Iconix Brand Group calls 2010 "transformative" as net income, revenue swell in the year
Home & Textiles Today Staff -- Home Textiles Today, February 16, 2011
New York - For Iconix Brand Group Inc., 2010 proved a "transformative" year with "record" results, including a 29% boost in net income and a 43% jump in net revenue, "positioning us well for the future."
The company's chairman and ceo, Neil Cole, attributed part of the success to its acquisition last year of the Peanuts brand, which he said expanded Iconix's platform into new categories and geographies.
Also helpful was the company's favorable fourth-quarter results, which included net revenue of $88.0 million, a 34% increase over the year ago period's $65.8 million, and a 12% increase in net income on a non-GAAP basis to $24.5 million and diluted earnings per share of 33 cents compared to 30 cents in the 2009 fourth quarter. On a GAAP basis, net income increased 12% to about $22.1 million as compared to the prior year quarter and GAAP diluted EPS for the fourth quarter of 2010 was 30 cents versus 27 cents for the prior year quarter.
Full year 2010 results for the 27-brand company included: $332.6 million in net revenue versus fiscal 2009's $232.1 million; net income on a non-GAAP basis of $107.8 million compared to the prior year; and a non-GAAP diluted earnings per share increase to $1.44 versus $1.22 for the prior year. On a GAAP basis, net income increased 32% to $98.8 million as compared to the prior year period and GAAP diluted earnings per share was $1.32 versus $1.10 for the prior year.
Warren Clamen, evp and cfo, offered a general summary of the performance of Iconix's brands and product categories. He described the home business as "OK," but then added that, "Everything is OK. We keep knocking on wood and feeling good about the strength of our brands."
A focus going forward for Iconix is the expansion of its international presence. Cole said the company's hope is to grow its international business segment to about one-third of annual sales from its current status of about 17% of the share.
Iconix reaffirmed its full year 2011 revenue guidance of $340 million to 350 million, 2011 non-GAAP diluted EPS guidance of $1.53 t0 $1.58 and GAAP diluted EPS guidance of $1.40 to $1.45. The company said it estimates that free cash flow for 2011 will be approximately $160 million to $165 million, and noted this guidance relates to the existing portfolio of brands only and does not include any acquisitions.
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