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Iconix Brand CEO pleased with Q3 results

31 Oct '07

3 min read

Net income as reported on the Company's income statement for the nine month period increased 88% to approximately $44.5 million, as compared to approximately $23.6 million in the prior year nine month period and fully diluted earning per share as reported on the Company's income statement was $0.73 versus $0.54 in the prior year nine month period.

The Company recognized non-cash tax benefits in the prior year nine month period and therefore comparing net income on a tax-effected basis, the Company reported net income of approximately $44.5 million as compared to approximately $17.1 million (tax-effected) in the prior year nine months.

In comparing fully diluted earnings per share on a tax-effected basis, the Company reported fully diluted earnings per share of $0.73 in the first nine months of 2007, as compared to $0.40 (tax-effected) in the prior year nine month period. Tax effected net income and fully diluted EPS are non-GAAP metrics and a reconciliation table for both is attached to this press release.

Neil Cole, Chairman and CEO of Iconix, commented, "I am pleased with our results this quarter as we increased revenue 93% and net income 114% from the prior year in what was a very challenging period for retail in general.

Our performance this quarter highlights the unique attributes of our licensing model where diversification from a portfolio of 15 brands and almost 200 licensees, combined with contractually guaranteed revenue and no inventory exposure reduces our risk and volatility in difficult retail environments.

Looking ahead to the remainder of this year and for 2008, I am confident we will continue to deliver strong increases in both revenue and profitability and execute our long term growth plan."

2007 Guidance:
The Company is projecting that for the full year 2007 it will be at the high of end of its current revenue guidance of $150 - $160 million as well as its current fully diluted earnings per share guidance of $0.96 - $1.00.

2008 Guidance:
The Company is issuing guidance for the full year 2008 of revenue in a range of $240 - $250 million and fully diluted EPS in a range of $1.35 - $1.40.

Iconix Brand Group Inc

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