Iconix posts Q4 2017 licensing revenue at $52.3 million

19 Mar '18

2 min read

Courtesy: Iconix Brand

Iconix, an American brand management company, has posted fourth quarter licensing revenue at $52.3 million, an 11 per cent decline as compared to $58.8 million in the prior year quarter. For the full year 2017 ended December 31, 2017, licensing revenue was registered at $225.8 million, an 11 per cent decrease as compared to $255.1 million in 2016.

Operating loss for the fourth quarter of 2017 was $18.3 million, as compared to a loss of $388.2 million in the fourth quarter of 2016. Operating loss for the full year 2017 was $564.7 million, as compared to a loss of $272.8 million in 2016.

Interest expense in the fourth quarter of 2017 was $21.8 million, as compared to interest expense of $17.2 million in the fourth quarter of 2016. The company's reported interest expense includes non-cash interest related to its outstanding convertible notes of approximately $4.6 million in the fourth quarter of 2017 and approximately $4.1 million in the fourth quarter of 2016.

Interest expense for the full year 2017 was approximately $67.9 million, as compared to interest expense of $76.9 million in 2016. The company's reported interest expense includes non-cash interest related to its outstanding convertible notes of $16.9 million in 2017 and $22.4 million in 2016.

Total SG&A expenses in the fourth quarter of 2017 were $40.9 million, an 11 per cent increase compared to $36.8 million in the fourth quarter of 2016. For the full year 2017, total SG&A expenses were $114.6 million, an 11 per cent decrease as compared to $128.8 million in 2016.

"2017 continued to be a year of change as we refinanced our balance sheet and refined our business model. Importantly, we enter 2018 better positioned to leverage our brand portfolio anchored on our strategic focus to actively manage brands with our existing partners, while exploring new opportunities to expand our reach. The launch of Starter with Amazon in 2017 and our recently announced multiyear agreement with Target for the Umbro brand demonstrates our ability to position our brands with the right long-term partners to maximize market presence and contribution to Iconix," said John Haugh, CEO of Iconix.

"With our near-term debt obligations satisfied today, we are now able to apply renewed attention to our business initiatives and lay the foundation for sustained, organic growth," Haugh added.

For 2018, the company expects revenue to be around $190-$220 million. The net income on GAAP basis is expected to be $7-$17 million, and $20-$30 million on a non-GAAP basis. The full year cash flow will be approximately $50-$70 million. (RR)

Fibre2Fashion News Desk – India

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