Sequential Brands Group, the owner of Heelys, the DVS skate brand and numerous fashion brands, reported first-quarter earnings of $742,000, or 3 cents a share, rebounding from a loss of $21.5 million, or $2.96, a year ago.
The licensor, which also owns Ellen Tracy, William Rast, Revo, Caribbean Joe, The Franklin Mint and People's Liberation, said Q1 non-GAAP net income reached $819,000, or 3 cents, versus a loss of $1.4 million, or 20 cents, in the prior year quarter Revenue, consisting of royalties from licensing arrangements, increased to $6.3 million from $1.6 million in the prior year quarter, reflecting several acquisitions and subequent licensing deals over the past year.
The company closed on its acquisition of Heelys in January 2013 and licensed exclusive rights to the Heelys trademarks to BBC International LLC, a major kids footwear provider with licenses including Polo Ralph Lauren, Warner Brothers and Marvel.
In June 2012, Sequential Brands acquired a 65 percent interest in the DVS brand, through a joint venture with Elan Polo International, Inc. As part of the deal, Elan Polo entered into a licensing deal for DVS footwear. Aquarius, Ltd. subsequently attained the DVS bags, backpacks and accessories license.