Iconix’s second quarter revenues drop 10 percent

For the second quarter of 2017, Iconix Brand Group’s licensing revenue was 61.6 million dollars, a 10 percent decline as compared to 68.2 million dollars in the prior year quarter. Revenue in the prior year's second quarter included approximately 1.6 million dollars of licensing revenue from the Sharper Image brand, which was sold in the fourth quarter of 2016. Excluding revenue from the Sharper Image brand, the company said, revenue declined approximately 7percent in the second quarter of 2017.

Commenting on the preliminary update, John Haugh, CEO of Iconix said in a media statement: "Today we are reporting second quarter revenue results that show an improvement from the first quarter. With the refinancing announced last week, we can report that our near-term balance sheet objectives are substantially complete."

Iconix Brand Group – Q2 highlights

Operating Income in the second quarter was 12.1 million dollars, as compared to 38 million dollars in the second quarter of 2016, which included 1.5 million dollars of income related to the Sharper image brand and a 1.1 million dollars loss from the sale of trademarks. Excluding these items, operating income was approximately 35.3 million dollars, a 6 percent decline from last year’s approximately 37.6 million dollars.

GAAP net income from continuing operations was a loss of 16.3 million dollars compared to income of 10.6 million dollars in the second quarter of 2016. The decline, the company added, was primarily related to a licensee termination charge and a loss on the early extinguishment of debt. GAAP diluted EPS from continuing operations was a loss of 0.30 dollar as compared to diluted earnings per share of approximately 0.21 dollar in the second quarter of 2016.

Non-GAAP net income from continuing operations was 15.2 million dollars, an 18 percent increase compared to 12.9 million dollars in the second quarter of 2016. Non-GAAP diluted EPS from continuing operations was 0.26 dollar compared to 0.25 dollar in the second quarter of 2016.

Iconix revises full year outlook

The company expects full year revenue to be in a range of approximately 225 million dollars to 235 million dollars as compared to its previous guidance of 235 million dollars to 245 million dollars. The company said, revision is related to the timing of certain new initiatives, the transition of certain licensees, and the deconsolidation of the Southeast Asia joint venture.

The company expects 2017 GAAP EPS to be a loss of 0.06 dollar to 0.01 dollar as compared to its previous guidance of 0.29 dollar to 0.44 dollar due the termination licensees, the expense related to the early extinguishment of debt in the second quarter and the revenue revision. Non-GAAP EPS is expected to be in a range of 0.65 dollar to 0.70 dollar as compared to its previous guidance of 0.70 dollar to 0.85 dollar to reflect the revenue revision.

Adjusting for the US intangible tax benefit, the company expects non-GAAP EPS for 2017 to be in a range of 1.16 dollars to 1.21 dollar compared to previous guidance of 1.21 dollars to 1.36 dollars.

Picture:Candies, Iconix website