As its management continues to discuss the sale of its Bill Blass business, NexCen Brands reported 85 percent growth in quarterly revenues from continuing franchising operations to $12.0 million, boosted by its recent purchase of Shoebox New York and Great American Cookies. These and other numbers for the third quarter ended Sept. 30 were also helped by the company’s efforts to reduce operating expenses and improve cash flow.
Revenues from franchise fees dropped by 73 percent to $400,000 in the quarter, though there are $2.2 million in such fees that won’t be realized until the stores open, for a total of $5.5 million in deferred revenues for the quarter. NexCen had 300 more stores at quarter’s end compared with the same period in 2007 for a total of 1,862.
Royalty income and other revenues were listed as $7.1 million, up from $5 million in 2007. Bill Blass and the Waverly brand, though classified as discontinued operations, recorded $2.2 million in licensing revenues, down from $4.8 million from the same quarter in 2007. In September, NexCen sold Waverly to Iconix Brand Group for $26.0 million, which it used to repay debts. Iconix will also assume future liabilities for the label.
The company has named Mark Stanko chief financial officer and treasurer from his position as CFO at its subsidiary NexCen Franchise Management. He steps into the position of Kenneth Hall, who became CFO in March but moved up to chief executive in August.