Market Overview

Level Brands Reports 79% Year-over-Year Sales Growth and $0.03 EPS for Q3

  • Total Net Sales up 105% for the nine-months ended June 30 compared
    to same period 2017
  • Gross Profit as a Percentage of Net Sales was 65.4% in Q3 and 73.3%
    for the nine months ended June 30
  • Net Income of $206,074 in Q3 and $477,542 for the nine-months ended
    June 30 vs. losses in year ago periods

Level Brands, Inc. (NYSE:LEVB), an innovative brand management
and licensing company that provides bold, unconventional, and socially
responsible branding for leading businesses, today announced financial
and operating results for its third quarter and nine months ended June
30, 2018.


  • Total net sales increased 79% and 105% to $3.2 million and $7.0
    million, respectively, for the three and nine-month periods ended June
    30, 2018 from the comparable periods in fiscal 2017.
  • Gross profit as a percentage of net sales was 65.4% for the three
    months ended June 30, 2018. For the nine-month period, gross profit as
    a percentage of net sales was 73.3%.
  • Net income attributable to common shareholders improved 197.8% to
    $206,074 in the three months ended June 30, 2018 from the comparable
    period in fiscal 2017. For the nine-month period, net income improved
    134.1% to $477,542, up from a loss of $1.4 million in the prior-year
    comparable period.

"We're pleased to report another quarter of profitability," stated
Martin A. Sumichrast, Chairman and CEO of Level Brands. "While we
continue to generate strong year-over-year revenue growth, it's
important to note the royalty components of many of the licensing deals
signed this year have yet to be generated and therefore are not
reflected in our reported numbers. As we execute on these agreements and
continue to sign more clients, our pipeline of potential future
royalties grows exponentially, and with no inventory and tight cost
controls, we believe our high margin operation should see much of this
reach our bottom line, which should lead to significant shareholder
value creation."

"We believe leveraging the kathy ireland® Worldwide ‘blueprint' for IP
development allows us economies of scale, which underpins our ability to
bring virtually unlimited products and services of quality through the
appropriate distribution channels to meet the demands of our targeted
customers. With current executed contracts encompassing products in
fashion, accessories, beverages, personal care, health care, and
spirits, which are already in development or available at brick and
mortar stores and online retailers, we believe we have the right
foundation for sustained success and growth," continued Mr. Sumichrast.


  • Signed a 10-year, multimillion-dollar cannabidiol (CBD) products
    license deal with Isodiol International Inc. (CSE: ISOL)
    (FSE: LB6A.F)
  • Isodiol launched first five new CBD kathy ireland® Health & Wellness
    branded products as part of Isodiol license agreement
  • Brought together Isodiol and SG Blocks, another Level Brands' client,
    to roll-out KURE Corp.'s specialty Vape Pod™ stores
  • Signed five-year licensing agreement with Gravocore fitness system,
    launched in 2017 in an exclusive partnership with Amazon
  • Partnered with BMG, a multinational record label and the world's
    fourth-largest music-publishing company, to launch new record label
    with three project agreement
  • Signed seven-year licensing agreement with Boston Therapeutics to
    market its diabetes supplement, Sugardown®; deal generates $850,000 in
    upfront fees plus royalties on gross sales
  • Party to a three-year licensing agreement with Lamps Plus to showcase
    artwork of world-renowned neo-pop artist Romero Britto
  • Damiva launched 100% natural women's personal care products into
    health food stores with kathy ireland® Worldwide
  • Signed a five-year licensing deal with Dynasty Group USA, one of the
    largest American-owned manufacturers of high-quality, cruelty-free
    cosmetic brushes
  • Signed a licensing agreement with Society Hill Spirits for new Beauty
    & Pin Ups vodka line
  • Opened corporate office and design studio in Los Angeles

"I'm very proud of what Level Brands has accomplished in 2018,"
continued Mr. Sumichrast. "Our performance reflects the strong
foundation that Level has laid with the strength of our team. By
leveraging the expertise and talent of the kathy ireland® Worldwide
executive team, we believe Level Brands has a distinct competitive
advantage in securing strategic licenses and joint venture partnerships
for our clients, positively impacting our ability to continue to grow
the portfolio of brands we manage and represent. We're excited for what
the future holds and believe we are ideally positioned to capitalize on
multi-billion-dollar opportunities in millennial men's lifestyle markets
and the health and wellness arena for women and their families at every

Tuesday, August 14, 2018, 9:00 a.m. Eastern Time
Domestic:     1-877-451-6152
International: 1-201-389-0879
Conference ID: Level Brands
Replay – Available through August 28, 2018
Domestic: 1-844-512-2921
International: 1-412-317-6671
Conference ID: 13682173

About Level Brands, Inc. (

Level Brands is an innovative brand management and licensing company
that provides bold, unconventional, and socially responsible branding
for leading businesses. The focus of LEVB is licensing and corporate
brand management for consumer products, including art, beauty, fashion,
the beverage space, health and wellness, and entertainment. License
brand marketing is at the core of the Level Brands businesses: kathy
® Health & Wellness; Ireland Men One (I'M1), a men's
lifestyle brand established to capitalize on potentially lucrative
licensing and co-branding opportunities with brands focused on
millennials; Encore Endeavor One (EE1), a provider of corporate
brand-management services and producer of experiential entertainment
events and products across multiple platforms.

Forward-Looking Statements

This press release contains certain forward-looking statements that are
based upon current expectations and involve certain risks and
uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can be
identified by the use of words such as "should," "may," "intends,"
"anticipates," "believes," "estimates," "projects," "forecasts,"
"expects," "plans," and "proposes." These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties, and other factors, some of which are beyond our control
and difficult to predict and could cause actual results to differ
materially from those expressed or forecasted in the forward-looking
statements, including, without limitation, statements made with respect
to our material dependence on our relationship with kathy ireland®
Worldwide, our limited operating history, our ability to expand our
business and significantly increase our revenues and our ability to
report profitable operations in future periods, among others. You are
urged to carefully review and consider any cautionary statements and
other disclosures, including the statements made under the heading "Risk
Factors" in Level Brands, Inc.'s Annual Report on Form 10-K for the
fiscal year ended September 30, 2017 as filed with the Securities and
Exchange Commission (the "SEC") on December 26, 2017 and our other
filings with the SEC. All forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements, many of which
are generally outside the control of Level Brands, Inc. and are
difficult to predict. Level Brands, Inc. does not undertake any duty to
update any forward-looking statements except as may be required by law.

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