FORT LAUDERDALE, Fla., Aug. 17 /PRNewswire/ --
Parlux Fragrances, Inc. (Nasdaq: PARL) announced today its results for the
quarter ended June 30, 2001.
Net sales were $18,013,373 compared to $15,711,185 in the comparable
quarter of the prior fiscal year, an increase of 15%. Sales to unrelated
parties increased 39% to $11,665,256 from $8,395,519 while sales to related
parties decreased by 13% to $6,348,117 compared to $7,315,666 in the
comparable quarter of the prior fiscal year.
Operating income increased 21% to $1,838,066 from $1,521,402 for the
comparable prior period.
The net loss of $1,717,238 for the quarter compared to a profit of
$800,886 in the comparable prior period. The loss was entirely due to a
non-cash charge for an unrealized loss on an investment of $2,858,447.
Excluding this non-cash charge, net income of $933,849 would have been
recorded, an increase of 17% over the prior period.
The unrealized loss was the result of writing down an investment in an
affiliate from its original cost of $2.98 per share to $1.09 per share, the
market price of the securities as of June 30, 2001. The non-cash charge to
income is in accordance with SEC interpretations of generally accepted
accounting principles as to what is considered an other-than-temporary decline
in market value, but is not necessarily indicative of the ultimate value of
the investment. Through March 31, 2001 the Company had reported the
unrealized loss on the investment (which at the time was deemed temporary) as
a direct reduction in Stockholders' Equity.
The loss per share was $0.17 compared to a profit of $0.07 in the
comparable prior year period. Excluding the non-cash charge, earnings per
share would have increased to $0.09 compared to $0.07 per share in the
comparable quarter of the prior year, an increase of 29%.
Ilia Lekach, Chairman and Chief Executive Officer said, "It is unfortunate
that the drop in market price of our investment has detracted from the major
improvements we achieved in operating results. Given the over 50% drop in the
average market price for all securities listed on NASDAQ over the past year,
we have, like many other companies, been obliged to incur a charge on our
income statement but believe this is not reflective of the intrinsic value of
our investment." Mr. Lekach continued, "We are very pleased with our
operating results, the success of our latest product launch of Ocean Pacific
("OP") and the improvements in virtually all major operating elements
comprising our statement of income. Our operating results are reflective of
an effective strategy, stable of outstanding fragrance lines and experienced
operating management and staff. We are optimistic that our improved
performance will eventually translate into an improved market price for our
shares."
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, Fred Hayman Beverly Hills, Ocean
Pacific (OP), and JOCKEY. The Company also owns, manufactures and distributes
its own fragrance brand, Animale Parfums.
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 attached)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
2001 2000
Net sales:
Unrelated customers $11,665,256 $8,395,519
Related parties 6,348,117 7,315,666
18,013,373 15,711,185
Cost of goods sold 7,516,693 6,074,772
Gross margin 10,496,680 9,636,413
Operating expenses:
Advertising and promotional 4,788,709 4,400,212
Selling and distribution 1,772,191 1,556,095
General and administrative, net of
licensing fees of $162,500 1,060,167 1,050,224
Depreciation and amortization 521,427 538,252
Royalties 566,120 570,228
Total operating expenses 8,658,614 8,115,011
Operating income 1,838,066 1,521,402
Interest income 102,911 102,911
Interest expense and bank charges (332,562) (332,562)
Other-than-temporary decline in value of
investment in affiliate 2,858,447 ---
Income (loss) before income taxes (1,352,239) 1,291,751
Income taxes provision (364,999) (490,865)
Net income (loss) ($1,717,238) $800,886
Income (loss) per common share:
Basic ($0.17) (A) $0.08
Diluted ($0.17) (A) $0.07
Weighted average shares outstanding basic 9,969,434 10,070,585
Weighted average shares outstanding
diluted 10,087,164 10,687,675
(A) Excluding the charge for the other-than-temporary decline in market
value of investments, net income would have been $933,849; both basic
and diluted earnings per share would have been $0.09.
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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