FORT LAUDERDALE, Fla., Nov. 13 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today its results for the three
months ended September 30, 2003. Net sales were $18,251,732 compared to
$18,007,628 in the prior year period, an increase of 1%. Net income was
$1,401,849 ($0.15 per share) compared to $3,110,373 ($0.31 per share) in the
prior year period, a decrease of 55%. The prior year included pretax income
of $4,000,564 from a litigation settlement. Excluding the effect of the
litigation settlement, net income increased by 124% over the prior year period
of $630,023 ($0.06 per share).
For the six-month period ended September 30, 2003, net sales were
$35,193,521 compared to $37,833,364 in the prior period, a decrease of 7%. The
decrease was attributable to the Animale(R) and Fred Hayman(R) brand products,
which brands were sold and sublicensed in January and March 2003,
respectively. Net income was $2,119,193 ($0.22 per share) compared to
$4,226,415 ($0.42 per share) in the prior year period. Excluding the effect
of the settlement of $4,000,564, net income increased by 21% over the prior
year period of $1,746,065 ($0.17 per share).
Commenting on the results, Ilia Lekach, Chairman and CEO said, "The
increase in our comparable net income per share reflects improved operational
performance. Extensions of our existing brands contributed to the positive net
income result. The sale of the Animale brand and the sub-license of the Fred
Hayman brand provided us with the flexibility to seek new opportunities. Our
recently announced signing of a new exclusive fragrance license with GUESS?, a
major international fashion force, is exciting, and we look forward to the
development of new GUESS? products starting with a planned launch in spring
2005. The potential of this new brand, combined with the performance of our
other brands, should strengthen our opportunities for future growth."
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, GUESS?, 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 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 INCOME
(Unaudited)
Three Months Ended September 30, 2003 2002
Net sales
Unrelated customers $ 7,391,521 $ 11,408,210
Related customers 10,860,211 6,599,418
18,251,732 18,007,628
Cost of goods sold, including $339,714
and $459,020 of promotional items
for the three months ended
September 30, 2003 and 2002,
respectively. 9,459,498 9,321,881
Gross margin 8,792,234 8,685,747
Operating expenses 6,481,407 7,293,454
Operating income 2,310,827 1,392,293
Interest expense and exchange gains, net 49,780 241,495
Litigation settlement, net of expenses 0 (3,865,934)
Income before taxes 2,261,047 5,016,732
Income tax provision 859,198 1,906,359
Net income $ 1,401,849 $ 3,110,373
Fully diluted earnings per share $ 0.15 $ 0.31 (1)
Weighted average shares outstanding 9,588,585 10,141,152
Six Months Ended September 30, 2003 2002
Net sales
Unrelated customers $ 18,233,124 $ 25,683,877
Related customers 16,960,397 12,149,487
35,193,521 37,833,364
Cost of goods sold, including $1,430,587
and $1,637,449 of promotional items
for the six months ended September 30,
2003 and 2002, respectively. 18,355,527 19,412,603
Gross margin 16,837,994 18,420,761
Operating expenses 13,304,538 14,711,202
Operating income 3,533,456 3,709,559
Interest expense and exchange gains, net 115,402 434,843
Litigation settlement, net of expenses 0 (3,542,083)
Income before taxes 3,418,054 6,816,799
Income tax provision 1,298,861 2,590,384
Net income $ 2,119,193 $ 4,226,415
Fully diluted earnings per share $ 0.22 $ 0.42 (1)
Weighted average shares outstanding 9,498,405 10,120,420
(1) Excluding the effect of the proceeds from the settlement of the
litigation with a supplier in the amount of $4,000,564 (which is presented net
of related expenses above), both basic and diluted earnings per share would
have been $0.06 and $0.17 for the three and six-month periods ended September
30, 2002, respectively.
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, +1-954-316-9008
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