Iconix Brand Group reported its financial results for the fourth quarter and full year ended December 31, 2015.
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For the fourth quarter of 2015, licensing revenue was approximately $94.7 million, a 1% decline as compared to approximately $96 million in the fourth quarter of 2014.
Licensing revenue included approximately $2 million of revenue related to acquisitions made in 2015 including the Strawberry Shortcake and PONY brands, and was negatively impacted by approximately $1.4 million due to foreign currency exchange rates.
Excluding the effect of acquisitions and foreign currency exchange rates, licensing revenue declined approximately 2% in the quarter.
Adjusted EBITDA attributable to Iconix for the fourth quarter of 2015 was approximately $38 million, a 14% decline as compared to approximately $44.3 million in the prior year quarter.
On a non-GAAP basis, as set forth in the tables below, net income attributable to Iconix was approximately $12.3 million, a 46% decrease as compared to the prior year quarter of approximately $22.7 million.
Non-GAAP diluted EPS for the fourth quarter of 2015 was $0.25, a 45% decrease as compared to $0.45 in the prior year quarter.
GAAP net income attributable to Iconix for the fourth quarter of 2015 reflects a loss of approximately $263 million, as compared to income of $17.5 million in the prior year quarter, and GAAP diluted EPS for the fourth quarter of 2015 reflects a loss of $5.44 as compared to earnings of $0.32 in the prior year quarter.
Full year 2015
Licensing revenue for the full year ended December 31, 2015 was approximately $379.2 million, a 3% decline as compared to approximately $391.5 million for 2014.
Licensing revenue included approximately $11.9 million of revenue from acquisitions made in 2015 including the Strawberry Shortcake and PONY brands, and was negatively impacted by approximately $10.1 million due to foreign currency exchange rates.
In addition, licensing revenue in the comparable 2014 period included $17.1 million of revenue related to the five-year renewal of the Peanuts specials with ABC. Excluding the effect of acquisitions, foreign currency exchange rates and the ABC renewal, licensing revenue increased approximately 1% for the year.
Iconix Brand Group reported no Gains on Sales of Trademarks in 2015 as compared to approximately $6.4 million in 2014, which was related to the sale of the Sharper Image e-commerce and US catalog rights.
Adjusted EBITDA attributable to Iconix for the full year 2015 was approximately $172.7 million, an 18% decline as compared to approximately $211.1 million in the prior year.
The company's results for 2015 include an incremental expense of approximately $16 million of accounts receivable reserves and write-offs related to a comprehensive review of the company's license agreements and relationships with its licensees, which have not been excluded from the Company's non-GAAP metrics.
On a non-GAAP basis net income attributable to Iconix for 2015 was approximately $66.4 million, a 36% decline as compared to approximately $103.6 million in the prior year, and non-GAAP diluted earnings per share was approximately $1.33, a 33% decline versus $1.98 for the prior year.
GAAP net income attributable to Iconix for 2015 reflects a loss of approximately $189.3 million, as compared to income of $103.7 million in 2014, and GAAP diluted EPS for 2015 reflects a loss of $3.92, as compared to earnings of $1.81 in 2014.
Free cash flow attributable to Iconix for 2015 was approximately $188.9 million, a 14% increase over the prior year period of approximately $165.4 million. In 2015 the company received a tax refund of approximately $15.5 million.
Adjusted EBITDA, free cash flow, non-GAAP net income and non-GAAP diluted EPS are non-GAAP metrics, and reconciliation tables for each are attached to this press release. ■