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8-K
ICONIX BRAND GROUP, INC. filed this Form 8-K on 11/09/2018
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2018 Guidance:

 

Primarily as a result of the Sears Holdings Corporation bankruptcy filing on October 15, 2018, the Company is lowering full year guidance as follows:

  • Full year revenue guidance lowered to $185 million - $195 million, down from $190 million to $220 million.
  • GAAP net income guidance lowered to a loss of approximately $105 million - $115 million, from $94.4 million to $104.4 million.
  • Full year non-GAAP net income guidance lowered to $5 million - $15 million, down from $20 million to $30 million
  • Full year free cash flow guidance lowered to $40 million - $50 million, down from $50 million to $70 million 

It should be noted that GAAP net income will be affected by non-cash adjustments to fair value from the Company's 5.75% Convertible Notes as discussed below. Such periodic adjustments to fair value cannot be estimated in advance and thus are not taken into account in guidance.

 

Non-GAAP net income and free cash flow are non-GAAP metrics, and reconciliation tables for each are included in this press release.

 

 

Non-GAAP Net Income (Loss) & Diluted EPS Reconciliation: (2)                 
($, 000's, except per share data)                        
   NET INCOME   EPS 
   Three Months Ended September 30,   Three Months Ended September 30, 
   2018   2017   % Change   2018   2017   % Change 
                         
GAAP net income (loss) & EPS from continuing operations attributable to Iconix (2)   20,224    (550,571)   -104%  $(0.01)  $(9.64)   -100%
                               
Add:                              
non-cash interest related to ASC 470   -    3,997        $-   $0.07      
gain on sale of investment   -    (2,728)       $-   $(0.05)     
(gain) / loss on extinguishment of debt   -    1,539        $-   $0.03      
loss on termination of licenses   -    2,750        $-   $0.05      
trademark and goodwill impairment   4,386    625,530        $0.03   $10.94      
mark to market gain on convertible debt   (17,250)   -        $(0.10)  $-      
special charges   1,799    2,402        $0.01   $0.04      
non-cash gain related to investment in joint venture   (8,411)   -        $(0.05)  $-      
foreign currency translation gain/(loss)   301    (1,091)       $-   $(0.02)     
Income taxes related to above   (246)   (205,882)       $-   $(3.60)     
Valuation Allowance & Foreign Tax Credit   363    170,981        $-   $2.99      
non-controlling interest   18    (33,054)       $-   $(0.58)     
Effect of potential dilution of 5.75% Convertible Notes   -    -        $0.10   $-      
Accretion of redeemable non-controlling interest   -    -        $0.03   $0.01      
    Net Adjustments   (19,040)   564,444        $0.02   $9.88      
                               
Non-GAAP net income & EPS from continuing operations attributable to Iconix   1,184    13,873    -91%  $0.02   $0.24    -93%

 

 

 

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