0001193125-17-257970.txt : 20170815 0001193125-17-257970.hdr.sgml : 20170815 20170815080036 ACCESSION NUMBER: 0001193125-17-257970 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170815 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170815 DATE AS OF CHANGE: 20170815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICONIX BRAND GROUP, INC. CENTRAL INDEX KEY: 0000857737 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 112481903 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10593 FILM NUMBER: 171032432 BUSINESS ADDRESS: STREET 1: 1450 BROADWAY, 4TH FL CITY: NEW YORK STATE: NY ZIP: 10018 BUSINESS PHONE: 212-730-0030 MAIL ADDRESS: STREET 1: 1450 BROADWAY, 4TH FL CITY: NEW YORK STATE: NY ZIP: 10018 FORMER COMPANY: FORMER CONFORMED NAME: CANDIES INC DATE OF NAME CHANGE: 19930604 FORMER COMPANY: FORMER CONFORMED NAME: MILLFELD TRADING CO INC DATE OF NAME CHANGE: 19920703 8-K 1 d443509d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 15, 2017

 

 

Iconix Brand Group, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-10593   11-2481903

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 

1450 Broadway, New York, NY   10018
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code (212) 730-0030

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 

Item 7.01 Regulation FD Disclosure

Attached to this Current Report on Form 8-K as Exhibit 99.1 is additional financial information related to Iconix Brand Group, Inc. (the “Company”) in the form of 2016 quarterly consolidated Income Statements adjusted to reflect the Entertainment Segment as a discontinued operation. This information is also being made available on the Company’s website.

The information in this Item 7.01, including Exhibit 99.1, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities under that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, regardless of any general incorporation language in those filings.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

 

Exhibit
No.

   

Description

99.1    Iconix Brand Group, Inc. Consolidated Income Statements Adjusted to Reflect Entertainment Segment as a Discontinued Operation.*

 

* Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ICONIX BRAND GROUP, INC.
By:   /s/ David K. Jones
  Name:   David K. Jones
  Title:   Executive Vice President and Chief Financial Officer

Date: August 15, 2017

EXHIBIT INDEX

 

Exhibit
No.

   

Description

99.1    Iconix Brand Group, Inc. Consolidated Income Statements Adjusted to Reflect Entertainment Segment as a Discontinued Operation.*

 

* Furnished herewith.
EX-99.1 2 d443509dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

(Unaudited, subject to change, for analytical purposes only)

Iconix Brand Group, Inc. and Subsidiaries

Consolidated Income Statements Adjusted to Reflect Entertainment Segment as a Discontinued Operation

 

(in thousands, except earnings per share data)   2016 GAAP as Adjusted  
    Q1     Q2     Q3     Q4     FY  

Licensing revenue

     67,676       68,209       60,457       58,801       255,143  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Selling, general and administrative expenses

     32,600       29,506       29,869       36,784       128,759  (a) 

Depreciation and amortization

     965       895       233       699       2,793  

Equity earnings on joint ventures

     (1,193 )      (1,363 )      (574 )      (448 )      (3,578 ) 

Gains on sales of trademarks

     (10,969 )      1,125       (147 )      (28,113 )      (38,104 ) 

Goodwill impairment

           18,331       18,331  (b) 

Trademark impairment

           419,762       419,762  (b) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     46,273       38,046       31,076       (388,214 )      (272,818 ) 

Other (income) expenses

          

Interest expense

     19,526       21,890       18,334       17,174       76,925  (c) 

Interest income

     (355 )      (193 )      (140 )      (218 )      (904 ) 

Other income, net

     (7 )      (9 )      (10,164 )      (7,328 )      (17,508 ) (d) 

Loss (gain) on extinguishment of debt

     —         (4,288 )      (4,186 )      14,376       5,903  (e) 

Foreign currency translation loss (gain)

     617       (734 )      732       (1,903 )      (1,287 ) (f) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other expenses (income) - net

     19,781       16,666       4,578       22,101       63,129  

Income from continuing operations before income taxes

     26,492       21,380       26,498       (410,315 )      (335,948 ) 

Provision for income taxes

     8,836       6,888       9,433       (103,074 )      (77,917 ) (h) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) from continuing operations

     17,656       14,492       17,065       (307,241 )      (258,031 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less: Net income (loss) attributable to non-controlling interest from continuing operations

     3,027       3,890       2,885       (13,129 )      (3,327 ) (g) 

Net income (loss) from continuing operations attributable to Iconix Brand Group, Inc.

     14,629       10,602       14,179       (294,112 )      (254,704 ) 

Income from discontinued operations, net of income taxes

     3,987       980       1,036       (3,436 )      2,570  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Iconix Brand Group, Inc.

     18,616       11,582       15,215       (297,548 )      (252,134 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share - basic:

          

Continuing operations

     0.30       0.22       0.26       (5.24 )      (4.87 ) 

Discontinued operations

     0.08       0.02       0.02       (0.06 )      0.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share - basic

     0.38       0.24       0.27       (5.30 )      (4.82 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share - diluted:

          

Continuing operations

     0.29       0.21       0.25       (5.24 )      (4.87 ) 

Discontinued operations

     0.08       0.02       0.02       (0.06 )      0.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings per share - diluted

     0.37       0.23       0.27       (5.30 )      (4.82 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average number of common shares outstanding:

          

Basic

     48,509       49,035       55,584       56,147       52,338  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

     50,327       50,675       57,355       56,147       52,338  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         2016 Non-GAAP Adjustments  
         Q1     Q2     Q3     Q4     FY  
   Net income (loss) from continuing operations          
   attributable to Iconix Brand Group, Inc.     14,629       10,602       14,179       (294,112 )      (254,704 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   Add:          

(a)

   

special charges

     5,470       1,860       3,118       3,866       14,314  

(b)

   

write-down of certain intangible assets

           438,093       438,093  

(c)

   

non-cash interest related to ASC 470

     7,280       6,812       4,246       4,059       22,397  

(d)

   

gain on Complex and settlement w/ former CEO

         (10,164 )      (7,263 )      (17,427 ) 

(e)

   

loss on extinguishment of deb

       (4,288 )      (4,186 )      14,376       5,903  

(f)

   

foreign currency translation gain

     617       (734 )      732       (1,903 )      (1,287 ) 

(g)

   

portion of non-controlling interest of (b) and (f)

     10       139       (40 )      (17,390 )      (17,282 ) 

(h)

    Deduct: Income taxes related to above     (4,533 )      (1,537 )      2,422       (117,781 )      (121,428 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  

Net

     8,843       2,252       (3,871 )      316,057       323,283  
   Non-Gaap Net Income     23,472       12,854       10,308       21,945       68,579  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   Non-Gaap Share count - Diluted     50,327       50,675       57,355       58,060       54,142  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   Non-Gaap Earnings Per Share - Diluted     0.47       0.25       0.18       0.38       1.27  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

 

Footnotes:

(a) Special charges related to professional fees associated with the continuing correspondence with the Staff of the SEC, the SEC investigation, the previously disclosed class action and derivative litigations, and costs related to the transition of Iconix management
(b) Write-down of certain intangible assets
(c) Non-cash interest related to the Company’s convertible notes, ASC 470
(d) $10 million gain related to the sale of the Company’s minority interest in Complex Media, and $7 million gain related to the recoupment and final settlement of unearned incentive compensation from the Company’s former CEO.
(e) Gains related to the repurchase of a portion of the Company’s 2018 convertible notes at a discount and a loss related to the early extinguishment of debt
(f) Non-cash foreign currency translation loss (gain)
(g) Portion of write-down related to minority interest
(h) Income taxes related to adjustments (a) through (f)

 

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