Sequential Brands third quarter and year-to-date revenue jump, updates full year outlook
Sequential Brands Group on Thursday released its third quarter results and updated its financial outlook for fiscal year 2016.
Third quarter total revenue increased 83% to $42.0 million from $23.0 million, net income was $1.3 million, or $0.02 per diluted share, compared to $2.7 million, or $0.06 per diluted share, in the previous third quarter, and adjusted EBITDA was $24.9 million compared to $15.7 million in the prior year.
Yehuda Shmidman, Sequential's Chief Executive Officer, commented, "Our business activation team is executing and our portfolio brand health is solid, driven by strong contributions from our core brands Jessica Simpson, William Rast and Heelys, as well as from recently acquired brands including Joe's Jeans, Martha Stewart, Chef Emeril and Gaiam.”
Total revenue for the nine months ended on September 30, 2016 jumped 94% to $110.1 million and net income was $0.2 million compared to $2.8 million in the prior third quarter. Net income was $9.6 million on a non-GAAP basis, and the adjusted EBITDA was $58.9 million compared to $36.1 million in 2015.
Shmidman added, “Looking ahead, we will invest in strategic areas that we believe are essential to our long term growth. These include building on our international momentum, expanding our digital presence by aligning with e-commerce partners that can significantly propel our brands forward, and continuing to invest in our brands to develop products and support key partnerships so that they remain at the top of consumers' minds."
Sequential in October also entered into an agreement with Guirenniao Co., Ltd to launch the And1 basketball brand in China. The first collection will launch in 2017, and women’s apparel and footwear will launch in 2018.
For fiscal year 2016, Sequential Brands now expects GAAP net income to range between $7.7 million and $11.0 million and for adjusted EBITDA to range from $83 million to $88 million. The company also expects its fiscal year 2017 revenue to land between $175 million and $180 million, GAAP net income to be between $22.1 million and $25.4 million, and for adjusted EBITDA to be between $100 million and $105 million.
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