FORT LAUDERDALE, Fla., Aug. 17 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today that its 10-Q filing for
the quarter ended June 30, 2006 has been delayed pending determination of a
non- cash charge to be recorded in accordance with Statement of Financial
Accounting Standards ("FAS") No. 123R "Share Based Payment" (FAS 123R)
related to adjustments to outstanding warrants resulting from the Company's
recent stock split.
As has been previously announced, the Company approved a 2-for-1 stock
split effected June 16, 2006 (which was reflected in the market price of
its stock on June 19, 2006); and consistent with prior practice, modified
its outstanding warrants accordingly. Under FAS 123R, which the Company was
required to adopt at the beginning of the quarter, companies that are
involved in equity restructurings (including stock splits) are, in certain
circumstances, required to measure and record as compensation expense, the
increase in the fair value of their outstanding stock options and warrants
resulting from such modifications.
This non-cash charge relates solely to the stock split and applies to
all outstanding warrants as of the date of the stock split. These warrants
were issued during the period 1999 through 2002 and are fully vested;
accordingly, the full amount of this charge (net of the applicable tax
benefit, if any) will be reflected in the results of operations for the
quarter offset by a corresponding increase in stockholder equity.
The Company had previously estimated net earnings for the quarter in
the range of $0.04 to $0.05 per share excluding the effect of this charge.
The charge resulting from the effect of the change in fair value relating
to the adjustment in the number and exercise price of the warrants, as a
result of the stock split, is expected to be finalized within the next few
days and the 10-Q filed shortly thereafter.
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
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
circum-stances after the date hereof or to reflect the occurrence of
unanticipated events.
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html /
CONTACT:
Ilia Lekach, ext. 8116, or Frank A.
Buttacavoli, ext. 8117, both of Parlux Fragrances,
+1-954-316-9008
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