Sequential Brands reports huge revenue jump, reaffirms 2016 guidance
Sequential Brands Group, Inc. announced on Thursday its financial results for the first quarter of its fiscal 2016 ended March 31, 2016.
First quarter revenue increased 150% to $34 million from $13.6 million. Adjusted EBITDA doubled to $16.7 million from $8 million, and net income on a non-GAAP basis was $2.5 million, or $0.04 per diluted share, versus $1.3 million in the prior year.
Yehuda Shmidman, Sequential's Chief Executive Officer, commented, "Our 2016 fiscal year is off to a strong start with Q1 revenue up 150% from the prior year, driven by a combination of contributions from the brands acquired in 2015 and increased revenues from the balance of our portfolio. We are on track to achieve high single digit organic growth for full year 2016 and remain focused on executing our activation playbook."
The company reiterated its fiscal 2016 guidance of $145 to $150 million in revenue and adjusted EBITDA of $83 to $87 million. Following the completion of the Martha Stewart Living Omnimedia, Inc. merger integration, the company expects its twelve-month run rate to be $150 to $155 million of revenue and $92.5 to $95 million of adjusted EBITDA.
Sequential’s guaranteed minimum royalties for 2016 are approximately $100 million
In addition, Sequential Brands announced on April 28 the launch of And1 basketball footwear and apparel in Canada. The collection, which consists of men’s, boys and infant apparel and footwear, is now available at Walmart stores in Canada and online.
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