Exhibit 99.1

Iconix Reports Financial Results for the Third Quarter 2020

NEW YORK, November 16, 2020 /Globe Newswire/ -

 

Total revenue of $24.5 million compared to $35.5 million in the prior year quarter.

 

GAAP Operating Income $66.4 million as compared to a loss of $8.1 million in the prior year quarter.

 

Adjusted EBITDA of $13.7 million, compared to $20.9 million in the prior year quarter.

 

Continued to improve cost structure, decreasing SG&A expenses by $16.4 million from prior year quarter.

 

Completed Sale of Starter China in September 2020 with net proceeds of $15.6 million and in October repaid $11.7 million of Senior Secured Term Loan.

Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today reported financial results for the third quarter ended September 30, 2020.

Bob Galvin, CEO commented, “As we continue to navigate through the pandemic and the resulting economic conditions, the well-being of our employees, licensees and communities remains at the forefront. Despite COVID-19, we continued to expand our business, including a successful launch of Umbro products in Walmart. We have remained focused on building our pipeline of future business, as a result, we have signed 148 deals during 2020 for aggregate guaranteed minimum royalties of approximately $90 million.  Moving forward, we will remain flexible to respond to changes in the economic and retail environments.”

Third Quarter 2020 Financial Results

GAAP 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. Revenue across all segments was primarily negatively impacted by the effects of the COVID-19 pandemic on the global economy. The 43% decrease in revenue in our Women’s segment was principally as a result of a decrease in licensing revenue from our Mudd and Joe Boxer brands. Revenue from the Men’s segment decreased 28% mainly due to a decrease in licensing revenue from our Buffalo and Umbro brands. Sales in our Home segment improved by 2% principally due to an increase in licensing revenue from our Charisma brand. Our International segment revenue declined 32% mainly due to decreases in Latin America and Europe.

SG&A Expenses:

Total SG&A expenses in the third quarter of 2020 were $9.9 million, a 62% decline compared to $26.3 million in the third quarter of 2019. 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. 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. The Company recorded investment impairments of $17.1 million in


The following information was filed by Iconix Brand Group, Inc. (ICON) on Monday, November 16, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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