FORT LAUDERDALE, Fla., Feb. 13 /PRNewswire-FirstCall/ --
Parlux Fragrances, Inc. (Nasdaq: PARL) announced today results for its third
quarter ended December 31, 2002.
Net sales for the quarter were $19,780,626 compared to $16,280,479 for the
comparable quarter of the prior year, an increase of 21%, attributable to
successful launches during the holiday period and strengthening of
international distribution.
Net income for the quarter was $106,820 ($0.01 per share), compared to a
net loss of $6,155,393 ($0.62 per share), for the comparable prior year
period, the result of higher sales coupled with controlled spending. The loss
in the prior year period included a $7,273,123 pre-tax non-cash charge to
operating income for the impairment of intangibles in connection with the then
impending cash sales of two brands, which have been concluded. Excluding the
effect of the impairment of intangibles, a net loss of $1,646,056 ($0.17 per
share) would have been reported for the prior period.
For the nine-month period ended December 31, 2002, net sales were
$57,613,990, compared to $53,335,238, an increase of 8%. The net income of
$4,333,235 ($0.43 per share), compared to a net loss of $6,458,906 ($0.65 per
share), for the comparable year period. The current year period includes pre-
tax income of $4,000,564 relating to the proceeds from the settlement of a
lawsuit against a supplier which was filed during 2001. The prior year loss
was primarily due to a non-cash charge for the impairment of intangibles of
$7,273,123 as noted above, and a non-cash charge for an unrealized loss on an
investment of $2,858,447. Excluding the effect of the settlement of the
lawsuit during the current period, and the impairment of intangibles and
writedown of our investment during the prior nine-month period, net income
would have been $1,852,885 ($0.18 per share) and $701,517 ($0.07 per share),
respectively, an increase of 164%.
Commenting on the results, Mr. Ilia Lekach, Chairman and Chief Executive
Officer said, "Our business has continued to improve. Our new product launches
have performed in accordance with expectations. We previously trimmed
operating expenses, and have been able to operate profitably as planned.
Additionally, we have sold three smaller brands over the past twelve-month
period and settled litigation, which have generated significant excess cash
flow, and reduced our borrowing costs."
Mr. Lekach commented further, "We anticipate profitable results in our
final quarter of the fiscal year which should improve upon our $0.43 per share
earnings through nine months. Our trailing 12-month earnings are $0.52 per
share. We believe our stock price is significantly undervalued. Our book
value is $5.27 per share. Borrowing levels have been reduced to approximately
$7 million compared to $11 million at fiscal year end March 31, 2002 and
$12 million at December 31, 2001. I'm also pleased to report that our lender
has extended our $20 million revolving credit line for an additional year
through July 2005."
Parlux Fragrances, Inc. is a manufacturer and international distributor of
prestige fragrances and holds the licenses to manufacture and distribute the
designer fragrance brands of Perry Ellis, Ocean Pacific (OP), Fred Hayman
Beverly Hills and JOCKEY.
The Company may periodically release forward-looking statements pursuant
to the safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements of the Company or its industry to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. These risks and uncertainties include, among
others, future trends in sales and the Company's ability to introduce new
products in a cost-effective manner. Readers are cautioned not to place undue
reliance on these forward statements, which speak only as of the date thereof.
The Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
(See table below)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31, 2002 2001
Net sales $19,780,626 $ 16,280,479
Cost of goods sold, including
$1,219,060 and $947,786
of promotional items in 2002
and 2001, respectively 9,676,379 9,497,657
Gross margin 10,104,247 6,782,822
Operating expenses
Advertising and promotional 5,641,440 5,159,281
Selling and distribution 1,705,630 1,679,982
General and administrative,
net of licensing
fees of $162,500 in 2001 1,226,365 1,340,677
Depreciation and amortization 343,561 525,492
Royalties 837,364 473,601
Impairment loss on intangibles --- 7,273,123
Total operating expenses 9,754,360 16,452,156
Operating income (loss) 349,887 (9,669,334)
Interest expense and exchange gains, net 177,598 258,719
Income (loss) before taxes 172,289 (9,928,053)
Income tax (provision) benefit ( 65,469) 3,772,660
Net income (loss) $106,820 ( $6,155,393)
Fully diluted earnings
(loss) per share $0.01 ($0.62)
Weighted average shares outstanding 10,261,826 9,976,146
Nine Months Ended December 31, 2002 2001
Net sales $57,613,990 $53,335,238
Cost of goods sold, including
$2,892,509 and $2,684,844
of promotional items in 2002
and 2001, respectively 29,088,982 27,812,337
Gross margin 28,525,008 25,522,901
Operating expenses
Advertising and promotional 11,942,627 11,961,261
Selling and distribution 5,127,565 5,029,688
General and administrative, net of
licensing fees of $487,500 in 2001 3,844,095 3,450,398
Depreciation and amortization 1,036,880 1,583,958
Royalties 2,514,395 1,578,840
Impairment loss on intangibles --- 7,273,123
Total operating expenses 24,465,562 30,877,268
Operating income (loss) 4,059,446 (5,354,367)
Interest expense and exchange gains, net 612,441 787,277
Other-than-temporary decline in value
of investment in affiliate --- 2,858,447
Litigation settlement, net of expenses (3,542,083) ---
Income (loss) before taxes 6,989,088 (9,000,091)
Income tax (provision) benefit (2,655,853) 2,541,185
Net income (loss) $4,333,235 ($6,458,906)
Fully diluted earnings (loss) per share $0.43 ($0.65)
Weighted average shares outstanding 10,168,102 9,973,046
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/674987.html
CONTACT:
Ilia Lekach, ext. 116, or Frank A.
Buttacavoli, ext. 117, both of Parlux Fragrances, Inc.,
+1-954-316-9008
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