Iconix reports 29% 3Q revenue growth

NEW YORK Iconix Brand Group announced an increase in revenue of 29% to approximately $55.1 million for the third quarter ended Sept. 30, compared to approximately $42.7 million in the third quarter of 2007. EBITDA for the third quarter increased 23% to approximately $37.9 million, as compared to approximately $30.8 million in the prior year quarter, and free cash flow for the quarter increased 13% to approximately $31.5 million, as compared to approximately $27.9 million in the prior year quarter.

Net income for the third quarter increased 8% to approximately $18.3 million, as compared to $17 million in the prior-year quarter, and GAAP diluted EPS increased to 30 cents, versus 28 cents in the prior-year quarter.

"Our strong performance in the third quarter demonstrates, more than ever, that our business model is extremely well suited to thrive in the current economic environment," stated chairman and ceo Neil Cole. "Having a diversified portfolio of 17 iconic brands and partnerships with best-in-class retailers enables us to continue to deliver great results. In issuing 2009 guidance today, we are confident in our ability to grow sales and earnings next year and we are energized about our organic growth plans."

The company expects to achieve its 2008 guidance for revenue of $215 million to $220 million and diluted earnings per share of $1.15 to $1.20, but is now guiding towards the low-end of the ranges. Free cash flow is projected to be in excess of $120 million.

The company's guidance for the full year 2009 is in a range of $225 million to $235 million, with a non-GAAP diluted earnings per share in the range of $1.20 to $1.30, excluding any non-cash interest related to the convertible debt. Free cash flow is estimated to be in a range of $114 million to $118 million. This guidance relates to the existing portfolio of brands only and includes no revenue assumption from acquisitions.