The third quarter financial results of Wilhelmina International Inc (OTC:WHLM) revealed some good numbers. Yet, not good enough to send WHLM stock into the stratosphere.
On Nov 14, WHLM submitted its third 10-Q for 2011. The company took the opportunity to summarize the main points of the report into a press release. In a nutshell, the PR laid heavy emphasis on WHML’s increased total revenues not only on a three-month, but also on a nine-month basis. Instead of giving WHLM stock a boost on the subsequent session, however, the company’s shares lost 7% of their value barely shifting 54 thousand shares.
Yesterday, by contrast, WHLM closed the session at $0.189, going up 2.7% without any external backup. Moreover, WHLM was so heavily traded that more than 657 thousand shares of common WHLM stock changed hands by the end of the session, which is the sixth highest turnover WHLM has generated for the last six months.
A closer look at WHLM’s latest 10-Q reveals:
- cash reserves in excess of $3.7 million;
- working capital deficit of approx. $1.7 million;
- $13.25 million in revenue as opposed to $11.8 million a/o Sep. 30, 2010;
- net income of $63 thousand vs. $408K accumulated in Q3 of 2010.
Currently, the company’s main financial problem appears to be its ARs which now exceed $10 million. If WHLM fails to collect them on time, it will have trouble honoring its financial obligations to models and other related parties.
