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8-K
ICONIX BRAND GROUP, INC. filed this Form 8-K on 03/27/2019
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Exhibit 99.1

 

Iconix Reports Financial Results For The Fourth Quarter & Full Year 2018

 

NEW YORK, March 27, 2019 /Globe Newswire/ --

 

·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, representing $45 million of aggregate guaranteed minimum royalties.

 

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

 

Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today reported financial results for the fourth quarter and full year ended December 31, 2018.

 

Bob Galvin, CEO commented, “We have finalized our review of business and operational goals and objectives and we have put our plan into effect. As a result, we have reduced our operational cost structure by approximately $30 million to align with our plan. On the business front, the quarter was negatively impacted by the Sears bankruptcy, while our international business continued to demonstrate strong growth. We continue to build the pipeline of our future business, as we have signed 83 deals over the last six months for aggregate guaranteed minimum royalties of approximately $45 million.”

 

Unless otherwise noted, the following represents financial results for continuing operations only.

 

Fourth Quarter & Full Year 2018 Financial Results

 

 

GAAP Revenue by Segment  Three months ended December 31,   Twelve months ended December 31, 
($, 000's)  2018   2017   % Change   2018   2017   % Change 
                         
Womens   8,732    20,013    -56%   57,401    96,833    -41%
Mens   11,321    8,212    38%   39,073    39,780    -2%
Home   4,036    6,132    -34%   24,568    28,807    -15%
International   18,616    17,942    4%   66,647    60,413    10%
Total Revenue   42,705    52,299    -18%   187,689    225,833    -17%

 

For the fourth quarter of 2018, total revenue was $42.7 million, a 18% decline as compared to $52.3 million in the prior year quarter. For the full year 2018, total revenue was $187.7 million, a 17% decline as compared to $225.8 million in the full year 2017. Such decline was expected, principally as a result of the transition of our Danskin, OP and Mossimo direct to retail licenses in our Womens segment, as previously announced. Our revenue for the fourth quarter of 2018 and the full year 2018 were also impacted by the effect of the Sears bankruptcy on our Joe Boxer & Bongo brands in Womens and the Cannon brand in Home. Our Mens segment revenue increased 38% in the fourth quarter of 2018 as compared to the prior year quarter primarily from the Umbro, Ecko and Buffalo brands although the Mens segment declined 2% for 2018 mostly as a result of the transition of the Starter brand from Walmart to Amazon. Our International segment grew for both the quarter and the year primarily based on the performance of our brands in China, Europe and India.

 

 

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