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Iconix Brand Group Reports Record Revenue and Earnings for the First Quarter 2013

 Iconix Brand Group Reports Record Revenue and Earnings for the First Quarter
                                     2013

PR Newswire

NEW YORK, April 24, 2013

NEW YORK, April 24, 2013 /PRNewswire/ --

  oRecord Q1 revenue of $105.1 million, a 19% increase over prior year
    quarter
  oRecord Q1 non-GAAP diluted EPS of $0.54, a 26% increase over prior year
    quarter
  oRecord Q1 free cash flow of $51.8 million and EBITDA of $64.6 million
  oRaising 2013 non-GAAP diluted EPS guidance to $2.10-$2.20

Iconix Brand Group, Inc. (NASDAQ: ICON) ("Iconix" or the "Company"), today
announced financial results for the first quarter ended March 31, 2013.

Q1 2013 Results for Iconix Brand Group, Inc.:

Total revenue for the first quarter of 2013 was approximately $105.1 million,
a 19% increase as compared to approximately $88.5 million in the first quarter
of 2012. EBITDA attributable to Iconix for the first quarter was approximately
$64.6 million, a 14% increase as compared to $56.8 million in the prior year
quarter. Free cash flow attributable to Iconix for the first quarter was
approximately $51.8 million, a 9% increase as compared to the prior year
quarter of approximately $47.4 million. On a non-GAAP basis, as described in
the tables below, net income attributable to Iconix was $36.2 million, a 13%
increase as compared to the prior year quarter of approximately $31.9 million.
Non-GAAP diluted EPS for the first quarter of 2013 increased 26% to $0.54
compared to $0.43 in the prior year quarter. GAAP net income attributable to
Iconix for the first quarter of 2013 was approximately $34.2 million, a 24%
increase as compared to $27.6 million in the prior year quarter and GAAP
diluted EPS for the first quarter of 2013 increased 38% to $0.51 compared to
$0.37 in the prior year quarter.

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 results in the first quarter, 2013 is off to a strong start and we are
on track to deliver over 20% revenue and EPS growth for the full year. We
successfully completed three acquisitions in the past five months and with our
current pipeline we believe there are additional opportunities, which would
continue to enhance our portfolio. As we look ahead, we are also focused on
continuing to build our portfolio of brands organically through our global
platform, and we believe that with our free cash flow and strong balance sheet
we will continue to create increased shareholder value."

2013 Guidance for Iconix Brand Group, Inc.:

  oThe Company is maintaining its 2013 revenue guidance of $425-$435 million
  oThe Company is raising its 2013 non-GAAP diluted EPS guidance to
    $2.10-$2.20 from $2.05-$2.15
  oThe Company is raising its 2013 GAAP diluted EPS guidance to $2.00-$2.10
    from $1.95-$2.05
  oThe 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.

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.

About Iconix Brand Group, Inc.

Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of
consumer brands including: CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE
BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC
(R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R),
CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), ED HARDY (R), SHARPER
IMAGE (R), UMBRO (R) and LEE COOPER (R). In addition, Iconix owns interests in
the ARTFUL DODGER (R), ECKO (R), MARC ECKO (R), MATERIAL GIRL (R), PEANUTS
(R), TRUTH OR DARE (R), BILLIONAIRE BOYS CLUB (R), ICE CREAM (R), MODERN
AMUSEMENT (R), and BUFFALO (R) 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995. The statements that are not historical facts contained in this press
release are forward-looking statements that involve a number of known and
unknown risks, uncertainties and other factors, all of which are difficult or
impossible to predict and many of which are beyond the control of the Company,
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. Such
factors include, but are not limited to, uncertainty regarding the results of
the Company's acquisition of additional licenses, continued market acceptance
of current products and the ability to successfully develop and market new
products particularly in light of rapidly changing fashion trends, the impact
of supply and manufacturing constraints or difficulties relating to the
Company's licensees' dependence on foreign manufacturers and suppliers,
uncertainties relating to customer plans and commitments, the ability of
licensees to successfully market and sell branded products, competition,
uncertainties relating to economic conditions in the markets in which the
Company operates, the ability to hire and retain key personnel, the ability to
obtain capital if required, the risks of litigation and regulatory
proceedings, the risks of uncertainty of trademark protection, the uncertainty
of marketing and licensing acquired trademarks and other risks detailed in the
Company's SEC filings. The words "believe", "anticipate", "estimate",
"expect", "confident", "continue", "will", "project", "provide" "guidance" and
similar expressions identify forward-looking statements. Readers are cautioned
not to place undue reliance on these forward looking statements, which speak
only as of the date the statement was made. All forward-looking statements are
qualified by these cautionary statements and apply only as of the date they
are made. The Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future events or otherwise.

Contact Information:
 Jaime Sheinheit
 Investor Relations
 Iconix Brand Group
 212.730.0030



Unaudited Condensed Consolidated Income Statements

(in thousands, except earnings per share data)
                                                Three Months Ended Mar. 31,
                                                2013           2012
Licensing and other revenue                     $ 105,062      $ 88,451
Selling, general and administrative expenses    38,826         30,899
Operating income                                66,236         57,552
Interest and other expense, net                 13,867         13,128
Equity earnings on joint ventures               (1,936)        (1,298)
Other expenses – net                            11,931         11,830
Income before income taxes                      54,305         45,722
Provision for income taxes                      15,031         14,843
Net income                                      $ 39,274       $ 30,879
Less: Net income attributable to                5,085          3,280
non-controlling interest
Net income attributable to Iconix Brand Group,  $34,189        $27,599
Inc.
Earnings per share:
Basic                                   $ 0.53        $ 0.38
Diluted                                         $ 0.51        $ 0.37
Weighted average number of common shares
outstanding:
Basic                                           64,208         72,302
Diluted                                         66,692         74,605



                                                  
Selected Balance Sheet Items:              
                                                  (Unaudited)
(in thousands)                                                 12/31/2012
                                                  3/31/2013
Total Assets                                      $2,827,905   $2,481,738
Total Liabilities                                 $1,532,959   $1,181,898
Total Stockholders' Equity                        $1,294,946   $1,299,840

The following tables detail unaudited reconciliations from non-GAAP amounts to
U.S. GAAP and include reconciliations related to ASC Topic 470, accounting for
convertible debt.

Note: All items in the following reconciliation tables are attributable to
Iconix Brand Group, Inc. and exclude results related to non-controlling
interests.

(in thousands, except per share data)
                                                         (Unaudited)
                                                         Three months ended
                                                         Mar. 31,    Mar. 31,
Net income reconciliation
                                                         2013        2012
Non-GAAP net income (1)                                  $36,219     $31,938
GAAP net income                                          $34,189     $27,599
Adjustments:
 Non-cash interest related to ASC Topic               3,172       6,672
470
 Taxes related to above item                          (1,142)     (2,333)
 Net adjustments                                      2,030       4,339
Non-GAAP net income                                      $36,219     $31,938



                                                           (Unaudited)
                                                           Three months ended
                                                           Mar. 31,  Mar. 31,
Diluted EPS reconciliation
                                                           2013      2012
Non-GAAP diluted EPS (1)                                  $0.54     $0.43
GAAP diluted EPS                                           $0.51     $0.37
Adjustments for non-cash interest related to ASC
                                                           $0.03     $0.06
470, net of tax
Non-GAAP diluted EPS                                      $0.54     $0.43



Forecasted Diluted EPS            Year Ending
                                  Dec. 31 2013
                                  High     Low
Forecasted Non-GAAP diluted EPS  $2.20    $2.10
(1)
Forecasted GAAP diluted EPS       $2.10    $2.00
Adjustments for non-cash interest
related to ASC 470 and
                                  $0.10    $0.10
non-cash non-recurring gains and
charges, net of tax
Forecasted Non-GAAP Diluted EPS  $2.20    $2.10
(1) Non-GAAP net income and non-GAAP diluted EPS are non-GAAP financial
measures which represent

 net income excluding any non-cash interest related to ASC Topic 470 and
non-cash non-recurring gains

 andcharges, net of tax. The Company believes these are useful financial
measures in evaluating its

 financialcondition because they are representative of only actual cash
results.



(in thousands)
                                                   (Unaudited)
                                                   Three months ended
                                                   Mar. 31,      Mar. 31,

                                                   2013          2012
EBITDA (2)                                        $64,598       $56,772
Reconciliation of EBITDA:
Net Income                                         $34,189       $27,599
Add: Income taxes                                  15,031        14,843
Add: Net interest expense                          13,293        12,595
Add: Depreciation and amortization of
certain                           2,085         1,735

intangibles

                                                   $64,598       $56,772
EBITDA
(2) EBITDA, a non-GAAP financial measure, represents net income before income
taxes,

interest,other non-operating gains and losses, depreciation and amortization
expenses.

The Companybelieves EBITDA provides additional information for determining
its ability to

meet future debtservice requirements, investing and capital expenditures.





                                            (Unaudited)
                                            Three months ended
(in thousands)                              Mar. 31, 2013 Mar. 31, 2012
Free Cash Flow (3)                          $51,820       $47,447
Reconciliation of Free Cash Flow:


 Net Income                                $34,189       $27,599
 Add: Non-cash income taxes, non-cash

 interest related to convertible debt,

 depreciation, amortization of certain

 intangibles and finance fees, non-cash     17,748        20,085

 compensation expense, bad debt expense and

 net equity earnings from certain joint

 ventures.

                                            (117)         (237)
 Less: Capital expenditures
Free Cash Flow                              $51,820       $47,447



                                Year Ending
(in thousands)                  Dec. 31, 2013
                                High          Low
Forecasted Free Cash Flow       $210,000      $203,000
(3)
Reconciliation of
Forecasted Free
Cash Flow:
   Net Income                   $137,000      $130,000
   Add: Non-cash income
   taxes,

   non-cash interest
   related to

   convertible debt,
   depreciation,

   amortizationof
   certain

   intangibles
   andfinance fees,
                                76,000        76,000
   non-cash compensation

   expense, bad debt
   expense, net

   equity earnings from
   certain

   joint ventures and
   non-cash

   non-recurring gains
   and

   charges
   Less: Capital                (3,000)       (3,000)
   expenditures
Forecasted Free Cash Flow       $210,000      $203,000
(3) Free Cash Flow, a non-GAAP financial measure, represents net income before
depreciation, amortization,

non-cash compensation expense, bad debt expense, net equity earnings from
certain joint ventures, non-cash

income taxes, non-cash interest related to convertible debt, non-cash
non-recurring gains and charges, less

capital expenditures. The Free Cash Flow also excludes any changes in Balance
Sheet items. The Company

believes Free Cash Flow is useful in evaluating its financial condition
because it is representative of cash flow

from operations that is available for repaying debt, investing and capital
expenditures.



SOURCE Iconix Brand Group, Inc.

Website: http://iconixbrand.com
 
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