Sequential Brands Group reported total revenue for the quarter ended September 30 slid 7.1 percent to 39.0 million, compared to $42.0 million in the prior year quarter.

On a GAAP basis, the net loss for the third quarter 2017 was $24.2 million or 38 cents per diluted share compared to net income for the third quarter 2016 of $1.3 million or $0.02 per diluted share. Included in the net loss for the third quarter 2017 were non-cash impairment charges of $36.5 million for indefinite-lived intangible assets related to the trademarks of five of the company’s non-core brands.

These brands account for approximately 3 percent of revenues based on full year 2017 forecasts. Non-GAAP net income for the third quarter 2017 was $6.5 million, or $0.10 per diluted share, compared to $7.5 million, or $0.12 per diluted share, in the prior year period. Adjusted EBITDA for the third quarter of 2017 was $23.3 million, compared to $24.9 million in the prior year quarter.

“While third quarter results were softer than expected, we experienced growth with several of our core brands and executed on key new initiatives in the quarter, including the successful launch of our new Martha Stewart partnership with QVC,” said Karen Murray, CEO of Sequential Brands Group. “We’re excited about our prospects for 2018, and remain focused on driving long-term organic growth across our portfolio, maintaining disciplined cost controls, and improving our capital structure.”

Year-to-Date 2017 Results:

Total revenue for the nine months ended September 30, 2017 increased 10 percent to $120.6 million, compared to $110.1 million in the prior year period. On a GAAP basis, the net loss for the nine months ended September 30, 2017 was $(22.8) million or $(0.36) per diluted share compared to net income for the nine months ended September 30, 2016 of $0.2 million or $0.00 per diluted share. The results for the nine months ended September 30, 2017 include charges of $1.9 million related to the company’s realized loss on the sale of available-for-sale securities, $6.7 million related to costs associated with the departure of our former CEO, and non-cash impairment charges of $36.5 million related to the company’s indefinite-lived intangible assets for certain non-core brands. Non-GAAP net income for the nine months ended September 30, 2017 was $20.1 million, or $0.32 per diluted share, compared to $13.7 million, or $0.22 per diluted share, in the prior year period. Adjusted EBITDA for the nine months ended September 30, 2017 was $71.0 million, compared to $58.9 million in the prior year period.

Financial Update:

For the year ending December 31, 2017, the company is now expecting revenue of $165 million to $169 million and Adjusted EBITDA of $95 million to $98 million. The company is now expecting GAAP net loss of $(8.4) million to $(10.4) million primarily due to the non-cash impairment charges recognized on the company’s indefinite-lived intangible assets related to certain non-core brands. The company’s contractual guaranteed minimum royalties for 2017 are approximately $120 million.

The company’s brands include Jessica Simpson, William Rast, Heelys, Joe’s Jeans, Martha Stewart, Chef Emeril, Gaiam, And1, Avia, Revo, DVS and Ellen Tracy.