FOR IMMEDIATE RELEASE:
ICONIX BRAND GROUP REPORTS RECORD FOURTH QUARTER AND FULL
YEAR 2005 RESULTS
o 2005 EARNINGS PER SHARE OF $0.46 VS. $0.01 IN PRIOR YEAR
o 2005 LICENSING REVENUE OF $30.2 MILLION VS. $10.6 MILLION IN
PRIOR YEAR
o 2005 NET INCOME OF $15.9 MILLION VS. $0.2 MILLION IN PRIOR
YEAR
NEW YORK, March 1, 2006 - Iconix Brand Group, Inc. (NASDAQ: ICON) today
announced financial results for the fourth quarter and full year ended December
31, 2005. Licensing revenue for the full year increased to approximately $30.2
million compared to $10.6 million in the prior 11 month year. Net income for the
full year 2005 increased to approximately $15.9 million versus approximately
$200,000 in the prior year and fully diluted earnings per share increased to
$0.46, inclusive of a non-cash tax benefit of $0.14, compared to $0.01 in the
prior year.
For the fourth quarter of 2005 licensing revenue increased to $12.4 million
compared to $2.0 million in the prior year two month quarter. Net income for the
quarter was approximately $7.5 million compared to a loss of ($900,000) in the
prior year quarter and fully diluted earnings per share were $0.19, inclusive of
a non-cash tax benefit of $0.05, versus a loss of ($0.03) in the prior year
quarter.
Neil Cole, Chairman and Chief Executive Office of Iconix commented "2005 was the
first full year under our exciting new brand management and licensing business
model and it was the most profitable year in our company's history. Our fourth
quarter results helped us exceed our full year guidance driven by stronger than
anticipated licensing revenue from within our Candie's and Rampage divisions and
we see this strength continuing into 2006. Our Joe Boxer brand continues to grow
internationally and we are working on several new license agreements for both
Bongo and Badgley Mischka. We believe that we can continue to complement our
organic growth with additional accretive acquisitions and are currently
evaluating several interesting opportunities."
2006 Guidance:
The Company is reaffirming its previously announced 2006 full year earnings per
share guidance of $0.65 - $0.70 cents per share.
Iconix brand Group Inc. (NASDAQ:ICON) owns, licenses and markets a growing
portfolio of consumer brands including CANDIE'S (R), BONGO (R), BADGLEY MISCHKA
(R), JOE BOXER (R) and RAMPAGE (R). The company's brands touch every major
segment of retail distribution from the luxury market to the mass market.
Iconix, through its in-house advertising agency, advertises and markets its
brands to continually drive greater consumer awareness and loyalty and licenses
its brands to a network of leading retailers and manufacturers.
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 results of the Company's
acquisition of additional licenses, continued market acceptance of current
products and the ability to successfully develop and market new products
particularly in light of rapidly changing fashion trends, the impact of supply
and manufacturing constraints or difficulties relating to the Company's
licensees' dependence on foreign manufacturers and suppliers, uncertainties
relating to customer plans and commitments, the ability of licensees to
successfully market and sell branded products, competition, uncertainties
relating to economic conditions in the markets in which the Company operates,
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, the uncertainty of marketing and licensing
acquired trademarks and other risks detailed in the Company's SEC filings. The
words "believe", "anticipate," "expect", "confident", "project", provide
"guidance" 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 Statements of Operations
(000's omitted, except per share data)
Three Months Two Months Twelve Months Eleven Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
------------ ------------ ------------- -------------
2005 2004 2005 2004
------------ ------------ ------------- -------------
Net sales $ -- $ 5,629 $ -- $ 58,427
Licensing and commission income 12,364 2,048 30,156 10,553
--------- --------- --------- ---------
Net revenue 12,364 7,677 30,156 68,980
Cost of goods sold -- 3,846 -- 48,229
--------- --------- --------- ---------
Gross margin 12,364 3,831 30,156 20,751
Selling, general and administrative
expenses 4,495 4,145 13,880 17,720
Special charges 470 196 1,466 295
--------- --------- --------- ---------
4,965 4,341 15,346 18,015
--------- --------- --------- ---------
Operating income (loss) 7,399 (510) 14,810 2,736
Other expenses:
Interest expense 1,843 402 3,977 2,495
Gain on sales of securities (75) -- (75) --
--------- --------- --------- ---------
1,768 402 3,902 2,495
--------- --------- --------- ---------
Income (loss) before income taxes 5,631 (912) 10,908 241
Income tax benefits - net (1,855) -- (5,035) --
--------- --------- --------- ---------
Net income (loss) $ 7,486 $ (912) $ 15,943 $ 241
========= ========= ========= =========
Earnings (loss) per share:
- Basic $ 0.21 $ (0.03) $ 0.51 $ 0.01
========= ========= ========= =========
- Diluted $ 0.19 $ (0.03) $ 0.46 $ 0.01
========= ========= ========= =========
Weighted average # of common shares:
- Basic 35,512 27,829 31,284 26,851
========= ========= ========= =========
- Diluted 39,830 27,829 34,773 28,706
========= ========= ========= =========
Selected Balance Sheet Data: 12/31/2005 12/31/2004
---------- ----------
Total Assets $ 212,178 $ 60,160
Total Liabilities $ 112,147 $ 35,902
Stockholders' Equity $ 100,031 $ 24,258