ICONIX BRAND GROUP, INC.

CIK:0000857737|SEC Filings

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Licensing revenue	$ 23,634	$ 27,951
Type of Revenue [Extensible List]	us-gaap:LicenseMember	us-gaap:LicenseMember
Selling, general and administrative expenses	$ 13,094	$ 17,150
Depreciation and amortization	298	273
Equity (earnings) loss on joint ventures	(72)	1,645
Gain on sale of trademarks	(14,959)
Trademark impairment		13,733
Operating income (loss)	25,273	(4,850)
Other expenses (income):
Interest expense	14,655	17,056
Interest income		(40)
Other loss (income), net	2,777	(795)
Foreign currency translation gain	(1,359)	(65)
Other expenses – net	16,073	16,156
Income (loss) before income taxes	9,200	(21,006)
Provision (Benefit) for income taxes	2,261	(5)
Net income (loss)	6,939	(21,001)
Less: Net income attributable to non-controlling interest	2,751	825
Net income (loss) attributable to Iconix Brand Group, Inc.	$ 4,188	$ (21,826)
Earnings (loss) per share:
Basic	$ 0.30	$ (1.89)
Diluted	$ 0.26	$ (1.89)
Weighted average number of common shares outstanding:
Basic	13,805	11,772
Diluted	31,628	11,772

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 6,939	$ (21,001)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	298	273
Amortization of deferred financing costs and debt discount	1,512	2,462
Interest expense on 5.75% Convertible Notes paid in shares	679
Stock-based compensation expense	140	172
Provision for doubtful accounts	(2,082)	2,392
Periodic lease cost	574	565
(Earnings) loss on equity investments in joint ventures	(72)	1,645
Contract asset impairment	149	468
Trademark impairment		13,733
Mark to market adjustment on convertible note	2,776	(792)
Gain on sale of trademarks and other investments	(14,959)
Deferred income tax expense	546	95
(Gain) Loss on foreign currency translation	(1,359)	(65)
Changes in operating assets and liabilities:
Accounts receivable	9,153	(3,484)
Other assets – current	(30)	3,041
Other assets	686	(905)
Deferred revenue	216	602
Accounts payable and accrued expenses	(2,152)	(4,783)
Other liabilities	5,024	3,723
Net cash provided by (used in) operating activities	8,038	(1,859)
Cash flows provided by (used in) investing activities:
Purchases of property and equipment	(99)	(113)
Acquisition of trademarks and other investments	(59)	(2,232)
Issuance of loan to equity investee		(2,750)
Proceeds from sale of trademarks and investments	16,000
Net cash provided by (used in) investing activities	15,842	(5,095)	$ (2,608)	$ 75,717	$ 75,541
Cash flows used in financing activities:
Payment of long-term debt	(18,961)	(12,400)
Proceeds from sale of 10% of Danskin China equity	1,800
Acquisition of 25% of US Pony Holdings equity	(2,000)
Distributions to non-controlling interests	(17)	(1,183)
Distributions to redeemable non-controlling interests	(1,056)	(1,003)
Cost of shares repurchased on vesting of restricted stock	(380)	(66)
Net cash used in financing activities	(20,614)	(14,652)	(25,691)	(83,516)	(108,739)
Effect of exchange rate changes on cash and restricted cash	(93)	(364)
Net increase (decrease) in cash and cash equivalents, and restricted cash	3,173	(21,970)
Cash, cash equivalents, and restricted cash, beginning of period	59,177	71,411	$ 71,411	$ 71,411	71,411
Cash, cash equivalents, and restricted cash, end of period	62,350	49,441			$ 59,177
Cash paid during the period:
Income taxes (net of refunds received)	1,197	1,996
Interest	6,113	$ 11,712
Non-cash investing and financing activities:
Non-cash additions to operating lease assets	50
Shares issued for payment of interest on 5.75% Convertible Notes	$ 2,035

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents (includes VIE assets of $6,876 and $7,332, respectively)	$ 48,184	$ 49,797
Restricted cash	14,166	9,380
Accounts receivable, net (includes VIE assets of $5,557 and $3,237, respectively)	17,260	24,736
Contract asset (includes VIE assets of $717 and $689, respectively)	14,098	13,842
Other assets – current (includes VIE assets of $670 and $806, respectively)	1,680	2,276
Total Current Assets	95,388	100,031
Property and equipment, net:
Furniture, fixtures and equipment	20,753	20,672
Less: Accumulated depreciation	(18,985)	(18,703)
Property, Plant and Equipment, Net, Total	1,768	1,969
Other Assets:
Other assets	5,726	5,796
Contract asset (includes VIE assets of $2,538 and $2,692, respectively)	9,670	11,415
Right-of-use asset	4,517	4,894
Trademarks and other intangibles, net (includes VIE assets of $114,274 and $114,263, respectively)	242,396	246,786
Investments and joint ventures	15,818	15,746
Goodwill	26,099	26,099
Other Assets, Total	304,226	310,736
Total Assets	401,382	412,736
Current Liabilities:
Accounts payable and accrued expenses (includes VIE liabilities of $1,127 and $1,685, respectively)	26,956	30,125
Deferred revenue (includes VIE liabilities of $978 and $1,085, respectively)	4,705	5,093
Current portion of long-term debt	31,510	28,433
Other liabilities – current	2,728	3,863
Total Current Liabilities	65,899	67,514
Deferred income tax liability	5,743	5,196
Long-term debt, less current maturities (includes $53,644 and $50,868, respectively, at fair value)	518,218	535,968
Other liabilities (includes VIE liabilities of $1,537 and $1,604, respectively)	34,385	28,603
Total Liabilities	624,245	637,281
Redeemable Non-Controlling Interest	24,518	24,321
Commitments and contingencies (refer to Note 11)
Stockholders’ Deficit:
Common stock, $.001 par value shares authorized 260,000; shares issued 18,140 and 16,650, respectively	18	17
Additional paid-in capital	1,051,642	1,049,104
Accumulated losses	(433,252)	(437,440)
Accumulated other comprehensive loss	(49,082)	(42,625)
Less: Treasury stock – 3,674 and 3,490 shares at cost, respectively	(844,906)	(844,526)
Total Iconix Brand Group, Inc. Stockholders’ Deficit	(275,580)	(275,470)
Non-Controlling Interest	28,199	26,604
Total Stockholders’ Deficit	(247,381)	(248,866)
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Deficit	$ 401,382	$ 412,736