- Q1 revenue of $55.7 million compared to $30.8 million in the prior year
- Q1 EBITDA of $38.8 million compared to $23.3 million in the prior year
- Q1 Net Income of $18.2 million compared to $12.7 million in the prior
year
- Q1 diluted EPS of $0.30 versus $0.21 in the prior year
NEW YORK, May 1 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc.
(Nasdaq: ICON) ("Iconix" or the "Company"), today announced financial results
for the first quarter ended March 31, 2008.
Q1 2008 results:
Revenue for the first quarter of 2008 increased 81% to approximately $55.7
million, as compared to approximately $30.8 million in the first quarter of
2007. EBITDA for the first quarter increased 66% to approximately $38.8
million, as compared to approximately $23.3 million in the prior year quarter
and free cash flow for the quarter increased 49% to approximately $32.3
million, as compared to approximately $21.6 million in the prior year quarter.
Net income for the first quarter increased 43% to approximately $18.2 million,
as compared to $12.7 million the prior year quarter and diluted earnings per
share increased 43% to $0.30 versus $0.21 in the prior year quarter. EBITDA
and free cash flow are non-GAAP metrics and reconciliation tables for both are
attached to this press release.
Neil Cole, Chairman and CEO of Iconix Brand Group, commented, "I am
pleased with our results in the quarter and how we continued to demonstrate
strong top and bottom line growth increasing our revenue and earnings over 80%
percent and 40%, respectively. We achieved these results in the face of what
has become a challenging retail environment, demonstrating the unique benefits
of our business model where contractually guaranteed revenue, no inventory
risk and a diverse portfolio provide us with a much greater degree of
resilience. We are energized by several organic growth opportunities,
including an exciting new joint venture in China, incredible growth
opportunities for our three Wal-Mart brands, new home deals for Royal Velvet
and Cannon, and many others. We are looking closely at several acquisition
targets and are optimistic that they are actionable this year, however we will
remain selective and proceed only with acquisitions that are in the best long
term interest of our shareholders."
Other news:
In a separate press release today, the Company announced it has entered
into a definitive agreement to form an equal joint venture with Novel Fashion
Holdings, run by Silas Chou, to create Iconix China. Iconix China will be
based in Hong Kong and own substantially all of the rights to the Iconix
brands in China. Iconix China will be a brand management company similar to
Iconix that will provide its brands, and marketing and brand management
support to local Chinese operating companies in exchange for equity stakes in
their companies.
2008 Guidance:
The Company is maintaining its previously issued 2008 guidance of revenue
in a range of $250 million to $260 million and diluted earnings per share of
between $1.35 and $1.40. The Company's current guidance is predicated on
acquiring an additional $30 million of acquisition revenue that falls into the
remainder of this year.
Iconix Brand Group Inc. (Nasdaq: ICON) owns, licenses and markets a
growing portfolio of consumer brands including CANDIE'S (R), BONGO (R),
BADGLEY MISCHKA (R), JOE BOXER (R) RAMPAGE (R) MUDD (R), LONDON FOG (R),
MOSSIMO (R) OCEAN PACIFIC(R), DANSKIN (R) ROCA WEAR(R), CANNON (R), ROYAL
VELVET (R), FIELDCREST (R), CHARISMA (R) and STARTER (R). The Company licenses
it brands to a network of leading retailers and manufacturers that touch every
major segment of retail distribution from the luxury market to the mass market
in both the U.S. and around the world. Iconix, through its in-house
advertising, promotion and public relations agency, markets its brands to
continually drive greater consumer awareness and equity.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995. The statements that are not historical facts contained in this press
release are forward looking statements that involve a number of known and
unknown 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,
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. Such
factors include, but are not limited to, uncertainty regarding the results of
the Company's acquisition of additional licenses, continued market acceptance
of current products and the ability to successfully develop and market new
products particularly in light of rapidly changing fashion trends, the impact
of supply and manufacturing constraints or difficulties relating to the
Company's licensees' dependence on foreign manufacturers and suppliers,
uncertainties relating to customer plans and commitments, the ability of
licensees to successfully market and sell branded products, competition,
uncertainties relating to economic conditions in the markets in which the
Company operates, the ability to hire and retain key personnel, the ability to
obtain capital if required, the risks of litigation and regulatory
proceedings, the risks of uncertainty of trademark protection, the uncertainty
of marketing and licensing acquired trademarks and other risks detailed in the
Company's SEC filings. The words "believe", "anticipate," "expect",
"confident", "will", "project", "provide" "guidance" and similar expressions
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward looking statements, which speak only as of the date
the statement was made.
Contact Information:
David Conn
Executive Vice President
Iconix Brand Group
212.730.0030
Joseph Teklits
Integrated Corporate Relations
203.682.8200
Iconix Brand Group, Inc. and Subsidiaries
Condensed Consolidated Income Statements - (Unaudited)
(in thousands, except earning per share data)
Three Months Ended March 31
---------------------------
2008 2007
---------------------------
Licensing revenue $55,667 $30,841
Selling, general and administrative
expenses 18,711 7,719
Special charges 191 763
---------------------------
Operating income 36,765 22,359
Other expenses:
Interest expense - net 8,556 2,622
---------------------------
Income before income taxes 28,209 19,737
---------------------------
Provision for income taxes 9,965 6,990
---------------------------
Net income $18,244 $12,747
===========================
Earnings per share:
Basic $0.32 $0.23
----- -----
Diluted $0.30 $0.21
----- -----
Weighted average number common shares
outstanding:
Basic 57,422 56,402
------ ------
Diluted 61,350 61,243
------ ------
Selected Balance Sheet Items: 3/31/2008 12/31/2007
(Unaudited) (Audited)
Total Assets $1,336,634 $1,336,130
Total Liabilities $783,460 $808,210
Stockholders' Equity $553,174 $527,920
The following table details unaudited reconciliations from non-GAAP
amounts to U.S. GAAP and effects of these items (in thousands):
Three Months Ended
----------------------------
Mar 31, 2008 Mar 31, 2007
------------ ------------
EBITDA (1) $38,753 $23,301
----------------------------
Reconciliation of EBITDA:
Income before income taxes 28,209 19,737
Add: Net Interest Expense 8,556 2,622
Add: Depreciation and amortization of
certain intangibles 1,988 942
----------------------------
EBITDA $38,753 $23,301
============================
(1) EBITDA, a non-GAAP financial measure, represents income from
operations before interest, income taxes, depreciation and
amortization expenses. The Company believes EBITDA provides additional
information for determining its ability to meet future debt services
requirements, investing and capital expenditures.
Free Cash Flow (2) $32,258 $21,632
----------------------------
Reconciliation of Free Cash Flow:
---------------------------------
Net income $18,244 $12,747
Add: Depreciation, amortization of
intangibles and deferred financing
costs, the change in the reserve for
accounts receivable, and non-cash
compensation expense 4,687 1,935
Less: Capital expenditures (438) (40)
Add: Non-cash income taxes 9,765 6,990
----------------------------
Free Cash Flow $32,258 $21,632
============================
(2) Free Cash Flow, a non-GAAP financial measure, represents net income
before Depreciation, amortization, the change in the reserve for
accounts receivable and excluding non-cash income taxes and capital
expenditures. The Company believes Free Cash Flow is useful for
evaluating our financial condition because it represents the amount of
cash generated from the operations that is available for repaying debt
and investing.
SOURCE Iconix Brand Group, Inc.
-0- 05/01/2008
/CONTACT: David Conn, Executive Vice President, Iconix Brand Group,
+1-212-730-0030; or Joseph Teklits, Integrated Corporate Relations,
+1-203-682-8200/
/Web site: http://www.iconixbrand.com /
(ICON)
CO: Iconix Brand Group, Inc.
ST: New York
IN: FAS REA
SU: ERN
DK-AA
-- NYTH039 --
5515 05/01/2008 08:00 EDT http://www.prnewswire.com