Iconix Brand Group, Inc. reported revenue for the fourth quarter of 2010 was approximately $88.0
million, a 34% increase as compared to approximately $65.8 million for
the fourth quarter of 2009.
EBITDA attributable to Iconix for the fourth
quarter increased 40% to approximately $58.6 million, and includes a
one-time gain related to the Company's Unzipped litigation described
below. Free cash flow for the quarter was approximately $45.4 million, a
37% increase as compared to the prior year quarter. On a non-GAAP
basis, net income attributable to Iconix increased 12%
to approximately $24.5 million and diluted earnings per share, or EPS,
for the fourth quarter of 2010 was 33 cents a share 30 cents for the prior year
quarter. On a GAAP basis, net income attributable to Iconix increased
12% to approximately $22.1 million as compared to the prior year quarter
and GAAP diluted EPS for the fourth quarter of 2010 was 30 cents versus 27 cents for the prior year quarter.
Total revenue for the full year 2010 was approximately $332.6 million, a 43% increase as compared to approximately $232.1 million for the prior year. EBITDA attributable to Iconix for 2010 increased 29% to approximately $209.6 million, and includes a one-time gain related to the Company's Unzipped litigation described below. Free cash flow for 2010 was approximately $166.6 million, a 24% increase as compared to the prior year period. On a non-GAAP basis, which excludes non-cash interest related to the Company's convertible debt, net income attributable to Iconix for 2010 increased 29% to approximately $107.8 million as compared to the prior year and non-GAAP diluted earnings per share increased to $1.44 versus $1.22 for the prior year. On a GAAP basis, net income attributable to Iconix increased 32% to approximately $98.8 million as compared to the prior year period and GAAP diluted earnings per share was $1.32 versus $1.10 for the prior year.
The full year and fourth quarter ended December 31, 2010 include the following non-recurring items.
* $16.0 million pre-tax income, net of expenses, relating to the favorable judgment received in December 2010 in the Unzipped litigation.
* $13 million pre-tax write down of the Company's auction rate security.
* Approximately $3 million pre-tax non-recurring expenses related to the integration of Peanuts.
These one-time items, when taken on a net basis, are neutral to net income and EPS.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, “2010 was another record year for our company in which we continued to demonstrate the strength of our portfolio and the profitability of our business model. Our brands continue to gain market share as we build lifestyle businesses and optimize distribution. We also expanded our platform into new categories and geographies in 2010 through our Peanuts acquisition. With 27 iconic brands that represent approximately $12 billion in annual retail sales we have made tremendous progress, and I believe through continued growth with our current partners, international expansion, and new acquisitions we can continue to build on our successes.”
2011 Guidance for Iconix Brand Group, Inc:
The company is reaffirming its full year 2011 revenue guidance of $340-350 million, 2011 non-GAAP diluted EPS guidance of $1.53-$1.58 and GAAP diluted EPS guidance of $1.40-$1.45. The company estimates that free cash flow for 2011 will be approximately $160-165 million. This guidance relates to the existing portfolio of brands only and does not include any acquisitions.
Iconix brand group 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, Roca Wear, Cannon,, Royal Velvet, Fieldcrest,
Charisma, Starter and Waverly. In addition, it owns an interest in the Artful
Dodger, Ed Hardy, Ecko, Marc Ecko, Zoo York, Material Girl(Tm) and
Peanuts brands.
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Condensed Consolidated Income Statements (in thousands, except earnings per share data) |
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(Unaudited) |
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Three Months Ended Dec. 31, |
Year Ended Dec. 31, |
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|
2010 |
2009 |
2010 |
2009 |
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|
Licensing and other revenue |
$ 87,955 |
$65,782 |
$ 332,559 |
$ 232,058 |
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Selling, general and administrative expenses |
47,813 |
24,695 |
138,532 |
79,356 |
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(Income)/expenses related to specific litigation |
(15,928) |
(15,688) |
137 |
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|
Operating income |
56,070 |
41,087 |
209,715 |
152,565 |
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Interest expense, net |
9,632 |
10,338 |
39,318 |
38,733 |
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Equity earnings on joint ventures |
(3,250) |
(860) |
(5,492) |
(3,424) |
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