Iconix Brand Group reported a 23 percent increase in second-quarter sales, to $115.1 million from $93.6 million a year ago. Earnings rose to $38.7 million, or 66 cents a share, from $28.6 million, or 40 cents, a year ago.

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, Sharper Image, Ecko, Marc Ecko, Umbro and Lee Cooper. In Addition, Iconix owns interests in the Ed Hardy, Artful Dodger, Material
Girl, Peanuts, Truth Or Dare, Billionaire Boys Club, Ice Cream, Modern
Amusement, and Buffalo brands.

EBITDA attributable to Iconix for the second quarter was approximately $72.7 million, a 24 percent increase as compared to $58.4 million in the prior year quarter. Free cash flow attributable to Iconix for the second quarter was approximately $60.8 million, a 17 percent increase as compared to the prior year quarter of approximately $51.9 million. On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix was $42.7 million, a 32 percent increase as compared to the prior year quarter of approximately $32.4 million. Non-GAAP diluted EPS for the second quarter of 2013 increased 60 percent to $0.72 compared to $0.45 in the prior year quarter. GAAP net income attributable to Iconix for the second quarter of 2013 was approximately $38.7 million, a 35 percent increase as compared to $28.6 million in the prior year quarter and GAAP diluted EPS for the second quarter of 2013 increased 65 percent to $0.66 compared to $0.40 in the prior year quarter.

Six months ended June 30, 2013:

Total revenue for the six months ended June 30, 2013 was approximately $220.2 million, a 21 percent increase as compared to approximately $182.1 million for the prior year period. EBITDA attributable to Iconix for the six month period was approximately $137.2 million, a 19 percent increase as compared to approximately $115.2 million in the prior year period. Free cash flow attributable to Iconix for the six month period was approximately $112.7 million, a 13 percent increase over the prior year period of approximately $99.4 million. On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix for the six month period was approximately $78.9 million, a 23 percent increase as compared to approximately $64.4 million in the prior year period, and non-GAAP diluted earnings per share was approximately $1.25 for the six month period, a 42 percent increase versus $0.88 for the prior year period.

GAAP net income attributable to Iconix for the six month period of 2013 was approximately $72.9 million, a 30 percent increase as compared to $56.2 million in the prior year period and GAAP diluted EPS for the six month period of 2013 increased 53 percent to $1.16 compared to $0.76 in the prior year period.

Included in the second quarter and year-to-date results ended June 30, 2013, is the formation of a new joint venture in Canada, which contributed approximately $9.8 million to revenue. Similarly, the second quarter of 2012 included the formation of a joint venture in India, which contributed approximately $5.6 million to revenue in the prior year quarter.  In addition, in the second quarter of 2013, the Company received $5.4 million in cash related to its previously written-off auction rate securities, which is included in interest and other expenses, net. On a full year basis, this will be offset by incremental interest expense of approximately $7 million related to the $275 million securitization transaction the Company completed in the second quarter of 2013.

EBITDA, free cash flow, non-GAAP net income and non-GAAP diluted EPS are all non-GAAP metrics and reconciliation tables for each are attached to this press release.

Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, “With record performance in the second quarter, we made progress on our growth initiatives driving over 20 percent revenue growth and 60 percent EPS growth. We believe the performance we have achieved year-to-date and over the past several years demonstrates the power of our business model, and over the next few years we expect to see additional growth as we continue to build our existing brands around the world and further leverage our strong balance sheet and free cash flow to add iconic brands to our portfolio and continue to enhance shareholder value through opportunistic share repurchases.”

2013 Guidance for Iconix Brand Group, Inc.:

The Company is maintaining its 2013 revenue guidance of $425-$435 million

The Company is raising its 2013 non-GAAP diluted EPS guidance to $2.20-$2.30 from $2.10-$2.20

The Company is raising its 2013 GAAP diluted EPS guidance to $1.97-$2.07 from $1.87-$1.97

The Company is maintaining its free cash flow guidance of $203-$210 million.

This guidance relates to the Company's existing portfolio of brands and does not include any additional acquisitions.

Other Company News:

The Company announced today that its Board of Directors has authorized a new program to repurchase up to $300 million of its common stock. See separate press release for additional details.
See reconciliation tables below for non-GAAP metrics. These non-GAAP metrics may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to U.S. GAAP.  Any financial measure other than those prepared in accordance with U.S. GAAP should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.