FORT LAUDERDALE, Fla., Feb. 8 /PRNewswire-FirstCall/ -- Parlux Fragrances, Inc. announced today results for its third quarter ended December 31, 2005.
Net sales were $56,412,315 compared to $28,748,499 in the same period of the prior year, an increase of 96%. Net income more than doubled to $5,996,089 compared to $2,867,746 in the same period of the prior year. Earnings per share on a diluted basis were $0.57 compared to prior-year earnings of $0.27 per share, an increase of 111%.
For the nine-month period ended December 31, 2005, net sales were $129,557,942 compared to $74,433,059 in the prior period, an increase of 74%. Net income was $14,247,582 ($1.35 per share on a diluted basis) compared to $7,433,559 ($0.70 per share on a diluted basis) in the same period of the prior year, an increase of 92%.
Commenting upon the results, Mr. Ilia Lekach, Chairman and Chief Executive Officer, said, "Paris Hilton fragrances continued to achieve strong consumer demand. Our GUESS? women's fragrance established a strong sales base in its first holiday season, which will be expanded with the launch of the GUESS? men's fragrance this spring. Perry Ellis fragrance products retain their strength. Perry Ellis remains our largest brand, representing almost half of our total business, and we will be introducing a new "Perry Ellis 18" fragrance in summer 2006. It is important to note that our GUESS?, Paris Hilton and Maria Sharapova fragrances continue to be launched in a number of international markets. We anticipate shipping Paris Hilton watches and handbags during our fourth quarter, and development for Paris Hilton cosmetics and a babyGund fragrance are on schedule for holiday 2006." Mr. Lekach continued, "I am especially pleased that our earnings growth has accelerated. Assuming the acceptance of our new product introductions remain on course and economic conditions stay stable, our previous earnings guidance of $2.00 to $2.20 per share on revenues of approximately $190 million for the fiscal year ending March 31, 2006 should be achieved." Mr. Lekach added, "Based on the continued strength of our brands and the planned new product introductions, our preliminary guidance for fiscal 2007 is for sales to exceed $300 million, with earnings in the range of $3.00 to $3.25 per share."
Mr. Lekach will be speaking at the Deutsche Bank Small Cap Growth Conference on February 15th, in Naples, Florida, as well as at the Wachovia Consumer Conference in Key Biscayne, Florida on February 23rd. One-on-one meetings are currently being scheduled for these events. For additional information, please contact Carole Ramsay, Investor Relations Coordinator, at
Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton fragrances, watches, cosmetics, 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, 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 circumstances after the date hereof or to reflect the occurrence of unanticipated events.
(See following table)
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31, 2005 2004
Net sales:
Unrelated customers $37,064,671 $14,963,501
Related customers 19,347,644 13,784,998
56,412,315 28,748,499
Cost of goods sold:
Unrelated customers 16,398,465 5,808,330
Related customers 8,628,802 6,887,508
25,027,267 12,695,838
Gross margin 31,385,048 16,052,661
Operating expenses 21,532,849 11,463,536
Operating income 9,852,199 4,589,125
Interest expense (income) and bank
charges, net 181,088 (36,272)
Income before taxes 9,671,111 4,625,397
Income tax provision 3,675,022 1,757,651
Net income $5,996,089 $2,867,746
Fully diluted earnings per share $0.57 $0.27
Weighted average shares outstanding 10,540,361 10,614,655
Nine Months Ended December 31, 2005 2004
Net sales
Unrelated customers $80,327,524 $32,000,627
Related customers 49,230,418 42,432,432
129,557,942 74,433,059
Cost of goods sold:
Unrelated customers 34,454,291 14,550,531
Related customers 22,049,905 21,155,216
56,504,196 35,705,747
Gross margin 73,053,746 38,727,312
Operating expenses 49,859,951 26,838,935
Operating income 23,193,795 11,888,377
Interest expense (income) and bank
charges, net 213,824 (101,235)
Income before taxes 22,979,971 11,989,612
Income tax provision 8,732,389 4,556,053
Net income $14,247,582 $7,433,559
Fully diluted earnings per share $1.35 $0.70
Weighted average shares outstanding 10,556,220 10,591,091
First Call Analyst:
FCMN Contact: cramsay@parlux.com
