Sequential Brands Group, Inc. (NASDAQ:SQBG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 13, 2020 • 08:30 am ET

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Sequential Brands Group, Inc. (NASDAQ:SQBG) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Dan Hanbridge

continuing operations for the second quarter 2020 was $1.8 million or $1.10 per diluted share, compared to $2.6 million or $1.57 per diluted share in the prior year quarter. Adjusted EBITDA from continuing operations for the second quarter of 2020 was $15.1 million compared to $13.3 million in the prior year quarter.

Total revenue from continuing operations for the six-months ended June 30, 2020 was $42.8 million, compared to $51.9 million in the prior year period. On a GAAP basis, net loss from continuing operations for the six-months ended June 30, 2020 was $88.2 million or $53.80 per diluted share, compared to net loss from continuing operations for the six-months ended June 30, 2019 of $8.1 million or $5 per diluted share.

Included in the net loss from continuing operations were non-cash impairment charges of $85.6 million for indefinite life intangible assets related to the trademarks with the Jessica Simpson, Gaiam, Joe's and Ellen Tracy brands, reflecting the financial impact of COVID-19, which were recognized in the first quarter 2020.

Non-GAAP net loss from continuing operations for the six-months ended June 30, 2020 was $12.2 million or $7.40 per diluted share, compared to $6.9 million or $4.21 per diluted share in the prior year period. Adjusted EBITDA from continuing operations for the six-months ended June 30, 2020 was $24.9 million, compared to $24.6 million in the prior-year period, which reflects the Company's implementation of significant expense reduction. We closed the second quarter 2020 with $16.8 million of cash, including restricted cash, and $461.8 million of debt, net of cash.

Looking ahead, as David mentioned, we believe the COVID-19 pandemic will continue to impact our 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 the short and long-term as the economy recovers.

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