Press Release:
Iconix Brand Group reports Q2 2012 financial results
NEW YORK, July 25, 2012 /PRNewswire/ —
Q2 non-GAAP diluted EPS of $0.45 compared to $0.43 in prior year quarter
Q2 revenue of $93.6 million, a 5% increase over prior year quarter
Q2 EBITDA of $58.4 million and EBITDA margins of 62%
Q2 Free Cash Flow of $51.9 million, an 11% increase over prior year quarter
Iconix Brand Group, Inc. (ICON) (“Iconix” or the “Company”), today announced financial results for the second quarter ended June 30, 2012.
Q2 2012 results for Iconix Brand Group, Inc.:
Total revenue for the second quarter of 2012 was approximately $93.6 million, a 5% increase as compared to approximately $89.3 million in the second quarter of 2011.
Total revenue includes approximately $5.6 million related to the completion of the Company’s new joint venture in India.
On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix for the second quarter was approximately $32.4 million, as compared to approximately $32.3 million the prior year quarter. Non-GAAP diluted EPS for the second quarter was $0.45 compared to $0.43 in the prior year quarter.
EBITDA attributable to Iconix for the second quarter was approximately $58.4 million, as compared to approximately $58.1 million in the prior year quarter. Free cash flow attributable to Iconix for the second quarter was approximately $51.9 million, an 11% increase over the prior year quarter.
GAAP net income attributable to Iconix and diluted EPS in the second quarter of 2011 included a non-cash, non-recurring gain of approximately $21.5 million related to the Company’s acquisition of the global master license of the Ed Hardy brand. GAAP net income attributable to Iconix for the second quarter was approximately $28.6 million, as compared to $41.5 million in the prior year quarter and GAAP diluted EPS was $0.40 compared to $0.55 in the prior year quarter.
Six months ended June 30, 2012:
Total revenue for the six months ended June 30, 2012 was approximately $182.1 million, as compared to approximately $181.6 million for the prior year period. EBITDA attributable to Iconix for the six month period was approximately $115.2 million as compared to approximately $116.9 million in the prior year period.
Free cash flow attributable to Iconix for the six month period was approximately $99.4 million, a 7% increase over the prior year period. On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix for the six month period was approximately $64.4 million as compared to approximately $66.1 million in the prior year period, and non-GAAP diluted earnings per share was approximately $0.88 for the six month period versus $0.88 for the prior year period.
As mentioned above, GAAP net income attributable to Iconix and diluted EPS for the prior period included a non-cash, non-recurring gain of approximately $21.5 million. On a GAAP basis, net income attributable to Iconix was approximately $56.2 million as compared to $73.0 million in the prior year period and GAAP diluted earnings per share was $0.76 versus $0.97 for the prior year period.
EBITDA, free cash flow, non-GAAP net income and non-GAAP EPS are all non-GAAP metrics and reconciliation tables to the respective GAAP measures are attached to this press release.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, “We are pleased with our overall performance in the second quarter. Our strategy of building our brands globally is gaining momentum with the launch of our India joint venture with Reliance and our first two direct-to-retail licenses in Europe. Looking ahead, we see continued opportunities to grow the portfolio both in the U.S. and around the world. In addition, with our significant free cash flow and strong balance sheet we plan to continue to deliver increased shareholder value through acquisitions and share repurchase.”
2012 Guidance for Iconix Brand Group, Inc.:
The Company is reaffirming its full year 2012 revenue guidance of $340 to $350 million, its 2012 non-GAAP diluted EPS guidance of $1.65 to $1.74, its 2012 GAAP diluted EPS guidance of $1.48-$1.57, and its 2012 free cash flow guidance of $174 to $181 million. This guidance relates to the 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), and SHARPER IMAGE (R). In addition, Iconix owns interests in the ARTFUL DODGER (R), ECKO (R), MARC ECKO (R), ED HARDY (R) MATERIAL GIRL (R), PEANUTS (R), and TRUTH OR DARE 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.
