Good day, ladies and gentlemen, and welcome to the First Quarter 2016 Iconix Brand Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to introduce your host for today's conference Ms. Jaime Sheinheit, Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to the Iconix Brand Group first quarter 2016 earnings conference call. On today's call, we have with us John Haugh, our President and CEO; Dave Jones, our Chief Financial Officer; and Peter Cuneo, our Executive Chairman. The agenda for today's call will include opening remarks from John and update on our business segments. Dave will then walk you through our financial results for the first quarter. And turn the call back to John for some closing remarks. We will then open up the call for questions. Before we begin, I'll read the following Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. 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. These 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 forward-looking statements. Listeners are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. I would now like to turn the call over to John Haugh. John N. Haugh - President & Chief Executive Officer: Thank you, Jamie, and good morning, everyone. I'm very happy to be here today. Let me first start by once again thanking Peter, Dave and the rest of the Iconix management team for all the hard work over the past year. With a number of issues behind us, management can now better allocate it's time to rebuilding organic growth and regaining confidence…

Our first question comes from Dave King with ROTH Capital Partners. Your line is open.

Thanks, good morning, everyone. I guess first off on the guidance for the men's business of flat to slightly up for the year, what gives the confidence there that we've turned the corner and then maybe more importantly how much of that is guaranteed through GMRs? John N. Haugh - President & Chief Executive Officer: So the men's business is interesting, because it was very big and as some trends changed, we frankly didn't keep up. What's interesting about where we sit today is, we've got some strong brands inside there. Ecko has tremendous appeal particularly to the Hispanic customer. We have strong relationship with JCPenney, we have a strong relationship with Dillard's and we have some more relationships that you're going to hear about soon. We had as we mentioned our first ever brand summit yesterday and had licensees from around the world attend and they walked out very energized and believe that the brand is back to where it should be. At one point Ecko was a $500 million retail business. It's significantly off of that today. Does it get back there? We don't know. But it certainly can grow from where it is today and people walked out very energized. Rocawear used to be a really strong business. It's come off. We actually have gone into a small DTR relationship meaning number of stores from a test, but an expanded line larger than we put forward before. And we're optimistic that there is a demo out there that isn't being served that Rocawear can serve. Finally Ed Hardy is an important brand inside there. And with the leadership in men's relatively new, a little less than a year, we have had a lot of progress with Ed Hardy and you're going to see it in more ways…

Okay. And do you think that's, you know, more back half related for the year as opposed to have you seen that turn the corner yet? It sounds like a lot of this is conversations and stuff from yesterday. And you know – second quarter, would we start to see some of that benefit or is that still too early? John N. Haugh - President & Chief Executive Officer: You know we're in a long lead business. But I think one of the things that Benny (22:43) has done – much of our business is long lead. You guys know that. But Benny (22:48) has put together with a key license equity a new opportunity that we will get out and we've an order coming from one of our partners for hundreds and hundreds of thousands of units and he's turning that quickly. So it is a back half of the year, absolutely, and then frankly as much into 2017. These things just take a little bit of time, but some good wind in the sales in men's.

Okay. That's great color. Switching gears a bit, in terms of operating income, you know, if I back out the $11 million in gains that you had this quarter, I get to an operating margin of 45% or so. And you're guiding to similar levels for the remainder of the year. You know, but Peanuts I would assume is sort of coming off which is a lower margin business. So, if anything, I would think there might be some upside to those operating margin targets. What am I missing, what are sort of the puts and takes there? Thank you. David K. Jones - Chief Financial Officer & Executive Vice President: Yes. Dave, just on the 45% I think if you – in the first quarter if you back out the gain on the sale, but you also back out the one-time special charges we're at 51.5%. And then, like we said, we've got some extra comp expense going through the year. So I think you know those mid 40%s are reasonable projections. Obviously, we always hope for upside. And we're certainly conscientious on the SG&A side and we'll try and manage that as best as we can. But I think those are reasonable assumptions as you look at the rest of the year.

Okay. That's helpful. And then lastly for me and I'll step back. On free cash flow, so it looks like you are for this year expecting $17.5 million of trademark and JV gains. I guess that some of that might be Complex Media thing. I guess what's sort of the rest of that, how should we be thinking about it? And then longer term on free cash flow, I think you've shared in the past that you think you can get to $160 million as a sustainable sort of number. Is that still what you're thinking? I asked that particularly with, you know, the (25:08) sales you had this year that are contributing to it. But then I think you've also had some cash payments associated with Peanuts and so I'm just trying to think how – what's the other contributor to get you – keep you at these levels. Thanks. David K. Jones - Chief Financial Officer & Executive Vice President: Dave, the $17.5 million that you referred to, that's basically the collection on the notes receivable that we have associated with some of the prior sales. I think if you – you look in this earnings release, we've tried to provide quite a bit of extra detail and color and so there's a reconciliation of the free cash flow the year in there. We are still – we are keeping our guidance of $155 million to $170 million for the year and we are still comfortable with that base free cash flow $160 million going forward.

Fair enough. Thanks and good luck. John N. Haugh - President & Chief Executive Officer: Thank you.

Thank you. Our next question comes from Eric Beder with Wunderlich Securities. Your line is open.

Good morning. John N. Haugh - President & Chief Executive Officer: Good morning.

Hello? Hi. Let me just – I just want to clarify some of the comp – is the Complex Media transaction in the guidance or is it not? John N. Haugh - President & Chief Executive Officer: No. It's not, Eric.

Okay. So any gains from that will come – will be accretive or additive to the business? John N. Haugh - President & Chief Executive Officer: Correct.

Last conference call you talked about how you expect after about two years or so for about 40% to 50% of the next round of convertible bonds to be available in terms of paying off by cash. Is that still the number you're looking at? And what's your thought process in terms of the next round? Congratulations by the way entering the first round. David K. Jones - Chief Financial Officer & Executive Vice President: Okay. Thanks, Eric. Yes, I think we're still thinking that 40% to 50%. In terms of priorities for cash, obviously, we're looking to balance driving growth and strengthening the balance sheet. We're investing in people, brands, marketing, part of our organic growth strategy. Interestingly we do delever by driving EBITDA and paying down debt. We naturally delever through our annual amortization on the securitization and the term loan. And that's about $75 million a year. So that's half a turn a year just in required principal payments. We'll be looking at the solutions for the 2018, obviously. And we've got cash that we generate, current cash and future free cash flow. There is quite a few options for us I think at this point. But that's something we're thinking about today. We've got a great relationship with our new lender in Fortress. And we've got some options on acquisitions, both domestically and internationally. We've got about two years on the 2018's, and we'll continue to look at them.

And should we think about – it sounds like you guys are getting very close to organic growth overall here, should we be thinking about that as Q2, Q3 and how should we think about the Q4 with – the Peanuts will be kind of not being anniversaries this year? John N. Haugh - President & Chief Executive Officer: Eric, its John. I think one of the things that I realized – but I think we've all realized as management and board is organic growth and strategic acquisitions are what will power us forward. So we're spending a lot of time right now on understanding that correct mix, organically what will come domestically, what will come internationally, organically what will come from DTRs versus a wholesale business organically, what will come from what brand. So as we go through that and we've got – everybody engaged in a project right now to really craft this go-forward strategy, which again we plan to share early, I suspect early September with an Investor Day. Because again, as I mentioned earlier, we're a long lead business, we're holding with where we think we're going to deliver this year a lot of our work. And we've got some really I think good thinking going on right now. This stuff just takes a little while to (29:47) up. So we feel good about the fact at this point when you look at women's, men's, home and entertainment, we have got four businesses that are solid. We have to chart a growth path for all of those. But we're not in a situation right now where we hit an artery and we've got to do a tourniquet. We feel like we've good four segments and international by the way is also strong. So that gives us the chance to start thinking further ahead, but realistically a little bit in Q4, a lot of it starting 2017, 2018 and 2019.

Okay. That makes sense. And overall how pleased were your, how pleased were you guys with now it's basically done with the Peanuts movie which is something you guys want to do again? And how should we think about that, the impact of that going forward? John N. Haugh - President & Chief Executive Officer: If I can, why don't I ask Peter Cuneo, who is here with us and he is our Executive Chair and also very, very deep in entertainment to give a point of view on that, if we can.

Sure. Eric. This is Peter. The Peanuts movie I think was successful in the U.S. I think it was a less successful internationally. I think that what the movie points us simply is that we have some work to do with the younger generation on the Peanuts and the characters. I think we all know and this was not a surprise that the – on a global basis the younger generations don't know the Peanuts and the characters as well as older generations, so that will be a focus for our marketing programs and our media content in the future reaching out to those generations. I think John already mentioned that we do have some new Peanuts content hitting on the Boomerang network very shortly actually. So we're working on all of those media forms. As far as another film is concerned that's certainly under consideration. Typically, in franchise films, as you know, it would be common for a film to come perhaps every three years as a guess, some are longer, some are shorter. So while we don't have specific plans, we can tell you about today, that's certainly something that we're thinking about very seriously. John N. Haugh - President & Chief Executive Officer: If I could just add one thing on top. The interesting thing about Peanuts, we're doing some work on it right now. Obviously, we work very, very closely with the family and Kraft (32:26) where this is going. We just had a summit in Japan and the brand in Japan is just crazy strong which we've have always known, there's cafes, there's theme parks, there's everything. But as we've been doing this work, the brand resonance in the U.S. even though we're not as strong with younger generation we would like to be, the brand scores are higher than a bunch of very, very popular brands that are out there right now with big movie franchise behind them, not to mention anything in particular. So we think that Peanuts has a lot of opportunity, but it's critical that we line up with the family and really craft what a three-year and five year vision looks like. But we're really dealing from a position of strength of this brand and we figured how to monetize it.

Okay. Congrats and good luck on the rest of the year. John N. Haugh - President & Chief Executive Officer: Thank you.

Thanks, Eric.

Thank you. Our next question comes from Patrick Marshall with CRT Capital Group. Your line is open.

Hi. So I was wondering, first I just want to clarify your cash number that – the number you reported as of 3/31/2016, that is before a $33 million outflow from refinancing the converts, correct? David K. Jones - Chief Financial Officer & Executive Vice President: That is correct.

Okay. And then do you have any further update on the SEC investigation? David K. Jones - Chief Financial Officer & Executive Vice President: Yes. So we've got the two pieces with the SEC. The comment later, we're not expecting final sign off from the SEC until their review of the 2015 10-K is complete. On the other side, on the SEC investigation, it's ongoing and there's really not too much more of we can say about that one.

So do you have any idea as to what timing might look like or no? David K. Jones - Chief Financial Officer & Executive Vice President: No. It's always difficult to predict timing with these types of things but it will be difficult for us to take a guess on timing.

Okay. And then I guess one final question. I noticed in 4Q you guys – that there was a really strong rebound in margins in the men's segment. Is that more to do with just extraordinarily weak 4Q or some potential initiatives that have been ongoing in 1Q? David K. Jones - Chief Financial Officer & Executive Vice President: Yes. You know what, Patrick we'll have to get back to you on that one. I would just don't have a the Q4 data in front of us.

Okay. Thank you. David K. Jones - Chief Financial Officer & Executive Vice President: Thanks.

Thank you. Our next question comes from Jim Chartier with Monness, Crespi and Hardt. Your line is open. Jim A. Chartier - Monness, Crespi, Hardt & Co., Inc.: Thanks for taking my questions. First for Dave. Can you – was there any bonus from 2015 that was expensed and paid? David K. Jones - Chief Financial Officer & Executive Vice President: No. What kind of – the 2015 bonus was really replaced with the retention bonus that we put in place and so that's being expensed through 2016. On top of that, we're accruing for the 2016 bonuses that would be paid in 2017. Those are all performance-based now as opposed to discretionary. In the past, typically what we did was – they were expensed when paid, which is the appropriate accounting. But with more of a – you know, formula-based plan now, we're accruing that during 2016. So we do have a bit of double up unfortunately on the expense, but it will just be for 2016.

Thank you. Our next question comes from Steve Marotta with CLK & Associates. Your line is open. Steven L. Marotta - C.L. King & Associates, Inc.: Good morning, everybody. Most of my questions have been asked and answered. Just one question. Dave, can you please remind us what the marketing spend was in 2015, what the estimate is for 2016 and has there been any change in this year's budget? John N. Haugh - President & Chief Executive Officer: Steve, hi it's John. I don't know that we've traditionally broken that out. I will tell you that as you heard Peter say a couple times and as I talked a little bit, we are committed to driving our brands through more marketing and frankly through a more contemporary marketing than where we might have been historically. There will still be celebrity presence, but we will have people more engaged in the business maybe I will call it even little bit more authenticity where they're out there pressing hard. One sec. Go ahead. David K. Jones - Chief Financial Officer & Executive Vice President: Steve, sorry. It was about – marketing was about $33 million in 2015. I think we had talked about potentially up to 15% additional spend in the current year. We've also talked a bit about a shift in the type of marketing and advertising. So we're in Q1 and it will be interesting to see – and there is a lot of work to do through the rest of the year focusing on that, the mix within marketing and advertising. And quite honestly seeing where we can drive some more value for less dollars, hopefully.

Steve, this is Peter again. I think that last point is worth mentioning again. It's not just the increase in advertising dollars that we have budgeted in 2016 over 2015. It's how we're spending the money. And we actually think by shifting to very heavily to social media from past years, we're actually going to get more bang for our buck. So even if our advertising spending were to be up some percentage we actually think the effectiveness of our overall advertising would be much greater. Steven L. Marotta - C.L. King & Associates, Inc.: That's helpful. Thank you.