Big Earnings for Iconix in Q2

by MR Magazine Staff

NEW YORK – The Iconix Brand Group is reporting big numbers in the second quarter: Licensing revenue has increased from $18.4 million in the second quarter of 2006 to $39.1 million and Earnings before interest, taxes, depreciation, and amortization increased nearly three-fold from $11.4 million in Q2 last year to $31.2 million in the second quarter this year. Net income increased from $8.3 million last year to $14.8 million.

Iconix CEO Neil Cole said in a company release, “I am pleased with our financial results this quarter as we more than doubled our revenue from a year ago and at the same time increased our EBITDA margins year over year. These metrics continue to underscore the compelling growth and profitability of our unique business model and strategy. Our portfolio performed well in the quarter and we were able to successfully integrate our two recent acquisitions, Danskin and Roca Wear and I am very excited about the earnings power both of these brands will bring to our portfolio. In light of the current conditions in the debt and equity markets we feel the approximately $250 million that we raised in the quarter through our convertible bond offering was opportune and has positioned us well to continue to execute our growth strategy and has also materially lowered our overall cost of capital.”

The New York-based Iconix acquired Danskin last March for $70 million, with an additional $15 million based on the brand’s performance. The Rocawear acquisition was finalized in April for $204 million, plus a contingent payment of $35 million, based on performance. The company also purchased London Fog in 2006, a brand that Iconix hopes to turn into a top performing luxury lifestyle brand competing with higher end brands like Burberry.

The Iconix Brands also include Candie’s, Joe Boxer, Mudd, Mossimo, and Ocean Pacific.