FORT LAUDERDALE, Fla., Feb. 3, 2010 (GLOBE NEWSWIRE) -- Parlux Fragrances, Inc. (Nasdaq:PARL) announced results of its third quarter ended December 31, 2009. Net sales reached $50.3 million, including $3.5 million in sales of GUESS inventories to the new licensee, compared to $47.3 million in the same prior year quarter, an increase of 6%. For the nine-month period ended December 31, 2009, net sales were $130.4 million, compared to $123.0 million in the same prior year period, also an increase of 6%.
Net loss for the quarter ended December 31, 2009 was $5.4 million or $(0.27) per share, compared to a net loss of $4.5 million, or $(0.22) in the comparable period of the prior year. For the nine-month period ended December 31, 2009, the net loss was $4.9 million, or $(0.24) per share, compared to $5.8 million or $(0.28) per share in the comparable period of the prior year.
Mr. Frederick E. Purches, Chairman and CEO, said, "In 2009, the Company had embarked on a strategy of heavy investment in the U.S. department store segment of its business, and unfortunately consumer spending did not improve as anticipated. Our department store sales for the important third quarter were down 30% compared to prior year and even though discretionary advertising spending was reduced, our committed advertising expenses could not be reduced enough to overcome the downtrading from that segment due to the severe economic conditions."
"However," Mr. Purches continued, "our nine-month sales in the department store segment were basically flat, whereas most of our competitors had decreases. Our new launches of Queen Latifah and Marc Ecko have been well received. As previously announced, the loss we reported includes inventory provisions relating to the termination of the GUESS license and slower moving brands. With more cautious spending commitments in the department store segment, the Company expects improved results."
Conference Call
The Company will hold a conference call on Thursday, February 4, 2010, at 10:00 a.m. (EST) to discuss the Company's quarterly results and to provide additional outlook on the next quarter. To participate, please call Toll Free: 877-803-5703 or International: 763-657-8127, Conference ID #46875953. A digital replay of the conference call will be available from Thursday, February 4, 2010, after 11:00 a.m. EST, until 23:59 February 10, 2010. To access the rebroadcast, Toll Free: 1-800-642-1687 or International: 706-645-9291; Conference ID #46875953.
About Parlux Fragrances, Inc.
Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton, Jessica Simpson, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko, Rihanna, Kanye West, 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 and net income, 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 balance due to the Company, continued compliance with the covenants in its credit facility, and the Company's ability to amend or replace its existing credit facility to provide it with sufficient liquidity to fund its planned operations. 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 | ||||||
| (In thousands, except per share data) | ||||||
| Three Months Ended | Nine Months Ended | |||||
| December 31, | December 31, | |||||
| 2009 | 2008 | 2009 | 2008 | |||
| (Unaudited) | (Unaudited) | |||||
| Net sales: | ||||||
| Unrelated customers | $31,244 | $38,547 | $86,342 | $93,840 | ||
| Related parties | 15,546 | 8,746 | 40,553 | 29,149 | ||
| Sales - expired license | 3,490 | -- | 3,490 | -- | ||
| 50,280 | 47,293 | 130,385 | 122,989 | |||
| Cost of goods sold: | ||||||
| Unrelated customers | 15,937 | 18,294 | 39,853 | 44,913 | ||
| Related parties | 10,736 | 5,270 | 23,815 | 14,398 | ||
| Cost of sales - expired license | 4,922 | -- | 4,922 | -- | ||
| 31,595 | 23,564 | 68,590 | 59,311 | |||
| Operating expense | 27,306 | 31,086 | 69,453 | 73,230 | ||
| Operating loss | (8,621) | (7,357) | (7,658) | (9,552) | ||
| Interest income (expense), net | (131) | 40 | (283) | 238 | ||
| Foreign exchange loss | -- | -- | (1) | (1) | ||
| Loss before income taxes | (8,752) | (7,317) | (7,942) | (9,315) | ||
| Income tax benefit | (3,326) | (2,781) | (3,018) | (3,540) | ||
| Net loss | $(5,426) | $(4,536) | $(4,924) | $(5,775) | ||
| Loss per common share: | ||||||
| Basic | $(0.27) | $(0.22) | $(0.24) | $(0.28) | ||
| Diluted | $(0.27) | $(0.22) | $(0.24) | $(0.28) | ||
| Weighted average shares outstanding | 20,324,812 | 20,503,489 | 20,324,812 | 20,607,321 | ||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
||||
| (In thousands) | ||||
| December 31, | March 31, | |||
| 2009 | 2009 | |||
| (Unaudited) | ||||
| Cash and cash equivalents | $11,008 | $6,088 | ||
| Trade receivables, net | 32,077 | 27,534 | ||
| Inventories | 44,055 | 66,737 | ||
| Other current assets | 25,222 | 28,315 | ||
| Current Assets | 112,362 | 128,674 | ||
| Inventories, non-current | 3,660 | -- | ||
| Equipment and leasehold improvements, net | 2,743 | 2,735 | ||
| Trademarks and licenses, net | 4,847 | 1,885 | ||
| Other assets | 3,449 | 3,410 | ||
| Total Assets | $127,061 | $136,704 | ||
| Borrowings | $2,084 | $539 | ||
| Other current liabilities | 15,507 | 25,681 | ||
| Current Liabilities | 17,591 | 26,220 | ||
| Total Liabilities | 17,591 | 26,220 | ||
| Stockholders' Equity | 109,470 | 110,484 | ||
| Total Liabilities and Stockholders' Equity | $127,061 | $136,704 | ||