February 21, 2008
Iconix Brand Group Inc announced financial results for the fourth quarter and full year ended December 31, 2007.
Full Year 2007 results:
Revenue for the full year 2007 increased 98% to approximately $160.0 million, as compared to approximately $80.7 million in 2006. EBITDA for 2007 increased 128% to approximately $127.6 million, as compared to approximately $56.1 million and free cash flow increased 123% to approximately $99.2 million, as compared to approximately $44.5 million in the prior year.
Net income as reported on the Company's income statement for 2007 increased 96% to approximately $63.8 million, as compared to $32.5 million the prior year and diluted earnings per share as reported on the Company's income statement was $1.04 versus $0.72 in the prior year.
The Company recognized non-cash tax benefits in the prior year compared to being fully taxed for 2007 and therefore comparing net income on a tax-effected basis, the Company reported net income of approximately $63.8 million for 2007, as compared to approximately $26.3 million (tax-effected) in the prior year. In comparing diluted earnings per share on a tax-effected basis, the Company reported diluted earnings per share of $1.04 in 2007, as compared to $0.58 (tax-effected) in 2006.
Full year 2007 results include a one-time pre-tax gain equal to approximately $3.2 million or $0.03 diluted earnings per share associated with the Company's Unzipped litigation. The gain is reflected on the Company's income statement as a benefit of approximately $6.0 million (net of related legal expenses incurred in the year) and is offset by an increase of approximately $2.8 million in additional interest expense recorded in connection with the litigation. EBITDA, free cash flow, and tax effected earnings per share are non-GAAP metrics and reconciliation tables for all three are attached to this press release.
Iconix Brand Group Inc
