For the fourth quarter of 2020, total revenue at Iconix Brand Group was 33.9 million dollars, a 22 percent decline compared to the fourth quarter of 2019. For the twelve months ended December 31, 2020, total revenue was 108.6 million dollars, a 27 percent decline compared to 2019 driven by decreases in woman’s, men’s and international segments.
Commenting on the results, Bob Galvin, the company’s CEO said: “While we are hopeful that the pandemic will subside in 2021, we will continue to address the many pandemic-related challenges we face between now and then, and, at the same time, continue to focus on realizing the opportunity that exists for our brands through focusing on building our pipeline of future business. From December 31, 2019 to today, through proceeds from assets sales and cash flow, we have reduced our term loan balance by over 52 percent or approximately 92 million dollars.”
Highlights of Iconix’s Q4 and FY20 results
The company said in a statement that fourth quarter revenue across all segments, except for home segment, was negatively impacted by the effects of the Covid-19 pandemic on the global economy. The 21 percent decrease in revenue in the women’s segment was a result of a decrease in licensing revenue from Mudd and London Fog brands partially offset by an increase in Danskin Brand.
Revenue from the men’s segment decreased 35 percent due to a decrease in licensing revenue from Buffalo and Ecko Unltd brands partly offset by an increase in Umbro brand. Sales in the home segment improved by 62 percent principally due to an increase in licensing revenue from Charisma and Cannon brands, partially offset by a decrease in Fieldcrest brand.
The company’s international segment revenue declined 30 percent mainly due to decreases in Latin America and Europe.
Operating income for the fourth quarter of 2020 was 2.6 million dollar compared to operating loss of 60.4 million dollars for the fourth quarter of 2019. Adjusted EBITDA was 18.4 million dollars, which represents operating income of 2.6 million dollars excluding net adjustments of 15.8 million dollars. Adjusted EBITDA in the fourth quarter of 2019 was 21.1 million dollars, which represents operating loss of 60.4 million dollars excluding net charges of 81.5 million dollars.
GAAP net loss attributable to Iconix reflected a net loss of 14.1 million dollars compared to 93 million dollars for the fourth quarter of 2019. GAAP diluted EPS reflected a loss of 1.06 dollars per share compared to 7.94 dollars per share for the fourth quarter of 2019.
GAAP net loss attributable to Iconix for the twelve months ended December 31, 2020 reflected a net loss of 7.3 million dollars compared to a net loss of 109.5 million dollars for the twelve months ended December 31, 2019. GAAP diluted EPS for the year reflected a loss of 60 cents per share compared to a loss of 10.37 dollars per share for the twelve months ended December 31, 2019.