Balance Sheet Sequential closed FY2015 with just under $42 million in cash which almost doubled the level of $22.5 million it ended 2014 with. The company has a strong cash profile and $100 million in guaranteed minimum royalties for the coming year from covering licensees. Sequential currently has approximately $508 million of net debt with the majority of their debt not maturing for the next five years.
One of the underappreciated parts of the Martha Stewart acquisition was Sequential now has a Net Operating Loss (NOL) balance and other tax deduction benefit that are expected to offset up to $466 million in aggregate future taxable income.
As such, the company should not be paying any material taxes in the foreseeable future which represents a significant positive shift in their free cash flow position going forward.