Profit scarce as NexCen revenues soar
Mark Battersby -- Home Textiles Today, March 14, 2008
New York – Brand management company NexCen Brands – owner of the Waverly and Bill Blass brands, among others -- reported a net loss of $4.6 million in 2007, its first full year – even as revenues zoomed to $34.4 million from $1.9 million in the 10-month operational period of 2006.
While it recorded a net loss, the company noted that EBITDA for 2007 was $8.8 million, or 26% of revenue.
“We have now completed the first year of our long-term plan to acquire and manage internationally-recognized franchise and consumer brands, and we have made dramatic progress,” said ceo Robert D'Loren. “We have acquired nine strong brands. We have assembled a first-class team of experienced professionals at NexCen - and partnered with industry-leading designers, manufacturers, and franchise operators worldwide.”
“We intend to continue to acquire complementary brands,” D’Loren said.
The company is also active in retail, restaurant and confectionary chain franchising.
NexCen has borrowed the full amount under its $180 million credit facility with BTMU Capital Corporation, the company said, but expects to convert it to a long-term, fixed-rate security.
“Our objective is to acquire from three to five brands per year in 2008 and 2009,” said NexCen. “Our acquisitions are financed with a combination of debt, cash on hand, and stock.”
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