Sequential Brands Group posted earnings results that narrowed its second-quarter loss.
For the three months ended June 30, the net loss was $65,000, or 0 cents a diluted share, from a net loss of $1.3 million, or 3 cents, a year ago. On an adjusted basis, net income was $3.6 million, or 6 cents a diluted share, from $3.3 million, or 8 cents, a year ago. Net revenues rose 68.8 percent to $34.2 million from $20.2 million.
Yehuda Shmidman, chief executive officer, said second-quarter revenues reflect the “continued execution of our playbook,” He noted that in the past quarter, the company acquired the GAIAM brand, launched a new e-commerce business for the Martha Stewart brand and has a new partnership with Amazon for chef Emeril Lagasse. “We are encouraged by the momentum across our business and focused on continuing to deliver strong financial results,” Shmidman said.
Sequential acquired the Gaiam yoga brand in May for $146 million in a cash transaction. Gaiam represented a bolt-on acquisition for the brand management firm’s active division. The division is anchored by its AND1 and Avia brands.
The company said that for the year ending Dec. 31, it is reiterating its guidance of $155 million to $160 million in revenue, GAAP net income of between $12.7 million to $14.6 million, and adjusted EBITDA of between $88 million to $91 million. It said that it expects 2016 revenue to be weighted to the third and fourth quarters because of the seasonality in the businesses of many of the firm’s licensees.