Mar 29, 2016
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Iconix pleased with 2015 financial report despite revenue decline

Mar 29, 2016

Iconix Brand Group, Inc. on Monday reported its financial results for fourth quarter and full year 2015 ended December 31, 2015, namely decline. The company also included updated guidance for 2016.

Mossimo is part of the Iconix Brand Group portfolio - Mossimo

Peter Cuneo, Chairman and Interim CEO of Iconix commented, "Despite a challenging year in 2015, I believe our ability to continue to generate significant free cash flow speaks to the overall resilience of our business model and the ongoing strength of a diversified portfolio of global brands."
Iconix fourth quarter licensing revenue was approximately $94.7 million, a 1% decrease from $96.0 million in the fourth quarter of 2014. The revenue included $2.0 million related to acquisitions made in 2015 for Strawberry Shortcake and Pony, and was negatively impacted by $1.4 million due to foreign currency exchange rates.

Adjusted EBITDA in the fourth quarter decreased 14% to $38 million from $44.3 million, non-GAAP diluted EPS decreased 45% to $0.25 from $0.45 and net income decreased 46% to $12.3 million from $22.7 million.
Full year licensing revenue declined 3% to $379.2 million from $391.5 million in the year prior. In addition, licensing revenue in the comparable 2014 period included $17.1 million of revenue related to the five-year renewal of the Peanuts specials with ABC.

Full year adjusted EBITDA declined 18% to $172.7 million from $211.1 million and net income decreased 36% to $66.4 million from $103.6 million.
Cuneo continued, "When I took over as Interim CEO about eight months ago, there were three key areas of concern. These were the need to refinance the $300 million convertible notes due in June, the continuing dialog with the Staff of the SEC regarding certain historical accounting, and finally to bring a new CEO into the Company with the right experience and leadership qualities to take us into the future. I am pleased to say we have met each of these challenges. We signed a new $300 million term loan in order to address the upcoming maturity of our convertible notes. The Company has reached conclusions on the matters that were the subject of our comment letter process with the Staff of the SEC, and we brought John Haugh to the Company.”
Iconix updated its 2016 guidance to reflect higher expenses associated with a new term loan, the sale of Badgley Mischka, the hiring of new CEO and trends in the portfolio. The company expects licensing revenue to range between $370 million and $390 million, non-GAAP diluted EPS to range from $1.15 to $1.30 (a decrease of $0.20), and free cash flow to range from $155 million to $170 million (decrease of $15 million).

Iconix Brand Group is an American brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear, and apparel accessory industries.

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