FORT LAUDERDALE, Fla., June 13 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced its unaudited fiscal 2006 results
reflecting sales of $182,236,594 compared to its prior year of
$100,360,981, an increase of 82%. Unaudited net income was $22,483,263, or
$2.13 per diluted share compared to prior year net income of $10,824,256,
or $1.02 per share, an increase of 109%, exceeding previous estimates.
On June 9, 2006, the Company filed a Form 12b-25, requesting an
extension for filing its Annual Report on Form 10-K for the fiscal year
ended March 31, 2006. Due to the increase in the Company's market
capitalization as measured on September 30, 2005, the Company became an
accelerated filer under the Sarbanes-Oxley Act of 2002 ("SOX"). While
reducing the year-end filing requirement from 90 to 75 days, SOX also
required the Company to assess its internal controls and report on their
effectiveness as of March 31, 2006. In spite of its best efforts and
significant expense, the Company will be unable to complete certain of
these new requirements by the initial filing due date of June 14, 2006.
While the Company has grown rapidly, it has not significantly expanded
its administrative staff to assist with the preparation of its financial
statements, nor modified major systems/applications for recording of
transactions. Management's review, testing and assessment of its internal
control procedures required by SOX has identified certain documentation,
design and operating deficiencies, some of which management believes will
be categorized as material weaknesses. Accordingly, we anticipate that
management's report on the effectiveness of internal controls will conclude
that certain internal controls were not operating effectively as of and
during the year ended March 31, 2006. The Company is taking immediate
action to address and remediate these control deficiencies.
The unaudited financial results for fiscal 2006 follow, and are subject
to any adjustments resulting from the completion of our year-end financial
closing and reporting processes. The Company will file its Form 10-K for
the fiscal year ended March 31, 2006 by June 29, 2006.
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 Perry Ellis, GUESS?, XOXO, Ocean Pacific (OP),
Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
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
(UNAUDITED)
Three Months Ended March 31, 2006 2005
Net sales:
Unrelated customers $ 31,452,326 $15,449,174
Related customers 21,226,326 10,478,748
52,678,652 25,927,922
Cost of goods sold:
Unrelated customers 11,389,611 5,821,004
Related customers 9,279,058 3,870,807
20,668,669 9,691,811
Gross margin 32,009,983 16,236,111
Operating expenses:
Advertising and promotional 9,002,655 5,267,100
Selling and distribution 2,455,870 2,234,397
General and administrative 1,636,249 1,551,674
Depreciation and amortization 487,274 503,878
Royalties 4,778,665 1,147,498
Total operating expenses 18,360,713 10,704,547
Operating income 13,649,270 5,531,564
Interest income (expense) and
exchange gains and losses, net (365,913) 39,441
Income before taxes 13,283,357 5,571,005
Income tax provision (5,047,676) (2,180,308)
Net income $8,235,681 $3,390,697
Diluted earnings per share $0.78 $0.32
Weighted average shares outstanding 10,560,026 10,720,922
Fiscal Year Ended March 31, 2006 2005
Net sales:
Unrelated customers $111,779,850 $47,449,801
Related customers 70,456,744 52,911,180
182,236,594 100,360,981
Cost of goods sold:
Unrelated customers 45,843,902 20,371,535
Related customers 31,328,963 25,026,023
77,172,865 45,397,558
Gross margin 105,063,729 54,963,423
Operating expenses:
Advertising and promotional 38,977,490 18,528,907
Selling and distribution 9,599,143 7,707,435
General and administrative 6,736,672 6,100,017
Depreciation and amortization 1,946,545 1,266,652
Royalties 11,000,814 3,940,471
Total operating expenses 68,220,664 37,543,482
Operating income 36,843,065 17,419,941
Interest income (expense) and
exchange gains and losses, net (579,737) 140,676
Income before taxes 36,263,328 17,560,617
Income tax provision (13,780,065) (6,736,361)
Net income $22,483,263 $10,824,256
Diluted earnings per share $2.13 $1.02
Weighted average shares outstanding 10,558,080 10,647,196
SOURCE Parlux Fragrances, Inc.
 back to top
Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html /
CONTACT:
Ilia Lekach, ext. 116, or Frank A.
Buttacavoli, ext. 117, both of Parlux Fragrances, Inc.,
+1-954-316-9008
|
