iMedia Brands, Inc.

During the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Tom Zielecki, Senior Vice President, Chief Financial Officer for iMedia Brands. Thank you. You may begin.

Good morning, and thank you for joining us. We issued our Q2 earnings release earlier this morning. If you do not have a copy, you may access it through the new section of our IR website at imediabrands.com. This release is also an exhibit to the Form 8K we filed this morning. A webcast of the call will be available via the link provided in today's press release, as well as on the IR section of our website. Some of the statements made during this call are considered forward-looking and are subject to significant risks and uncertainties. These statements reflect our expectations about future operating and financial performance and speak only as of today's date. We undertake no obligation to update or revise these forward-looking statements. We believe the expectations reflected in our forward-looking statements are reasonable, but give no assurance such expectations or any of our forward-looking statements will prove to be correct. For additional information, please refer to the cautionary statement in today's earnings release and our SEC filings. Finally, we will make references to non-GAAP measures on this call, such as adjusted EBITDA. Please refer to our earnings release for further information about these measures, including reconciliations to the most comparable gap measures where possible with reasonable efforts. Now, I would like to turn the call over to the CEO of iMedia Brands, Tim Peterman.

Tim? Thank you, Tom, and good morning, everyone. Although we did have a few short-term revenue bumps in the road that I will discuss in a moment, our uninterrupted progress in building our four core brands that resulted in a 38% growth And our 12-month customer file has made me even more bullish on the sturdiness of our growth strategy in choppy economic times and on our abilities to achieve our long-term goals. For example, during Q2, our television networks launched 20 exciting new brands, and many of these new brands aired on more than one of our television networks. A few examples are Shop HQ launched Glamazon Beauty with Kim Baker, our first fully inclusive color cosmetics line. Kim is the founder of Glamazon and a celebrity makeup artist whose work has been seen on top TV broadcasts across the globe. Shop HQ Health launched LiveVac, an FDA-registered Class II medical device used as a rescue device when in a choking emergency. And we've sold over 10,000 units across all our networks this quarter. Shop Bulldog TV launched NFL Watches by Invicta, the fourth year in a row for our exclusive partnership with the NFL and Invicta. This year, we featured eight new NFL watches in classic Invicta collections, Pro Diver, Coalition Forces, and Bolt. 123TV launched Talika, a well-established French beauty brand for skin, bath, and body. It premiered in July and was instantly a big performer for the TV network and already has multiple shows returning in August. Our Christopher and Banks business outperformed our expectations again, generating over $23 million in net sales for the 2022 spring season. a 79% growth compared to the 2021 season. We believe this success is driven by its popular television programming on ShopHQ that creates the awareness that drives strong performance at the five CB retail store locations and on its digital platform. Our online advertising business, IMDS, also continues to perform well from a revenue and profitability perspective. In addition, IMDS just successfully renewed 10 of its top cable and ISP clients for their continued usage of IMDS's hosted website products. To provide some perspective on the scale of these renewals, these deals collectively secure IMDS as the exclusive provider of website hosting and advertising services for these cable and ISP providers to their 9.5 million U.S. homes that on average generate about 3 million monthly unique visitors. In terms of those short-term revenue bumps in the road that I mentioned earlier, let's talk about each. Regarding the dish renewal, remember, we chose to not renew dish because we couldn't agree on terms. It didn't happen to us. We decided the short-term hit to the top line and the less-so hit to the bottom line was worth the pain to achieve our strategic goal of increasing ShopHQ's overall profitability by replacing less profitable carriage deals. Now, that being said, DISH has been a great partner of ours for over 20 years, and I expect together we will figure out agreeable renewal terms in the fourth quarter. And if we don't, then ShopHQ will find replacement carriage that does achieve its profitability targets, and DISH will fill our spot with another television network. Regarding that second revenue bump, it is a consequence of our relentless focus on capital allocation and simplification, or as Churchill said, Out of intense complexities, intense simplicities emerge. Every day here at iMedia, we work to simplify our goals and processes to improve our yield as a team. This means we will often pivot our tactics to improve, and sometimes we decide it's best to simply exit. It doesn't mean these businesses failed financially or were bad ideas. Most often we exit because the resources and time to develop the businesses further didn't make sense, or is distracting our attention from our core four flagship brands. To that end, during Q2, we exited four small businesses for these reasons. Our I3PL business, which was a pick, pack, and ship service we offered to Shop HQ vendors and third parties. Shop Jewelry HQ and Leventa, our two smallest television networks. And thecloseout.com and ourgalleria.com, which were our two online marketplaces. Regarding that last speed bump, the Russian conflict, yes, this is one that is not in our control, but we also expect it to be short-term. We believe it's increasingly impacting our near-term sales opportunity for 123TV in Germany, which is our nationally distributed television network to Germany's 40 million-plus television homes. For perspective, the German economy is heavily export-oriented, the largest exporter in Europe and the third largest in the world. So the continuing logistic delays and challenges that you see today are disproportionately impacting the German economy. In addition, Germany exports 0.8% of its GNP to Russia, and that is estimated to decline about 80% because of these sanctions. Germany is also strong in industries that use a lot of energy, for example, automobile manufacturing, and those businesses are suffering from the rising energy prices in Germany. We believe these economic pressures, coupled with an 8.5% inflation rate and the general concern about the war not far away, is really impacting the German consumer spending on discretionary spending, which is what we do at 123TV. That being said, our 123TV team in Germany is moving at a lightning pace, implementing synergies with ShopHQ, continuing to build their gamification engagement with consumers. And also, equally important, building our auction shopping widget that we plan to soft launch this fall to disrupt both the television retailing marketplace here in the U.S. and the digital shopping for travel services here in the U.S. Before I turn it over to Tom to review our financials and provide our guidance for the third quarter, I, of course, must quote Churchill once more. If you have an important point to make, don't try to be subtle or clever. Use a pile driver. Hit the point once, then come back and hit it again. So here I go. We believe our ability here at iMedia to grow in these uncertain times centers on our unique business strategy designed to grow three separate revenue streams, e-commerce, advertising, and services, each focused on the same core customer demographic that begins at the age of 50. These three revenue streams monetize our delivery of compelling interactive entertainment to our boomer customer on all customer platforms. linear television, connected TV, online, mobile, social, brick-and-mortar retail. And this helps us as a company traverse pain points that may arise in any one revenue stream, like logistics costs in e-commerce. And it also allows us to capture opportunities that may arise in another revenue stream, like first-party data and digital advertising. With that, I will turn the call over to Tom. Tom?