Iconix Cutting Costs and Signing Deals, but Losing Ground

Iconix Brands Group Inc. is cutting costs and signing dozens of new deals to boost its business, but is still digging out from under its debt load. “We have finalized our review of business and operational goals and objectives and we have put our plan into effect,” said Bob Galvin, chief executive officer since October. “As a result, we have reduced our operational cost structure by approximately $30 million to align with our plan.  On the business front, the quarter was negatively impacted by the Sears bankruptcy, while our international business continued to demonstrate strong growth. We continue to build the pipeline of our future business, as we have signed 83 deals over the last six months for aggregate guaranteed minimum royalties of approximately $45 million through the life of the agreements for the next several years.” But Iconix ended the year with total debt of $764.6 million and last year paid interest expense of $59.2 million — meaning that nearly one of every three dollars coming in from licensing revenues went to creditors to maintain loans. For the fourth-quarter, Iconix’s net losses tallied $69.1 million, down from earnings of $24.1 million a year earlier. Licensing revenues fell 18.3 percent to $42.7 million

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