Sequential Brands Group, Inc. posted its financial results for the first quarter of 2016, boasting strong revenue growth and reiterating its guidance for the rest of the year.
Total revenue for the first quarter ended March 31, 2016 increased to $34.0 million, up 150% from $13.6 million during the same period in 2015. Adjusted EBITDA for the first quarter was $16.7 million, compared to $8.0 million in the prior year quarter.
On a non-GAAP basis, the company reported net income of $2.5 million, or $0.04 per diluted share, compared to $1.3 million, or $0.03 per diluted share, in the first quarter of last year. On a GAAP basis, net loss was $(1.1) million for the first quarter, or $(0.02) per diluted share, compared to net income of $1.4 million, or $0.04 per diluted share in 2015.
Sequential’s Chief Executive Officer Yehuda Shmidman chalked up the robust growth in revenue to the new brands it acquired during 2015, which include its purchase of Martha Stewart Living and a majority stake in Jessica Simpson’s namesake brand.
“Our 2016 fiscal year is off to a strong start with Q1 revenue up 150% from the prior year, driven by a combination of contributions from the brands acquired in 2015 and increased revenues from the balance of our portfolio,” Yehuda Shmidman, Sequential’s chief executive officer, said in a statement. “We are on track to achieve high single digit organic growth for full year 2016 and remain focused on executing our activation playbook.”
Sequential said it expects $145.0 to $150.0 million in revenue for the rest of 2016, and adjusted EBITDA of $83.0 to $87.0 million. In addition, the company said it is continuing to review potential acquisition candidates and look for consumer brands with high potential for growth and strong brand awareness.