Licensing revenues in the fourth quarter reached $47.4 million, up 76% from $26.9 million in the fourth quarter of 2007. The company, which owns, licenses and markets the Ocean Pacific, Danskin, Roca Wear and Starter brands, said its net income for the fourth quarter ended Dec. 31 increased 117% to approximately $19.2 million, or 31 cents a share, from $8.9 million, or 18 cents, a year ago.
Management comments
2008 Guidance:
The company is re-affirming its previously issued 2008 guidance of diluted earnings per share of between $1.35 and $1.40 while raising its revenue guidance to a range of $250-$260 million. The new guidance reflects new revenue opportunities the company is forecasting for based on its core business and acquisition strategy coupled with increased investments in infrastructure and compensation.
Iconix Brand Group, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except earnings per share data)
Three Months Ended Dec 31, Year Ended Dec 31,
_________________________ _________________________
2007 2006 2007 2006
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(Unaudited) (Unaudited)
Licensing revenue $47,411 $26,903 $160,004 $80,694
Selling, general and
administrative
expenses 14,122 6,955 44,254 24,527
Special charges – net (7,094) 594 (6,039) 2,494
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Operating income 40,383 19,354 121,789 53,673
Other expenses:
Interest expense
– net 11,258 5,846 25,512 13,837
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Income before income
taxes 29,125 13,508 96,277 39,836
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Income taxes 9,898 4,655 32,522 7,335
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Net income $19,227 $8,853 $63,755 $32,501
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Earnings per share:
Basic $0.34 $0.19 $1.12 $0.81
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Diluted $0.31 $0.18 $1.04 $0.72
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Weighted average
number of common
shares outstanding:
Basic 57,067 45,464 56,694 39,937
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Diluted 61,860 50,292 61,426 45,274
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