SQBG - Earnings call transcript Q3 2019 | Sequential Brands Group, Inc.

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Operator

Thank you, and good morning.

Before we begin, I'd like to bring to your attention that statements that are not historical facts contained in this conference call are forward-looking statements that involve a number of risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the company. This may cause the actual results, performance or achievements of the company to materially differ from the results, performance or achievements expressed or implied by such forward-looking statements. We refer to our public filings and the press release we issued this morning for a summary of such factors. The words believe, anticipate expect, may, will, should, estimate, project, plan, confident or similar expressions identify forward-looking statements. not speak reliance date only was to statements, these the cautioned made. may which as are place on undue forward-looking statement Listeners of the update we as a as information, otherwise. no by than or of these law, events Other obligation statements required result to or future whether revise forward-looking undertake

Investor tables our and release be can found www.sequentialbrandsgroup.com. the press adjusted Additionally, income all each the EBITDA terms of non-GAAP for are today Relations in the distributed net website, non-GAAP metrics, portion and reconciliation in

On Group's Chief today's Chairman, Bill Financial Officer, are Sequential call Brands Sweedler; Peter and Lops.

over I'll now turn Mr. the conference to Sweedler.

You when ready. may begin you're

William Sweedler

Good morning.

at we're to executing to plan position stages fill morning While with updates on of Sequential pleased join best success, progress. and this share for and few search, on hard today's a call I'm the team final I work the in to executive have Peter. the our in The long-term CEO been has

across focused seek partnerships First, Joe's, There new for quarter William into abroad; examples kids opportunity Rast Jessica expand the for to Scandinavian lastly, Caribbean include: and brands remains licenses an growth to distribution. in territories. categories broad via team in to deals in select continue renewals, licensing are geographic partnership and include and in management Recent and categories; broadening the multiple new Ellen new revenue expanding drive on new strategic executing portfolio. signing Simpson, footwear Tracy both for Joe securing partnerships, the for we signing These sequential X securing domestically all portfolio. initiatives which the growth new driving

to significant sale Martha the our reduction underway Stewart, well which the rightsizing are of the a cost of business of expenses. includes post we structure Second,

to next that expenses. operating This reduction previously expense management end, reflects base company's made significant starting progress corporate head and optimized million $XX of headquarter-related front. current To expect on SG&A the before count, a including new operating minority significant interest the base overhead, sublease an approximately expense year. we As we've outlined,

current XX% market the for balance We to have a our completed headquarters negotiations continue and subtenant of space. corporate of the with actively

a We margin we significant and to head expect these XXXX. into as savings improvement drive immediate

improves cash ample with and Third, we KKR, on demonstrates runway no further focus the amended flow lending liquidity of business our With and our continued agreement to which the upcoming that we forward. maturities, our has company support recently driving the lenders. believe debt

adviser, review Finally, financial announced Stifel, last we which diligently strategic process, are working with month. we our the on

We evaluate moving delevering time, have received we as targets be same our continue strategic well that verticals stated, in significant and inbound would existing forward. is interest, and and accretive. brand both At process previously the to the potential acquisition fit

CEO In a we XXXX and more operation. the to closing, we're groundwork search nimble excited transition by made the as progress for lay to our we've leaner,

collection of core the financial have execute active retail across to a and team. We strong and brands against partners, the lifestyle flexibility growth strategy a and our wholesale categories, talented best-in-class needed

take financials. through With to that, turn the who over let you call third Peter quarter will me

Peter Lops

quarter XXXX third $XX.X year $XX.X in prior Thank for million was the continuing you, compared from revenue Total million Bill. operations to quarter.

last results. our be included As to items impacted and continued by on XXXX, of not mentioned results in included call, this year's third the in for the remainder last the onetime results quarter year's and

assets the million Simpson charges indefinite-lived the of Joe's approximately the for and of of share. the loss noncash compared $XX.X trademarks or was share third or for $XX.X basis, quarter $X.XX of the million XXXX third intangible $X.XX Included to GAAP diluted to related brands. diluted Jessica of per the in from continuing XXXX were operations continuing from million per XXXX continuing net operations net quarter quarter from net for loss third $XX a On impairment loss for for operations

of continuing XXXX. was loss from the in to share of loss third or XXXX $XX.X from third from compared the third operations continuing the continuing to $XX.X of quarter. million $XX.X operations non-GAAP share year-to-date million period. to for compared operations per quarter operations EBITDA in per year $X.XX million million year million net XXXX net the in from continuing was diluted quarter XXXX the was Adjusted million $XX revenue $X.X compared Non-GAAP prior prior $X.X quarter or $X.XX for diluted

per $XX.X On was $X.XX $X.X million a million $X.X year-to-date operations operations $XX.X share $XX.X from net adjusted XXXX of prior share diluted diluted or GAAP operations from share continuing from year loss $X.XX per of to or XXXX income XXXX $XX.X in continuing to compared share. compared period. continuing non-GAAP year-to-date was the net a to million million per period. year or EBITDA diluted prior in loss million or year-to-date operations per compared year was loss continuing period million $X.XX from for basis, continuing net diluted operations net prior the from $X.XX non-GAAP the

$XXX.X With sheet, regards we restrictive with debt third cash, of $X.X the cash to quarter of including net XXXX million and of cash. of closed million balance the

For to revenue the $XXX the full of million. expect million to year be of in range XXXX, the to $XXX company continues

as we closing, you for our encouraged on us the and today. look we call activity forward enter by XXXX. In to underway joining benefits are the Thank

the back turn for operator over the Q&A. call now will to I

End of Q&A

ladies Thank This concludes you, thus Q&A the your and and concludes for and Thank you Instructions] interest. session for [Operator call participation our gentlemen. today.

your a and wonderful day. disconnect may lines, have You

Sequential Brands (SQBG) 12 Nov 192019 Q3 Earnings call transcript