Iconix Brand Group, Inc. Announces Unaudited Consolidated Financial Results for the Quarter and Nine Months Ended September 30, 2018; Revised Earnings Guidance for the Full Year of 2018
For the nine months, the company reported licensing revenue of $144,984,000 against $173,535,000 for the same period a year ago. Operating loss was $66,944,000 against $546,369,000 for the same period a year ago. Loss before income taxes was $22,939,000 against income of $612,784,000 for the same period a year ago. Net loss attributable to company was $31,446,000 against $513,338,000 for the same period a year ago. Diluted loss per share was $0.81 per share against basic and diluted loss per share of $9.02 per share for the same period a year ago. Diluted loss per share from continuing operations was $0.81 per share against basic and diluted loss per share from continuing operations of $9.83 per share for the same period a year ago. Adjusted operating income was $68,496,000 against $107,611,000 a year ago. Operating loss in the nine months ended September 30, 2018 included goodwill and trademark impairments of $115.5 million, special charges of $7.2 million, costs associated with recent debt financings of $8.3 million, a loss on termination of licenses of $5.7 million and gain on sale of trademarks of $1.3 million. GAAP net loss from continuing operations attributable to Iconix for the nine months ended September 30, 2018 reflects a loss of $31.4 million as compared to a loss of $559.7 million for the nine months ended September 30, 2017. GAAP diluted EPS from continuing operations for the nine months ended September 30, 2018 reflects a loss of $0.81 as compared to a loss of $9.83 for the nine months ended September 30, 2017. Non-GAAP net income from continuing operations for the nine months ended September 30, 2018 was $15.0 million as compared to $41.7 million for the nine months ended September 30, 2017. Non-GAAP diluted EPS from continuing operations for the nine months ended September 30, 2018 was $0.23 as compared to $0.73 for the nine months ended September 30, 2017. Net cash provided by operating activities was $49,697,000 against $3,097,000 a year ago. Capital expenditures were $776,000 compared to $829,000 a year ago.
For the year ending December 31, 2018, the company expects revenue guidance lowered to $185 million to $195 million, down from $190 million to $220 million. GAAP net income guidance lowered to a loss of approximately $105 million to $115 million, from $94.4 million to $104.4 million. Full year non-GAAP net income guidance lowered to $5 million to $15 million, down from $20 million to $30 million. Full year free cash flow guidance lowered to $40 million to $50 million, down from $50 million to $70 million. Net cash provided by operating activities in the range of $52,380,000 to $58,880,000. The company expects the full year 2018 tax rate to be approximately 4% and approximately 50% on a GAAP basis and non-GAAP basis, respectively.