iMedia Brands (IMBI) Stock: Why The Price Jumped

By Amit Chowdhry ● Nov 18, 2021
  • The shares of iMedia Brands Inc (NASDAQ: IMBI) increased by 14.59% today. This is why it happened.

The shares of iMedia Brands Inc (NASDAQ: IMBI) increased by 14.59% today. Investors responded positively to the company’s third-quarter 2021 results.

Q3 2021 Summary & Recent Highlights

— Net sales were $130.7 million, an increase of 20% compared to the same prior-year period and the best year-over-year quarterly revenue growth in over ten years. During the quarter, the Company launched 25+ new brands across its television networks ShopHQ, ShopBulldogTV, and ShopHQHealth.

— Year-to-date net sales were $357.3 million, which was 8% growth compared to the same prior-year period and represent the strongest year-over-year net sales growth in the Company’s first three fiscal quarters in eight years. This success was driven primarily by the 90+ new merchandise brand launches occurring year-to-date plus the accretive impact of the Christopher & Banks and iMDS net sales.

— The 12-month rolling active customers grew by 20% compared to the same prior-year period, driven by 65% growth in new customers which was the best new customer growth in over ten years.

— The gross margin was 41.6%, a 420-basis point improvement over the same prior-year period. The year-to-date gross margin was 41.5%, a 430-basis point improvement over the same prior-year period.

— The net loss attributable to stockholders was $(9.5) million, a $4.7 million increase over the same prior-year period, largely driven by $4.5 million in one-time transaction and transition costs and $713,000 in interest costs relating to the bond offering in the third quarter.

— The adjusted EBITDA was $10.1 million, a $3.7 million improvement over the same prior-year period. Year-to-date adjusted EBITDA was $26.5 million, an $11.0 million increase, or 71% improvement, over the same prior-year period and the highest Q3 year-to-date adjusted EBITDA in the Company’s history.

— As previously announced, on November 5, 2021, the company completed its acquisition of 123tv. And on September 28, 2021, the Company closed on its offering of $80 million in 8.50% Senior Secured Notes due 2026 and used all the net proceeds to fund the closing cash payment for the acquisition of the 123tv.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.