FORT LAUDERDALE, Fla., April 13 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today its results for the three
months ended December 31, 2006. Net sales from continuing operations were
$43,416,309, compared to $37,808,090 in the same period of the prior year,
an increase of 15%. Net loss from continuing operations was $(5,463,157)
compared to income of $1,524,009 in the same period of the prior year.
Operating expenses not directly attributable to Perry Ellis brand activity,
as well as interest expense, were not allocated to discontinued operations,
and as such, are included in continuing operations. Net income for the
current quarter was $17,938,864 compared to $5,996,089 in the same period
of the prior year. Earnings per share on a diluted basis were $0.98
compared to prior-year earnings of $0.28 per share. The current period
includes a pretax gain of $34,277,316 from the sale of the Perry Ellis
fragrance brand which gain, as well as activity directly relating to the
Perry Ellis brand, have been classified as discontinued operations for all
periods presented.
For the nine-month period ended December 31, 2006, net sales from
continuing operations were $98,785,112 compared to $72,374,428 in the prior
period, an increase of 36%. Net loss from continuing operations was
$(22,233,088) compared to a loss of $(852,331) in the same period of the
prior year. Operating expenses not directly attributable to Perry Ellis
brand activity, as well as interest expense, were not allocated to
discontinued operations, and as such, are included in continuing
operations. Net income for the period was $7,467,217 ($0.41 per share on a
diluted basis) compared to net income of $14,247,583 ($0.79 per share on a
diluted basis) in the same period of the prior year. The current period
includes the gain from the sale of the Perry Ellis fragrance brand and a
$1,774,624 gain from the sale of our investment in E Com Ventures, Inc. The
current period loss includes 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 results, Neil J. Katz, Interim CEO said, "With the
filing of our December 31, 2006 Form 10-Q, we will be up to date in
complying with our reporting responsibilities. We are grateful to our
shareholders for their patience and look forward to focusing our energies
to improve future results."
Update on Nasdaq Listing
As previously reported, the Company requested a brief extension from
Nasdaq until April 16, 2007 to file this Form 10-Q, which was granted on
April 9, 2007. There can be no assurance that the Company can achieve full
compliance with all of the Nasdaq requirements. However, with the filing of
this Quarterly Report on Form 10-Q, the Company believes it should be
compliant and current with all of its filings.
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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31, 2006 2005
Net sales:
Unrelated customers $29,738,731 $27,715,231
Related parties 13,677,578 10,092,859
43,416,309 37,808,090
Cost of goods sold:
Unrelated customers 18,078,930 11,801,532
Related parties 7,242,803 4,341,300
25,321,733 16,142,832
Gross margin 18,094,576 21,665,258
Operating expenses 26,312,768 19,026,092
Operating (loss) income from
continuing operations (8,218,192) 2,639,166
Interest expense, net (590,902) (199,429)
Foreign exchange (loss) gain (2,448) 18,341
(Loss) Income from continuing
operations before income taxes (8,811,542) 2,458,078
Income tax benefit (provision) 3,348,385 (934,069)
Net (loss) income from continuing
operations (5,463,157) 1,524,009
Discontinued operations:
Income from operations of Perry
Ellis fragrance brand,
including a gain of $34,277,316 on
sale of the brand in 2006 37,745,195 7,213,033
Income tax provision related to
Perry Ellis brand activity (14,343,174) (2,740,953)
Income from discontinued operations 23,402,021 4,472,080
Net income $17,938,864 $5,996,089
Diluted earnings (loss) per common
share:
Continuing operations ($0.30) $0.07
Discontinued operations $1.28 $0.21
Total $0.98 $0.28
Weighted average shares outstanding: 18,270,745 21,078,419
Nine Months Ended December 31, 2006 2005
Net sales:
Unrelated customers $65,377,336 $50,138,487
Related parties 33,407,776 22,235,941
98,785,112 72,374,428
Cost of goods sold:
Unrelated customers 37,216,966 20,349,402
Related parties 17,443,561 9,728,496
54,660,527 30,077,898
Gross margin 44,124,585 42,296,530
Operating expenses, including share-
based compensation expense of
$16,201,950 in 2006 73,668,482 43,457,434
Gain on sale of property held for
sale 494,465 --
Operating (loss) income from
continuing operations (29,049,432) (1,160,904)
Interest expense, net (2,125,124) (232,165)
Gain on sale of investment in
affiliate 1,774,624 --
Foreign exchange (loss) gain 11,883 18,341
(Loss) Income from continuing
operations before income taxes (29,388,049) (1,374,728)
Income tax benefit 7,154,961 522,397
Net loss from continuing operations (22,233,088) (852,331)
Discontinued operations:
Income from operations of Perry
Ellis fragrance brand activity,
including a gain of $34,277,316 on
sale of the brand in 2006 47,903,718 24,357,700
Income tax provision related to
Perry Ellis brand (18,203,413) (9,254,786)
Income from discontinued operations 29,700,305 15,099,914
Net income $7,467,217 $14,247,583
Diluted earnings (loss) per common
share:
Continuing operations ($1.23) ($0.05)
Discontinued operations $1.64 $0.84
Total $0.41 $0.79
Weighed average shares outstanding 18,135,154 17,907,158
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, Parlux Fragrances, Inc.,
+1-954-316-9008, Ext. 8116
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