Iconix achieves better than expected revenue
Iconix Brand Group Inc announced financial results for the first quarter ended March 31, 2011.
Q1 2011 results for Iconix Brand Group Inc
Total revenue for the first quarter of 2011 was approximately $92.4 million, a 29% increase as compared to approximately $71.7 million in the first quarter of 2010. EBITDA attributable to Iconix for the first quarter was approximately $58.8 million, a 19% increase as compared to approximately $49.4 million in the prior year quarter. Free cash flow for the quarter was $45.9 million a 15% increase as compared to approximately $40.1 million in the prior year quarter.
On a non-GAAP basis, which excludes non-cash interest related to the Company's convertible debt, net income attributable to Iconix increased 25% to approximately $33.7 million, as compared to $27.0 million in the prior year quarter and non-GAAP diluted earnings per share for the first quarter of 2011 was $0.45 versus $0.36 in the prior year quarter.
On a GAAP basis, net income attributable to Iconix increased 27% to approximately $31.4 million, as compared to approximately $24.8 million in the prior year quarter and GAAP diluted earnings per share for the first quarter of 2011 was $0.42 versus $0.33 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, "2011 is off to a strong start and I am pleased to announce that we achieved better than expected revenue and earnings in the first quarter. Our outperformance was driven by strength across our portfolio of brands, most notably our direct-to-retail brands, which continue to gain shelf space.
“We are making progress internationally and are particularly excited about the opportunity in China as our partners open hundreds of stores for our brands. We also expect to continue to be acquisitive and we announced that we are acquiring the worldwide rights for the Ed Hardy brand, which now puts us in complete control for the licensing and marketing of this brand. Looking ahead, we believe we are well positioned for continued growth as we expand our brands both in the U.S. and internationally, and acquire additional iconic brands."
2011 Guidance for Iconix Brand Group Inc
To reflect the better than expected first quarter results and the Ed Hardy transaction, the Company is increasing its full year 2011 revenue guidance to a range of $355-$365 million from $340-$350 million. The Company is also raising its 2011 non-GAAP diluted EPS guidance to a range of $1.63-$1.68 from $1.53-$1.58 and raising its GAAP diluted EPS guidance to a range of $1.50-$1.55 from $1.40-$1.45. The Company now estimates that free cash flow for 2011 will be in a range of $167- $172 million. This guidance relates to the existing portfolio of brands only including the increased ownership of Ed Hardy, excludes any non-cash gains relating to this transaction and assumes no additional acquisitions.