Iconix Hits Targets as Q4 Rises

Iconix Brand Group Inc. hit it right on the button this fourth quarter.
 
For the period ended Dec. 31, 2010, the branding powerhouse earned a net income of $22.1 million, or 30 cents a share, up from $19.7 million, or 27 cents, in the same period a year ago.
 
Net revenue for the quarter jumped 34 percent to $88 million, from $65.8 million.
 
Analysts were looking for earnings per share of 30 cents on revenue of $82.8 million, as polled by Yahoo Finance.
 
The increase in operating income included a one-time gain related to a favorable judgment on litigation related to infringement of the company’s federally registered Bongo trademarks.
 
Neil Cole, chairman and CEO of Iconix, said in a statement that the group’s brands continued to gain market share in 2010 as the firm built lifestyle businesses and optimized distribution.
 
“We also expanded our platform into new categories and geographies in 2010 through our Peanuts acquisition. I believe through continued growth with our current partners, international expansion and new acquisitions, we can continue to build on our successes,” Cole added.
 
Iconix’s full-year revenue surged 43 percent to $332.6 million, while net income increased 32 percent to $98.8 million. EPS was $1.32 versus $1.10 for the prior year.
 
The company expects full-year 2011 revenue to be between $340 million and $350 million, and EPS to be between $1.40 and$1.45.
 
Iconix also estimates that free cash flow for 2011 will between $160 million and $165 million, assuming no new acquisitions, and potentially may be used to pay down debt that is due in 2012.
 
“However, if we saw a good opportunity in the next six months, we obviously might use our cash because it’s really cheap money, and then refinance the acquisition,” Cole said in a call with analysts. “So we have a very flexible structure at the moment and we’re trying to stay flexible, but also conservatively keep the cash around and maintain it so we can pay the debt when it is due.”

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