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Wilhelmina International, Inc. Reports Results for Third Quarter 2018

November 9, 2018

Third Quarter Financial Results

----------------------------------------------------------------------------------- YOY Q3 18 Q3 17 YOY (in thousands) Q3 Q3 Change YTD YTD Change 18 17 --------------------------------- ---- ---- ------- ------ ------- ---------------- Total Revenues $19,1$18,72.3% $ $ 5.9% 53 18 59,465 56,154 Operating Income 281 138 103.6% 1,167 312 274.0% Income Before Provision for Taxes 238 87 173.6% 1,030 130 * Net Income (Loss) 208 26 * 797 (17) * EBITDA** 516 350 47.4% 1,830 890 105.6% Adjusted EBITDA** 617 515 19.8% 2,174 1,396 55.7% Pre-Corporate EBITDA** 915 751 21.8% 3,069 2,213 38.7% *Not meaningful. **Non-GAAP measures referenced are detailed in the disclosures at the end of this release.

DALLAS, Nov. 09, 2018 (GLOBE NEWSWIRE) -- Wilhelmina International, Inc. (Nasdaq:WHLM) (“Wilhelmina” or the “Company”) today reported revenues of $19.2 million and net income of $0.2 million for the three months ended September 30, 2018, compared to revenues of $18.7 million and net income of $26 thousand for the three months ended September 30, 2017. For the nine months ended September 30, 2018, Wilhelmina reported revenues of $59.4 million and net income of $0.8 million compared to revenue of $56.1 million and net loss of $17 thousand for the nine months ended September 30, 2017. The increases in revenues when compared to the same periods of the prior year were primarily due to an increase in model bookings and contributions from new initiatives. Increased operating income was primarily the result of increases in service revenues and reduced operating expenses partially offset by higher model costs. As a result, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA also increased during the first nine months of 2018 compared to the same period of the prior year. Mark Schwarz, Executive Chairman of Wilhelmina, said, “Wilhelmina exhibited continued revenue growth for the third quarter in a row, growth in earnings, solid cash generation, improved working capital metrics and an ending cash balance of $5.2 million.”

William Wackermann, Chief Executive Officer of Wilhelmina, said, “I am inspired by the achievements of the Wilhelmina team as we continue to evolve and grow our iconic brand. In its third quarter, the company had steady performance in model bookings, along with momentum in our Studio and Aperture divisions. We remain on track to close the fiscal year successfully.”

Financial Results

Net income for the three and nine months ended September 30, 2018 was $0.2 million and $0.8 million, or $0.04 and $0.15 per fully diluted share, compared to net income of $26 thousand, or $0.00 per fully diluted share for the three months ended September 30, 2017 and net loss of $17 thousand or $0.00 per fully diluted share for the nine months ended September 30, 2017.

Pre-Corporate EBITDA was $0.9 million and $3.1 million for the three and nine months ended September 30, 2018, compared to $0.8 million and $2.2 million for the three and nine months ended September 30, 2017.

The following table reconciles reported net income under generally accepted accounting principles to EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and nine months ended September 30, 2018 and 2017.

Nine months Three months (in thousands) ended ended September September 30, 30, 2018 2017 2018 2017 ----- ---- ------- ---- Net (loss) income $ 208 $ 26 $ 797 $ (17) Interest expense 26 31 73 88 Income tax expense 30 61 233 147 Amortization and depreciation 252 232 727 672 ----- ---- ------- ---- EBITDA $ 516 $ 350 $ 1,830 $ 890 Foreign exchange loss 17 18 64 54 Loss from unconsolidated affiliate - 2 - 40 Share-based payment expense 84 145 280 412 ----- ---- ------- ---- Adjusted EBITDA $ 617 $ 515 $ 2,174 $ 1,396 Corporate overhead 298 236 895 817 ----- ---- ------- ---- Pre-Corporate EBITDA $ 915 $ 751 $ 3,069 $ 2,213 ----- ----- ------- -----

Changes in net income, EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA for the three and nine months ended September 30, 2018, when compared to the three and nine months ended September 30, 2017, were primarily the result of the following:

-- Revenues net of model costs decreased slightly for the three months ended September 30, 2018. For the nine months ended September 30, 2018, revenues net of model costs increased by 4.3% primarily due to an increase in core model bookings and new initiatives that contributed to growth during 2018; -- Salaries and service costs for the three and nine months ended September 30, 2018 were relatively stable; -- Office and general expenses decreased by 23.8% and 4.9% for the three and nine months ended September 30, 2018, primarily due to reduced legal fees, reduced bad debt expense, and reduced insurance expenses; -- Amortization and depreciation expense increased by 8.6% and 8.2% for the three and nine months ended September 30, 2018, primarily due to new equipment being placed in service in recent months; and -- Corporate overhead expenses increased by 26.3% and 9.5% for the three and nine months ended September 30, 2018, primarily due to higher stock exchange fees and SEC related legal costs.

During the first nine months of 2018, Wilhelmina repurchased an aggregate of 113,121 shares of its common stock under a previously approved stock repurchase program. The aggregate purchase price of $0.8 million was funded through internal cash flow and a $0.7 million term loan. As of September 30, 2018, the Company had repurchased a total of 1,203,491 shares and an additional 296,509 shares could yet be purchased under the Company’s stock repurchase program.

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) September December 30, 31, 2018 2017 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 5,160 $ 4,256 Accounts receivable, net of allowance for doubtful accounts of $1,913 and $2,171, 13,853 13,627 respectively Prepaid expenses and other current assets 287 180 - ------- - - ------- - Total current assets 19,300 18,063 - ------- - - ------- - Property and equipment, net of accumulated depreciation of $3,020 and $2,349, 2,661 3,039 respectively Trademarks and trade names with indefinite lives 8,467 8,467 Other intangibles with finite lives, net of accumulated amortization of $8,664 and 72 128 $8,608, respectively Goodwill 13,192 13,192 Other assets 117 137 - ------- - - ------- - TOTAL ASSETS $ 43,809 $ 43,026 - ------- - - ------- - LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 4,847 $ 3,985 Due to models 9,555 10,190 Term loan - current 554 524 - ------- - - ------- - Total current liabilities 14,956 14,699 - ------- - - ------- - Long term liabilities: Deferred income tax liability 534 521 Term loan - non-current 1,903 1,623 - ------- - - ------- - Total long term liabilities 2,437 2,144 - ------- - - ------- - Total liabilities 17,393 16,843 - ------- - - ------- - Shareholders’ equity: Common stock, $0.01 par value, 9,000,000 shares authorized; 6,472,038 shares issued at September 30, 2018 and December 31, 2017 65 65 Treasury stock, 1,203,491 and $1,090,370 at September 30, 2018 and December 31, (5,681 ) (4,893 ) 2017, at cost Additional paid-in capital 88,172 87,892 Accumulated deficit (56,088 ) (56,885 ) Accumulated other comprehensive income (loss) (52 ) 4 - ------- - - ------- - Total shareholders’ equity 26,416 26,183 - ------- - - ------- - TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 43,809 $ 43,026 - ------- - - ------- -

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the Three and Nine Months Ended September 30, 2018 and 2017 (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- -------------------- 2018 2017 2018 2017 -------- -------- -------- -------- Revenues: Revenues $ 19,143 $ 18,712 $ 59,425 $ 56,120 License fees and other income 10 6 40 34 - ------ - ------ - ------ - ------ Total revenues 19,153 18,718 59,465 56,154 Model costs 13,777 13,265 42,524 39,910 - ------ - ------ - ------ - ------ Revenues net of model costs 5,376 5,453 16,941 16,244 - ------ - ------ - ------ - ------ Operating expenses: Salaries and service costs 3,478 3,447 10,509 10,611 Office and general expenses 1,067 1,400 3,643 3,832 Amortization and depreciation 252 232 727 672 Corporate overhead 298 236 895 817 - ------ - ------ - ------ - ------ Total operating expenses 5,095 5,315 15,774 15,932 - ------ - ------ - ------ - ------ Operating income 281 138 1,167 312 - ------ - ------ - ------ - ------ Other expense: Foreign exchange loss (17) (18) (64) (54) Interest expense (26) (31) (73) (88) Loss from unconsolidated affiliate - (2) - (40) Total other expense (43) (51) (137) (182) - ------ - ------ - ------ - ------ Income before provision for income taxes 238 87 1,030 130 - ------ - ------ - ------ - ------ Provision for income taxes: (expense) benefit Current (80) (57) (220) (182) Deferred 50 (4) (13) 35 - ------ - ------ - ------ - ------ Income tax expense (30) (61) (233) (147) - ------ - ------ - ------ - ------ Net income (loss) $ 208 $ 26 $ 797 $ (17) - ------ - ------ - ------ - ------ Other comprehensive income (expense): Foreign currency translation income (expense) (24) 20 (56) 85 - ------ - ------ - ------ - ------ Total comprehensive income $ 184 $ 46 $ 741 $ 68 - ------ - ------ - ------ - ------ Basic net income per common share $ 0.04 $ 0.00 $ 0.15 $ 0.00 Diluted net income per common share $ 0.04 $ 0.00 $ 0.15 $ 0.00 Weighted average common shares outstanding-basic 5,309 5,382 5,353 5,382 Weighted average common shares outstanding-diluted 5,318 5,382 5,361 5,382

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the Three and Nine Months Ended September 30, 2018 and 2017 (In thousands)

Accumu lated Additiona Common Stock Treasury Stock l Accumulated Other Shares Amoun Shares Amount Paid-in Deficit Total t Capital Compre hensiv e Loss ------ ---- --------- ---------- -------- ----------- - ----- ---------- Balances at December 31, 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,336 $ (57,048 ) $ (50 ) $ 25,410 2016 Share based payment - - - - 124 - - 124 expense Net income to common - - - - - 9 - 9 shareholders Purchases of treasury - - - - - - - - stock Foreign currency - - - - - - 45 45 translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at March 31, 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,460 $ (57,039 ) $ (5 ) $ 25,588 2017 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 143 - - 143 expense Net loss to common - - - - - (52 ) - (52 ) shareholders Purchases of treasury - - - - - - - - stock Foreign currency - - - - - - 20 20 translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at June 30, 2017 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,603 $ (57,091 ) $ 15 $ 25,699 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 145 - - 145 expense Net income to common - - - - - 26 - 26 shareholders Purchases of treasury - - - - - - - - stock Foreign currency - - - - - - 20 20 translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at September 30, 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,748 $ (57,065 ) $ 35 $ 25,890 2017 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ -

Accumu lated Additiona Common Stock Treasury Stock l Accumulated Other Shares Amoun Shares Amount Paid-in Deficit Total t Capital Compre hensiv e Loss ------ ---- --------- ---------- -------- ----------- - ----- ---------- Balances at December 31, 6,472 $ 65 (1,090 ) $ (4,893 ) $ 87,892 $ (56,885 ) $ 4 $ 26,183 2017 Share based payment - - - - 109 - - 109 expense Net income to common - - - - - 225 - 225 shareholders Purchases of treasury - - (6 ) (36 ) - - - (36 ) stock Foreign currency - - - - - - 43 43 translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at March 31, 6,472 $ 65 (1,096 ) $ (4,929 ) $ 88,001 $ (56,660 ) $ 47 $ 26,524 2018 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 87 - - 87 expense Net income to common - - - - - 364 - 364 shareholders Purchases of treasury - - (7 ) (46 ) - - - (46 ) stock Foreign currency - - - - - - (75 ) (75 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at June 30, 2018 6,472 $ 65 (1,103 ) $ (4,975 ) $ 88,088 $ (56,296 ) $ (28 ) $ 26,854 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Share based payment - - - - 84 - - 84 expense Net income to common - - - - - 208 - 208 shareholders Purchases of treasury - - (100 ) (706 ) - - - (706 ) stock Foreign currency - - - - - - (24 ) (24 ) translation ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ - Balances at September 30, 6,472 $ 65 (1,203 ) $ (5,681 ) $ 88,172 $ (56,088 ) $ (52 ) $ 26,416 2018 ----- - -- ------ - - ------ - - ------ - ------- - - --- - - ------ -

WILHELMINA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW For the Nine Months Ended September 30, 2018 and 2017 (In thousands) (Unaudited) Nine Months Ended September 30, --------------------- 2018 2017 ------- - -------- - Cash flows from operating activities: Net income (loss): $ 797 $ (17 ) Adjustments to reconcile net income to net cash used in operating activities: Amortization and depreciation 727 672 Share based payment expense 280 412 Deferred income taxes 13 (35 ) Bad debt expense 70 128 Changes in operating assets and liabilities: Accounts receivable (296 ) 276 Prepaid expenses and other current assets (107 ) 560 Other assets 20 49 Due to models (635 ) (3,242 ) Accounts payable and accrued liabilities 862 (865 ) Contingent liability to seller - (97 ) - ----- - - ------ - Net cash (used in) provided by operating activities 1,731 (2,159 ) - ----- - - ------ - Cash flows from investing activities: Purchases of property and equipment (293 ) (600 ) - ----- - - ------ - Net cash used in investing activities (293 ) (600 ) - ----- - - ------ - Cash flows from financing activities: Purchases of treasury stock (788 ) - Proceeds from term loan 700 - Repayment of term loan (390 ) (374 ) - ----- - - ------ - Net cash used in financing activities (478 ) (374 ) - ----- - - ------ - Foreign currency effect on cash flows: (56 ) 85 - ----- - - ------ - Net change in cash and cash equivalents: 904 (3,048 ) Cash and cash equivalents, beginning of period 4,256 5,688 - ----- - - ------ - Cash and cash equivalents, end of period $ 5,160 $ 2,640 - ----- - - ------ - Supplemental disclosures of cash flow information: Cash paid for interest $ 71 $ 74 Cash refund of income taxes $ 10 $ 87

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA represent measures of financial performance that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“non-GAAP financial measures”). The Company considers EBITDA, Adjusted EBITDA and Pre-Corporate EBITDA to be important measures of performance because they:

-- are key operating metrics of the Company’s business; -- are used by management in its planning and budgeting processes and to monitor and evaluate its financial and operating results; and -- provide stockholders and potential investors with a means to evaluate the Company’s financial and operating results against other companies within the Company’s industry.

The Company’s calculation of non-GAAP financial measures may not be consistent with similar calculations by other companies in the Company’s industry. The Company calculates EBITDA as net income plus interest expense, income tax expense, and depreciation and amortization expense. The Company calculates “Adjusted EBITDA” as EBITDA plus foreign exchange gain/loss plus gain/loss from unconsolidated affiliate plus share-based payment expense and certain significant non-recurring items that the Company may include from time to time. The Company calculates “Pre-Corporate EBITDA” as Adjusted EBITDA plus corporate overhead expense, which includes director compensation, SEC compliance costs, audit and professional fees, and other public company costs.

Non-GAAP financial measures should not be considered as alternatives to net and operating income as an indicator of the Company’s operating performance or cash flows from operating activities as a measure of liquidity or any other measure of performance derived in accordance with generally accepted accounting principles.

Form 10-Q Filing

Additional information concerning the Company’s results of operations and financial position is included in the Company’s Form 10-Q for the second quarter ended September 30, 2018 filed with the Securities and Exchange Commission on November 9, 2018.

Forward-Looking Statements

This press release contains certain “forward-looking” statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company are based on the beliefs of the Company’s management as well as information currently available to the Company’s management. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar import, as they relate to the Company or Company management, are intended to identify forward-looking statements. Such forward-looking statements include, in particular, projections about the Company’s future results, statements about its plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. Additionally, statements concerning future matters such as gross billing levels, revenue levels, expense levels, and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or the Company’s future financial performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance, or achievements of its business or its industry to be materially different from those expressed or implied by any forward-looking statements. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. The Company does not undertake any obligation to publicly update these forward-looking statements. As a result, no person should place undue reliance on these forward-looking statements.

About Wilhelmina International, Inc. ( www.wilhelmina.com ):

Wilhelmina, and its other subsidiaries, is an international full-service fashion model and talent management service, specializing in the representation and management of leading models, celebrities, artists, photographers, athletes, and content creators. Established in 1967 by fashion model Wilhelmina Cooper, Wilhelmina is one of the oldest and largest fashion model management companies in the world. Wilhelmina is publicly traded on Nasdaq under the symbol WHLM. Wilhelmina is headquartered in New York and, since its founding, has grown to include operations in Los Angeles, Miami, London and Chicago. Wilhelmina also owns Aperture, a talent and commercial agency located in New York and Los Angeles. For more information, please visit www.wilhelmina.com and follow @WilhelminaModels.

CONTACT: Investor RelationsWilhelmina International, Inc.214-661-7488 ir@wilhelmina.com

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