NEW YORK — Iconix Brand Group on Tuesday said first-quarter earnings jumped 73.3 percent as the firm reaffirmed its previously stated 2007 revenue guidance.
For the three months ended March 31, income rose to $12.7 million, or 21 cents a diluted share, from $7.4 million, or 18 cents, in the year-ago quarter. Licensing revenue gained 132.4 percent, to $30.8 million from $13.3 million a year ago.
"I am pleased with the continued momentum of our growth plan, which is evident in our strong revenue; earnings; [earnings before interest, taxes, depreciation and amortization], and free cash flow," Neil Cole, chairman and chief executive officer, said in a statement. "It was a good quarter for the growth of our existing portfolio of brands as well as with respect to acquisitions, as we acquired two powerful new lifestyle brands, Rocawear and Danskin, that on an annualized basis generate approximately $60 million in royalty revenue and significantly diversify our holdings.
Cole added that Iconix owns 11 strong consumer brands that are expected to generate approximately "$5 billion in annual retail sales this year through over 150 licensees around the world. We will continue to be focused on executing our long-term growth strategy of expanding our existing portfolio and adding new iconic brands through acquisition."
The company reaffirmed its previously stated 2007 revenue guidance in a range of $150 million to $160 million, along with diluted earnings per share in a range of 96 cents to $1. While current guidance presumes no additional acquisitions in 2007, Iconix has said that it intended to remain "acquisitive."
Also not included in its guidance is the $50 million verdict in favor of the company. Last month a state court jury in Los Angeles awarded Iconix $45 million in compensatory damages and $5 million in punitive damages in a trial involving defendants Hubert Guez, Sweet Sportswear, LLC, Azteca Production International Inc. and Apparel Distribution Services LLC. The lawsuit included claims of breach of contract, breach of fiduciary duty, trademark infringement and others.
While Iconix believes the judgment will be entered later this month, the verdict is still subject to collection and possible appeal.
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