XCel Brands Inc.

24/07/2024 | Press release | Distributed by Public on 25/07/2024 03:57

Results of Operations and Financial Condition Form 8 K

Reconciliation of Adjusted EBITDA to Net Income (Loss)

Amounts presented in $(000's)

Three Months Ended

Year Ended

June 30, 2024

(Unaudited)

(Unaudited)

Net loss attributable to Xcel Brands, Inc. stockholders

$

195

$

(6,099

)

Depreciation and amortization

1,545

3,133

Proportion share of trademark amortization of equity method investee

515

1,030

Interest and finance expense

146

296

State and local franchise taxes

12

24

Stock-based compensation and cost of licensee warrants

42

185

Loss from equity investment

43

60

Gain attributable to the divestiture of the Lori Goldstein assets

(3,801

)

(3,801

)

Asset impairment

1,188

3,485

Amortization of lease finance component on exited lease

75

75

Adjusted EBITDA

$

(40

)

$

(1,612

)

Adjusted EBITDA is a non-GAAP unaudited measure, which the Company defines as net income (loss) attributable to Xcel Brands, Inc. stockholders, before depreciation and amortization, interest and finance expenses, proportional share of trademark amortization of equity method investee, stock-based compensation, gain attributable to the divestiture of the Lori Goldstein assets, asset impairment, amortization of lease finance component on exited lease and other state and local franchise taxes.

Management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends relating to the Company's results of operations. Management believes Adjusted EBITDA is also useful because this measure adjusts for certain costs and other events that management believes are not representative of the Company's core business operating results, and thus this non-GAAP measure provides supplemental information to assist investors in evaluating the Company's financial results.

Adjusted EBITDA should not be considered in isolation or as an alternative to net income, or any other measure of financial performance calculated and presented in accordance with GAAP. Given that Adjusted EBITDA is a financial measure not deemed to be in accordance with GAAP and is susceptible to varying calculations. Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including companies in the Company's industry, because other companies may calculate these measures in a different manner than the Company does. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may or may not incur expenses similar to some of the adjustments in this document. The presentation of Adjusted EBITDA does not imply that the Company's future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating the Company's performance, you should consider Adjusted EBITDA alongside other financial performance measures, including our net income and other GAAP results, and not rely on any single financial measure.