Sign in

You're signed outSign in or to get full access.

WI

Wilhelmina International, Inc. (WHLM)·Q4 2023 Earnings Summary

Executive Summary

  • Q4 2023 revenue declined 8.0% year over year to $3.763M, with a diluted EPS loss of $(0.01); sequentially, revenue fell from $4.472M in Q3 and $4.493M in Q2, reflecting softer commissions on talent bookings .
  • Expense discipline improved in Q4: office and general expenses decreased 20.2% YoY on lower legal expense; corporate overhead fell 38.6% YoY given 2022 restatement costs did not recur .
  • Liquidity remained strong at year-end with combined cash and short-term investments of $12.7M, the highest total at the end of any quarterly or annual period in Company history, supporting flexibility despite revenue pressure .
  • No formal guidance and no available S&P Global consensus estimates for Q4 2023; benchmarking to Wall Street was not possible. This leaves cost execution and billings trends as the near-term stock reaction catalysts . Consensus unavailable via S&P Global.

What Went Well and What Went Wrong

What Went Well

  • “Office and general expenses for the three months ended December 31, 2023 decreased by 20.2% primarily due to decreased legal expense in the fourth quarter” .
  • “Corporate overhead decreased by 38.6%…primarily due to costs of two SEC restatement filings in 2022 that did not recur in 2023” .
  • Pre-Corporate EBITDA remained positive in Q4 at $0.166M, showing underlying divisional profitability despite softer revenues .

What Went Wrong

  • Revenues decreased 8.0% YoY in Q4, primarily due to lower commissions on talent bookings; full-year revenues down 3.2% for the same reason .
  • Q4 EBITDA was a loss of $(0.116)M and operating loss of $(0.117)M, reflecting revenue pressure and mix; EPS was $(0.01) vs $0.00 in Q4 2022 .
  • Comparisons to 2022 remain skewed by the prior-year release of a $1.5M deferred tax valuation allowance that boosted net income, masking normalized performance trends .

Financial Results

MetricQ4 2022Q2 2023Q3 2023Q4 2023
Revenue ($USD Millions)$4.091 $4.493 $4.472 $3.763
Diluted EPS ($USD)$0.00 $0.00 $0.07 $(0.01)
Operating Income ($USD Millions)$(0.166) $0.149 $0.467 $(0.117)
Operating Margin (%)(4.1%) 3.3% 10.4% (3.1%)
EBITDA ($USD Millions)$(0.168) $0.144 $0.540 $(0.116)
EBITDA Margin (%)(4.1%) 3.2% 12.1% (3.1%)
KPIQ4 2022Q2 2023Q3 2023Q4 2023
Gross Billings ($USD Millions)$16.233 $17.541 $16.158 $15.115
Adjusted EBITDA ($USD Millions)$(0.096) $0.230 $0.547 $(0.061)
Pre-Corporate EBITDA ($USD Millions)$0.274 $0.476 $0.795 $0.166

Notes:

  • Q4 YoY: Revenue down 8.0%; EPS flat-to-slightly negative; EBITDA loss improved vs Q4 2022; operating loss narrowed modestly .
  • QoQ: Revenue down vs Q3 and Q2; margins compressed as volumes softened .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
None providedQ4 2023 / FY 2023N/AN/ANo formal guidance issued in Q4 press release

Earnings Call Themes & Trends

No earnings call transcript was located for Q4 2023 (company did not publish a transcript within our document set). Themes below reflect management’s press release commentary.

TopicPrevious Mentions (Q2 2023)Previous Mentions (Q3 2023)Current Period (Q4 2023)Trend
Staffing alignment and salariesSalaries/service costs up 10.5% YoY due to hires and payroll changes Salaries/service costs up 3.3% YoY on personnel hires and payroll changes Salaries/service costs flat YoY in Q4; FY23 up 5.3% on staffing alignment Stabilizing in Q4; FY trending higher
Legal and office expensesOffice/general up 53.4% YoY (legal, rent, utilities) Office/general up 17.8% YoY (legal, rent, utilities, IT) Office/general down 20.2% YoY on lower legal expense Improving in Q4
Corporate overheadUp 10.8% YoY (travel, audit timing) Up 0.4% YoY (travel, audit timing) Down 38.6% YoY; 2022 restatement costs did not recur Materially lower
FX impactFX loss in Q2; contributed to Adjusted EBITDA adjustments FX gain in prior year; small loss in 2023 FX loss $45K in Q4; included in Adjusted EBITDA reconciliation Minor headwind
Tax impacts on comps—Prior-year results benefited from $1.5M valuation allowance release Prior-year tax allowance release noted impacting YoY comparisons Lapsing benefit

Management Commentary

  • “Decreased revenues during the fourth quarter and full year ended December 31, 2023 were primarily due to decreased commissions on talent bookings.” (Q4 press release) .
  • “Office and general expenses for the three months ended December 31, 2023 decreased by 20.2% primarily due to decreased legal expense in the fourth quarter.” (Q4 press release) .
  • “Corporate overhead decreased by 38.6%…primarily due to costs of two SEC restatement filings in 2022 that did not recur in 2023.” (Q4 press release) .
  • Liquidity: “$12.7 million of combined cash and cash equivalents and short term investments at December 31, 2023 was the highest total at the end of any quarterly or annual period in Company history.” (Q4 press release) .

Q&A Highlights

  • No earnings call transcript or Q&A was available for Q4 2023 within our document corpus; accordingly, no management Q&A themes or clarifications can be provided.

Estimates Context

  • S&P Global Wall Street consensus estimates for Q4 2023 (EPS and revenue) were unavailable for WHLM; coverage appears limited for this micro-cap, preventing a beat/miss assessment. Values retrieved from S&P Global were unavailable.

Key Takeaways for Investors

  • Q4 softness reflects lower commissions on bookings; watch near-term booking trends and client activity as key revenue drivers .
  • Cost control improved notably in Q4 (legal expense reduction, lower corporate overhead), supporting profitability resilience if revenues stabilize .
  • Underlying operating KPIs (Pre-Corporate EBITDA positive at $0.166M) suggest core divisional profitability even in a softer demand environment .
  • Liquidity is strong ($12.7M cash + ST investments), providing downside protection and optionality for strategic investments or working capital flexibility .
  • Comparisons to 2022 are inflated by the prior-year deferred tax valuation allowance release; focus on operational comps and cash KPIs for a cleaner view .
  • Near-term trading lens: absence of guidance and consensus estimates may increase volatility; incremental updates on billings and legal expense trajectory likely drive sentiment .
  • Medium-term thesis: execution on staffing alignment and legal/office cost normalization can restore margin leverage as bookings recover; monitor FX and office rent/utilities as secondary cost variables .