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Q1 revenues decline 4% at Iconix Brand
25 Apr '12
3 min read
Iconix Brand Group, Inc. announced financial results for the first quarter ended March 31, 2012.
Q1 2012 Results for Iconix Brand Group, Inc.:
Total revenue for the first quarter of 2012 was approximately $88.5 million, a 4% decline as compared to approximately $92.4 million in the first quarter of 2011. EBITDA attributable to Iconix for the first quarter was approximately $56.8 million compared to $58.8 million in the prior year quarter.
Free cash flow attributable to Iconix for the first quarter was approximately $47.4 million, a 3% increase as compared to the prior year quarter of approximately $45.9 million. On a non-GAAP basis, as described in the tables below, net income attributable to Iconix was $31.9 million, a 5% decline compared to the prior year quarter. Non-GAAP diluted EPS for the first quarter of 2012 was $0.43 compared to $0.45 in the prior year quarter.
GAAP net income attributable to Iconix for the first quarter of 2012 was approximately $27.6 million as compared to $31.4 million in the prior year quarter and GAAP diluted EPS for the first quarter of 2012 was $0.37 compared to $0.42 in the prior year quarter.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, "With the majority of our portfolio performing well in the U.S. and our continued expansion into new geographies, we believe our Company remains strong and is well positioned for growth in 2013 and beyond.
Although we see some challenges in the short term, we remain positive on the long-term as we continue to execute an exciting and extremely profitable business model with a diversified portfolio and strong foundation.
With our strong balance sheet and significant cash flow we plan to continue to execute on our share repurchase program as well as remain focused on acquisitions to deliver additional value to our shareholders."
2012 Guidance for Iconix Brand Group, Inc.:
The Company is revising its full year 2012 guidance as follows;
• 2012 revenue guidance is being revised to $340-$350 million from $370-$385 million.
• 2012 non-GAAP diluted EPS guidance is being revised to $1.65-$1.74 from $1.77-$1.84
• 2012 GAAP diluted EPS guidance is being revised to $1.48-$1.57 from $1.62-$1.69.
• 2012 free cash flow guidance is being revised to $174-$181 million from $187-$194 million.
The 2012 guidance revision is primarily related to the continued softness of the men's brands, specifically Rocawear, Ecko and Ed Hardy, and certain international initiatives that the Company no longer expects to complete in 2012.
The Company is still waiting on government approval for its joint venture in India and therefore the transaction did not close in the first quarter as expected. If it had closed, it would have contributed $5-6 million in revenue or $0.04-$0.05 in EPS. However, the Company believes this is purely a timing issue and expects the deal to close in the second quarter.
This guidance relates to the existing portfolio of brands and does not include any additional acquisitions.
Q1 2012 Results for Iconix Brand Group, Inc.:
Total revenue for the first quarter of 2012 was approximately $88.5 million, a 4% decline as compared to approximately $92.4 million in the first quarter of 2011. EBITDA attributable to Iconix for the first quarter was approximately $56.8 million compared to $58.8 million in the prior year quarter.
Free cash flow attributable to Iconix for the first quarter was approximately $47.4 million, a 3% increase as compared to the prior year quarter of approximately $45.9 million. On a non-GAAP basis, as described in the tables below, net income attributable to Iconix was $31.9 million, a 5% decline compared to the prior year quarter. Non-GAAP diluted EPS for the first quarter of 2012 was $0.43 compared to $0.45 in the prior year quarter.
GAAP net income attributable to Iconix for the first quarter of 2012 was approximately $27.6 million as compared to $31.4 million in the prior year quarter and GAAP diluted EPS for the first quarter of 2012 was $0.37 compared to $0.42 in the prior year quarter.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, "With the majority of our portfolio performing well in the U.S. and our continued expansion into new geographies, we believe our Company remains strong and is well positioned for growth in 2013 and beyond.
Although we see some challenges in the short term, we remain positive on the long-term as we continue to execute an exciting and extremely profitable business model with a diversified portfolio and strong foundation.
With our strong balance sheet and significant cash flow we plan to continue to execute on our share repurchase program as well as remain focused on acquisitions to deliver additional value to our shareholders."
2012 Guidance for Iconix Brand Group, Inc.:
The Company is revising its full year 2012 guidance as follows;
• 2012 revenue guidance is being revised to $340-$350 million from $370-$385 million.
• 2012 non-GAAP diluted EPS guidance is being revised to $1.65-$1.74 from $1.77-$1.84
• 2012 GAAP diluted EPS guidance is being revised to $1.48-$1.57 from $1.62-$1.69.
• 2012 free cash flow guidance is being revised to $174-$181 million from $187-$194 million.
The 2012 guidance revision is primarily related to the continued softness of the men's brands, specifically Rocawear, Ecko and Ed Hardy, and certain international initiatives that the Company no longer expects to complete in 2012.
The Company is still waiting on government approval for its joint venture in India and therefore the transaction did not close in the first quarter as expected. If it had closed, it would have contributed $5-6 million in revenue or $0.04-$0.05 in EPS. However, the Company believes this is purely a timing issue and expects the deal to close in the second quarter.
This guidance relates to the existing portfolio of brands and does not include any additional acquisitions.
Iconix Brand Group Inc
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