Print Page  Close Window

10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
Entire Document
 << Previous Page | Next Page >>

 

The Company has disclosed these reportable segments for the periods shown below.

 

(in 000’s)

 

FY 2018

 

 

FY 2017

 

Licensing revenue by segment:

 

 

 

 

 

 

 

 

Women’s

 

$

57,401

 

 

$

96,833

 

Men’s

 

 

39,073

 

 

 

39,780

 

Home

 

 

24,568

 

 

 

28,807

 

International

 

 

66,647

 

 

 

60,413

 

 

 

$

187,689

 

 

$

225,833

 

Operating income (loss):

 

 

 

 

 

 

 

 

Women’s

 

$

(128,050

)

 

$

(215,570

)

Men’s

 

 

11,754

 

 

 

(144,779

)

Home

 

 

17,221

 

 

 

(76,680

)

International

 

 

27,447

 

 

 

(64,826

)

Corporate

 

 

(47,409

)

 

 

(62,796

)

 

 

$

(119,037

)

 

$

(564,651

)

 

Highlights of FY 2018

 

Total revenue of $187.7 million, a 17% decline from prior year. Continued growth internationally as segment revenue up 10% from the prior year.

 

 

Improved financial stability during 2018 by closing on Delayed Draw Term Loan and issuing new 5.75% Convertible Notes.

 

•        Signed 83 license deals over the last six months for aggregate guaranteed minimum royalties of approximately $45 million through the life of the agreements for the next several years.

 

 

Rationalized cost structure of business with cost reductions of approximately $30 million on an annualized basis.

 

FY 2018 Compared to FY 2017

 

Licensing Revenue. Total licensing revenue for FY 2018 was $187.7 million, a 17% decrease as compared to $225.8 million for FY 2017. The women’s segment decreased 41% from $96.8 million in FY 2017 to $57.4 million in FY 2018 mainly due to a decrease in our Mossimo, Danskin and OP brands. The men’s segment decreased 2% from $39.8 million in FY 2017 to $39.1 million in FY 2018 mainly due to a decrease in the Starter brand somewhat offset by an increase in the Umbro brand. The home segment decreased 15% from $28.8 million in FY 2017 to $24.6 million in FY 2018 mainly due to a decrease in the Cannon brand. The international segment increased 10% from $60.4 million in FY 2017 to $66.6 million in FY 2018 mainly due to increases across Europe, China and India.

Selling, General and Administrative Expenses. Total selling, general and administrative expenses (“SG&A”) was $121.4 million for FY 2018 as compared to $114.6 million for the FY 2017, an increase of $6.8 million or 6%. SG&A in FY 2018 included an $8.2 million accounts receivable reserve for the impact of the Sears bankruptcy. SG&A from the women’s segment increased 46% from $11.3 million in FY 2017 to $16.5 million in FY 2018 mainly due to a $5.2 million increase in accounts receivables reserves and write-offs mainly due to the reserve related to Sears. Excluding the reserve in Sears, SG&A in the women’s segment decreased by 4%.  SG&A from the men’s segment decreased 18% from $20.2 million in FY 2017 to $16.5 million in FY 2018 primarily due to a $3.2 million decrease in advertising expense. SG&A from the home segment increased 31% from $3.5 million in FY 2017 to $4.6 million in FY 2018 mainly due to a $1.9 million increase in accounts receivables reserves and write-offs mainly due to the reserve related to the Sears bankruptcy. Excluding the reserve in Sears, SG&A in the home segment decreased by 42%. SG&A from the international segment increased 29% from $30.5 million in FY 2017 to $39.4 million in FY 2018 mainly due to a $4.6 million increase in accounts receivable reserves and write-offs and a $2.8 million increase in cost of goods sold due to replica jersey sales by our Diamond Icon joint venture. Corporate SG&A decreased 10% from $49.1 million in FY 2017 to $44.4 million mainly driven by a decrease of $10.8 million in compensation costs somewhat offset by a $5.2 million increase in professional fees.

Loss on Termination of Licenses. Loss on the termination of licenses was a $10.6 million for FY 2018 as compared to $28.4 in FY 2017. The charge in FY 2018 was mostly related to licensee terminations associated with the Rocawear and Ecko brands as compared to FY 2017 which primarily related to the Umbro brand.

34


 << Previous Page | Next Page >>