Sequential Brands Group, Inc., a brand management and licensing company that owns the DVS, Heelys and Revo brands, reported third quarter revenues of $6.1 million, compared with approximately $1.3 million in the prior year quarter.

 


The company reported unaudited operating income of $1.58 million for the quarter ended Sept. 30 compared with $85,000 in the third quarter of 2012. Net loss for the quarter was approximately $1.2 million compared to a net loss of approximately $500,000. Adjusted EBITDA swelled nearly four-fold to $3.8 million, compared to approximately $400,000 in the prior year quarter.  Non-GAAP net income, which excludes losses from the company’s discontinued wholesale and retail business, one time acquisitions costs and other non-cash items, grew more than ten-fold to $2.0 million.

 

“It was a busy quarter for Sequential,” said CEO Yehuda Shmidman. “We raised over $44 million in capital through a private placement, completed the acquisition of the Revo brand and up-listed to Nasdaq. The revenue generated this past quarter from our portfolio of brands represents record levels for us as a pure-play brand management company, demonstrating the type of growth trajectory we set out to achieve when we began to transform our business model last year. Looking ahead, we believe we are well positioned to both achieve our organic growth targets and to continue to expand our portfolio with the acquisition of new brands, as we aim to be a leading global brand management firm.”

 

Sequential Brands is the successor of People’s Liberation, a vertically integrated apparel company that changed to a brand management and licensing model in 2011. The company closed its wholesale and retail operations and took on the Sequential named in March 2012 and has been buying or licensing and managing brands ever since. It acquired an exclusive worldwide license to the DVS skate footwear brand in 2012, acquired the Heelys brand in January, 2013 and purchased Revo from Oakley Inc. for $20 million in cash in August.

 

SQBG has already licensed the Revo brand to the optical company B. Robinson, which announced last week it had hired former Revo employee Alex Webb to sell the polarized sunglasses into the outdoor specialty channel. SQBG also owns or has licensing rights to The Franklin Mint, William Rast, People's Liberation, Caribbean Joe and Ellen Tracy.