Iconix Brand Group, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Earnings Guidance for the Year 2018; Reports Trademark and Goodwill Impairment for the Second Quarter Ended June 30, 2018
For the six months, licensing revenue was $98,761,000 against $120,370,000 a year ago. Operating loss was $79,050,000 against operating income of $49,489,000 a year ago. Loss before income taxes was $45,676,000 against $2,364,000 a year ago. Net loss was $44,522,000 against $2,750,000 a year ago. Net loss attributable to the company was $51,670,000 against $9,136,000 a year ago. Loss per share continuing operations diluted was $0.91 against $0.19 a year ago. Loss per share basic and diluted was $0.91 against earnings per share basic and diluted of $0.65 a year ago. Non-GAAP net income & EPS from continuing operations was $13,824,000 or $0.22 per share against $27,879,000 or $0.48 per share a year ago. Net cash provided by operating activities was $39,348,000 against $20,015,000 a year ago. Capital expenditures were $571,000 against $755,000 a year ago. Adjusted operating income was $50,206,000 against $73,659,000 a year ago. Free cash flow was $31.4 million.
For the year 2018, the company anticipates lower end of full year revenue guidance of $190 million to $220 million. The company expects GAAP net income guidance now a loss of approximately $94.4 million to $104.4 million, principally due to a second quarter trademark and goodwill impairment. The company anticipates low end of full year non-GAAP net income guidance of $20 million to $30 million. The company reiterates full year free cash flow guidance of $50 million to $70 million.
In the second quarter of 2018, the company recorded a non-cash trademark charge of $73.3 million in the women's segment related to a write-down in the Mossimo trademark. The Company also recorded a non-cash goodwill impairment charge of $37.8 million in the women's segment as a result of the impairment of the Mossimo trademark.