Company Reports Double-Digit Quarterly Revenue Growth of 44% to $9.1 Million

Second Quarter 2016 GAAP Net Loss of less than ($0.1) million;
Non-GAAP Net Income of $2.1 million, or Nearly Double from Second Quarter 2015

Second Quarter Adjusted EBITDA Growth of 44% to of $2.7 million

Company Announces Successful Launch of IMNYC Isaac Mizrahi, H Halston, and Highline Collective
Brands Apparel at Lord & Taylor and Hudson’s Bay Department Stores

NEW YORK, Aug. 09, 2016 (GLOBE NEWSWIRE) Xcel Brands, Inc. (NASDAQ:XELB) (“Xcel” or the “Company”), a brand management and media company, today announced its financial results for the second quarter and six months ended June 30, 2016.

“We are pleased to report another quarter of double-digit top-line growth, and are also excited to announce that during the quarter we successfully launched the IMNYC Isaac Mizrahi, H Halston, and Highline Collective brands at Lord & Taylor and Hudson’s Bay department stores,” said Robert W. D'Loren, Xcel's Chairman and Chief Executive Officer. He further stated, “I am pleased with the historical and continued growth in our interactive television business. We are also focused on gaining market share in the bricks and mortar channel, and plan to continue to invest in our quick-time-response short lead time production platform to drive growth in this channel.”

Second Quarter 2016
Total revenue for the second quarter of fiscal 2016 increased 44% to $9.1 million, compared with $6.3 million for the prior year quarter.

GAAP net loss was less than ($0.1) million for the quarter ended June 30, 2016, or ($0.00) per share, compared with net income of $2.1 million, or $0.13 per share on a diluted basis, in the prior year quarter. After adjusting for certain cash and non-cash items, non-GAAP net income for the quarter ended June 30, 2016 was $2.1 million, or $0.11 per diluted share, compared with $1.1 million, or $0.07 per diluted share in the prior year quarter.

Adjusted EBITDA for the quarter ended June 30, 2016 increased by $0.8 million or approximately 44% to $2.7 million, compared with $1.9 million for the quarter ended June 30, 2015.

First Six Months of Fiscal 2016
Total revenue for the six months ended June 30, 2016 increased 36% to $17.5 million, compared with $12.9 million in the same period in 2015.

GAAP net loss was ($0.1) million for the six months ended June 30, 2016, or ($0.01) per share, compared with net income of $1.8 million, or $0.11 per share on a diluted basis, for the six months ended June 30, 2015. After adjusting for certain cash and non-cash items, non-GAAP net income for the six months ended June 30, 2016 was $3.4 million, or $0.17 per diluted share, compared with $2.8 million, or $0.18 per diluted share, for the same period in the prior year.

Adjusted EBITDA for the six months ended June 30, 2016 increased to $4.7 million from $4.1 million for the same period in the prior year.

See reconciliation tables below for non-GAAP metrics. These non-GAAP metrics may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to U.S. generally accepted accounting principles ("GAAP"). Any financial measure other than those prepared in accordance with GAAP should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

The Company's balance sheet at June 30, 2016 remains strong, with stockholders' equity of $102.3 million as of June 30, 2016, cash and cash equivalents of approximately $13.5 million, and adjusted working capital (which excludes obligations payable in stock) of approximately $16.5 million.

Conference Call and Webcast
The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details at 5:00 p.m. Eastern Time on Tuesday, August 9, 2016. A webcast of the conference call will be available live on the Investor Relations section of Xcel's website at www.xcelbrands.com. Interested parties unable to access the conference call via the webcast may dial 877-681-3378. A replay of the conference call will be available on the Company website for 30 days following the event and can be accessed at 877-870-5176 using replay pin number 3010924.

About Xcel Brands
Xcel Brands, Inc. (NASDAQ:XELB) is a brand management and media company engaged in the design, production, licensing, marketing, and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded by Robert W. D’Loren in 2011 with a vision to reimagine shopping, entertainment, and social as one. Xcel owns and manages the Isaac Mizrahi, Judith Ripka, H Halston, C. Wonder, and Highline Collective brands, pioneering an omnichannel sales strategy which includes the promotion and sale of products under its brands through direct-response television, internet, brick and mortar retail, and e-commerce channels. Headquartered in New York City, Xcel Brands is led by an executive team with significant production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies.  With a team of over 100 professionals focused on design, production, and digital marketing, Xcel maintains control of product quality and promotion across all of its product categories and distribution channels.  

Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "ongoing," "could," "estimates," "expects," "intends," "may," "appears," "suggests," "future," "likely," "goal," "plans," "potential," "projects," "predicts," "seeks," "should," "would," "guidance," "confident" or "will" or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the "Risk Factors" section and elsewhere in the Company's Annual Report on form 10-K for the year ended December 31, 2015 and its other filings with the SEC, which may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.