Sequential Brands Group, Inc. (NASDAQ:SQBG) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 08:30 am ET
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 in 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. Listeners are cautioned to not place undue reliance on these forward-looking statements, which may speak only as of the date the statement was made.
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, non-GAAP income -- I'm sorry, non-GAAP net income and adjusted free cash flow are all non-GAAP metrics, and reconciliation tables for each can be found in the press release distributed today in the Investor Relations portion of our website, www.sequentialbrandsgroup.com.
On today's call are Sequential Brands Group CEO, Karen Murray; and Chief Financial Officer, Peter Lops. I'll now turn the conference over to Mr. Lops. You may now begin whenever you're ready.
Good morning, and thank you for joining us on our first quarter 2019 earnings conference call. As announced last month, we are finalizing the sale of the Martha Stewart and Emeril Lagasse brands, which is on track to close in the second quarter. At the time of close, we will provide an update on the financials of our continuing operations, the active and fashion divisions.
First quarter performance, which includes the Martha and Emeril brands, came in below expectations due to prior year non-recurring items in our fashion division, which was partially offset by growth in our active division. Total revenue for the first quarter ended March 31st, 2019, was $36.9 million compared to $38.1 million in the prior year's first quarter.
On a GAAP basis, net loss for the first quarter of 2019 was $125.3 million or $1.95 per diluted share compared to a net loss for the first quarter of 2018 of $2.3 million or $0.04 per diluted share. Included in the net loss for the first quarter 2019 was $161.2 million non-cash impairment charge related to the sale of the Martha Stewart and Emeril brands.
Non-GAAP loss for the first quarter of 2019 was $0.8 million or $0.01 per diluted share compared to a non-GAAP net income of $3.6 million or $0.06 per diluted share in the prior year period. Adjusted EBITDA for the first quarter of 2019 was $16.8 million compared to $21.2 million in the prior year's first quarter, impacted by production