- Q2 revenue of $51.7 million compared to $39.1 million in the prior year
- Q2 EBITDA of $35.2 million compared to $31.2 million in the prior year
- Q2 diluted EPS of $0.27 versus $0.24 in the prior year
- Free cash flow of $26.3 million for Q2 and $58.9 million for year to
date 2008
NEW YORK, Aug. 5 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc.
(Nasdaq: ICON) ("Iconix" or the "Company"), today announced financial results
for the second quarter ended June 30, 2008.
Q2 2008 results:
Revenue for the second quarter of 2008 increased 32% to $51.7 million, as
compared to approximately $39.1 million in the second quarter of 2007. EBITDA
for the second quarter increased 13% to approximately $35.2 million, as
compared to approximately $31.2 million in the prior year quarter and free
cash flow for the quarter increased to approximately $26.3 million, as
compared to approximately $25.8 million in the prior year quarter. Net income
for the second quarter increased 11% to approximately $16.5 million, as
compared to $14.8 million the prior year quarter and GAAP diluted earnings per
share increased to $0.27 versus $0.24 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.
Six months ended June 30, 2008:
Revenue for the six months ended June 30, 2008 increased 54% to
approximately $107.4 million as compared to approximately $69.9 million in the
prior year six month period. EBITDA for the six month period increased 36% to
approximately $73.9 million as compared to approximately $54.6 million in the
prior year, and free cash flow increased to approximately $58.9 million as
compared to approximately $47.4 million in the prior year. Net income for the
six month period increased 26% to $34.7 million as compared to approximately
$27.5 million in the prior year and GAAP diluted earnings per share increased
to $0.57 versus $0.45 in the prior year.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, "I am
pleased with our results in what has been a challenging retail and economic
environment and I am confident that we will continue to execute our plan for
the remainder of the year. We are excited about our growth initiatives for
2009, which include all three of our Wal-Mart brands, OP, STARTER and DANSKIN
NOW, and the CANNON launch at Sears and Kmart. Longer-term we will have growth
from a number of international initiatives that we are working on. While we
have taken acquisition revenue out of our guidance it remains an important
part of our growth strategy and we believe we will continue to acquire
additional iconic brands."
2008 Guidance:
The Company is forecasting free cash flow for 2008 to be in a range of
$116 million to $119 million. The Company is reaffirming its previously issued
2008 guidance of revenue in a range of $215 million to $220 million and
diluted earnings per share of between $1.15 and $1.20. This guidance relates
to the existing portfolio of brands only and includes no revenue assumption
from acquisitions.
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 earnings per share data)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ------------------------
2008 2007 2008 2007
--------------------------- -------------------------
Licensing revenue $51,700 $39,071 $107,367 $69,912
Selling, general and
administrative
expenses 18,320 9,011 37,031 16,730
Special charges 195 331 386 1,094
--------------------------- -------------------------
Operating income 33,185 29,729 69,950 52,088
Other expenses:
Interest expense -
net 7,615 6,913 16,171 9,535
--------------------------- -------------------------
Income before income
taxes 25,570 22,816 53,779 42,553
--------------------------- -------------------------
Provision for income
taxes 9,114 8,027 19,079 15,017
--------------------------- -------------------------
Net income $16,456 $14,789 $34,700 $27,536
=========================== =========================
Earnings per share:
Basic $0.29 $0.26 $0.60 $0.49
=========================== =========================
Diluted $0.27 $0.24 $0.57 $0.45
=========================== =========================
Weighted average number
of common shares outstanding:
Basic 57,719 56,625 57,572 56,451
=========================== =========================
Diluted 61,279 61,364 61,315 61,241
=========================== =========================
Selected Balance Sheet Items: 6/30/2008 12/31/2007
(Unaudited) (Audited)
Total Assets $1,356,001 $1,336,130
Total Liabilities $781,411 $808,210
Stockholders' Equity $574,590 $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 Six months ended
June 30, June 30, June 30, June 30,
-------- -------- -------- --------
2008 2007 2008 2007
------ ------ ------ ------
EBITDA(1) $35,188 $31,249 $73,941 $54,554
==================== ====================
Reconciliation of EBITDA:
Net Income 16,456 14,789 34,700 27,536
Add: Provision for income
taxes 9,114 8,027 19,079 15,017
--------------------- ---------------------
Net Income before taxes 25,570 22,816 53,779 42,553
Add: Net interest expense 7,615 6,913 16,171 9,535
Add: Depreciation and
amortization of certain
intangibles 2,003 1,520 3,991 2,466
--------------------- ---------------------
EBITDA $35,188 $31,249 $73,941 $54,554
==================== ====================
(1) EBITDA, a non-GAAP financial measure, represents income before
income taxes, interest, depreciation and amortization expenses. The
Company believes EBITDA provides additional information for
determining its ability to meet future debt service requirements,
investing and capital expenditures.
Historical Free Cash
Flow(2) $26,288 $25,790 $58,868 $47,432
==================== ====================
Reconciliation of Free
Cash Flow:
Net Income 16,456 14,789 34,700 27,536
Add: Depreciation,
amortization of trademarks and
finance fees, non cash
compensation expense, and
bad debt expense. 5,078 2,974 10,087 4,919
Add: Non-cash income
taxes 8,441 8,027 18,206 15,017
Less: Capital
expenditures (3,687) - (4,125) (40)
--------------------- ---------------------
Historical Free Cash Flow $26,288 $25,790 $58,868 $47,432
===================== =====================
Year Ended Dec 31, 2008
Low-end High-end
2008 Forecasted Free Cash Flow (2) $116,000 $119,000
===========================
Reconciliation of Free Cash Flow:
Net Income 71,000 74,000
Add: Depreciation, amortization of trademarks
and finance fees, non cash compensation expense,
bad debt expense and non-cash income taxes 50,000 50,000
Less: Capital expenditures (5,000) (5,000)
---------------------------
2008 Forecasted Free Cash Flow $116,000 $119,000
===========================
(2) Free Cash Flow, a non-GAAP financial measure, represents net income
before depreciation, amortization, non cash compensation expense, bad
debt expense, adds back the non-cash income taxes and deducts
capital expenditures. The Free Cash Flow excludes any changes in
Balance Sheet items. The Company believes Free Cash Flow is useful in
evaluating its financial condition because it is representative of
cash flow from operations that is available for repaying debt,
investing and capital expenditures.
SOURCE Iconix Brand Group, Inc.
-0- 08/05/2008
/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://iconixbrand.com /
(ICON)
CO: Iconix Brand Group, Inc.
ST: New York
IN: HOU REA
SU: ERN ERP
WM-AA
-- NYTU066 --
4527 08/05/2008 08:00 EDT http://www.prnewswire.com