Good day, ladies and gentlemen, and welcome to the Iconix Brand Group Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the Q&A session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Ms. Cristina Cosentino, Senior Director of Financial Reporting. Ma'am, you may begin.

Good morning and welcome to the Iconix Brand Group's fourth quarter 2018 earnings conference call. On today's call, we have with us, Bob Galvin, our Chief Executive Officer; and John McClain, our Chief Financial Officer. During today's call, we will be making some forward-looking statements within the meaning of the Federal Securities laws. The statements that are not historical facts contained in this conference call are forward-looking statements that involve a number of risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company. This may cause actual results performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. The words believe, anticipate, expect, confident and similar expressions identify as forward-looking statement. Listeners are cautioned to not to place undue reliance on these forward-looking statements which speak only as of the date statement was made. I would now like to turn the call over to Bob Galvin.

Thank you, Cristina. 2018 was a challenging and transitional year for Iconix. We saw a determination of a number of DTRs including the wrap-up of Mossimo, Danskin and Royal Velvet. We experienced the Sears bankruptcy, an impact to our Bongo, Cannon and Joe Boxer businesses. We also experienced the departure of a number of executives, planned and unplanned. I joined the Company in mid October of 2018, and our new CFO, John McLean, joined in February 2019. With that all of this, the Company and its people have remained optimistic and focused on the task at hand of cleaning historical issues and building for the future. During the past five months, we have made progress critically analyzing the business model and restructuring a number of areas and practices. Our goals coming into 2019 were to stabilize the business and create a foundation for growth in 2020 and beyond. While Iconix has grown in the past via acquisitions, that will not be our focus for the foreseeable future. We have a portfolio of almost 30 brands that are still in the process of being harvested and will keep us busy while we maximize their potential. We are happy to report on a number of positive developments for 2019. We will be receiving a clean opinion from our auditors for the 2018 audit. We are in compliance with our various debt agreements as of December 31, 2018, and forecast continued compliance through 2021. We have significantly reduced our SG&A with extensive cost reductions and expense management. We are signing new deals for former DTR brands and are having ongoing negotiations for certain categories for these brands. We are working with NASDAQ to resolve our outstanding delisting issues and believe that we have made significant progress towards their resolution including the recent 1-for-10…

Thanks Bob. This is my first earnings call and I'm pleased to be here. So to dig it right in, on a total company basis, revenue was down 18% in the quarter and 17% for the year as expected, principally as a result of previously announced transition of our Danskin, OP and Mossimo DTRs in our Women's segment and the impact of the Sears bankruptcy on our Joe Boxer, Cannon and Bongo brands. Total company adjusted EBITDA decreased 37% for both the quarter and a year. On a segment basis, as expected revenue on the woman segment was now 56% for the three months and 41% for the year. As previously discussed, the decline was principally the result of the transition of our Danskin, OP and Mossimo DTRs and the impact of the Sears bankruptcy on Joe Boxer & Bongo. In the men segment, revenue was up 38% for the quarter and down 2% for the year. The quarter revenue showed a strong performance in Buffalo, Ecko and Umbro. The year was negatively impacted by the transition of Starter from Walmart to Amazon, which was largely offset by strong performance from the Buffalo brand and the success coming from our multiyear Umbro distribution agreement with Target. Our home segment was down 34% for the quarter and down 15% for the year. For the quarter, the decline was principally impacted the Sears bankruptcy on our Cannon brand. The full-year was negatively impacted by both the Sears bankruptcy and by the terms of the renewal of the Waverly Inspirations contract at Walmart. Our international division continues to be a strong contributor to our business. In Q4, its revenue grew 4% primarily on the strength of Umbro, where the full-year saw Umbro, Lee Cooper and Starter contributing to the 10% increase. Our SG&A…

Thank you, John. I've known John for over a decade and I'm thrilled that he has joined Iconix. He has already made a positive impact in the short-time here and having John in the Company allows me to focus more of my attention to drive global revenues. We intend to hold our annual shareholder meeting on May 7th in New York City at the Iconix offices. We have also revised our homepage in order to allow investors and other interested parties the opportunity to sign-up to receive our press releases. Operator will now open the line to questions.

[Operator Instructions] Our first question comes from Eric Beder with SCC Research. Your line is now open.

When you look at 2019 and especially what you are seeing in terms of the new licensing agreements and other pieces. Do you expect that 2019 will kind of be a kind of the bottom here in terms of revenue that we should be thinking about the licensing agreement as we've seen over the last few weeks as a driver for 2020?

Yes, I think we're going to see uptick. We're building the pipeline, Eric, as we get these deals in place, having joined the Company of late in the year, a lot of the deals that we're entering into and negotiating currently will really start to take in 2020 and beyond. So, we're fueling the pipeline at this point and will realize those in 2020 and beyond.

And when you look at the need for infrastructure as these new deals kick-in in 2020 and beyond, do you see -- how leverageable is the remaining infrastructure that you have at the Company I guess I'm asking here?

Yes, I don’t think we have to add cost to manage additional revenues and more deals, Eric. I think the cost structure we have in place is more than adequate to manage all of those businesses and new deals. And so, I think our cost structure is, if anything else can be reduced further as we move forward and not increased.

When you look at the licensing agreements that are coming today, it looks like the DTR business is obviously going to significantly decline. Is there a future going forward for new DTRs? Or is it really more of kind of traditional licensing method? And what should we be expect in terms of that?

Yes, I think we are focusing more on what I would call wholesaling manufacturing relationships and deals with large players who can help go-to-market with us that much easier. I don’t eliminate larger DTRs, but I don’t think that's going to be the norm as we move forward.

And last question. You've talked about M&A. You are not, as you said, you're focused on debt repayment and growing business. What about the flipside in terms of divesting businesses? What's your thought process there? And how you are thinking about that?

Sure. We would be opportunistic in divesting any of the businesses that we owned. We don’t have a for sale shingle out on top of the brands, but if someone is interested, we will always entertain discussions.

Thank you. [Operator Instructions]

With no other questions, we would like to thank everyone for their support, their participation, and we look forward to a much more productive 2019. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program and you may all disconnect. Everyone have a wonderful day.