Stock in News Spotlight: Sequential Brands Group, Inc. (NASDAQ: SQBG)

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On 18 May 2020, Sequential Brands Group, Inc. stock identified change of 73.64% away from 52-week low price and recently located move of -78.75% off 52-week high price. SQBG stock has been recorded -6.26% away from 50 day moving average and -39.46% away from 200 day moving average. Moving closer, we can see that shares have been trading -15.37% off 20-day moving average.

Sequential Brands Group, Inc. (SQBG) recently reported financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Results from Continuing Operations:

Total revenue from continuing operations for the fourth quarter ended December 31, 2019 was $24.2M, contrast to $35.2M in the previous year quarter. On a GAAP basis, loss from continuing operations for the fourth quarter 2019 was $(7.9M) or $(0.12) per diluted share contrast to loss from continuing operations for the fourth quarter 2018 of $(5.7M) or $(0.09) per diluted share. Non-GAAP net loss from continuing operations for the fourth quarter 2019 was $(8.9M), or $(0.14) per diluted share, contrast to non-GAAP net income from continuing operations of $2.6M, or $0.05 per diluted share, in the fourth quarter 2018. See Non-GAAP Financial Measure Reconciliation tables below for a reconciliation of GAAP to non-GAAP measures. Adjusted EBITDA from continuing operations (defined under “Non-GAAP Financial Measures” below) for the fourth quarter of 2019 was $8.0M, contrast to $17.8M in the previous year quarter.

Full Year 2019 Results from Continuing Operations:

Total revenue from continuing operations for the year ended December 31, 2019 was $101.6M, contrast to $127.3M in the previous year. On a GAAP basis, loss from continuing operations for the year ended December 31, 2019 was $(34.3M) or $(0.53) per diluted share contrast to a loss from continuing operations for the year ended December 31, 2018 of $(17.5M) or $(0.27) per diluted share. Included in the GAAP loss from continuing operations for the full year 2019 were non-cash impairment charges of $33.1M for indefinite-lived intangible assets related to the trademarks for certain brands. Non-GAAP net loss from continuing operations for the year ended December 31, 2019 was $(16.0M), or $(0.25) per diluted share, contrast to non-GAAP net income from continuing operations of $8.1M, or $0.13 per diluted share, in the previous year. Adjusted EBITDA from continuing operations for the year ended December 31, 2019 was $45.8M, contrast to $69.9M in the previous year.

Discontinued Operations:

On June 10, 2019, Sequential completed its before reported sale of 100% of the issued and outstanding equity interests of Martha Stewart Living Omnimedia, Inc. (“MSLO”), a Delaware corporation and a wholly-owned subsidiary of Sequential, for about $166M in cash consideration at closing, plus additional amounts in respect of pre-closing accounts receivable that are received after the closing, subject to certain adjustments, to Marquee Brands LLC. In addition, the Sequential is entitled to an earnout of up to $40M if certain performance targets are achieved by MSLO during each of the three calendar years ending December 31, 2020, December 31, 2021 and December 31, 2022.

Sequential’s after-tax net loss from discontinued operations was $(2.9)M and $(125.1)M for the fourth quarter and year ended December 31, 2019, respectively.

The Consumer Cyclical sector company, Sequential Brands Group, Inc. noticed change of -8.41% to $0.18 along volume of 1279849 shares in recent session compared to an average volume of 735.45K. SQBG’s shares are at -28.08% for the quarter and driving a -75.76% return over the course of the past year and is now at -43.09% since this point in 2018.

 

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