Sequential Brands Group posts Q3 loss

Third quarter revenue at Sequential Brands Group, Inc. was 40.8 million dollars. Under ASC 605, the company said, revenue would have been 41.2 million dollars compared to 39 million dollars in the third quarter 2017. On a GAAP basis, the net loss was 9.6 million dollars or 0.15 dollar per diluted share. Under ASC 605, GAAP net loss, the company added, would have been 9.3 million dollars or 0.15 dollar per diluted share, compared to 24.2 million dollars or 0.38 dollar per diluted share in the third quarter 2017.

“We’ve recently signed several exciting partnerships across our portfolio including a new fashion license for the Martha Stewart brand, and a long-term extension for Jessica Simpson’s core footwear business. We are encouraged by the momentum across our business as we head into the new year, and our strong pipeline of new licenses,” said Karen Murray, CEO of Sequential Brands Group in a statement.

On a non-GAAP basis, net income for the third quarter was 2.7 million dollars or 0.04 dollar per diluted share. The company said, under ASC 605, non-GAAP net income would have been 3.1 million dollars or 0.05 dollar per diluted share compared to 6.5 million dollars or 0.11 dollar per diluted share, in the prior year period. Adjusted EBITDA was 20.5 million dollars, while under ASC 605, the company added that adjusted EBITDA would have been 21 million dollars compared to 23.3 million dollars in the prior year quarter.

Year-to-date results at Sequential Brands Group

Revenue for the nine months ended September 30, 2018 was 121.1 million dollars. The company said, under ASC 605, revenue would have been 123.6 million dollars compared to 120.6 million dollars in the prior year period. On a GAAP basis, net loss was 8.3 million dollars or 0.13 dollar per diluted share. Under ASC 605, GAAP net loss, the company added, would have been 6.5 million dollars or 0.10 dollar per diluted share, compared to 22.8 million dollars or 0.36 dollar per diluted share in the prior year period.

On a non-GAAP basis, net income for the period was 13.4 million dollars or 0.21 dollar per diluted share. Under ASC 605, non-GAAP net income, the company said, would have been 15.8 million dollars or 0.24 dollar per diluted share compared to 20.1 million dollars or 0.32 dollar per diluted share, in the prior year period. Adjusted EBITDA was 66.4 million dollars, and under ASC 605, the company said, adjusted EBITDA would have been 68.8 million dollars compared to 71 million dollars in the prior year period.