ICONIX BRAND GROUP, INC. (NASDAQ:ICON) Files An 8-K Results of Operations and Financial ConditionItem 2.02
On December6, 2017, Iconix Brand Group, Inc. (the “Company”) issuedapressreleaseannouncing its preliminary third quarter 2017 results, a range for the impairment charge described in Item 2.02 below and affirming financial guidance for the year ending December31, 2017, excluding the impact of the impairment charge. The financial information for the three months ended September30, 2017, is preliminary and subject to finalization by the Company and has not been reviewed by the Company’s independent registered public accountants. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information under this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section18 of the Exchange Act, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 2.02 | Material Impairments |
On November1, 2017 and November16, 2017, the Company filed Current Reports on Form8-K(the “PriorReports”)disclosing that (i)as of a result of, among other things, the recent decisions by certain licensees not to renew existing Mossimo and Danskin license agreements and expected modest diminished revenues in 2018 across several of the Company’s other brands, the Company determined that it will need to record a material non-cash intangible asset impairment charge on its Danskin, Mossimo and Ocean Pacific trademarks; and (ii)as a result of the declinein the Company’s stock priceand related market capitalization,the Company determined there existed a further indication of potential impairment across all of the Company’s intangible assets and accelerated the timing of its annual impairment testing of goodwill and intangible assets to be completed in connection with the preparation of its financial statements for the quarter ended September30, 2017.
The Company continues to work to complete impairment testing of all of its goodwill and intangible assets. As a result of such impairment testing, the Company expects that it will record materialnon-cashimpairment charges, which could range from $500million to $750million in the aggregate. These impairment charges will affect all of the Company’s reporting units and will be reflected in the Company’s financial statements for the quarter ended September30, 2017. The Company also expects to have a non-cash tax charge of approximately $15 million related to the write off of certain deferred tax assets.
The disclosures in this Item 2.02 update and supplement the disclosure regarding potential impairment charges described in the PriorReports.
| Item 2.02 | Financial Statements and Exhibits. |
(d) Exhibits.
| 99.1 | Press Release dated December6, 2017 |
EXHIBIT INDEX
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ExhibitNo. |
Description |
| 99.1 | Press Release dated December6, 2017 |
ICONIX BRAND GROUP, INC. ExhibitEX-99.1 2 d504092dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Iconix Reports Preliminary Third Quarter 2017 Results and Provides Update on Intangible Asset Impairment New York,…To view the full exhibit click here
About ICONIX BRAND GROUP, INC. (NASDAQ:ICON)
Iconix Brand Group, Inc. is a brand management company. The Company owns a diversified portfolio of consumer brands across women’s, men’s, home and entertainment categories. The Company operates through five segments: men’s, women’s, home, entertainment and corporate. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper, Strawberry Shortcake and Artful Dodger, and interests in Material Girl, Peanuts, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).