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And now I would like to turn the call over to Mr. Warren Clamen.
Good morning everyone and welcome to the Iconix Brand Group second quarter 2012 earnings conference call. On today’s call, we will review our second quarter financial results, provide an update on brand initiatives and discuss our overall outlook for the company.
Reviewing results for the second quarter ended June 30, 2012. Revenue was $93.6 million, up 5% increase as compared to $89.3 million in the second quarter of 2011. The anticipated transition of the Royal Velvet license and the year-over-year declines in our Men’s businesses were offset by the strengths across the remainder of our portfolio and the completion of our new joint venture in India, which contributed approximately $5.6 million to the topline.In the second quarter, we generated $51.9 million of free cash flow or $0.72 per diluted share, a 16% increase over the prior year quarter. We have a reoccurring annual tax benefit of approximately $30 million, which combined with our non-cash compensation and depreciation and amortization, create a reoccurring annual delta of approximately $50 million to $60 million between our non-GAAP net income and our free cash flow. EBITDA in the first quarter was approximately $58.4 million as compared to approximately $58.1 million in the prior year quarter. Our EBITDA margin in the second quarter was approximately 62%. The margin decline versus the prior year quarter primarily reflects a stronger PEANUTS business this year, which have lower margin. Although expenses are slightly up year-to-date, we are still on-track to be down approximately $9 million to $10 million for the full-year.