The Loan Agreements contain financial covenants and the Company is in compliance with its financial covenants included in its Loan Agreements as of June 30, 2020. Sequential ended the second quarter with $16.8 million in cash, including restricted cash.Īs of June 30, 2020, the Company was party to the Amended BoA Credit Agreement and the Fourth Amendment to the Third Amended and Restated Credit Agreement with Wilmington Trust, National Association as administrative agent and collateral agent (the “Amended Wilmington Credit Agreement”), referred to as its loan agreements (“Loan Agreements”). However, the situation is dynamic, and the Company is not currently able to predict the full impact of COVID-19 on its results of operations and cash flows. The impacts of COVID-19 have adversely affected our near-term and long-term revenues, earnings, liquidity and cash flows as certain licensees have requested temporary relief or deferred making their scheduled payments. The impact of the COVID-19 pandemic and the pace at which there are new developments has created significant uncertainty in the current economic environment. 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. 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. Included in the net loss from continuing operations for the six months ended June 30, 2020 were non-cash impairment charges of $85.6 million for indefinite-lived intangible assets related to the trademarks for the Jessica Simpson, Gaiam, Joe’s and Ellen Tracy brands reflecting the financial impacts of COVID-19. ![]() 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 a net loss from continuing operations for the six months ended June 30, 2019 of $(8.1) million or $(5.00) per diluted share. 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. Year-to-Date 2020 Results from Continuing Operations: Adjusted EBITDA from continuing operations (defined under “Non-GAAP Financial Measures” below) for the second quarter of 2020 was $15.1 million, compared to $13.3 million in the prior year quarter. See Non-GAAP Financial Measure Reconciliation tables below for a reconciliation of GAAP to non-GAAP measures. ![]() Non-GAAP net loss from 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. On a GAAP basis, loss from continuing operations for the second quarter 2020 was $(2.9) million or $(1.78) per diluted share compared to loss from continuing operations for the second quarter 2019 of $(3.3) million or $(2.03) per diluted share. Total revenue from continuing operations for the second quarter ended June 30, 2020 was $22.6 million, compared to $26.4 million in the prior year quarter. Second Quarter 2020 Results from Continuing Operations: As a result of the Reverse Stock Split, the Company is back in compliance with the minimum bid price listing rules of The Nasdaq Stock Market. Prior periods have been reclassified to reflect the change in the Company’s stated capital attributable to common stock which was reduced proportionately to the Reverse Stock Split ratio, and the additional paid-in capital account which was credited with the amount by which common stock was reduced. All share and per share amounts in this press release have been adjusted to reflect the Reverse Stock Split. ![]() On July 27, 2020, the Company’s previously announced 1 share-for-40 shares (1:40) reverse stock split (the “Reverse Stock Split”) of the Company’s outstanding common stock, par value $0.01 per share became effective. While there is still much uncertainty in the macro-environment and the apparel and accessories industry, we believe that we’re on the right path forward to position the Company for long-term growth,” said Sequential Brands Group CEO David Conn. ![]() “Despite the ongoing challenges that the COVID-19 pandemic has presented, it has also demonstrated the durability of our business model and the demand for several of our core brands. New York, NY - Sequential Brands Group announced financial results for the second quarter ended June 30, 2020.
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