Sequential Brands posts revenue jump, EPS decrease in Q2
Sequential Brands Group reported another revenue increase for its second quarter. The company’s revenue jumped 150% in the first quarter, and its second quarter revenue increased 69% due to its acquisition of Gaiam Inc., which was made in May and finalized in July, the launch of e-commerce for the Martha Stewart brand and a new partnership with Amazon for Chef Emeril.
Second quarter revenue increased to $34.2 million from $20.2 million and adjusted EBITDA increased to $17.3 million from $12.4 million in the prior year. The company recorded a net loss of less than $0.1 million on a GAAP basis compared to a net loss of $1.3 in the previous second quarter, and on a non-GAAP basis, the company had a net income of $3.6 million compared to $3.3 million in the prior year.
Total revenue for the first six months ended June 30, 2016 increased 101% to $68.2 million from $33.9 million and adjusted EBITDA increased to $34 million from $20.4 million. The company had a net loss of $1.1 million on a GAAP basis and a net income of $6.2 million on a non-GAAP basis.
Diluted earnings per share on a GAAP basis was $0.00 compared to ($0.03) in the previous year and was $0.06 on a non-GAAP basis versus $0.08 in the prior second quarter. For the first six months, the diluted EPS on a GAAP basis was ($0.02) compared to $0.00 in the previous comparable period, and on a non-GAAP basis the diluted EPS was $0.10 versus $0.11 in the prior second quarter.
In May, Sequential acquired Gaiam Inc., the yoga, fitness and wellness company that includes its namesake brand and Spri, for $146 million. The deal was expected to add $22 million in revenue and $20 million in adjusted EBITDA for Sequential on a full year run rate business.
Sequential reiterated its full year guidance expecting $155 million to $160 million in revenue, GAAP net income of $12.7 to $14.6 million and adjusted EBITDA of $88.0 to $91.0 million. Following the merger integration of Martha Stewart Living Omnimedia, Inc., the company expects its twelve month run rate to be $172 to $177 million of revenue, GAAP net income to be $28.5 to $30.1 million and adjusted EBITDA to range from $112 to $115 million.
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