Iconix
Brand Group, Inc., the owner of Starter, Danskin and numerous other fashion
brands, reported revenue for the first quarter of 2009 was approximately $50.5
million, a 9% decrease as compared to approximately $55.7 million in the first
quarter of 2008. EBITDA for the first quarter was approximately $36.3 million,
a 6% decrease as compared to approximately $38.8 million in the prior year
quarter.
Free cash
flow for the quarter was $29.8 million, an 8% decrease as compared to
approximately $32.6 million in the prior year quarter. On a non-GAAP basis,
which excludes non-cash interest related to the adoption of the new accounting
treatment for convertible debt, net income declined 4% to approximately $17.6
million, or 29 cents a share, as compared to $18.2 million, or 30 cents, in the
prior year quarter. On a GAAP basis, net income declined 5% to approximately
$15.6 million, or 26 cents a share, as compared to $16.5 million, or 27 cents,
in the prior year quarter.
The company
noted that Q1 non-GAAP diluted EPS of .29 cents a share was 3 cents above Wall
Street's consensus estimate.
Neil
Cole, chairman and CEO of Iconix Brand Group, Inc. commented, “We are
pleased to have delivered a strong performance in the first quarter of this
year driven by the successful roll out of Op, Starter and Danskin Now at
Walmart and our commitment to improving margins. We are encouraged by our
growth prospects and believe we are making great progress internationally. This
morning we announced an investment in the Ed Hardy brand and we are also
looking at some larger acquisition opportunities that we feel could be
actionable this year. Based on our better than expected performance in the
quarter and our 50% interest in Ed Hardy, we feel confident increasing our
revenue and earnings guidance at this time and look forward to what should be
an exciting year for our company.”
2009 Guidance
The company
is raising its full year 2009 non-GAAP diluted EPS guidance to a range of $1.30
to $1.35 from $1.20 to $1.30, which excludes non-cash interest related to the
adoption of the new accounting treatment for convertible debt. The company's
GAAP diluted EPS guidance is now in a range of $1.16 to $1.21 compared to
previous guidance of $1.06 to $1.16. The company is also raising its 2009
revenue guidance to be between $218 and $225 million compared to its previous
guidance of $210 to $220 million. The company estimates that free cash flow for
2009 will be between $121 and $128 million. This guidance relates to the
existing portfolio of brands only and assumes no acquisitions.
Iconix's owns,
licenses and markets a growing portfolio of consumer brands including Candie's,
Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean
Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter
and Waverly.
Iconix Brand Group, Inc. and Subsidiaries
Condensed Consolidated Income Statements
(in thousands, except earnings per share data)
(Unaudited)
-----------
Three Months Ended March. 31,
-----------------------------
2009 2008*
------------------
Licensing and other revenue $50,501 $55,667
Selling, general and administrative expenses 16,270 18,711
Expenses related to specific litigation 54 191
------------------
Operating income 34,177 36,765
Other expenses - net 9,798 11,380
------------------
Income before income taxes 24,379 25,385
------------------
Provision for income taxes 8,730 8,864
------------------
Net income $15,649 $16,521
==================
Earnings per share:
Basic $0.27 $0.29
==================
Diluted $0.26 $0.27
==================
Weighted average number of common shares outstanding:
Basic 58,044 57,422
==================
Diluted 60,892 61,350
