Q3 2020 Sequential Brands Group Inc Earnings Call

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Other than other required by law, we undertake no obligation to update or revise the forward looking statements whether as a result of isn't there.

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Additionally, the true adjusted EBIT on a non-GAAP net income for all non-GAAP metrics and the reconciliation table for each one of the sound in the country distributed today. The that's really from the portion of our website.

W. W. The sequential brands group.

On today's call are sequential Brad will.

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I'll now turn the call from coal over to Mr. from there.

Let me get on you.

Thank you for joining our third quarter Twersky 20 earnings call I'm pleased to join you today the team and I have been hard at work the best position sequential for short and long term success and I have a few of page I wanted to share on our progress.

First of all the pandemic continues the impact the business and the industry overall, we've been fortunate that some of our brands of form well given the recent tailwinds supporting a healthier more active.

Lifestyle. The end one guy of Sprite and the via brands have proved resilient for well at key retail partners, including Amazon coals from Walmart and target.

In addition, we continue to explore opportunities across the entire lifestyle and act of portfolio to expand our brands into new categories in true <unk> on a GAAP basis through continued hard work managing expenses of working closely with our licensing partners income from continuing operations for the third.

Quarter, 20, $24.5 million worth to 71 per diluted share.

I'm proud of the team and all of their efforts to deliver on first profitable quarter of this year.

Second I wanted to take a moment to recap management changes I assumed the role of executive Chairman and principal Executive officer, replacing the CEO position going forward I want to thank former CEO, David Kahn, who recently the part that the company.

Brad wagon hardware mains parts of it.

Continued to work closely with me I'm also excited to share the Lorraine the Santo.

Ex joined the company as our new Chief Financial Officer. She brings over 30 years of accounting finance and the operational experience previously she was CFO of the Herman Miller group's retail segment and part of that she served the C up all of designed the Enbridge Dan.

Dan Hey, Brett She joins me on today's call is with us through the middle of the month and then we'll move on to a new role we are grateful to Dan for stepping into the interim CFO role and wish him well witnessed future endeavors.

Third I briefly mentioned earlier, our team continues to closely manage cost and take steps to maximize our liquidity. We recently signed an agreement to immediately ex it our remaining lease obligation from our previous corporate headquarters, which results in a significant sales.

Things over the next several years exiting the office space was the last piece the complete our wind down of the legacy Martha Stewart business vertical. In addition on the expense from we have eliminated the few positions tied to the office space and continue to scrutinize all material non essential.

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Planning for the worst and hoping for the best and expenses has proved to be a valuable mantra for this team and has resulted in positive profitability for as you're aware late last year. The board announced that we would be conducting a broad view of the strategic alternatives. We continue.

GAAP actively discussed alternatives with other financial adviser Stifel and remain focused on exploring all opportunities the best position the company for the long term success and maximizing shareholder value.

Yes, we continue to work closely with our lenders whove been supportive of as we manage the business through the pandemic. We recently amended our agreement with our second lien lender and look forward to continuing our relationship together.

In closing we've taken many of the critical steps promise. This year are the best positioned sequential and were returning to an asset light brand management company I'm confident we're on the right path I look forward to keeping you updated.

With that let me turn the call over the Dan to take you through the financials for the third quarter.

Thank you Bill total.

Total revenue from continuing operations for the third quarter ended September Thirtyth, 2020 was 24 million compared to 25.4 million in the prior year quarter on.

On a GAAP basis income from continuing operations for the third quarter 2020 was 4.5 million for $2.71 per diluted share.

Parents the loss from continuing operations for the third quarter 2019 of 18.4 million for $11.31 per day the chip.

Non-GAAP net income from continuing operations for the third quarter, 2020 was 2.1 million or a dollar and 30 cents per diluted share compared.

Compared to a non-GAAP net loss of <unk> point Ninemillion for 53 cents per diluted share in the prior year quarter.

Adjusted EBITDA from continuing operations for the third quarter of 2020, with 18.9 million compared to 13.2 million in the prior year quarter, reflecting the company's continued efforts to reduce expenses.

Total revenue from continuing operations for the nine months ended September Thirtyth 2020.

66.8 million compared to 77.3 million in the prior year period.

On a GAAP basis loss from continuing operations for the nine months ended September Thirtyth, 2020, with 83.8 million or $50.96 per diluted share compared to 26.4 million for $16.36 per diluted share the nine.

Months ended September Thirtyth 2018.

Included in the loss from continuing operations for the nine months ended September Thirtyth 2020, or non cash impairment charges of 85.6 million for indefinite lived intangible assets related to the trademarks for the Jessica Simpson Guy Joes and Ellen Tracy brand.

Reflecting the financial impacts of code the 90.

Non-GAAP net loss from continuing operations for the nine months ended September Thirtyth 2020, with 10 million for $6, an eight cents per diluted share compared to 7.7 million for dollars and 74 cents per diluted share in the prior year period.

Adjusted EBITDA from continuing operations for the nine months ended September Thirtyth 2020 was 43.7 million compared to 37.7 million in the prior year period, reflecting the work the company has done to reduce expenses.

We closed the third quarter 2020, with 22.2 million of cash including restricted cash.

And 452.2 million of debt net of cash.

Looking ahead as we have stated previously due to the unknown outcome of the pandemic. We continue to believe that Kogan 18 may continue to impact on operating results.

Cash flows and financial condition.

We continue to monitor it closely and are actively managing relationships and expenses to best position ourselves for long term success.

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, just conclude the call for day. Thank you for your participation and interest you may disconnect. Your line is time and have a wonderful day.