 Highest Q2 Net Income in 20 Years Highest Quarterly Adjusted EBITDA in Companys HistoryMINNEAPOLIS, Aug. 18, 2020 GLOBE NEWSWIRE -- iMedia Brands, Inc. the Company NASDAQ: IMBI today announced results for the second quarter ended August 1, 2020. Second Quarter 2020 Summary Recent Highlights Net Income was 1.1 million, compared to a net loss of 10.2 million for Q2 prior year. Adjusted EBITDA was 10.7 million, compared to 0.2 million for Q2 prior year. Net sales were 124.5 million, a decline of 5.3 compared to Q2 prior year. Gross margin was 37.2, an improvement of 90-basis points compared to Q2 prior year. The quarterly Active Customer file grew 1 year-over-year, which was the first time in four years the Companys active customer file posted growth for a quarter. ShopHQ launched 25 exciting new brands in Q2 and 15 in Q1, representing the highest number of new product launches for any six-month period in the Companys 30-year history. Revenue for these innovative new product launches generated 19 of the Companys total revenue for the first two quarters of 2020, which was the highest percent of new product revenue during any six-month period in the Companys 30-year history. Q2 new product launches included: Fashion Accessories: GH Bass Footwear; DKNY Fashions; Karl Lagerfeld Paris; Guess Handbags; Fossil Handbags; Oakley Sunglasses; Dolce Gabbana Eyewear; Elan Fashions; and Heather Dubrows Closet. Beauty: Gucci Fragrances; Prada Fragrances; Estee Lauder Fragrances; Melanie Mills Skincare; and Foreo Beauty Tools. Home: Lladro Collectibles; Spode Dinnerware; SeaBear Crab; Glendas Kitchen; Coin Shoppe; Tiller and Hatch; and Wagner Home Improvement. Health: Ladders Nutrition by Lebron James Arnold Schwarzenegger; Sankom Shapewear; Bee Alive Royal Jelly; Radiant Greens; and Foligain Hair Health. ShopHQs increasing viewership trends continued to be driven by its static programming calendar strategy introduced in the final quarter of 2019. For example, Fashion Talk with Fatima Kathy on Mondays and Thursdays, and Invicta Collectors Room on Thursdays, both achieved double-digit viewership growth year-over-year in Q2.CEO Commentary One year ago, we defined a new innovative interactive media strategy and began to implement it within a leaner, more entrepreneurial culture, said Tim Peterman, CEO of iMedia Brands. Todays financial report card reflects that success smarter decision-making by a smaller group of entrepreneurial employees who love operational discipline and calculated risk taking.Second Quarter 2020 ResultsSUMMARY RESULTS AND KEY OPERATING METRICS Millions, except average selling price and EPS Q2 2020 812020 Q2 2019 832019 Change YTD 2020 812020 YTD 2019 832019 Change Net Sales124.5 131.5 5.3 220.3 263.0 16.2 Gross Margin 37.2 36.3 90 bps 37.1 32.3 480 bps Adjusted EBITDA10.7 0.2 4,987 9.1 8.3 NA Net Income Loss1.1 10.2 NA 5.8 31.2 81 EPS0.11 1.35 NA 0.65 4.36 85 Net Shipped Units 000s 1,763 1,750 1 3,111 3,649 15 Average Selling Price ASP63 68 7 63 65 3 Return Rate 11.9 19.8 790 bps 14.6 20.0 540 bps ShopHQ Digital Net Sales 50.1 52.7 260 bps 51.4 52.6 120 bps Total Customers - 12 Month Rolling 000s 1,014 1,147 12 NA NA NA of ShopHQ Net Merchandise Sales by Category Jewelry Watches 36 48 40 46 Home Consumer Electronics 11 19 13 19 Beauty Wellness 43 19 35 19 Fashion Accessories 10 14 12 16 Total 100 100 100 100 Liquidity and Capital Resources As of August 1, 2020, total unrestricted cash was 18.7 million compared to 16.2 million at the end of the first quarter of fiscal 2020. The Company also had an additional 9.4 million of unused availability on its revolving credit facility.In light of the macroeconomic conditions and COVID-19, the Company is closely monitoring impacts and potential future impacts to its operations, supply chain, liquidity or financial results.Outlook In Q3 and Q4, we believe the Company will post Adjusted EBITDA in the mid-to-high single digit millions. We also continue to believe that the pandemics effect on the Company will be reduced because we have a direct-to-consumer revenue model that serves customers who seek to buy goods from the comfort of their own homes, and we are not dependent on the traditional advertising dollars from national advertisers who are impacted by the continued disruption of the brick and mortar shopping experience. Conference CallThe Company will hold a conference call today at 8:30 a.m. Eastern time to discuss its second quarter 2020 results.Date: Tuesday, August 18, 2020 Toll-free dial-in number: 877 407-9039 International dial-in number: 201 689-8470 Conference ID: 13707534Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949 574-3860.The conference call will be broadcast live and available for replay here and via the investor relations section of the iMedia Brands website at replay of the conference call will be available after 11:30 a.m. Eastern time on the same day through September 1, 2020.Toll-free replay number: 844 512-2921 International replay number: 412 317-6671 Replay ID: 13707534About iMedia Brands, Inc.iMedia Brands, Inc. Nasdaq: IMBI is a leading interactive media company that manages a growing portfolio of niche lifestyle television networks, niche advertisers and complementary media commerce services. Its brand portfolio spans multiple business models and product categories and includes ShopHQ, Bulldog Shopping Network, ShopHQ Health, Shop LaVenta, Float Left Interactive and Media Commerce Services. Please visit for more investor information.Contacts: Investors: Gateway Investor Relations Cody Slach 949 574-3860Media: 800 938-9707 iMEDIA BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS In thousands except share and per share data August 1, February 1, 2020 2020 Unaudited ASSETS Current assets: Cash18,703 10,287 Accounts receivable, net 58,137 63,594 Inventories 61,627 78,863 Current portion of television distribution rights, net 18,221 - Prepaid expenses and other 7,013 8,196 Total current assets 163,701 160,940 Property and equipment, net 44,882 47,616 Television distribution rights, net 7,263 - Other assets 3,931 4,187 Total Assets219,777 212,743 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Accounts payable79,812 83,659 Accrued liabilities 36,839 40,250 Current portion of television distribution rights obligation 21,221 - Current portion of long term credit facility 2,714 2,714 Current portion of operating lease liabilities 278 704 Deferred revenue 188 141 Total current liabilities 141,052 127,468 Other long term liabilities 9,273 335 Long term credit facilities 52,006 66,246 Total liabilities 202,331 194,049 Commitments and contingencies Shareholders equity: Preferred stock, .01 par value, 400,000 shares authorized; zero shares issued and outstanding - - Common stock, .01 par value, 29,600,000 and 14,600,000 shares authorized; as of August 1, 2020 and February 1, 2020; 10,141,649 and 8,208,227 shares issued and outstanding as of August 1, 2020 and February 1, 2020 101 82 Additional paid-in capital 457,340 452,833 Accumulated deficit 439,995 434,221 Total shareholders equity 17,446 18,694 Total Liabilities and Shareholders Equity219,777 212,743 iMEDIA BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited In thousands, except share and per share data For the Three-Month Periods Ended For the Six-Month Periods Ended August 1, August 3, August 1, August 3, 2020 2019 2020 2019 Net sales124,515 131,503 220,349 263,024 Cost of sales 78,223 83,777 138,500 178,005 Gross profit 46,292 47,726 81,849 85,019 Margin 37.2 36.3 37.1 32.3 Operating expense: Distribution and selling 31,875 43,521 65,610 90,385 General and administrative 5,104 5,532 10,471 12,401 Depreciation and amortization 6,842 2,502 8,723 4,181 Restructuring costs - 5,165 209 5,165 Executive and management transition costs - 310 - 2,341 Total operating expense 43,821 57,030 85,013 114,473 Operating IncomeLoss 2,471 9,304 3,164 29,454 Other income expense: Interest income - 6 1 11 Interest expense 1,402 864 2,581 1,694 Total other expense 1,402 858 2,580 1,683 IncomeLoss before income taxes 1,069 10,162 5,744 31,137 Income tax provision 15 15 30 30 Net IncomeLoss1,054 10,177 5,774 31,167 Net IncomeLoss per common share0.11 1.35 0.65 4.36 Net IncomeLoss per common share ---assuming dilution0.11 1.35 0.65 4. 