Sequential Brands Group manages to narrow Q4 net loss

For the fourth quarter to December 31, 2018, Sequential Brands Group, Inc. said on a GAAP basis, net loss was 2.2 million dollars or 3 cents per diluted share. Under ASC 605, the company added, GAAP net loss would have been 1.2 million dollars or 2 cents per diluted share compared to net loss of 162.9 million dollars or 2.58 cents per diluted share in the fourth quarter 2017.

“2018 was a productive year for Sequential with strength across our portfolio of brands both with new and existing business,” said Karen Murray, CEO of Sequential Brands Group in a statement, adding, “Moving ahead, we continue to execute against our strategy of driving organic growth, improving our cost structure and strengthening our balance sheet.”

Review of Sequential’s Q4 and full year trading

The company's revenue totalled 48.9 million dollars, while under ASC 605, revenue would have been 49.9 million dollars compared to 46.9 million dollars in the fourth quarter 2017. Revenue for the full year was 170 million dollars and under ASC 605, the company added, revenue would have been 173.5 million dollars compared to 167.5 million dollars in the prior year.

On a GAAP basis, net loss for the year was 10.5 million dollars or 16 cents per diluted share. Under ASC 605, Sequential added, GAAP net loss would have been 7.8 million dollars or 12 cents per diluted share compared to 185.7 million dollars or 2.95 cents per diluted share in the prior year. On a non-GAAP basis, net income for the year was 21.2 million dollars or 33 cents per diluted share, while the company said, under ASC 605, non-GAAP net income would have been 24.8 million dollars or 38 cents per diluted share compared to 27.9 million dollars or 44 cents per diluted share, in the prior year.

On a non-GAAP basis, net income for the fourth quarter was 7.8 million dollars or 12 cents per diluted share and the company added that under ASC 605, non-GAAP net income would have been 9 million dollars or 14 cents per diluted share compared to 7.8 million dollars or 12 cents per diluted share, in the prior year period. Adjusted EBITDA for the quarter was 25 million dollars. Under ASC 605, adjusted EBITDA would have been 26.3 million dollars compared to 27.4 million dollars in the prior year quarter.

Adjusted EBITDA for the year ended December 31, 2018 was 91.5 million dollars, under ASC 605, adjusted EBITDA would have been 95.1 million dollars compared to 98.4 million dollars in the prior year. Excluding certain expenses, the company said, adjusted EBITDA would have been 99.3 million dollars.

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