Xcel Brands Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits
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Item 2.02 | Results of Operations and Financial Conditions |
Xcel Brands, Inc, (the “Registrant” or the “Company”) expects to make presentations to certain investors and will be providing the following preliminary estimated financial information for the three and six months ended June 30, 2024: The Company’s results of operations for the three and six months ended March 31, 2024 were positively impacted in a material amount by the sale of the assets, including the intellectual property, relating to the Lori Goldstein assets, which was effective June 30, 2024. The Company expects to include a one-time net gain of approximately $3.8 million from the sale.
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| Three Months Ended |
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| Six Months Ended |
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Revenue |
| $ | 2,954,000 |
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| $ | 5,138,000 |
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Pretax net income (loss) (1) |
| $ | 195,000 |
| $ | (6,099,000 | ) | |
Net income (loss) attributable to Xcel Brands, Inc stockholders (1) |
| $ | 195,000 |
| $ | (6,099,000 | ) | |
Adjusted EBITDA |
| $ | (40,000 | ) |
| $ | (1,612,000 | ) |
(1) | Pretax net income (loss) and net income (loss) are expected to include a one-time net gain of approximately $3.8 million, which is attributable to a combination of a net loss on the sale of the Lori Goldstein brand assets, and a reduction of the related contingent obligations. Pretax net income (loss) and net income (loss) also are expected to include an additional impairment charge of approximately $1.2 million from the exit of the Company’s prior principal offices. |
The estimated results for the quarter ended June 30, 2024, are preliminary and unaudited, represent management’s estimate as of the date of the release and are subject to completion of its financial closing procedures. The Company’s independent registered public accounting firm has not conducted an audit or review of and does not express an opinion or any other form of assurance with respect to the preliminary unaudited results. Accordingly, undue reliance should not be placed on the preliminary estimates. The preliminary estimates are not necessarily indicative of any future period results.
The preliminary estimated financial information contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures. Exhibit 99.1 sets forth the reasons it provided such measures and a reconciliation of the non-U.S. GAAP measures to U.S. GAAP measures. Readers should consider non-GAAP measures in addition to, and not as a substitute for, measures of financial performance prepared in accordance with U.S. GAAP.
Item 9.01 | Financial Statements and Exhibits. |
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(d) | Exhibits. |
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99.1 | |
104 | Cover Page Interactive Data File (embedded within the inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date July 24, 2024 | XCEL BRANDS, INC. | |
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| By: | /s/ James F. Haran |
| Name: | James F. Haran |
| Title: | Chief Financial Officer |