Sequential Brands Group reports drop in Q1 revenue

For the first quarter ended March 31, 2019, Sequential Brands Group, Inc. has reported total revenue of 36.9 million dollars compared to 38.1 million dollars for the same period last year.

On a GAAP basis, net loss for the first quarter 2019 was 125.3 million dollars or 1.95 dollars per diluted share compared to a net loss for the first quarter of 2018 of 2.3 million dollars or 4 cents per diluted share. Included in this net loss was a 161.2 million dollar (123.91 million pound) impairment related to the sale of the Martha Stewart and Emeril Lagasse brands.

Non-GAAP net loss for the first quarter 2019 was 0.8 million dollars or 1 cent per diluted share, compared to non-GAAP net income of 3.6 million dollars or 6 cents per diluted share in the prior year period. Adjusted EBITDA for the first quarter was 16.8 million dollars, compared to 21.2 million dollars in the prior year quarter.

CEO of Sequential Brands Group, Karen Murray, said in the report: “While first quarter results came in below expectations, we are excited to now focus on our active and fashion brands, which we believe have significant growth opportunities in the health, wellness and beauty space.

“Last month, we announced a definitive agreement to sell the Martha Stewart and Emeril Lagasse brands, which is on track to close in the second quarter. After the close, we expect to have an improved net leverage profile and additional cash on our balance sheet.”

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