FORT LAUDERDALE, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today its results for the quarter
ended June 30, 2003.
Net sales for the quarter were $16,941,789 compared to $19,825,736, a
decrease of $2,883,947 or 15% compared to the prior year period. Operating
income decreased to $1,222,629 from $1,993,415. Net income was $717,344 or
$0.08 per share (basic and diluted) compared to $1,116,042 or $0.11 per share
(basic and diluted) for the comparable prior year period.
The decrease in net sales was attributable to a $1,799,902 decrease in
sales of Animale products, which brand was sold in January 2003, and a
reduction of $1,062,815 in sales of Jockey brand products, launched during the
comparable prior year period. Operating income and net income were lower due
to lower sales and product mix, partially offset by reduced operating and
interest expense.
Commenting on the results, Ilia Lekach, Chairman and Chief Executive
Officer said, "We anticipated the lower sales performance in view of our sale
of the Animale brand and the prior year Jockey launch. We adjusted our
spending levels to mitigate the effect of the lower sales; and in fact, our
net income performance was better than expected." Mr. Lekach continued, "The
thrust of our recent efforts has been to strengthen our balance sheet and our
working capital position. We have made a major reduction in our borrowing
levels over the last twelve months and will resume our common stock buy-back
program in the near future."
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-looking 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 attached)
PARLUX FRAGRANCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended June 30,
2003 2002
Net sales:
Unrelated customers $10,841,603 $14,275,667
Related parties 6,100,186 5,550,069
16,941,789 19,825,736
Cost of goods sold, including
$1,090,873 and $1,214,429 of
promotional items in 2003 and 2002,
respectively 8,896,029 10,192,272
Gross margin 8,045,760 9,633,464
Operating expenses:
Advertising and promotional 2,730,019 3,273,356
Selling and distribution 1,538,424 1,711,454
General and administrative 1,518,774 1,481,302
Depreciation and amortization 344,711 348,991
Royalties 691,203 824,946
Total operating expenses 6,823,131 7,640,049
Operating income 1,222,629 1,993,415
Interest expense, net 65,622 193,348
Income before income taxes 1,157,007 1,800,067
Income taxes provision 439,663 684,025
Net income $717,344 $1,116,042
Income per common share:
Basic $0.08 $0.11
Diluted $0.08 $0.11
Weighted average shares
outstanding basic 8,553,284 9,976,276
Weighted average shares
outstanding diluted 9,403,125 10,101,628
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, +1-954-316-9008
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