IMedia Brands : Presentation Q3 2021

Third Quarter 2021 Supplemental Financial Data

Safe Harbor

This document may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact, including statements regarding rebranding, savings from cost reductions, expected changes in the merchandise mix and its impact, expectations arising from our partnership with Shaquille O'Neal, plans for LaVenta, expected advantages to pursue restructuring and operational changes, guidance, industry prospects, or future results of operations or financial position are forward-looking. The Company often use words such as anticipates, believes, estimates, expects, intends, seeks, predicts, hopes, should, plans, will and similar expressions to identify forward-looking statements. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): variability in consumer preferences, shopping behaviors, spending and debt levels; the general economic and credit environment, including COVID-19; interest rates; seasonal variations in consumer purchasing activities; the ability to achieve the most effective product category mixes to maximize sales and margin objectives; competitive pressures on sales and sales promotions; pricing and gross sales margins; the level of cable and satellite distribution for the Company's programming and the associated fees or estimated cost savings from contract renegotiations; the Company's ability to establish and maintain acceptable commercial terms with third-party vendors and other third parties with whom the Company has contractual relationships, and to successfully manage key vendor and shipping relationships and develop key partnerships and proprietary and exclusive brands; the ability to manage operating expenses successfully and the Company's working capital levels; the ability to remain compliant with the Company's credit facilities covenants; customer acceptance of the Company's branding strategy and its repositioning as a video commerce company; the ability to respond to changes in consumer shopping patterns and preferences, and changes in technology and consumer viewing patterns; changes to the Company's management and information systems infrastructure; challenges to the Company's data and information security; changes in governmental or regulatory requirements; including without limitation, regulations of the Federal Communications Commission and Federal Trade Commission, and adverse outcomes from regulatory proceedings; litigation or governmental proceedings affecting the Company's operations; significant events (including disasters, weather events or events attracting significant television coverage) that either cause an interruption of television coverage or that divert viewership from its programming; disruptions in the Company's distribution of its network broadcast to customers; the Company's ability to protect its intellectual property rights; our ability to obtain and retain key executives and employees; the Company's ability to attract new customers and retain existing customers; changes in shipping costs; expenses related to the actions of activist or hostile shareholders; the Company's ability to offer new or innovative products and customer acceptance of the same; changes in customer viewing habits of television programming; and the risks identified under Item 1A(Risk Factors) in the Company's most recently filed Form 10-K and any additional risk factors identified in its periodic reports since the date of such Form 10-K. More detailed information about those factors is set forth in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. the Company's is under no obligation (and expressly disclaim any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Adjusted EBITDA

EBITDA represents net income (loss) for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. The Company defines Adjusted EBITDA as EBITDA excluding non-operating gains (losses); executive and management transition costs; restructuring costs; non-cash impairment charges and write downs; transaction, settlement, and integration costs, net; rebranding costs; and non-cashshare-based compensation expense. The Company has included the "Adjusted EBITDA" measure in its EBITDA reconciliation in order to adequately assess the operating performance of its television and online businesses and in order to maintain comparability to its analyst's coverage and financial guidance, when given. Management believes that the Adjusted EBITDA measure allows investors to make a meaningful comparison between its business operating results over different periods of time with those of other similar companies. In addition, management uses Adjusted EBITDA as a metric to evaluate operating performance under the Company's management and executive incentive compensation programs. EBITDA and Adjusted EBITDA are both non- GAAP measures and should not be construed as an alternative to operating income (loss), net income (loss) or to cash flows from operating activities as determined in accordance with generally accepted accounting principles ("GAAP") and should not be construed as a measure of liquidity. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of the comparable GAAP measure, net income (loss) to Adjusted EBITDA in this presentation.

2

Data in this presentation may be unaudited.

Consolidated Income Statement

		Q3		Q2		Q1		Total		Q4		Q3		Q2		Q1		Total		Q4		Q3		Q2		Q1
(In thousands, except per share data)		2021		2021		2021		2020		2020		2020		2020		2020		2019		2019		2019		2019		2019
Net Sales	$	130,681	$	113,442	$	113,203	$	454,171	$	124,797	$	109,025	$	124,515	$	95,834	$	501,822	$	123,639	$	115,159	$	131,503	$	131,521
Cost of Sales		76,260		65,456		67,196		287,118		80,407		68,211		78,223		60,277		338,185		86,607		73,573		83,777		94,228
Gross Profit		54,421		47,986		46,007		167,053		44,390		40,814		46,292		35,557		163,637		37,032		41,586		47,726		37,293
Gross Profit %		41.6%		42.3%		40.6%		36.8%		35.6%		37.4%		37.2%		37.1%		32.6%		30.0%		36.1%		36.3%		28.4%
Operating Expenses:
Distribution and selling		39,302		35,357		34,247		129,920		32,820		31,490		31,875		33,735		170,587		41,870		38,332		43,521		46,864
General and administrative		10,747		7,387		6,435		20,336		5,178		4,687		5,104		5,367		25,611		7,795		5,415		5,532		6,869
Depreciation and amortization		9,740		7,611		7,375		24,022		7,322		7,977		6,842		1,881		8,057		1,823		2,053		2,502		1,679
Executive & Mgmt transition costs		-				-		-		-		-		-		-		2,741		313		87		310		2,031
Restructuring costs		634				-		715		451		55		-		209		9,166		2,485		1,516		5,165		-
Total operating expense		60,423		50,355		48,057		174,993		45,771		44,209		43,821		41,192		216,162		54,286		47,403		57,030		57,443
Operating income/(loss)		(6,002)		(2,369)		(2,050)		(7,940)		(1,381)		(3,395)		2,471		(5,635)		(52,525)		(17,254)		(5,817)		(9,304)		(20,150)
Other income (expense):
Interest income/(expense)		(3,475)		(1,342)		(1,312)		(5,234)		(1,316)		(1,338)		(1,402)		(1,178)		(3,760)		(1,167)		(910)		(858)		(825)
Total other income/(expense)		(3,475)		(1,996)		(1,312)		(5,234)		(1,316)		(1,338)		(1,402)		(1,178)		(3,760)		(1,167)		(910)		(858)		(825)
Income tax benefit (provision)		(15)		(15)		(15)		(60)		(15)		(15)		(15)		(15)		(11)		33		(14)		(15)		(15)
Net income/(loss)		(9,492)		(4,380)		(3,377)		(13,234)		(2,712)		(4,748)		1,054		(6,828)		(56,296)		(18,388)		(6,741)		(10,177)		(20,990)
Less: Net loss attributable to non-controlling interest		-		(131)		(150)		-		-		-		-		-		-		-		-		-		-
Net income/(loss) attributable to shareholders	$	(9,492)	$	(4,249)	$	(3,227)	$	(13,234)	$	(2,712)	$	(4,748)	$	1,054	$	(6,828)	$	(56,296)	$	(18,388)	$	(6,741)	$	(10,177)	$	(20,990)
EBITDA, as adjusted	$	10,093	$	8,312	$	8,136	$	23,913	$	8,398	$	6,428	$	10,734	$	(1,647)	$	(18,391)	$	(9,142)	$	(986)	$	211	$	(8,474)
Weighted average number of common shares outstanding (000's)		21,503		19,102		15,621		10,746		12,983		12,178		9,532		8,291		7,462		7,990		7,577		7,550		6,732
Net income/(loss) per common share	$	(0.44)	$	(0.22)	$	(0.21)	$	(1.23)	$	(0.21)	$	(0.39)	$	0.11	$	(0.82)	$	(7.54)	$	(2.30)	$	(0.89)	$	(1.35)	$	(3.12)

3

Consolidated Balance Sheet

(In thousands)		Q3			Q2			Q1			Q4			Q3			Q2			Q1			Q4
Current assets:		2021					2021			2021			2020			2020			2020			2020			2019
Cash & restricted cash equivalents	$	53,519			$	23,110	$	14,946	$	15,485	$	18,962	$	18,703	$	16,205	$	10,287
Accounts receivable, net		66,948					64,324			56,601			61,951			53,539			58,137			54,817			63,594
Inventories		92,001					76,735			74,522			68,715			71,666			61,627			63,954			78,863
Current portion of television broadcast rights, net		21,349					24,972			17,364			19,725			15,420			18,221			16,178			-
Prepaid expenses and other		15,922					15,027			11,722			7,853			7,364			7,013			7,274			8,196
Total current assets		249,740					204,168			175,155			173,729			166,951			163,701			158,428			160,940
Property and equipment, net		44,932					44,593			43,441			41,988			43,560			44,882			46,186			47,616
Long Term Television broadcast rights, net		41,865					46,234			4,230			7,028			3,875			7,263			5,803			-
Other assets		48,930					49,851			8,975			3,892			4,413			3,931			4,321			4,187
	$	385,467			$	344,846	$	231,801	$	226,637	$	218,799	$	219,777	$	214,738	$	212,743
Current liabilities:
Accounts payable	$	62,234			$	58,535	$	54,941	$	77,995	$	81,168	$	79,812	$	79,607	$	83,659
Accrued liabilities and other		41,179					33,531			45,177			32,898			31,664			40,019			41,011			43,809
Current portion of television broadcast rights obligation		25,937					29,441			26,141			29,173			21,478			21,221			14,894			-
Total current liabilities		129,350					121,507			126,259			140,066			134,310			141,052			135,512			127,468
Other long term liabilities		59,146					64,157			6,814			8,855			5,619			9,273			9,646			335
Long term debt		46,650					73,919			49,995			50,666			49,836			52,006			55,676			66,246
8.50% Senior Secured Notes		73,768
Total liabilities		308,914					259,583			183,068			199,587			189,765			202,331			200,834			194,049
Common stock, preferred stock and warrants		213					212			164			130			130			101			90			82
Additional paid-in capital		537,987					536,835			495,972			474,375			473,647			457,340			454,863			452,833
Accumulated deficit		(464,424)					(454,932)			(450,683)			(447,455)			(444,743)			(439,995)			(441,049)			(434,221)
Accumulated other comprehensive loss		(371)
Total shareholders' equity		73,405					82,115			45,453			27,050			29,034			17,446			13,904			18,694
Equity of the Non-Controlling Interest		3,148					3,148			3,280			-			-			-			-			-
Total Equity		76,553					85,263			48,733			27,050			29,034			17,446			13,904			18,694
Total Liabilities and Shareholders' Equity	$	385,467			$	344,846	$	231,801	$	226,637	$	218,799	$	219,777	$	214,738	$	212,743

4

Consolidated Adjusted EBITDA Reconciliation

		Q3		Q2		Q1		Total		Q4		Q3		Q2		Q1		Total		Q4		Q3		Q2		Q1
		2021		2021		2021		2020		2020		2020		2020		2020		2019		2019		2019		2019		2019
(In thousands)
Net income (loss) attributable to shareholders	$	(9,492)	$	(4,249)	$	(3,227)	$	(13,234)	$	(2,712)	$	(4,748)	$	1,054	$	(6,828)	$	(56,296)	$	(18,388)	$	(6,741)	$	(10,177)	$	(20,990)
Adjustments:
Depreciation and amortization		10,677		8,562		8,317		27,978		8,281		8,952		7,840		2,905		12,014		2,822		3,052		3,511		2,629
Interest income		(85)		(39)		(1)		(3)		(1)		(1)		-		(1)		(17)		(2)		(4)		(6)		(5)
Interest expense		3,551		1,381		1,313		5,237		1,317		1,339		1,402		1,179		3,777		1,169		914		864		830
Income taxes		15		15		15		60		15		15		15		15		11		(33)		14		15		15
EBITDA (as defined)		4,666		5,670		6,417		20,038		6,900		5,557		10,311		(2,730)		(40,511)		(14,432)		(2,765)		(5,793)		(17,521)
A reconciliation of EBITDA to Adjusted EBITDA is as follows:
EBITDA (as defined)		4,666		5,670		6,417		20,038		6,900		5,557		10,311		(2,730)		(40,511)		(14,432)		(2,765)		(5,793)		(17,521)
Less:
Executive and management transition costs		-		-		-		-		-		-		-		-		2,741		313		87		310		2,031
Inventory impairment write down		-		-		-		-		-		-		-		-		6,050		-		-		-		6,050
Restructuring costs		632		-		-		715		451		55		-		209		9,166		2,485		1,516		5,165		-
Rebranding costs		-		-		-		-		-		-		-		-		1,265		473		554		238		-
One-time customer concessions		-		-		341		-		-		-		-		-		-		-		-		-		-
Loss on debt extinguishment		9		654		-		-		-		-		-		-		-		-		-		-		-
Transaction, settlement and integration costs, net		3,837		1,220		700		1,200		314		312		315		259		694		1,498		(804)		-		-
Non-cashshare-based compensation expense		949		758		678		1,960		733		504		108		615		2,204		521		426		291		966
Adjusted EBITDA	$	10,093	$	8,312	$	8,136	$	23,913	$	8,398	$	6,428	$	10,734	$	(1,647)	$	(18,391)	$	(9,142)	$	(986)	$	211	$	(8,474)

5