April 6, 2018
The brand management firm’s year-to-date revenue increased 10 percent to $120.6 million.
Total revenue for the third quarter 2017 was $39 million, compared to $42 million in the same period last year. The brand management firm also reported that net loss for the quarter was $24.2 million, compared to net income of $1.3 million. However, the net loss for Q3 included non-cash impairment charges of $26.5 million from indefinite-lived intangible assets related to the trademarks of five of the company’s non-core brands, which account for roughly 3 percent of revenue based on full year 2017 forecasts.
But while Q3 wasn’t stellar for Sequential, the company’s year-to-date results told a different story. For the nine months ending Sept. 30, total revenue increased 10 percent to $120.6 million, compared to $110.1 million in 2016. On a GAAP basis, net loss YTD is $22.8 million, compared to a net income of $0.2 million; Non-GAAPnet income was $20.1 million, compared to $13.7 million in 2016; and adjusted EBITDA was $71 million, compared to $58.9 million last year.
This is positive news following the CEO shake-up at the firm earlier this year, which saw former VF Sportswear president Karen Murray, take over for Yehuda Shmidman, who stepped down.
"While third quarter results were softer than expected, we experienced growth with several of our core brands and executed on key new initiatives in the quarter, including the successful launch of our new Martha Stewart partnership with QVC," says Karen Murray, chief executive officer, Sequential Brands Group. "We're excited about our prospects for 2018, and remain focused on driving long-term organic growth across our portfolio, maintaining disciplined cost controls, and improving our capital structure."
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