25 Feb Sequential Brands Q4 Sales up Nearly 70 Percent
Sequential Brands Group Inc., the brand management company that owns Heelys, Avia and And1, reported total revenue and adjusted EBITDA increase 68.8 and 55.9 percent respectively in the fourth quarter ended Dec. 31, 2015
Revenue grew to $31.4 million, compared to $18.6 million in the prior year quarter, while adjusted EBITDA was $17.3 million, compared to $11.1 million in the prior year quarter. On a non-GAAP basis, net income for the quarter was $11.0 million, or $0.23 per diluted share, compared to $4.5 million, or $0.11 per diluted share, in the prior year quarter. On a GAAP basis, net loss was ($5.7) million for the fourth quarter, or ($0.12) per diluted share, compared to ($3.8) million, or ($0.10) per diluted share, in the prior year, as the company incurred certain costs in each year, both cash and non-cash, that were not representative of its ongoing business. See tables below for a reconciliation of GAAP to non-GAAP measures.
“2015 was a significant year of growth for Sequential,” said Sequential Chief Executive Officer Yehuda Shmidman. “With over 150 licensees, strong brands driving $4 billion in annual retail sales, committed financial stakeholders, a continued eye on strategic acquisitions and a winning activation team, we believe that we are well positioned for further growth in 2016 and beyond. We are fully on track with the integration of the Martha Stewart business into our platform and we are encouraged by our early progress to date in activating new growth for the long term.”
Full Year 2015 Results:
Total revenue for the year ended Dec. 31, 2015 increased to $88.3 million, compared to $41.8 million in the prior year. Adjusted EBITDA for the year ended Dec. 31, 2015 was $53.4 million, compared to $24.0 million in the prior year, and the company’s non-GAAP net income was $20.6 million, or $0.48 per diluted share, for the year ended Dec. 31, 2015, compared to $8.6 million, or $0.27 per diluted share, in the prior year. On a GAAP basis, net loss was ($2.9) million for the year ended Dec. 31, 2015, or ($0.07) per diluted share, compared to ($1.1) million, or ($0.04) per diluted share, in the prior year, as the company incurred certain costs in each year, both cash and non-cash, that were not representative of its ongoing business. See tables below for a reconciliation of GAAP to non-GAAP measures.
Financial Update:
For the year ending Dec. 31, 2016, the company is reiterating its guidance of $145.0-to-$150.0 million in revenue and Adjusted EBITDA of $83.0 to $87.0 million. The company’s contractual guaranteed minimum royalties for 2016 are approximately $100 million. Consistent with the company’s historical quarterly results, the company expects revenue for 2016 to be weighted to the third and fourth quarters due to seasonality in the businesses of many of the company’s licensees.
Following the completion of the MSLO merger integration, the company expects its 12-month run rate to be $150.0-to-$155.0 million of revenue and $92.5-to-$95.0 million of Adjusted EBITDA.
The company recently released a new three-year plan, with the goal of achieving $250.0 million of revenue and $175.0 million of Adjusted EBITDA.
Sequential Brands Group Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the fashion, home, active, and lifestyle categories. Sequential seeks to ensure that its brands continue to thrive and grow by employing strong brand management, design and marketing teams. Sequential has licensed and intends to license its brands in a variety of consumer categories to retailers, wholesalers and distributors in the United States and around the world.