Iconix Brand Group, Inc. saw licensing revenue for the first quarter of 2007 increase to $30.8 million from $13.3 million in the first quarter of 2006. EBITDA for the quarter increased to $23.3 million as compared to $8.4 million in the prior year quarter and free cash flow for the quarter increased to $21.6 million as compared to $6.1 million in the prior year quarter. Net income was $12.7 million, increasing from $7.4 million in 2006, while fully diluted earnings per share increased to 21 cents from 18 cents last year. The company recognized non-cash tax benefits in the prior year quarter and therefore comparing net income on a tax-effected basis the company reported net income of $12.7 million versus $3.9 million (tax-effected) in 2006 and fully diluted earnings per share was 21 cents for 2007 versus 10 cents (tax-effected) in 2006.
Neil Cole, chairman and CEO of Iconix commented, “I am pleased with the continued momentum of our growth plan which is evident in our strong revenue, earnings, EBITDA and free cash flow. It was a good quarter for the growth of our existing portfolio of brands as well as with respect to acquisitions as we acquired two powerful new lifestyle brands, Roca Wear and Danskin, that on an annualized basis generate approximately $60 million in royalty revenue and significantly diversify our holdings. Iconix today owns eleven strong consumer brands that are expected to generate approximately $5 billion in annual retail sales this year through over 150 licensees around the world. We will continue to be focused on executing our long term growth strategy of expanding our existing portfolio and adding new iconic brands through acquisition.”
2007 Guidance:
The company is re-affirming its previously stated 2007 guidance of revenue in a range of $150 million to $160 million and fully diluted earnings per share in a range of 96 cents to $1.00. The current 2007 guidance assumes no additional acquisitions in 2007; however, the company has said that it intends to remain acquisitive. The company's $50 million verdict, with respect to which the company believes judgment will be entered later this month, is subject to collection and possible appeal and therefore at this time the company is not including it in its guidance.
Iconix Brand Group, Inc. and Subsidiaries
Condensed Consolidated Income Statements - (Unaudited)
(in thousands, except earnings per share data)
Three Months Ended Mar 31,
--------------------------
2007 2006
--------------------------
Licensing revenue $30,841 $13,269
Selling, general and administrative expenses 7,719 4,667
Special charges 763 556
--------------------------
Operating income 22,359 8,046
Other expenses:
Interest expense - net 2,622 1,961
--------------------------
Income before income taxes 19,737 6,085
--------------------------
Income taxes (benefits) 6,990 (1,272)
--------------------------
Net income $12,747 $7,357
==========================
Earnings per share:
Basic $0.23 $0.21
==========================
Diluted $0.21 $0.18
==========================
Weighted average number of common shares
outstanding:
Basic 56,402 35,719
==========================
Diluted 61,243 41,169
==========================
