SQBG - Earnings call transcript Q4 2019 | Sequential Brands Group, Inc.

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Operator

Thank you, and good morning.

Before we begin, I'd like to bring 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 you 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 statement made. to statements, these that cautioned was may which as are place on undue forward-looking the Listeners of the to by as whether result of or undertake Other forward-looking events a law, future as revise these required no than obligation otherwise. update information, or statements we

portion and the terms each Relations can for CFO, adjusted net our press Additionally, the tables distributed of and the in income are and Hanbridge. Dan On are found in www.sequentialbrandsgroup.com. reconciliation non-GAAP EBITDA all release today CEO, Interim non-GAAP today's metrics Brands Sequential website, be David Investor call Conn; Group's

I'll now over to the call Mr. Conn. conference turn

are You may you begin when ready.

David Conn

I'm Call. it. Stewart last to joining two XXXX good busy has the opportunities key Lagasse Fourth energized employees, transformation began Sequential. divested and months since that year licensees, in morning you, I and partners the a Thank with brands. been business, That Emeril everyone meeting company been the of Martha the It's immersed is joined brand in midst Sequential a company Year today's Earnings the I've by transformation. and of Quarter and when and Full front in the

reduction remainder headcount, divestiture, the year significant first focused which SG&A the cost business, of on and expenses. structure company Following of spent part the a the included optimizing and lease-related XXXX of this of the

current consolidation headquarters. be our space City will culmination New the we into of when of corporate process this our The one offices two exit York

of current the sublease pursue with subleased later to continue into in this, corporate this connection the headquarters our In balance all then existing our team and XX% space. Active Midtown We already for will we over have opportunities of office move year. the actively division's

initiatives, annualized an cost-cutting starting approximately million of $XX rate anticipate expense a run year. on we these an operating base of basis result As this

to prior $XX company's meaningful base operating Home division. the compared million to expense the a reduction divestiture the is approximately of This

XXXX. savings drive cost expect in reductions from improvement margin We to the these a significant

last lending who these also to Bank part our we and KKR, partners. be of supportive year, As amended continue of with efforts, agreements America

lending our improve cash further updated liquidity flow. Our agreements and

for brands. implementing team Across the long-term is existing strategies actively we The focusing of revenue opportunities our our are exploring on growth international brands, and category as all expansion. new company, for growth such

with GAIAM, AVIA, Ellen and Simpson, Our in Tracy. ANDX, GAIAM, are and largest XXXX Joe's Jessica strong brands Jessica particular, have Simpson momentum. entered

with First Jessica.

her seller. Book, her she media coverage month, prospects brand, business. Open from well partners last and positive as her tour for a book The released quickly book Just retail Times the for became new York which been as best memoir, New has

one is a and and GAIAM sectors. the is in continues the brand to leading of also space, the be product which industry uniquely positioned health wellness consumer fastest-growing in yoga

pursuing actively the are to yoga opportunities core We capture market business. brand more for its share beyond

several company, strategic Our Sequential's so brands. are interesting become the the are announced of joining opportunities review Directors I process to evaluating that the and operations previously had chance familiar continues. I them. believe the direction process Board company, with its we strategic all a paused and regarding of of this there After

review financial closely alternatives broad on our We're on of shareholder maximizing a strategic with focused working value. adviser

brands, alternatives other growth acquisition of previously, our Home division, the stated marked one transformation. and divestiture or optimizing of XXXX long-term program stock the has or closing, the current made with company's simplifying and We one the In amending of company the a business more our structure agreement. our cost start lending brands, the As progress the of initiatives. new existing may include buyback divestiture more

believe I completing driving company long-term further forward focus of part brands, these process. progress. success. expense portfolio finishing with the reductions initiatives, the our As is and We coupled move work help centered for of will our already growth completed XXXX, look last in strategic on our keeping ahead, revenue position posted to on we across the review the you

call the and to full over financials Dan take turn With fourth that, quarter through the you to for let year me the XXXX.

Dan Hanbridge

David. Total compared ended Thank $XX.X quarter. revenue continuing operations the you, in fourth million from was XXXX the $XX.X for XX, December year million quarter to prior

results and the prior As mentioned one-time not calls, of XXXX fourth included on included items by in for quarter quarter, fourth were the in XXXX. impacted

primarily in our came slightly of unexpected from addition, fourth the XXXX partners. In due in softness to below quarter one revenue expectations retail quarter

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

Total revenue the from ended operations continuing was December year. $XXX.X million in to year prior compared for $XXX.X XXXX XX, the million

million, continuing XXXX. XXXX one-time was a trademarks operations million, to not basis, previously prior or loss were in brands. year. in from As diluted On assets charges to indefinite in Included compared for $X.XX million lived XXXX diluted share, of mentioned, per by of and $X.XX certain XXXX $XX.X non-cash XXXX the impairment $XX.X for from disclosed results items related continuing the a in operations intangible included $XX.X share, or for loss per were included impacted GAAP

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

of EBITDA We closed million of at $XXX.X from expect restricted expense quarter debt a improvement fourth savings we down million the margin the mentioned, debt end in drive year. our XXXX. net to XXXX of with reductions As of including cash of $XXX.X cash, this recent cash from net the $X.X of million David adjusted and significant

review it time. provide at we would be year With to XXXX believe strategic guidance the underway, full not this prudent

as to divestiture a before million However, run to starting outlined This Home of we basis track an in his base the remarks, annualized achieve David interest are division. to company's reduction the approximately expense on million nearly operating on year. the operating base prior compared rate an this is significant expense expect $XX $XX and of minority

our now back over for operator. to will the turn Thank you for I today. joining call the us call

Operator

Ladies this Thank your interest. for call for you. concludes participation and and gentlemen, our you today. Thank

You may and disconnect have a wonderful day. your lines

David Conn	Chief Executive Officer
Dan Hanbridge	Interim Chief Financial Officer

Sequential Brands (SQBG) 13 Mar 202019 Q4 Earnings call transcript