FORT LAUDERDALE, Fla., Nov. 9 /PRNewswire/ --
Parlux Fragrances, Inc. (Nasdaq: PARL) announced today its results for the
quarter ended September 30, 2001.
Net sales were $19,041,386 compared to $18,199,377 in the comparable
quarter of the prior fiscal year, an increase of 5%. Operating income was
$2,476,901 compared to $3,132,302 in the prior year, a reduction of 21%, due
primarily to lower margins on certain discontinued items and higher
advertising to support new product launches. Net income decreased to
$1,413,725, or $0.13 per share, as compared to $1,802,851 or $0.17 per share
in the prior year period.
For the six-month period ended September 30, 2001, net sales increased to
$37,054,759, as compared to $33,910,562 in the comparable prior year period,
an increase of 9%. Operating income was $4,314,967 as compared to $4,653,704
in the prior year, a decrease of 7% for the reasons noted above. The net loss
of $303,513 for the period compared to a profit of $2,603,737 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 $2,347,574 or $0.23 per share would have been recorded.
Commenting on the results, Mr. Ilia Lekach, Chairman and Chief Executive
Officer said, "The national tragedy immediately impacted our business, both
domestically and internationally. We had projected a 15% growth rate as
experienced in the first quarter, but orders in the final 20 days of the
quarter and to date have been significantly lower than expected. The short-
term outlook remains uncertain given the consequences of the September event,
coupled with the economic slowdown."
Mr. Lekach added, "We will continue controlled investment to preserve the
equity of our brands and maintain our organizational structure. Concurrently,
we will suspend our share buyback program to strengthen the liquidity of our
balance sheet. We trust that the business climate will improve by Spring 2002,
and our actions should place us in a position to expand our core brands and
aggressively launch new products."
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-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.
(Table follows)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, 2001 2000
Net sales $19,041,386 $18,199,377
Cost of goods sold 9,058,929 6,996,931
Gross margin 9,982,457 11,202,446
Operating expenses 7,505,556 8,070,144
Operating income 2,476,901 3,132,302
Interest expense and exchange gains, net 196,700 224,477
Income before taxes 2,280,201 2,907,825
Income taxes provision 866,476 1,104,974
Net income $1,413,725 $1,802,851
Fully diluted earnings per share $0.13 $0.17
Weighted average shares outstanding 10,516,135 10,398,091
Six Months Ended September 30, 2001 2000
Net sales $37,054,759 $33,910,562
Cost of goods sold 16,575,622 13,071,703
Gross margin 20,479,137 20,838,859
Operating expenses 16,164,170 16,185,155
Operating income 4,314,967 4,653,704
Interest expense and exchange gains, net 528,558 454,128
Other-than-temporary decline in value
of investment in affiliate 2,858,447 0
Income before taxes 927,962 4,199,576
Income taxes provision 1,231,475 1,595,839
Net income (loss) ($303,513) $2,603,737
Fully diluted earnings (loss) per share ($0.03) (1) $0.25
Weighted average shares outstanding 10,264,750 10,548,108
(1) Excluding the charge for the other-than-temporary decline in market
value of investments, net income would have been $2,347,574 or $0.23
per share.
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, +1-954-316-9008
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