FORT LAUDERDALE, Fla., June 17 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today its results for the fiscal
year ended March 31, 2004. Net sales increased by 12% to $80,580,709
compared to $72,253,699 in the prior year. Net income increased by 14% to
$6,267,615 compared to $5,474,459 in the prior year. Diluted earnings per
share increased by 17% to $0.63 compared to $0.54 for the prior year.
The prior year period includes a non-recurring pretax benefit of
$4,000,564; excluding the effect of this non-recurring benefit, earnings
per share would have been $0.29 for the prior year.
Commenting on the results, Ilia Lekach, Chairman and CEO, said, "We
are pleased with our sales increase considering that prior year sales
include over $6 million of brands which were sold/sublicensed during that
period. Excluding those brands, our sales increase would have exceeded
22%, which confirms the strength of our core business. Our achievement of
a pre-tax profit in excess of $10 million was a milestone. For the first
time since the inception of our Company over 20 years ago, we ended this
fiscal year without any borrowings under our line of credit and without
long-term debt. Our balance sheet is strong and our working capital
exceeded $53 million. This accomplishment is the result of a fine
collaborative effort of our management team, staff, licensors and
suppliers."
Mr. Lekach continued, "To continue our growth and to maximize the
effective use of our resources, we entered into a worldwide fragrance
agreement with GUESS? Inc., a major global force in fashion. We plan to
launch a new GUESS? fragrance internationally in the Summer of 2005.
Additionally, we recently signed a worldwide license with Paris Hilton to
manufacture and distribute a fragrance under her name. A launch of a
Paris Hilton fragrance is planned for later this year, and the initial
reaction of our customers to a fragrance of this icon of American pop
culture has been outstanding. These two new brands should add
considerable strength to our planned growth, both domestically and
internationally."
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, GUESS?, Inc. and Paris Hilton.
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, 2004 2003
Net sales $19,623,527 $14,639,709
Cost of goods sold 8,298,294 6,782,846
Gross margin 11,325,233 7,856,863
Operating expenses
Advertising and promotional 2,515,732 2,301,711
Selling and distribution 1,632,350 1,417,656
General and administrative 1,745,610 1,344,497
Depreciation and amortization 288,215 319,717
Royalties 1,164,783 687,439
Total operating expenses 7,346,690 6,071,020
Operating income 3,978,543 1,785,843
Interest expense and exchange gains, net 8,904 82,009
Income before taxes 3,969,639 1,703,834
Income tax provision (1,508,463) (562,610)
Net income $2,461,176 $1,141,224
Fully diluted earnings per share $0.24 $0.12
Weighted average shares outstanding 10,055,674 9,893,789
Fiscal Year Ended March 31, 2004 2003
Net sales $80,580,709 $72,253,699
Cost of goods sold 39,608,196 35,871,828
Gross margin 40,972,513 36,381,871
Operating expenses
Advertising and promotional 12,714,825 14,244,338
Selling and distribution 6,560,973 6,545,221
General and administrative 6,162,926 5,188,592
Depreciation and amortization 1,256,593 1,356,597
Royalties 3,964,567 3,201,834
Total operating expenses 30,659,884 30,536,582
Operating Income 10,312,629 5,845,289
Interest expense and exchange gains, net 203,572 694,450
Litigation settlement, net of expenses -- (3,542,083)
Income before taxes 10,109,057 8,692,922
Income tax provision (3,841,442) (3,218,463)
Net income $6,267,615 $5,474,459
Fully diluted earnings per share $0.63 $0.54
Weighted average shares outstanding 9,898,395 10,179,864
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 of Parlux Fragrances, Inc.,
+1-954-316-9008
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