Our International segment revenue declined 27% in the current quarter mainly due to decreases in Latin America and Europe.SG&A Expenses: Total SG&A expenses in the second quarter of 2020 were $15.0 million, a 9% decline compared to $16.4 million in the second quarter of 2019. As a result, Adjusted EBITDA should not be considered as a measure of our liquidity. Important factors that could cause the Company's actual results to differ materially from those indicated in the forward-looking statements include, among others: the occurrence of any strategic transaction and the impact of any potential strategic transaction, including acquisitions or dispositions, the ability of the Company's licensees to maintain their license agreements or to produce and market products bearing the Company's brand names, the Company's ability to retain and negotiate favorable licenses, the Company's ability to meet its outstanding debt obligations, the impact of COVID-19 on our and our licensees’ business, results of operations, financial condition and liquidity and the impact of COVID-19 on global production, manufacturing, distribution and sales and the events and risks referenced in the sections titled "Risk Factors" in the Company's Annual Report on Form 10K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10Q and in other documents filed or furnished with the Securities and Exchange Commission. Our forward-looking statements do not reflect the potential impact of any acquisitions, mergers, dispositions, business development transactions, joint ventures or investments we may enter into or make in the future. Company profile page for Icon Construction Inc including stock price, company news, press releases, executives, board members, and contact information Refer to footnote 1 below for a full detailed reconciliation of operating income to Adjusted EBITDA. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement and could harm the Company's business, prospects, results of operations, liquidity and financial condition and cause its stock price to decline significantly. The brand house, which has been selling off businesses already, is now considering a broader set of strategic options. The increase in interest expense period over period is primarily the result of the step up in interest for the securitization. Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the impact on Iconixâs operating results, cash flows and financial condition. Many of these factors are beyond the Company's ability to control or predict. GAAP diluted EPS for the third quarter of 2020 reflected income of $1.51 per share, compared to loss of $3.07 per share for the third quarter of 2019.Adjusted EBITDA (1):Adjusted EBITDA for the third quarter of 2020 was $13.7 million, compared to $20.9 million for the third quarter of 2019.Adjusted EBITDA: (1) (000's) For the Three Months Ended September 30, 2020 2019 % Change GAAP Operating Income (Loss)$66,351 $(8,115) Add: stock-based compensation expense 196 363 depreciation and amortization 315 421 contract asset write offs, net 581 3,634 impairment charges 21,959 17,000 gain on sale of trademarks and investments (74,105) - special charges 460 9,084 non-controlling interest (976) (1,482) non-controlling interest related to D&A and impairment (1,067) (7) (52,637) 29,013 Adjusted EBITDA$13,714 $20,899 -34% Adjusted EBITDA Margin (2) 56% 59% Adjusted EBITDA: (1) (000's) For the Nine Months Ended September 30, 2020 2019 % Change GAAP Operating Income (Loss)$65,047 $28,857 Add: stock-based compensation expense 608 761 depreciation and amortization 894 1,393 gain on sale of trademarks and investments (75,705) - contract asset write offs, net 700 3,634 impairment charges 40,954 17,000 special charges 9,303 15,063 non-controlling interest (3,555) (7,017) non-controlling interest related to D&A and impairment (1,496) (19) (28,297) 30,815 Adjusted EBITDA$36,750 $59,672 -38% Adjusted EBITDA Margin (2) 49% 56% Balance Sheet and Liquidity:(000's)September 30, 2020 December 31, 2019 Cash Summary: Unrestricted Domestic, Canada and China (Wholly Owned)$48,370 $29,144 Unrestricted Luxembourg (Wholly Owned) 14,813 17,023 Unrestricted in consolidated JV's 7,347 9,298 Restricted Cash 12,760 15,946 Total Cash$83,290 $71,411 Debt Summary: Senior Secured Notes due January 2043*$323,876 $338,130 Variable Funding Note due January 2043 100,000 100,000 5.75% Convertible Notes due August 2023 94,430 94,430 Senior Secured Term Loan due August 2022 ** 116,420 175,600 Payroll Protection Plan Loan 1,307 - Total Debt (Face Value)$636,033 $708,160 *- The legal final maturity of the Securitization Notes is in January of 2043, as the Company did not repay or refinance the Securitization Notes prior to the anticipated repayment date. Illustration of eps10, logo, color - 113443582 The definition of Adjusted EBITDA margin may not be the same as the definitions used in any of our debt agreements. * Completed Sale of Umbro China in July 2020 with net proceeds of $59.6 million and repaid $44.7 million of Senior Secured Term Loan.NEW YORK, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today reported financial results for the second quarter ended June 30, 2020.Bob Galvin, CEO commented, “With the onset of COVID-19 during the first quarter, we quickly responded to remove costs and preserve liquidity. The definition of Adjusted EBITDA may not be the same as the definitions used in any of our debt agreements. S&P 500 3,870.29 The Company believes Adjusted EBITDA margin is a useful financial measure in evaluating its financial condition because it is more reflective of the Company's business purpose, operations and cash expenses. The current CoinMarketCap ranking is #67, with a live market cap of $1,036,941,303 USD. Adjusted EBITDA in the third quarter of 2020 was $13.7 million, which represents operating income of $66.4 million excluding net adjustments of $52.7 million. Revenue across all segments was primarily negatively impacted by the effects of the COVID-19 pandemic on the global economy. Revenue across all segments was primarily negatively impacted by the effects of the COVID-19 pandemic on the global economy. * Completed Sale of Umbro China in July 2020 with net proceeds of $59.6 million and repaid $44.7 million of Senior Secured Term Loan.NEW YORK, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today reported financial results for the second quarter ended June 30, 2020.Bob Galvin, CEO commented, âWith the onset of COVID-19 during the first quarter, we quickly responded to remove costs and preserve liquidity. During the second quarter while we continued those efforts, we also continued to develop our pipeline of future business, as we have signed 92 deals during 2020 for aggregate guaranteed minimum royalties of approximately $69 million. As we move forward, if we experience a slower recovery, or if further disruptions occur later in the year, we will be vigilant in an attempt to identify additional areas for cost savings.âGalvin continued, âIn late July, we closed the previously announced sale of Umbro China and realized net proceeds of over $59 million. Seventy five percent of the net proceeds were used to repay our Senior Secured Term Loan. We continue to look for other opportunities within our portfolio of brands to realize value.âAs previously disclosed, on July 10, 2020, the Companyâs Board of Directors determined to commence a process to broaden its exploration of strategic alternatives available to the Company to enhance shareholder value. The Board has authorized management and its external advisors to consider a broader range of strategic alternatives, including a potential sale of the Company, merger or other business combination, a recapitalization of its existing capital structure, financings or re-financings of its existing indebtedness, sales of equity and equity-linked securities, dispositions of discrete brands and related assets, licensing or other strategic transactions involving the Company, or any combination of the foregoing. Currency in USD, Stock chart is not supported by your current browser. * GAAP Operating Income $3.5 million as compared to $18.6 million in the prior year quarter. Stock Icon FAQ Icon Usage Agreement. In addition, Iconix owns interests in the MATERIAL GIRL ®, ED HARDY ®, TRUTH OR DARE ®, MODERN AMUSEMENT ®, BUFFALO ® and PONY ® brands. You imagine it, we build it. © 2021 Verizon Media. The Company recorded investment impairments of $17.1 million in the third quarter of 2020 as a result of from exiting our Ecko Mark/Ecko joint venture in China and a reduction in the fair value of our Candies joint venture in China. Revenue from the Men’s segment decreased 55% in the Current Quarter mainly due to a decrease in licensing revenue from our Buffalo and Umbro brands. Equity multiplier, or assets relative to shareholders' equity, comes in at -1.58 for Iconix Brand Group Inc; that's greater than it is for just 5.31% of US stocks. The Company recorded investment impairments of $17.1 million in the third quarter of 2020 as a result of from exiting our Ecko Mark/Ecko joint venture in China and a reduction in the fair value of our Candies joint venture in China. The increase in the tax benefit is a result of a decrease in foreign withholding tax for the second quarter of 2020.GAAP Net Income and GAAP Diluted EPS:GAAP net income attributable to Iconix for the second quarter of 2020 reflected a loss of $17.4 million, compared to net income of $1.3 million for the second quarter of 2019. This is in addition to the Company’s previously announced executed definitive agreements to sell the rights to the UMBRO and STARTER brands in China. Therefore, beginning January 2020, the Company accrues additional interest on the Securitization Notes that is not payable until 2043. The change period over period in Adjusted EBITDA margin is primarily as a result of the Company’s decrease in revenue.Interest Expense and Other (Income) Loss, net:Interest expense in the third quarter of 2020 was $18.5 million as compared to $14.4 million in the third quarter of 2019. Adjusted EBITDA in the third quarter of 2019 was $20.9 million, which represents operating loss of $8.1 million excluding net charges of $29.0 million. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement and could harm the Company's business, prospects, results of operations, liquidity and financial condition and cause its stock price to decline significantly. **- As a result of the completion of the sale of Starter China, the Company received $15.6 million of net proceeds, and on October 4, 2020, repaid $11.7 million of Senior Secured Term Loan principal not reflected above. Other companies that provide Adjusted EBITDA information may calculate EBITDA and Adjusted EBITDA differently than we do. The 43% decrease in revenue in our Womenâs segment was principally as a result of a decrease in licensing revenue from our Mudd and Joe Boxer brands. When you select a cell that is linked to stock data, you’ll notice a small Add Field icon in the upper right-hand corner of your selected cell. Stock screener for investors and traders, financial visualizations. * Continued to improve cost structure, decreasing SG&A expenses by $16.4 million from prior year quarter. Flaticon, the largest database of free vector icons. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement and could harm the Company's business, prospects, results of operations, liquidity and financial condition and cause its stock price to decline significantly. Get the latest Iconix Brand Group, Inc. (ICON) stock news and headlines to help you in your trading and investing decisions. Track your personal stock portfolios and watch lists, and automatically determine your day gain and total gain at Yahoo Finance The impact of COVID-19 on our business could be material to our operating results, cash flows and financial condition. The Company does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until its Board of Directors has approved a specific transaction or course of action or the Company has otherwise determined that further disclosure is appropriate or required by lawsecond Quarter 2020Financial ResultsGAAP Revenue by Segment (000’s) For the Three Months For the Six Months Ended June 30,Ended June 30, 2020 2019 2020 2019 Licensing revenue: Women's $4,409 $8,171 $10,887 $16,538 Men's 2,957 6,614 9,713 17,550 Home 3,787 4,285 6,949 7,775 International 11,124 15,324 22,677 28,473 $22,277 $34,394 $50,226 $70,336 For the second quarter of 2020, total revenue was $22.3 million, a 35% decline, compared to $34.4 million in the second quarter of 2019. Through its in-house business development, merchandising, advertising and public relations departments, Iconix manages its brands to drive greater consumer awareness and brand loyalty.Forward-Looking StatementsIn addition to historical information, this press release contains forward-looking statements within the meaning of the federal securities laws. The decline for the quarter was primarily driven by a decrease in advertising and compensation expense somewhat offset by an increase in bad debt expense.Trademark and Investment Impairment: In the second quarter of 2020, the Company recorded a non-cash trademark impairment charge of $5.2 million. The Company licenses its brands to a network of retailers and manufacturers. Important factors that could cause the Company's actual results to differ materially from those indicated in the forward-looking statements include, among others: the occurrence of any strategic transaction and the impact of any potential strategic transaction, including acquisitions or dispositions, the ability of the Company's licensees to maintain their license agreements or to produce and market products bearing the Company's brand names, the Company's ability to retain and negotiate favorable licenses, the Company's ability to meet its outstanding debt obligations, the impact of COVID-19 on our and our licenseesâ business, results of operations, financial condition and liquidity and the impact of COVID-19 on global production, manufacturing, distribution and sales and the events and risks referenced in the sections titled "Risk Factors" in the Company's Annual Report on Form 10K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10Q and in other documents filed or furnished with the Securities and Exchange Commission. * Adjusted EBITDA of $13.7 million, compared to $20.9 million in the prior year quarter. The house in Austin, TX was a proof of concept that brought our team, investors, and customers together to drive towards the future. Therefore, beginning January 2020, the Company accrues additional interest on the Securitization Notes that is not payable until 2043. Subscribe to Premium to view Fair Value for ICON. There can be no assurance that the exploration of strategic alternatives will result in any transaction or specific course of action. There can be no assurance that all or any future principal payments projected for the Senior Secured Notes will be made in accordance with the projections provided. * GAAP Operating Income $3.5 million as compared to $18.6 million in the prior year quarter. The live ICON price today is . by ICON Team 2020-03-06 ®, MARC ECKO ®, ARTFUL DODGER ®, and HYDRAULIC®. The Company did not repay or refinance the Securitization Notes prior to the anticipated repayment date. Note: All items in the following tables are attributable to the Company’s interest in its subsidiaries and joint ventures, as applicable, and exclude the results related to any non-controlling interest in such entities. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The Company did not repay or refinance the Securitization Notes prior to the anticipated repayment date. GAAP Operating Loss - $4.9 million as compared to income of. The legal final maturity date of the Securitization Notes is in January of 2043. Discover new investment ideas by accessing unbiased, in-depth investment research, NasdaqGS - NasdaqGS Real Time Price. Many of these factors are beyond the Company's ability to control or predict. This loss results primarily from the Company's accounting for the 5.75% Convertible Notes, which requires recording the fair value of this debt at the end of each period with any change from the prior period accounted for as other income or loss in the respective period's consolidated income statement.Provision for Income Taxes:The effective income tax rate for the second quarter of 2020 is approximately 5.3%, which resulted in a $0.9 million income tax benefit, as compared to an effective income tax rate of -3.9% in the second quarter of 2019, which resulted in a $0.1 million income tax benefit. In addition, Iconix owns interests in the MATERIAL GIRL ®, ED HARDY ®, TRUTH OR DARE ®, MODERN AMUSEMENT ®, BUFFALO ® and PONY ® brands. Find building icon stock images in HD and millions of other royalty-free stock photos, illustrations and vectors in the Shutterstock collection. A variety of formats and sizes is provided. * GAAP Operating Income $66.4 million as compared to a loss of $8.1 million in the prior year quarter. The charge for the third quarter of 2020 was based on the impact of the COVID-19 pandemic on current and estimated future cash flows on the fair value of the Pony and Hydraulic indefinite-lived trademarks. Many of these factors are beyond the Company's ability to control or predict. The decline for the quarter was primarily driven by a decrease in professional fees, advertising costs and compensation expense.Gain on Sale of Trademarks Gain on sale of trademarks reflect the $59.6 million gain of the sale of 100% of our interest in Umbro China Ltd., and $14.5 million gain on sale of Starter China Ltd., each completed during the third quarter of 2020.Trademark and Investment Impairment: In the third quarter of 2020, the Company recorded a non-cash trademark impairment charge of $4.8 million. Moving forward, we will remain flexible to respond to changes in the economic and retail environments.”Third Quarter 2020 Financial ResultsGAAP Revenue by Segment (000’s) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Licensing revenue: Women's $5,919 $10,317 $16,805 $26,855 Men's 5,705 7,942 15,419 25,491 Home 3,487 3,430 10,436 11,205 International 9,351 13,782 32,028 42,255 $24,462 $35,471 $74,688 $105,806 For the third quarter of 2020, total revenue was $24.5 million, a 31% decline, compared to $35.5 million in the third quarter of 2019. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Our International segment revenue declined 27% in the current quarter mainly due to decreases in Latin America and Europe.SG&A Expenses: Total SG&A expenses in the second quarter of 2020 were $15.0 million, a 9% decline compared to $16.4 million in the second quarter of 2019. Discover historical prices for ICON stock on Yahoo Finance. The 46% decrease in revenue in our Womenâs segment was principally as a result of a decrease in licensing revenue from our Mudd and Candies brands.
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