Iconix Brand Group, Inc., which recently agreed to acquire the Umbro soccer brand from Nike, reported total revenue for the third quarter of 2012 was approximately $86.6 million, as compared to approximately $92.7 million in the third quarter of 2011.
EBITDA reached approximately $51.8 million, compared to approximately $55.3 million in the prior year quarter. Free cash flow reached approximately $43.2 million, as compared to approximately $44.6 million in the prior year quarter.
On a non-GAAP basis net income attributable to Iconix for the third quarter was approximately $28.7 million, as compared to approximately $30.1 million in the prior year quarter. Non-GAAP diluted EPS for the third quarter was 41 cents compared to 40 cents in the prior year quarter. GAAP net income attributable to Iconix for the third quarter was approximately $27.1 million, a 4 percent increase as compared to approximately $26.0 million in the prior year quarter and GAAP diluted EPS was $0.38 compared to $0.34 in the prior year quarter.
“Over the past few weeks we have announced several exciting initiatives including the acquisition of Umbro and the launch of a new Peanuts movie that we believe position our company for long term growth,” said Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. “We also remain focused on international expansion, which we now believe can grow to approximately 40 percent of our business. In addition, we have a strong acquisition pipeline and continue to evaluate a number of opportunities that could be actionable in the near-term. With 29 brands in our portfolio, inclusive of Umbro, that represent over $13 billion in annual retail sales, we believe our company is stronger than ever and we look forward to continuing to grow our business and deliver value to our shareholders.”
The company is reaffirming its full year 2012 guidance and expects to achieve the higher end of its revenue guidance of $340-$350 million. However, the company expects its non-GAAP diluted EPS and GAAP diluted EPS to be at the low end of its guidance of $1.65 to $1.74 and $1.48-$1.57, respectively, based primarily on certain financing and acquisition related costs anticipated in the fourth quarter. The company is also reaffirming its 2012 free cash flow guidance of $174-$181 million.
The company is providing the following guidance for 2013:
- Revenue guidance of $395-$405 million
- 2013 non-GAAP diluted EPS guidance of $1.85-$1.95
- 2013 GAAP diluted EPS guidance of $1.75-$1.85
- 2013 free cash flow guidance of $196-$203 million.
This guidance includes the company's planned financing and relates to the company's existing portfolio of brands, including Umbro, and does not include any additional acquisitions.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: CANDIE'S , BONGO , BADGLEY MISCHKA , JOE BOXER , RAMPAGE , MUDD , MOSSIMO , LONDON FOG , OCEAN PACIFIC , DANSKIN , ROCAWEAR , CANNON , ROYAL VELVET , FIELDCREST , CHARISMA , STARTER , WAVERLY , ZOO YORK , and SHARPER IMAGE . In addition, Iconix owns interests in the ARTFUL DODGER , ECKO , MARC ECKO , ED HARDY MATERIAL GIRL , PEANUTS , and TRUTH OR DARE brands. The company licenses its 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 worldwide. Through its in-house business development, merchandising, advertising and public relations departments Iconix manages its brands to drive greater consumer awareness and equity.
Unaudited Condensed Consolidated Income Statements
Three Months Ended Sept. 30,
Nine Months Ended Sept. 30,
Licensing and other revenue
Selling, general and administrative expenses
Expenses related to specific litigation
Interest and other expense, net
Equity earnings on joint ventures
Other expenses net
Income before income taxes
Provision for income taxes
Less: Net income attributable to non-controlling interest
Net income attributable to Iconix Brand Group, Inc.
Earnings per share: