Iconix Brand Group posts drop in FY16 licensing revenue

For the fourth quarter of 2016, licensing revenue at Iconix Brand Group was approximately 87.1 million dollars , an 8 percent decline compared to 94.7 million dollars in the prior year quarter. For the full year 2016, licensing revenue was approximately 368.5 million dollars, a 3 percent decline as compared to 379.2 million in 2015.

“2016 was a year of transition for Iconix,” said John Haugh, CEO of Iconix in a media statement. He added that with the initiatives, the company took in 2016, Iconix Brand Group is on a path to organic growth, improved earnings, an improved balance sheet and continued market leadership.

Q4 and FY16 financial highlights

The company said, revenue in the prior year's fourth quarter included approximately 1.3 million dollars of licensing revenue from the Badgley Mischka brand, for which there was no comparable revenue in the fourth quarter of 2016, due to its sale in the first quarter of 2016. In the fourth quarter, it added, there was a slight positive impact from foreign currency exchange rates primarily related to the Yen. Excluding Badgley Mischka and the currency impact, revenue was down approximately 7 percent for the quarter.

Revenue in 2015, the company further added, included approximately 5 million dollars from the Badgley Mischka brand for which there was no comparable revenue in 2016. In 2016, the company benefitted from a 3 million dollars favorable impact from foreign currency exchange rates primarily related to the Yen. Excluding Badgley Mischka and the currency impact, revenue was down approximately 2 percent for the year.

GAAP net income for the fourth quarterreflects a loss of approximately 297.5 million dollars, as compared to a loss of approximately 263 million dollars in the fourth quarter of 2015. GAAP diluted EPS for the quarter reflects a loss of approximately 5.30 dollars as compared to a loss of approximately 5.44 dollars in the fourth quarter of 2015.

For the full year 2016, GAAP net income reflects a loss of approximately 252.1 million dollars, as compared to a loss of approximately 189.3 million dollars in 2015. GAAP diluted EPS was a loss of approximately 4.82 dollars as compared to a loss of 3.92 dollars in 2015.

Non-GAAP net income for the fourth quarter was approximately 22 million dollars, a 79 percent increase as compared to approximately 12.3 million dollars in the fourth quarter of 2015. Non-GAAP diluted EPS was approximately 0.38 dollar as compared approximately 0.25 dollar in the fourth quarter of 2015.

Non-GAAP net income for the full year was approximately 74.3 million dollars, a 12 percent increase as compared to 66.4 million dollars in 2015. Non-GAAP diluted EPS for 2016 was approximately $1.37 as compared to 1.33 dollars in 2015.

Iconix Brand Group expects FY17 revenue of 350 to 365 mn dollars

The company expects full year 2017 revenue to be in a range of approximately 350 million dollars to 365 million dollars. This compares to revenue of approximately 359 million dollars in 2016, when excluding revenue from the Sharper Image brand.

The company expects 2017 GAAP EPS to be in a range of 0.43 dollars to 0.58 dollar. GAAP EPS is expected to include approximately 0.15 dollar related to non-cash interest expense, 0.05 dollar of estimated special charges, and a 0.07 dollar loss related to the early extinguishment of debt. The company expects 2017 non-GAAP EPS to be in a range 0.70 dollar to 0.85 dollar. This compares to an adjusted EPS of approximately 0.78 dollar in 2016, when excluding gains from the sale of the Sharper Image and Badgley Mischka brands, earnings associated with those brands and using the company's current diluted share count.

Picture:Iconix Brand Group, Mudd