Sequential Brands Group, Inc. announced financial results for the second quarter ended June 30, 2013.
Highlights:
- Q2 revenue of $4.3 million vs. $1.0 million in prior year quarter
- Q2 adjusted EBITDA of $2.5 million, representing a 57% adjusted EBITDA margin
- Company projects revenue of $23-25 million over the next twelve months
- Company completes capital raise of $44 million to bolster acquisition strategy
Second Quarter 2013 Results:
Total revenue from continuing operations for the second quarter ended June 30, 2013 increased to approximately $4.3 million, compared to approximately $1.0 million in the prior year quarter.
Adjusted EBITDA for the second quarter was approximately $2.5 million, compared to approximately $0.2 million in the prior year quarter. On a non-GAAP basis, net income for the quarter was approximately $0.8 million, or $0.05 per share, compared to approximately $0.1 million, or $0.04 per share, the prior year quarter and on a GAAP basis, net income for the quarter was approximately $0.7 million, or $0.04 per share, compared to a net loss of approximately $0.9 million, or ($0.37) per share, the prior year quarter.
Yehuda Shmidman, Sequential's Chief Executive Officer, stated, "We are pleased with our second quarter results and encouraged by the overall progress that we have made since we converted to a licensing model last year.
"Year to date, we have doubled our brand portfolio from three brands to six brands, assembled a team of best-in-class brand management professionals to drive organic growth, and we have positioned our company with a powerful balance sheet to execute on our brand acquisition strategy. It is an exciting time for Sequential Brands Group."
Gary Klein, Sequential's Chief Financial Officer, added, "Our financial results for the second quarter were in line with management's expectations and are more reflective than prior quarters of the new business model we began last year. In addition, with the completion of our recent $44 million private placement of our common stock, we have over $57 million of cash on our balance sheet to help fuel our growth strategy. "
June Year-to-Date 2013 Results:
Total revenue from continuing operations for the six months ended June 30, 2013 increased to approximately $6.0 million, compared to approximately $2.1 million for the prior year period. The Company's adjusted EBITDA was approximately $1.3 million, compared to approximately $0.3 million for the six months ended the prior year and the Company's non-GAAP net loss was approximately $0.6 million, or ($0.05) per share, for the six months ended June 30, 2013, compared to net income of approximately $0.1 million, or $0.04 per share, in the prior year.
Net loss on a GAAP basis was approximately $20.8 million for the six months ended June 30, 2013, or ($1.76) per share, compared to a net loss of approximately $1.3 million, or ($0.54) per share, in the prior year quarter, as the Company incurred certain costs in the first quarter of 2013, both cash and non-cash, that were either not representative of the Company's ongoing business or were unusual in nature.
