FORT LAUDERDALE, June 27 /PRNewswire-FirstCall/ --
Parlux Fragrances, Inc. (Nasdaq: PARL) announced today its results for the
fiscal year ended March 31, 2003. Net sales increased by 3% to $72,253,699
compared to $70,001,063 in the prior year. Net income for the period was
$5,474,459 compared to a net loss of $5,655,401 in the prior year. Diluted
earnings per share for the full year period were $0.54 compared to a loss of
($0.58) in the prior year.
The current year period includes pre-tax income of $4,000,564 relating to
the proceeds from the settlement of a lawsuit against a supplier, which was
filed during 2001. The prior year loss was primarily due to a non-cash charge
for the impairment of intangibles of $7,441,554 in connection with the
subsequent sale of two brands, and a non-cash charge for an unrealized loss on
an investment of $2,858,447. Excluding the effect of the settlement of the
lawsuit during the current period, and the impairment of intangibles and
writedown of our investment during the prior period, net income would have
been $2,994,109 ($0.29 per share) and $1,583,822 ($0.16 per share),
respectively, an increase of 81%.
Commenting on the results, Ilia Lekach, Chairman and CEO said, "We are
pleased with the results achieved despite a continuing difficult economic
environment. We sold and sub-licensed certain brands during the year to
strengthen our financial position. Our core business remains strong and we
are evaluating new licenses to continue and accelerate growth."
Mr. Lekach continued, "Our current borrowings as of March 31, 2003, were
at a historic low of approximately $4.9 million compared to $11.5 million a
year earlier. In February 2003 the Board of Directors authorized an additional
2.5 million share buyback program, and during the final quarter of the year,
we acquired approximately 1.5 million shares at an average price of $3.03, or
less than 60% of book value. Our book value increased to $5.79 compared to
$4.80 as of the prior year end, an improvement of over 20%."
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, and JOCKEY.
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 table that follows)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31, 2003 2002
Net sales $14,639,709 $16,665,825
Cost of goods sold, including $310,976
and $926,216 of promotional items in
2003 and 2002, respectively 6,782,846 7,950,666
Gross margin 7,856,863 8,715,159
Operating expenses
Advertising and promotional 2,301,711 2,634,869
Selling and distribution 1,417,656 1,614,873
General and administrative, net of
licensing fees of $162,500 in 2002 1,344,497 1,731,075
Depreciation and amortization 319,717 411,138
Royalties 687,439 666,946
Impairment loss on intangibles --- 168,431
Total operating expenses 6,071,020 7,227,332
Operating income 1,785,843 1,487,827
Interest expense and exchange gains, net 82,009 233,185
Income before taxes 1,703,834 1,254,642
Income tax provision (562,610) (451,137)
Net income $1,141,224 $803,505
Fully diluted earnings per share $0.12 $0.08
Weighted average shares outstanding 9,893,789 10,047,577
Fiscal Year Ended March 31, 2003 2002
Net sales $72,253,699 $70,001,063
Cost of goods sold, including $3,203,484
and $3,611,060 of promotional items
in 2003 and 2002, respectively 35,871,828 35,761,003
Gross margin 36,381,871 34,240,060
Operating expenses
Advertising and promotional 14,244,338 14,598,130
Selling and distribution 6,545,221 6,644,561
General and administrative,
net of licensing fees of $487,500 in 2002 5,188,592 5,181,473
Depreciation and amortization 1,356,597 1,995,096
Royalties 3,201,834 2,245,786
Impairment loss on intangibles --- 7,441,554
Total operating expenses 30,536,582 38,106,600
Operating income (loss) 5,845,289 (3,866,540)
Interest expense and exchange gains, net 694,450 1,020,462
Other-than-temporary decline in value
of investment in affiliate --- 2,858,447
Litigation settlement, net of expenses (3,542,083) ---
Income (loss) before taxes 8,692,922 (7,745,449)
Income tax (provision) benefit (3,218,463) 2,090,048
Net income (loss) $5,474,459 ($5,655,401)
Fully diluted earnings (loss) per share $0.54 ($0.57)
Weighted average shares outstanding 10,179,864 9,973,046
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/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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