FORT LAUDERDALE, Fla., Nov. 14 /PRNewswire-FirstCall/ --
Parlux Fragrances, Inc. (Nasdaq: PARL) announced today its results for the
quarter ended September 30, 2002. Net sales were $18,007,628 compared to
$19,041,386 in the comparable quarter of the prior fiscal year, a decrease of
5%. Operating income was $1,392,293 compared to $2,476,901 in the prior year,
a reduction of 44%, due primarily to minimum royalty requirements and
increased health and other insurance costs. Net income increased to 3,110,373,
or $0.31 per share, as compared to $1,413,725 or $0.13 per share in the prior
year period. The current year period includes pretax income of $4,000,564
relating to the proceeds from the settlement of a lawsuit against a supplier,
which was filed during 2001. Excluding the effect of the settlement of
$4,000,564, net income of $630,023 or $0.06 per share would have been
recorded.
For the six-month period ended September 30, 2002, net sales increased to
$37,833,364, as compared to $37,054,759 in the comparable prior year period,
an increase of 2%. Operating income was $3,709,559 as compared to $4,314,967
in the prior year, a decrease of 14% for the reasons noted above. Net income
was $4,226,415, or $0.42 per share, for the period compared to a loss of
$303,513, or ($0.03) per share, in the comparable prior period. The current
year period includes pre tax income of $4,000,564 relating to the proceeds
from the lawsuit settlement mentioned above. Excluding the effect of the
settlement of $4,000,564, net income of $1,746,065 or $0.17 per share would
have been recorded. The prior period loss was due to a non-cash 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, "We are pleased that our litigation has been settled and that
this distraction is now behind us. Our domestic and international business
reflect current general economic conditions. Initial consumer reaction to our
holiday gift program has been very positive, and we are optimistic that retail
sales should improve significantly compared to the holiday period of the prior
year."
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.
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, 2002 2001
Net sales
Unrelated customers $11,408,210 $13,746,089
Related customers 6,599,418 5,295,297
18,007,628 19,041,386
Cost of goods sold, including
$459,020 and $797,237 of promotional
items for the three months ended
September 30, 2002 and 2001,
respectively 9,321,881 9,856,166
Gross margin 8,685,747 9,185,220
Operating expenses 7,293,454 6,708,319
Operating income 1,392,293 2,476,901
Interest expense and exchange gains, net 241,495 196,700
Litigation settlement, net of expenses (3,865,934) 0
Income before taxes 5,016,732 2,280,201
Income tax provision 1,906,359 866,476
Net income $3,110,373 $1,413,725
Fully diluted earnings per share $0.31(1) $0.13
Weighted average shares outstanding 10,141,152 10,516,135
Six Months Ended September 30, 2002 2001
Net sales
Unrelated customers $25,683,877 $25,411,345
Related customers 12,149,487 11,643,414
37,833,364 37,054,759
Cost of goods sold, including
$1,637,449 and $1,739,058 of
promotional items for the six
months ended September 30, 2002
and 2001, respectively 19,412,603 18,314,680
Gross margin 18,420,761 18,740,079
Operating expenses 14,711,202 14,425,112
Operating income 3,709,559 4,314,967
Interest expense and exchange gains, net 434,843 528,558
Litigation settlement, net of expenses (3,542,083) 0
Other-than-temporary decline in value
of investment in affiliate 0 2,858,447
Income before taxes 6,816,799 927,962
Income tax provision 2,590,384 1,231,475
Net income (loss) $4,226,415 $(303,513)
Fully diluted earnings (loss) per share $0.42(1) ($0.03)(2)
Weighted average shares outstanding 10,120,420 10,264,750
(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.
(2) 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 Fragrances, Inc.,
+1-954-316-9008
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