Non-GAAP net income which excludes non-cash interest related to our convertible notes was $32.4 million compared to $32.3 million in the prior year quarter and diluted non-GAAP earnings per share was $0.45 compared to $0.43 in the prior year quarter.
GAAP net income and diluted EPS in the second quarter of 2011 included a non-cash, non-re-occurring gain of approximately $21.5 million related to the company’s acquisition of the global master license of the Ed Hardy brand in April 2011.
GAAP net income in the second quarter was approximately $28.6 million as compared to $41.5 million in the prior year quarter and GAAP diluted EPS was $0.40 compared to $0.55 in the prior year quarter.
Reviewing our results for the six months ended June 30, 2012, our revenue increased to approximately $182.1 million. We generated free cash flow of $99.4 million. Our EBITDA was approximately $115.2 million. Our non-GAAP net income, as previously defined, was approximately $64.4 million and our diluted non-GAAP earnings per share was $0.88.In terms of seasonality, we expect revenue and earnings in the second half to be lower than the first half reflecting the royalty structures for our larger direct to retail licenses and the completion of the India joint venture in this second quarter which contributed approximately $0.05 to the diluted EPS. EBITDA, free cash flow, non-GAAP net income and non-GAAP diluted EPS are all non-GAAP metrics and reconciliation tables for each can be found in the press release sent out this morning or on our website iconixbrand.com. Moving on to our balance sheet, we believe that we continue to be in an extremely strong position with our net debt to EBITDA under two times and the majority of our portfolio essentially unencumbered, we have significant borrowing capacity. We believe there are a variety of financial options available to the company including always a securitization and the term loan market which will allow us to continue to execute against our acquisition strategy as well as share repurchases.