Iconix Brand Group, Inc., owners of majority stake in Zoo York parent company Marc Ecko, saw a 29 percent jump in first quarter sales for 2011, with reported revenues reaching $92.4 million, from 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 percent 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 percent 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 percent 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 percent 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.
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 today 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.”
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.
Iconix Brand Group, Inc. owns, licenses and markets a portfolio of consumer brands including Candie’s, Bongo , Badgley Mischka , Joe Boxer Rampage Mudd , London Fog , Mossimo Ocean Pacific, Danskin Roca Wear, Cannon , Royal Velvet , Fieldcrest , Charisma , Starter and Waverly . In addition, Iconix Owns An Interest In The Artful Dodger , Ed Hardy , Ecko , Marc Ecko , Zoo York , Material Girl(Tm) and Peanuts brands.