Q1 2020 Earnings Call
Contained in this conference call our forward looking statements.
Valve in number of risks uncertainties and other factors all of which are difficult or impossible to predict.
Many of which are beyond control of the company. This may cause actual results performance or achievements.
The company to material lead differ from the results performance or achievements expressed or implied by such forward looking statements.
We refer you to our public filings and the press release, we issued this morning first summary of such factors. The words believe anticipate expect May will should estimate project plan called for that or similar expressions identify forward looking statements listeners are cautioned not to place undue reliance on these.
Forward looking statements, which may speak only as of the de of this statement with me.
Other than as required by law, we undertake no obligation to update or revise these forward looking statements, whether as a result of information future events or otherwise.
Additionally, the terms adjusted EBITDA and non-GAAP net income are all non-GAAP metric and reconciliation tablets for east can be found in the press release distributed today, an investor relations portion of our website Www Dot sequential brands group Dot com.
On today's call or some sequential brand group's CEO David Com.
On an interim CFO, Dan hybrid I'll now turn the conference over to Mr. Con you may begin when you already.
You for joining our first quarter 2020 earnings call.
We started the year with momentum.
Executing a handful of deals for the Jessica Simpson brand, including always Uri.
Endorsement for consumer product deal as one would be partnerships for Caribbean, Joe and Ellen Tracy.
We also executed several renewals extending terms with key licensees for anyone.
However, cobiz 19 has significantly impacted our progress.
Our licensing partners had been affected by mandatory store closures and shelter in place orders.
All orders that.
Were put on hold.
And there's much uncertainty around consumer spending going forward.
We've seen some bright spots in a diversified portfolio brands.
Our active brands, which consist of and one would be a guy and sprite and are sold in mass retailers, such as Walmart as well as grocery and drug stores nationwide I've been well positioned in this environment as jim's across the country have been forced to close.
Consumers are now working out at home.
Got him and spry exercise equipment as well as of the active wear and and one underwear and socks have also performed well.
Our employees health and safety remains the top priority.
The team is working efficiently in our new work remote environment to achieve our goals.
Nevertheless, as a result at the pandemic and its impact to our business.
In addition to the significant savings already achieved over the past year, we are proactively taking the following actions one.
Implementing significant compensation reductions across the company.
Two scrutinizing all material non essential expenses and we're moving as appropriate.
Three maximizing our liquidity by taking action to ball as well as drawn revolver to further bolster our liquidity.
And for proactively partnering with our lender base to provide more flexibility.
Related to the strategic review process is ongoing and we remain focused on exploring all opportunities, including divestitures indoor potential acquisitions are best positioned the company.
Long term success in value maximization.
In closing we believe the steps, we're taking coupled with our diversified portfolio of brands and channels of distribution will assist us in tackling these challenging times, while we also explore opportunities the best positioned the company for long term success and maximize value.
With that let me turn the call over to Dan to take you through the financials for the first quarter.
Thank you David.
Total revenue from continuing operations for the first quarter ended March 31st 2020 was 20.2 million compared to 25.5 million in the prior year quarter.
Of note the impact from Kobin 19, which began at the ended the first quarter well have a full quarter impact on Q2 results.
On a GAAP basis loss from continuing operations for the first quarter 2020.
85.3 million.
30 per diluted share compared to a loss from continuing operations for the first quarter 2019 of 4.8 million or seven cents per diluted share.
Included in the net loss from continuing operations for the first quarter 2020.
Our non cash impairment charges 85.6 million for indefinite lived intangible assets related to the trademarks for the Jessica Simpson Gaiam, Joe's and Ellen Tracy brands, reflecting the financial impacts of Covidien 18.
Non-GAAP net loss from continuing operations for the first quarter 2020.
10.4 million or 16 cents per diluted share.
Compared to four point Threemillion were seven cents per diluted share in the prior year quarter.
Adjusted EBITDA from continuing operations for the first quarter of 2020 was 9.8 million compared to 11.3 million in the prior year quarter.
The company continues to be aggressive in cutting SGN a.
Bad debt expense may continue to have a negative impact moving forward.
We closed the first quarter 2020, 13.3 million of cash including restricted cash.
460.7 million of debt net of cash.
As of March 31st we also had availability under our revolver 7 million, which we fully borrowed subsequent to the end of the quarter.
As mentioned on her last earnings call, we will not be providing full year 2020 guidance.
We believe covert 19 will continue to hobby material impact to our operating results cash flows and financial condition.
Continue to monitor closely.
As David outlined in his remarks, we are actively managing relationships and expenses to best position ourselves for the short and long term as the economy recovers.
Thank you for joining us for our call today I will now turn the call back over to the operator.
Thank you ladies and gentlemen, this concludes our call for today. Thank you for your participation. Then interest you may now disconnect your lines and have a wonderful day.