Iconix Brand Group Reports Record Earnings for Third Quarter 2005
November 03 2005 - 8:00AM
PR Newswire (US)
- Q3 Licensing income increases over 160% to $9.2 million NEW YORK,
Nov. 3 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc.
(NASDAQ:ICON) ("Iconix" or the "Company"), today announced
financial results for the third quarter of 2005. Licensing and
commission income for the period increased over 160% to
approximately $9.2 million compared to approximately $3.5 million
in the comparable period for the prior year. The increase in
licensing income was driven by the launch of the Company's Candie's
brand at Kohl's Department Stores as well as the acquisition of the
Joe Boxer brand which was completed in July. The Company reported
fully diluted earnings per share of $0.14 cents versus $0.02 cents
in the comparable quarter for the prior year. Net income for the
quarter was approximately $5.2 million compared to approximately
$0.6 million for the quarter last year. Third quarter 2005 results
were inclusive of a non-cash tax benefit of approximately $1.4
million or $0.04 cents per fully diluted share. Neil Cole, Chairman
and CEO of Iconix commented, "These are exciting results that
demonstrate our ability to develop existing brands as well as to
grow by acquiring new brands. The launch of Candie's at Kohl's has
exceeded expectations. We are very excited about the potential of
this partnership as it continues to expand and benefit from new
categories launching next year including fragrance, home, swimwear
and sunglasses, as well as Kohl's aggressive plans to grow its
store base. These results also demonstrate how our brand
acquisition strategy enables us to purchase brands that are
accretive to our earnings without adding the risk or complexity of
integrating the operating structures supporting these brands. We
are continuing to evaluate a number of potential acquisitions to
further strengthen our portfolio and believe that our unique
strategy and business model positions Iconix for continued growth
and profitability." Nine-Month Results: For the nine months ended
September 30, 2005 licensing and commission income increased over
100% to approximately $17.8 million compared to approximately $8.5
million in the comparable period for the prior year. Fully diluted
earnings per share were $0.26 cents as compared to $0.04 cents in
the prior year and net income for the nine months increased to
approximately $8.5 million as compared to approximately $1.2
million in the prior year. Results for the nine months ended
September 30, 2005 were inclusive of a non-cash tax benefit of
approximately $3.2 million or $0.10 cents per fully diluted share.
2005 EPS Guidance: The Company is updating its 2005 full year
guidance to a range of $0.39 - $0.41 cents per share inclusive of a
projected non-cash tax benefit of approximately $0.13 - $0.15
cents. This compares to the Company's previous guidance range of
$0.33 to $0.35 cents a share. 2006 EPS Guidance: The Company is
revising preliminary projections for 2006 of earnings per share to
a range of $0.65 to $0.70 cents. This compares to the Company's
previous guidance range of $0.50 - $0.55 cents. Iconix Brand Group,
Inc. (NASDAQ:ICON) is in the business of licensing and marketing
the CANDIE'S(R), BONGO(R), BADGLEY MISCHKA(R), JOE BOXER(R) and
RAMPAGE(R) trademarks on a variety of apparel and fashion products.
Through its wholly owned subsidiary, Brightstar Footwear, Inc., the
Company also arranges for the manufacture of footwear products for
mass market retailers. For investor information please visit the
corporate Web site at http://www.iconixbrand.com/. Safe Harbor
Statement under the Private Securities Litigation Reform Act of
1995. The statements that are not historical facts contained in
this press release are forward looking statements that involve a
number of known and unknown risks, uncertainties and other factors,
all of which are difficult or impossible to predict and many of
which are beyond the control of the Company, which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Such factors include, but are not limited to,
uncertainty regarding the performance of the Company's licensees
and their on going ability to generate royalty revenue, continued
market acceptance of the Company's brands, uncertainty related to
the ability to successfully develop and market new products under
these brands, uncertainties relating to the Company's licensees'
customer plans and commitments, competition, uncertainties relating
to the economy, the ability to hire and retain key personnel, the
ability to obtain capital if required, the risks of litigation and
regulatory proceedings, the risks of uncertainty of trademark
protection, and other risks detailed in the Company's SEC filings.
The words "believe", "anticipate," "expect," "confident," and
similar expressions identify forward-looking statements. Readers
are cautioned not to place undue reliance on these forward looking
statements, which speak only as of the date the statement was made.
Iconix Brand Group, Inc. and Subsidiaries Condensed Consolidated
Income Statements (Unaudited) Three Months Ended Nine Months Ended
September 30, October 31, September 30, October 31, 2005 2004 2005
2004 (000's omitted, except per share data) Net sales $- $9,950 $-
$52,798 Licensing and commission revenue 9,205 3,454 17,792 8,505
------ ------ ------ ------- Net revenues 9,205 13,404 17,792
61,303 Cost of goods sold (net of recovery pursuant to an agreement
of $3,459 and $5,184 in the Three and Nine Months ended in 2004,
respectively) - 7,320 - 44,383 ------ ------ ------ ------- Gross
profit 9,205 6,084 17,792 16,920 Operating expenses: Selling,
general and administrative expenses (net of recovery pursuant to an
agreement of $0 and $296 in the Three and Nine Months ended in
2005, respectively) 3,868 4,824 9,385 13,574 Special charges 289 -
996 99 ------ ------ ------ ------- 4,157 4,824 10,381 13,673
------ ------ ------ ------- Operating income 5,048 1,260 7,411
3,247 Interest expense - net 1,289 657 2,134 2,093 ------ ------
------ ------- Income before income taxes 3,759 603 5,277 1,154
Income tax benefits - net (1,400) - (3,180) - ------ ------ ------
------- Net income $5,159 $603 $8,457 $1,154 Earnings per common
share: Basic $0.16 $0.02 $0.28 $0.04 ====== ====== ====== ======
Diluted $0.14 $0.02 $0.26 $0.04 ====== ====== ====== ======
Weighted average number of common shares outstanding: Basic 32,501
27,624 29,859 26,633 ====== ====== ====== ====== Diluted 36,654
29,462 33,071 28,037 ====== ====== ====== ====== Selected Balance
Sheet Data: 9/30/2005 12/31/2004 Total Assets $219,634 $ 60,160
Total Liabilities 127,384 35,902 Shareholders' Equity 92,250 24,258
DATASOURCE: Iconix Brand Group, Inc. CONTACT: Warren Clamen, Chief
Financial Officer of Iconix Brand Group, Inc., +1-212-730-0030 Web
site: http://www.iconixbrand.com/
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