Sequential Brands Doubles Q1 Revenues

April 30, 2015
SGB Update

Sequential Brands Group, which  owns Avia, And1, Heelys, DVS and several other apparel brands, reported first-quarter revenue jumped 117 percent to $13.6 million compared to $6.3 million in the prior year quarter.

Its other brands include: Ellen Tracy, William Rast, Revo, Caribbean Joe, The Franklin Mint, Nevados, Linens ‘N and FUL. The company licenses its brands in a variety of categories to retailers, wholesalers and distributors.

Adjusted EBITDA increased to $8.0 million, compared to $3.1 million in the prior year quarter. On a non-GAAP basis, net income for the quarter was $1.3 million, or $0.03 per diluted share, compared to $0.8 million, or $0.03 per diluted share, in the prior year quarter. On a GAAP basis, net income for the quarter was $1.4 million, or $0.04 per diluted share, compared to net income of $0.7 million, or $0.03 per diluted share, in the prior year quarter.

Yehuda Shmidman, Sequential's CEO, commented, “We are pleased to begin 2015 with a strong quarter and the recently announced acquisition of a majority interest in the Jessica Simpson brand. Core to our growth strategy is that we are focused on executing on our playbook of both organic and acquisition growth, and our recent results and future plans reflect this strategy.”

Financial Update:

For the year ending Dec. 31, 2015, the company is reiterating revenue guidance of $78.0 – $81.0 million with Adjusted EBITDA of $48.5 – $50.5 million. The company's contractual guaranteed minimum royalties for 2015 total more than $62 million. Consistent with the company's historical quarterly results, the company expects revenue for 2015 to be weighted to the third and fourth quarters due to seasonality in the businesses of many of the company's licensees.

During the first quarter, the company recognized a non-material gain from the divestiture of the People's Liberation brand to a third party operating company. However, for financial reporting purposes, the gain is excluded in the company's non-GAAP results as it is not reflective of the company's ongoing licensing business.

Sequential Brands Doubles Q1 Revenues

SGB Update

Sequential Brands Group, which owns Avia, And1, Heelys, DVS and several other lifestyle brands, reported first-quarter revenue jumped 117 percent to $13.6 million compared to $6.3 million in the prior year quarter.

Earnings vaulted 94.6 percent to $1.44 million, or 4 cents a share. On a non-GAAP basis, net income rose 53.4 percent to $1.3 million, 3 cents. Non-GAAP earnings exclude a gain on the divestiture of the People's Liberation brand.

Sequential’s other brands include: Ellen Tracy, William Rast, Revo, Caribbean Joe, The Franklin Mint, Nevados, Linens ‘N and FUL. It acquired majority interest in the Jessica Simpson brand during the quarter. The company licenses its brands in a variety of categories to retailers, wholesalers and distributors.

Adjusted EBITDA in the quarter more than doubled to $8.0 million, compared to $3.1 million in the prior year quarter.

For the year, the company reiterated revenue guidance of $78.0 to $81.0 million with adjusted EBITDA of $48.5 to $50.5 million.

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