Key Developments For Iconix Brand Group, Inc.
Iconix Brand Group, Inc. (ICON.O) (Nasdaq)
Playboy Enterprises, Inc. In Talks With Iconix Brand Group Inc. To Sell Itself-Reuters
Reuters reported that Playboy Enterprises, Inc. is in preliminary talks to sell itself to Iconix Brand Group Inc., people familiar with the matter said. At this point, the goal of Iconix, which owns and licenses clothing brands such as Candies, Joe Boxer, and Rocawear, is to bring in a publishing partner to buy Playboy Enterprises, Inc.'s namesake magazine while it would keep the brand licensing part of the company, one of the sources said.
Iconix Brand Group, Inc. Closes Acquisition of 51% Controlling Interest In Ecko Brands
Iconix Brand Group, Inc. announced that it has completed the acquisition of a 51% controlling interest in the Ecko portfolio of brands through a newly formed joint venture company, IP Holdings Unltd LLC. The Ecko portfolio includes Ecko Unlimited, Marc Ecko, the Rhino logo, and Zoo York. For this acquisition, Iconix paid $63.5 million in cash, and the joint venture obtained $90 million of financing. Iconix's effective purchase price for it's 51% interest in the joint venture was approximately $109 million.
Iconix Brand Group, Inc. Reaffirms FY 2009 Guidance; Issues FY 2010 EPS Guidance In Line With Analysts' Estimates; Issues FY 2010 Revenue Guidance
Iconix Brand Group, Inc. reiterates its recently revised revenue guidance of $215-$220 million and non-GAAP diluted earnings per share (EPS) of $1.17-$1.22 and GAAP diluted EPS of $1.06-$1.11 for fiscal 2009. For fiscal 2010, it expects revenue to be in the range of $260-$270 million. This includes the assumption that the Ecko acquisition will close in the fourth quarter of 2009. The Company projects its 2010 non-GAAP diluted EPS to be $1.25-$1.30 and GAAP diluted EPS to be $1.13-$1.18. According to Reuters Estimates, analysts are expecting the Company to report EPS of $1.16 on revenues of $217 million for fiscal 2009; EPS of $1.27 for fiscal 2010.
Iconix Brand Group, Inc. Announces Definitive Agreement To Acquire 51% Controlling Interest In Ecko Brands
Iconix Brand Group, Inc. announced that it has signed a definitive agreement to acquire a controlling interest in the Ecko portfolio of brands, which represents over $1 billion of annual global retail sales. The Ecko portfolio includes Ecko Unlimited, Marc Ecko, the Rhino logo and Zoo York. Iconix will form a joint venture company with an affiliate of the Sellers to acquire the trademarks. Iconix will have a 51% interest in the joint venture and will control the licensing company and consolidate its results. Marc Ecko will continue in his capacity as the Chief Creative Officer of the company as he has since its inception. For this acquisition, Iconix will pay $63.5 million of its cash, and the joint venture, of which Iconix will own 51%, will obtain $90 million of financing at an annual interest rate of approximately 7.5%, which is non-recourse to Iconix. Therefore, Iconix's effective purchase price for this acquisition will be $109 million. Based on a pre-defined revenue and profit sharing calculation in the agreement the Iconix share of the gross royalties from the joint venture will be approximately $26 million.
Iconix Brand Group, Inc. Reaches Settlement With Federal Trade Commission; To Pay $250,000-AP
The Associated Press reported that Iconix Brand Group Inc. said it will pay $250,000 and post notices about its information collection practices under a settlement reached with the Federal Trade Commission (FTC). The FTC had said that the Company didn't comply with certain provisions of the Children's Online Privacy Protection Act with online promotions it ran for brands last year. Iconix said its non-compliance was inadvertent and did not harm children but said it would pay the settlement to avoid a protracted dispute.
