FORT LAUDERDALE, Fla., March 30 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today its results for the three
months ended September 30, 2006. Net sales were $38,875,830 compared to
$39,328,298 in the same period of the prior year, a decrease of 1%. The
current period includes a gain of $1,774,624 from the sale of its
investment in E Com Ventures, Inc., as the Company divested of its
ownership position. Net income was $3,649,310 compared to $4,439,870 in the
same period of the prior year. Earnings per share on a diluted basis were
$0.18 compared to prior-year earnings of $0.21 per share, a decrease of 5%.
For the six-month period ended September 30, 2006, net sales were
$79,659,895 compared to $73,145,627 in the prior period, an increase of 9%.
Net loss was $10,471,648 (or $0.58 per share or a diluted basis) compared
to net income of $8,251,493 ($0.39 per share on a diluted basis) in the
same period of the prior year. The current period loss was solely
attributable to a non-cash, share-based compensation charge in the amount
of $16,201,950, relating to the modification of outstanding warrants to
effect the Company's June 16, 2006 stock split. This charge, net of a
deferred tax benefit of $1,058,034, negatively impacted earnings for the
current period by $0.84 per share. The non-cash charge did not have a
negative effect on the Company's financial position as an increase for the
same amount was recorded directly to additional paid-in-capital within
stockholders' equity.
Commenting on the second quarter results, Neil J. Katz, Interim CEO
said, "I am pleased, after over four months of delays, we are moving
forward with our reporting responsibilities. I am optimistic that we will
be issuing our third quarter results in a short period of time. We expect
that our reporting delinquencies will shortly be a thing of the past."
Update on Nasdaq Listing
As previously reported, Nasdaq notified the Company that a condition to
the continued listing of the Company's common stock on Nasdaq was a
requirement to file with the Securities and Exchange Commission by March
31, 2007 the Company's delinquent Form 10-Qs for the quarters ended
September 30, 2006 and December 31, 2006. The Company has filed its Form
10-Q for the quarter ended September 30, 2006 but will not file its Form
10-Q for the quarter ended December 31, 2006 by the March 31 deadline. The
Company has made a request to Nasdaq for a brief extension until April 16,
2007 to file that Form 10-Q, but can provide no assurance that Nasdaq will
grant that request or otherwise continue to list the common stock. If the
common stock is delisted by Nasdaq, the Company believes its common stock
would at some point trade in the Pink Sheets, and, after becoming current
in its SEC filings, the OTC Bulletin Board, Nasdaq or an exchange. The
Company expects to be able to provide an update on the status of its Nasdaq
listing next week.
About Parlux Fragrances, Inc.
Parlux Fragrances, Inc. is a manufacturer and international distributor
of prestige products. It holds licenses for Paris Hilton fragrances,
watches, cosmetics, sunglasses, handbags and other small leather
accessories in addition to licenses to manufacture and distribute the
designer fragrance brands of GUESS?, XOXO, Ocean Pacific (OP), Maria
Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
Certain Information Regarding Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, regarding,
among other things, our plans, strategies and prospects, both business and
financial. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance
or achievements of Parlux 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 Parlux's ability to introduce new
products in a cost-effective manner, general economic conditions and
continued compliance with the covenants in our credit facility. Additional
risk factors are set forth in the Company's periodic reports filed with the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the date thereof. Parlux 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.
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, 2006 2005
Net sales:
Unrelated customers $19,491,484 $22,020,040
Related customers 19,384,346 17,308,258
38,875,830 39,328,298
Cost of goods sold:
Unrelated customers 10,014,024 9,356,538
Related customers 9,005,935 7,726,909
19,019,959 17,083,447
Gross margin 19,855,871 22,244,851
Operating expenses 16,651,514 15,001,410
Operating income 3,204,357 7,243,441
Interest expense, net (844,949) (82,362)
Gain on sale of investment in affiliate 1,774,624 ---
Income before taxes 4,134,032 7,161,079
Income tax provision (484,722) (2,721,209)
Net income 3,649,310 4,439,870
Diluted earnings per share $ 0.18 $ 0.21
Weighted average shares outstanding $20,846,427 $21,107,600
Six Months Ended September 30, 2006 2005
Net sales:
Unrelated customers $46,284,550 $39,995,980
Related customers 33,375,345 33,149,647
79,659,895 73,145,627
Cost of goods sold:
Unrelated customers 23,826,954 16,885,129
Related customers 16,413,034 14,591,800
40,239,988 31,476,929
Gross margin 39,419,907 41,668,698
Operating expenses, including share-based
compensation charge of $16,201,950 in 2006 50,587,090 28,327,102
Gain on sale of property 494,465 ---
Operating (loss) income (10,672,718) 13,341,596
Interest expense and exchange gains, net (1,519,891) (32,736)
Gain on sale of investment in affiliate 1,774,624 ---
(Loss) income before taxes (10,417,985) 13,308,860
Income tax provision (53,663) (5,057,367)
Net (loss) income $(10,471,648) $ 8,251,493
Diluted (loss) earnings per share $ (0.58) $ 0.39
Weighted average shares outstanding 18,094,201 21,098,762
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html /
CONTACT:
Neil J. Katz, CEO of Parlux Fragrances, Inc.,
+1-954-316-9008, Ext. 8116
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