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Mon, February 23, 2009Fri, February 20, 2009Thu, February 19, 2009Wed, February 18, 2009Tue, February 17, 2009Mon, February 16, 2009Fri, February 13, 2009Thu, February 12, 2009Wed, February 11, 2009Tue, February 10, 2009Mon, February 9, 2009Fri, February 6, 2009Thu, February 5, 2009Wed, February 4, 2009Tue, February 3, 2009Mon, February 2, 2009Fri, January 30, 2009Thu, January 29, 2009Wed, January 28, 2009Tue, January 27, 2009Mon, January 26, 2009Fri, January 23, 2009Thu, January 22, 2009Wed, January 21, 2009Parlux Fragrances, Inc.: Parlux Announces Results for Third Quarter Ended December 31, 2008
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Published in House and Home on Monday, February 9th 2009 at 3:34 GMT, Last Modified on 2009-02-09 03:36:51 by Market WireFORT LAUDERDALE, FL--(Marketwire - February 9, 2009) - Parlux Fragrances, Inc. (
For the third quarter ended December 31, 2008, net sales increased to $47.3 million, compared to $44.5 million for the same prior year period, an increase of 6%. Operating expenses were $31.1 million, compared to $21.9 million for the same prior year period, an increase of 42%. Operating loss was ($7.4 million), compared to operating income of $0.5 million for the same prior year period. Net loss for the three months ended December 31, 2008, was ($4.5 million), compared to net income of $0.2 million for the same prior year period.
For the nine-months ended December 31, 2008, net sales increased to $123.0 million, compared to $113.3 million for the same prior year period, an increase of 9%. Operating expenses were $73.2 million, compared to $51.2 million for the same prior year period, an increase of 43%. Operating loss was ($9.6 million), compared to operating income of $3.9 million for the same prior year period. Net loss for the nine-months ended December 31, 2008, was ($5.8 million), compared to net income of $2.1 million for the same prior year period.
Neil Katz, Chairman and CEO, said, "Strategically, our focus on strengthening our position in U.S. department stores has been a success, with an 82% increase in sales for the third quarter ended December 31, 2008, compared to the same prior year period. The strategy has been expensive financially, with committed advertising investments which could not be reduced in a retail environment which plummeted in the November/December period. Additionally, the global economic turmoil, compounded with a volatile U.S. dollar, negatively impacted our International sales which declined by 34% compared to the same prior year period, further reducing our operating profit."
Mr. Katz continued, "For the nine-months ended December 31, 2008, we have maintained the 82% increase in U.S. department store sales reaching a level of $45 million which will provide positive support for our other business segments in the future. We have successfully launched Jessica Simpson 'Fancy' and Paris Hilton 'Fairy Dust,' and have positioned ourselves for future growth with launches of Queen Latifah and Marc Ecko planned for summer and fall 2009. Looking to the future, we continue to review and reduce costs in all aspects of our operations and staffing, for which we believe the benefit will commence next quarter and continue through next fiscal year. We expect the final quarter of this fiscal year to be profitable, assuming no further major deterioration in the global economy."
Conference Call
The Company will host a conference call on Monday, February 9, 2009, at 9:00AM (EST) to discuss the Company's quarterly results and to provide additional outlook on the next quarter. To participate, please call: Participant Toll Free: 866-852-2121 or Participant International: 416-695-9706 (no digital pin number is required). A replay of the conference call will also be available from Monday, February 9, 2009 after 1:00PM, until 11:59PM February 23, 2009. To access the rebroadcast, Digital Replay Toll Free: 800-408-3053 or Participant International: 416-695-5800 (Replay Passcode: 3280300).
About Parlux Fragrances, Inc.
Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton, Jessica Simpson, GUESS?, Nicole Miller, Natori, Queen Latifah, Marc Ecko, XOXO, Ocean Pacific (OP), Andy Roddick, babyGund, and Fred Hayman Beverly Hills designer fragrances, as well as Paris Hilton watches, cosmetics, sunglasses, handbags and other small leather accessories.
Certain Information Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. 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, the Company's ability to maintain its current brands and licenses, the Company's ability to successfully introduce, acquire, or launch new brands, licenses, or products in a cost-effective manner, general economic conditions, Perfumania's ability to pay its accounts payable balance due to the Company, and continued compliance with the covenants in its credit facility. Additional risk factors are set forth in the Company's periodic reports filed with the Securities and Exchange Commission. 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. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended December 31, December 31, -------------------------- -------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ------------ Net sales: Unrelated customers $ 38,546,367 $ 35,055,318 $ 93,839,974 $ 65,493,977 Related parties 8,746,155 9,488,470 29,148,863 47,783,702 ------------ ------------ ------------ ------------ 47,292,522 44,543,788 122,988,837 113,277,679 ------------ ------------ ------------ ------------ Cost of goods sold: Unrelated customers 18,293,824 17,143,476 44,913,421 33,667,982 Related parties 5,269,761 5,009,970 14,397,501 24,448,783 ------------ ------------ ------------ ------------ 23,563,585 22,153,446 59,310,922 58,116,765 ------------ ------------ ------------ ------------ Operating expense 31,085,949 21,896,502 73,229,720 51,224,419 ------------ ------------ ------------ ------------ Operating (loss) income from continuing operations (7,357,012) 493,840 (9,551,805) 3,936,495 Interest income (expense), net 40,632 (217,067) 238,062 (1,071,394) Other income - - - 497,770 Foreign exchange (loss) gain (20) 11,875 (1,038) 10,034 ------------ ------------ ------------ ------------ (Loss) income from continuing operations before income taxes (7,316,400) 288,648 (9,314,781) 3,372,905 Income tax benefit (provision) 2,780,232 (109,686) 3,539,617 (1,281,704) ------------ ------------ ------------ ------------ (Loss) income from continuing operations (4,536,168) 178,962 (5,775,164) 2,091,201 ------------ ------------ ------------ ------------ Discontinued operations: Income from operations of Perry Ellis fragrance brand - 5,999 - 40,887 Income tax provision related to Perry Ellis brand - (2,280) - (15,537) ------------ ------------ ------------ ------------ Income from discontinued operations - 3,719 - 25,350 ------------ ------------ ------------ ------------ Net (loss) income (4,536,168) 182,681 (5,775,164) 2,116,551 ============ ============ ============ ============ Diluted (loss) income per common share: Continuing operations $ (0.22) $ 0.01 $ (0.28) $ 0.10 Discontinued operations 0.00 0.00 0.00 0.00 ------------ ------------ ------------ ------------ Total $ (0.22) $ 0.01 $ (0.28) $ 0.10 ============ ============ ============ ============ Weighted average diluted shares outstanding 20,503,489 20,754,364 20,607,321 20,532,613 ============ ============ ============ ============ CONDENSED CONSOLIDATED BALANCE SHEET DATA December 31, March 31, 2008 2008 ------------ ------------ $ 9,889,249 $ 21,408,167 Cash and cash equivalents 39,286,413 34,693,173 Trade receivables, net 60,460,035 48,068,280 Inventories 24,027,067 18,163,338 ------------ ------------ Other current assets 133,662,764 122,332,958 Current Assets Equipment and leasehold improvements, net 3,054,902 4,093,091 Trademarks and licenses, net 2,110,207 2,770,211 Other assets 3,346,152 1,951,680 ------------ ------------ Total Assets $142,174,025 $131,147,940 ============ ============ Borrowings, current portion $ 787,186 $ 990,953 Other current liabilities 32,418,663 14,048,769 ------------ ------------ Current Liabilities 33,205,849 15,039,722 Borrowings, less current portion 3,764 542,633 ------------ ------------ Total Liabilities 33,209,613 15,582,355 Stockholders' Equity 108,964,412 115,565,585 ------------ ------------ Total Liabilities and Stockholders' Equity $142,174,025 $131,147,940 ============ ============
