FORT LAUDERDALE, Fla., July 24 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) ("Parlux") announced today that it had
filed its Form 10-K for the fiscal year ended March 31, 2006. Filed results
confirmed net sales of $182,236,594, an increase of 82% over prior year,
and net earnings of $1.08 per share, an increase of 108% over prior year's
$0.52 per share ($2.15 compared to $1.02 on a pre-stock split basis). All
share calculations, including prior years, and those on the attached table,
have been adjusted to reflect the stock split effected on June 16, 2006.
Due to an increase in the Company' 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
requirements from 90 to 75 days, SOX also required the Company to assess
its internal controls and report on their effectiveness for the full fiscal
year, although the first half of the year had already passed. Management's
report, included in the Annual Report on Form 10-K for the fiscal year
ended March 31, 2006, indicates that the Company did not maintain effective
control over financial reporting as a result of material weaknesses
outlined in such report.
As announced on June 29, 2006, Parlux had delayed filing its Annual
Report on Form 10-K until completion of management's assessment of the
internal controls and reporting requirements. The Company received a letter
from The Nasdaq Stock Market indicating that the Company's common stock was
subject to delisting pursuant to Nasdaq Marketplace Rule 4310(c)(14), which
requires the Company to file all reports with the Securities and Exchange
Commission on a timely basis, as required by the Securities Exchange Act of
1934, as amended. Parlux requested a hearing before the Nasdaq Listing
Qualifications Panel, thereby automatically deferring the delisting of its
common stock pending the Panel's review and determination and believes that
today's filing will fulfill all of its reporting requirements. Therefore,
Parlux believes that such a hearing will no longer be necessary, and its
common stock shall continue to be listed on The Nasdaq Stock Market.
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.
Parlux 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 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. 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.
CONSOLIDATED STATEMENTS OF INCOME
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 11,722,945 5,821,004
Related customers 9,445,724 3,870,807
21,168,669 9,691,811
Gross margin 31,509,983 16,236,111
Operating expenses:
Advertising and promotional 9,002,655 5,267,100
Selling and distribution 2,386,616 2,234,397
General and administrative 1,977,255 1,551,674
Depreciation and amortization 487,274 503,878
Royalties 4,778,665 1,147,498
Total operating expenses 18,632,465 10,704,547
Operating income 12,877,518 5,531,564
Interest income (expense) and exchange
gains and losses, net (365,913) 39,441
Income before taxes 12,511,605 5,571,005
Income tax provision (4,023,411) (2,180,308)
Net income $ 8,488,194 $ 3,390,697
Diluted earnings per share $0.40 $0.16
Weighted average shares outstanding 21,117,748 21,222,269
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 46,177,236 20,371,535
Related customers 31,495,629 25,026,023
77,672,865 45,397,558
Gross margin 104,563,729 54,963,423
Operating expenses:
Advertising and promotional 38,977,490 18,528,907
Selling and distribution 9,489,889 7,707,435
General and administrative 7,077,648 6,100,017
Depreciation and amortization 1,946,545 1,266,652
Royalties 11,000,814 3,940,471
Total operating expenses 68,492,416 37,543,482
Operating income 36,071,313 17,419,941
Interest income (expense) and exchange
gains and losses, net (579,737) 140,676
Income before taxes 35,491,576 17,560,617
Income tax provision (12,755,800) (6,736,361)
Net income 22,735,776 $10,824,256
Diluted earnings per share $1.08 $0.52
Weighted average shares outstanding 21,098,773 21,009,248
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html/
CONTACT:
Frank A. Buttacavoli of Parlux Fragrances,
+1-954-316-9008, ext. 8117
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