Wilhelmina International, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing mixed performance compared to the previous fiscal period. Total revenues for the three months increased by 2.2% to $4,569,000, up from $4,472,000 in the same period of 2023. However, for the nine months, total revenues decreased by 0.9% to $13,331,000, compared to $13,449,000 in the prior year. The increase in quarterly revenue was attributed to higher commissions from core model bookings, while the decline in year-to-date revenue reflected a challenging market environment.

Service revenues for the three months rose to $4,562,000, a 2.2% increase from $4,465,000 in 2023. Conversely, service revenues for the nine months fell slightly to $13,309,000 from $13,427,000. Operating income for the three months ended September 30, 2024, was $335,000, down 28.3% from $467,000 in the same quarter of 2023. Year-to-date operating income also decreased to $805,000 from $845,000.

Net income for the third quarter was $310,000, a decrease of 13.4% from $359,000 in the prior year. However, net income for the nine months increased significantly to $648,000 from $504,000, reflecting a 28.6% improvement. The company reported a notable increase in income before provision for income taxes for the nine months, rising to $1,042,000 from $783,000, indicating improved profitability over the longer term.

Total operating expenses for the three months increased to $4,234,000 from $4,005,000, driven by a 9.0% rise in salaries and service costs due to personnel hires and payroll adjustments. Office and general expenses also saw a 7.0% increase in the quarter, attributed to higher legal expenses. In contrast, amortization and depreciation expenses decreased significantly, reflecting reduced depreciation of capitalized assets at the new New York City office.

The company maintained a cash balance of $6,526,000 as of September 30, 2024, up from $6,117,000 at the end of 2023. Net cash provided by operating activities for the nine months was $348,000, a turnaround from a net cash used of $(688,000) in the same period of 2023.

Strategically, Wilhelmina is focusing on increasing brand awareness, expanding its high-end fashion board, and enhancing its representation in commercials and film. The company continues to adapt to industry trends, particularly the shift towards digital and social media, which has impacted traditional advertising budgets.