Sequential Brands Group, Inc., which expects to add Avia, AND1 and Nevados to its brand portfolio by year end, increased its sales nearly 63 percent and its adjusted EBIDTA 48 percent in the second quarter.
The company, which is rolling up consumer brands for licensing to retailers, wholesalers and manufacturers, reported revenue of approximately $7.0 million for the quarter ended June 30, compared with approximately $4.3 million in the prior year quarter. Adjusted EBITDA reached approximately $3.7 million, compared to approximately $2.5 million in the prior year quarter. On a non-GAAP basis, net income for the quarter was approximately $1.1 million, or 4 cents per share compared to approximately $800,000, or 5 cents per share, in the prior year quarter. On a GAAP basis, net loss for the quarter was approximately $600,000, or 2 cents per share, compared to net income of approximately $700,000, or 4 cents per share, in the prior year quarter.
In June, Sequential signed a definitive agreement to acquire the Avia, AND1, Linens 'N Things and Nevados brands from Galaxy Brand Holdings Inc. Sequential owns, promotes, markets, and licenses a portfolio of consumer brands, including Revo, Heelys and DVS. Including the Galaxy acquisition, the company projects forward 12-month revenues of $56 – $60 million and Adjusted EBITDA of $36-$40 million from its portfolio of 12 brands.
