture divisions” .
• Modest rise in corporate overhead: “Corporate overhead expenses… increased by 3.7%, primarily due to increased legal costs”; FX was a modest headwind with a $7K loss .

Financial Results

Core Financials: Sequential (Q3 2023 → Q4 2023 → Q1 2024)

Year-over-Year (Q1 2023 → Q1 2024)

Revenue Composition

KPIs and Balance Sheet Highlights

Non-GAAP definitions for Gross Billings, EBITDA, Adjusted EBITDA, and Pre-Corporate EBITDA are provided by the company and should not be considered alternatives to GAAP metrics .

Guidance Changes

The company did not provide quantitative guidance in the Q1 2024 materials; forward-looking statements were included without specific ranges .

Earnings Call Themes & Trends

No Q1 2024 earnings call transcript was found; trend commentary is drawn from the company’s press releases.

Management Commentary

• “Decreased revenues in 2024 were primarily due to decreased commissions on bookings in the Company’s core modeling and Aperture divisions.” (Press release narrative)
• “Salaries and service costs… increased by 3.0% primarily due to personnel hires and payroll changes to better align Wilhelmina staffing with the needs of each office and geographical region.”
• “Office and general expenses… decreased by 22.7% primarily due to decreased legal expense, computer expenses, and other office related expenses.”
• The company provided non-GAAP definitions and emphasized these measures are key operating metrics used in planning and performance monitoring .

Q&A Highlights

No Q1 2024 earnings call transcript was available, and no Q&A session content was found. As a result, there are no Q&A themes or guidance clarifications to report for the quarter (no earnings-call-transcript documents located).

Estimates Context

• Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable at the time of this analysis; therefore, comparisons versus Street estimates cannot be determined. Values would ordinarily be retrieved from S&P Global; in this case, consensus was not accessible.

Key Takeaways for Investors

• Sequential operational recovery: revenue and EBITDA improved from Q4 2023, and the company returned to profitability; watch subsequent quarters for continuation of this trajectory .
• Year-over-year softness persists: lower commissions on bookings in core modeling and Aperture weighed on revenue and non-GAAP profitability; monitor booking mix and client demand trends across geographies .
• Expense normalization supportive: significant reduction in office/general costs (legal/computer) helped offset topline pressure; continued discipline could stabilize margins .
• Liquidity intact: $4.734M cash and $6.670M short-term investments provide flexibility to navigate revenue variability and invest in talent/staffing alignment .
• Corporate overhead and legal: modest YoY increase in Q1—watch legal cost trajectory; prior year restatement-related costs have normalized .
• FX exposures remain small but can drag results; recent loss was modest ($7K) .
• Absence of guidance and limited analyst coverage suggests the stock may react more to realized quarterly booking/commission trends and cost execution than to forward commentary .

Sources: Q1 2024 8-K and press release (including full financial statements and non-GAAP reconciliations) ; Q4 2023 8-K and press release ; Q3 2023 8-K and press release .