SQBG - Earnings call transcript Q1 2020 | Sequential Brands Group, Inc.

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Operator

Thank you, and good morning.

Before we begin, I would 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 control of the company.

This may cause actual results, performance, 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. expect, expressions should, identify anticipate, confident project, believe, similar or forward-looking words may, estimate, will, plan, The statements.

of the speak Listeners undue are as whether to otherwise. as required may no we Other forward-looking statements, update reliance place or the result of only obligation on these by as was cautioned forward-looking information, statements, than not made. events date of to or future undertake these statement law, which a revise

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

turn conference Mr. Conn. now will to the over I

when You may begin are you ready.

David Conn

joining started We partnerships product of brand, Joe for Ellen a endorsement Earnings you a the and for for for year our including the First XXXX handful as momentum, Tracy. new Jessica as Simpson well executing an deals Quarter Call. Caribbean Thank hosiery, deal with consumer

executed several ANDX key licensees extending GAIAM. We also terms and renewals, with for

our COVID-XX However, impacted has progress. significantly

cut partners and consumer All mandatory shelter-in-place by Our orders forward. been on going there spending put store and have closures have licensing is affected much around been or hold, orders. uncertainty

have seen We some bright diversified portfolio spots brands. our of in

out forced ANDX, and and been Walmart country and are this SPRI, have to been of GAIAM as in are mass AVIA, stores which home. working as well consumers across as as environment consist grocery retailers positioned close, the now at Our such active and have at brands, well gyms nationwide, sold drug

socks performed well equipment activewear, as exercise ANDX well. underwear SPRI have and AVIA and as also GAIAM

and two, environment over already to remain proactively the implementing business, safety pandemic three, material, and we achieve the team following top the result to impact new one, significant non-essential are and our expenses remote to work is provide bolster savings actions: revolver significant flexibility. to liquidity; maximizing achieved working the health partnering company; taking year, four, of drawing removing in actions base The by Nevertheless, the goals. addition above appropriate; efficiently its a our with proactively in as our as employees’ reductions priority. and past Our our our further liquidity our to taking across more scrutinizing all the well as the lender compensation the as

Related success the and potential including to all the and review, focused long-term opportunities, and/or we on is maximization. company ongoing, for value divestitures position best strategic that the exploring process remain acquisitions

we us brands In believe with tackling company long-term closing, explore steps distribution, opportunities we the our diversified in are will value. and maximize of success channels position times, while assist we of for also challenging taking, that best these coupled the and portfolio

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

Dan Hanbridge

end loss per David. On results. from of note, share QX XXXX $X.X for diluted continuing a quarter COVID-XX, was the of the or $X.XX the share. you, quarter, million XXXX first on the basis, or loss impact a to quarter. in the million revenue first per the compared $XX.X quarter from quarter $XX.X ended continuing compared operations $XX.X year the prior million a Total March million for continuing first began $X.XX GAAP which diluted XX, have operations Thank from was quarter Of will from XXXX, impact to first operations full at for

Joe’s Jessica brands, were first the Ellen to from quarter Included charges in the and $XX.X for the for continuing impacts the the Simpson, COVID-XX. trademarks of operations XXXX million impairment of financial related Tracy net indefinite-lived intangible non-cash reflecting loss GAIAM, assets for

million $X.X per $X.XX to or operations the from in continuing million impact continuing of the XXXX compared quarter loss for but per the aggressive for was million first $X.X million to bad from Adjusted to $XX.X diluted quarter. $XX.X quarter operations moving prior a year may be $X.XX EBITDA in net or diluted share the was cutting continue prior Non-GAAP have debt year company XXXX expense forward. in negative first SG&A, compared continues quarter. to The share

We closed net $XXX.X XXXX the first cash, with of $XX.X cash, of million restricted million debt cash. quarter and including of

also the which of $X subsequent we we our March XX, availability of of million, to the fully quarter. under As borrowed revolver had end

cash earnings condition closely. As results, call, be COVID-XX XXXX We mentioned to to have guidance. and our material we continue impact will last providing continue believe financial and full a not on will it flows our operating year to monitor

David in to short the turn to us our actively you we economy the for best position today. remarks, for relationships his are and I over the ourselves joining expenses for managing now Thank As back the outlined as call recovers. will call long-term and operator.

Operator

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

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

David Conn	Chief Executive Officer
Dan Hanbridge	Senior Vice President Finance and Interim Chief Financial Officer

Sequential Brands (SQBG) 15 May 202020 Q1 Earnings call transcript