FORT LAUDERDALE, Fla., June 9 /PRNewswire-FirstCall/ -- Parlux Fragrances,
Inc. (Nasdaq: PARL) announced today results for its fiscal year ended March
31, 2005.
Net sales for the year ended March 31, 2005 reached $100,360,981 compared
to $80,580,709 for the prior year, an increase of 25%. Net income increased
73% to $10,824,256 ($1.02 per share), compared to $6,267,615 ($0.63 per
share), for the prior year.
Net sales for the fourth quarter were $25,927,922 compared to $19,623,527
for the comparable quarter of the prior year, an increase of 32%. Net income
increased 38% to $3,390,697 ($0.32 per share), compared to $2,461,176
($0.24 per share), for the comparable quarter in 2004.
Commenting on the results, Mr. Ilia Lekach, Chairman and Chief Executive
Officer, said, "We view our attainment of the $100 million sales level as a
first step to significantly increase revenues for fiscal 2006. The success of
our Paris Hilton fragrance, the continued growth of our core Perry Ellis
brand, and the recent addition of the XOXO brand have provided a solid
platform for our new GUESS? fragrance launch in July and the launch of our
Maria Sharapova fragrance scheduled for September. Our penetration into the
luxury goods market for watches, handbags and other small leather accessories
under the Paris Hilton name, scheduled to be introduced during the last two
quarters of our fiscal year, are projected to add to this sales growth."
Mr. Lekach added, "This past year, we also increased our operating income
to 17% of sales compared to 13% for the prior year. This improved operating
performance resulted in earnings per share exceeding analysts' expectations. I
appreciate and congratulate all who contributed to these results. Since the
end of our fiscal year, we have reduced our total outstanding shares to
8,943,318 by acquiring 217,272 shares under our on-going common stock buy-back
program which should further improve earnings per share. I continue to be
optimistic that our previous guidance of $190-210 million in revenues and
earnings per share between $2.00-$2.20 for the entire year will be achieved
assuming the implementation of our planned launches and stable economic
conditions."
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, Paris Hilton, GUESS?, XOXO, Ocean
Pacific (OP), Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly
Hills. Parlux also recently signed licenses to manufacture and distribute
Paris Hilton watches, cosmetics and handbags and other small leather
accessories.
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 following table)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2005 2004
Net sales:
Unrelated customers $15,449,174 $7,895,615
Related customers 10,478,748 11,727,912
25,927,922 19,623,527
Cost of goods sold:
Unrelated customers 5,821,004 3,361,486
Related customers 3,870,807 4,936,808
9,691,811 8,298,294
Gross margin 16,236,111 11,325,233
Operating expenses:
Advertising and promotional 5,267,100 2,515,732
Selling and distribution 2,234,397 1,632,350
General and administrative 1,551,674 1,745,610
Depreciation and amortization 503,878 288,215
Royalties 1,147,498 1,164,783
Total operating expenses 10,704,547 7,346,690
Operating income 5,531,564 3,978,543
Interest income (expense) and
exchange gains and losses,
net 39,441 (8,904)
Income before taxes 5,571,005 3,969,639
Income tax provision (2,180,308) (1,508,463)
Net income $3,390,697 $2,461,176
Diluted earnings per share $0.32 $0.24
Weighted average shares
outstanding 10,720,922 10,055,674
Fiscal Year Ended March 31, 2005 2004
Net sales:
Unrelated customers $47,449,801 $38,138,631
Related customers 52,911,180 42,442,078
100,360,981 80,580,709
Cost of goods sold:
Unrelated customers 20,371,535 18,607,927
Related customers 25,026,023 21,000,269
45,397,558 39,608,196
Gross margin 54,963,423 40,972,513
Operating expenses:
Advertising and promotional 18,528,907 12,714,825
Selling and distribution 7,707,435 6,560,973
General and administrative 6,100,017 6,162,926
Depreciation and amortization 1,266,652 1,256,593
Royalties 3,940,471 3,964,567
Total operating expenses 37,543,482 30,659,884
Operating income 17,419,941 10,312,629
Interest income (expense)
and exchange gains and
losses, net 140,676 (203,572)
Income before taxes 17,560,617 10,109,057
Income tax provision (6,736,361) (3,841,442)
Net income $10,824,256 $6,267,615
Diluted earnings per share $1.02 $0.63
Weighted average shares
outstanding 10,647,196 9,898,395
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
Company News On-Call:
http://www.prnewswire.com/comp/674987.html
CONTACT:
Ilia Lekach, ext. 116, or Frank A.
Buttacavoli, ext. 117, both ofr Parlux Fragrances,
+1-954-316-9008
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