FORT LAUDERDALE, Fla., May 25, 2011 (GLOBE NEWSWIRE) -- Parlux Fragrances, Inc. (Nasdaq:PARL) today announced its sales results for the quarter and the year ended March 31, 2011.
Net sales for the final quarter of the year were $28.9 million compared to $17.7 million in the prior year, an increase of 63%. Net profits were $184 thousand, or $0.01 per share compared to a loss of $9.8 million or ($0.48) per share in the same prior year period.
Net sales for the full fiscal year were $123.0 million compared to the prior year of $148.1 million. The prior year included net sales of $43.0 million of GUESS brand products, which are no longer sold by the Company. Excluding GUESS, prior year net sales were $105.1 million and on a comparable basis current year net sales increased more than 16% over prior year. Our Net Profits were $1.2 million or $0.6 per share, compared to a loss in the prior year of $14.8 million or ($0.73) per share.
Mr. Fred Purches, Chairman and CEO, commented, "We are extremely pleased with the substantial progress we have made in increasing sales of our basic business while launching one new iconic brand, Rihanna, to bring our total comparable sales increase (excluding GUESS) to 16% for the year."
Mr. Purches continued, "We reduced our Operating Expenses by $20.0 million compared to prior year and have been able to achieve a $26.0 million dollar improvement in Operating Profit, reverting from a loss of $23.5 million in the prior year to an Operating Profit of $2.5 million in the current year. Our balance sheet is strong, with $20.5 million in cash, no bank borrowings, and a book value of $4.91 per share. We are optimistic about our future performance."
Conference Call
The Company will hold a conference call on Thursday, May 26, 2011, at 10:00 a.m. (EDT) to discuss the Company's year-end results and to provide additional outlook on the next quarter. To participate, please call Toll Free: 800-894-5910 or International: 785-424-1052. Conference ID: 7PARLUX. A replay of the conference call will be available following the conference call, until 11:59 p.m. (EDT) June 8, 2011. To access the replay, please go to our website www.parlux.com.
ABOUT PARLUX FRAGRANCES, INC.
Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige fragrances and beauty related products. It holds licenses and sublicenses to manufacture and distribute the designer fragrance brands of Paris Hilton, Jessica Simpson, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko, Rihanna, Kanye West, Vince Camuto and Fred Hayman Beverly Hills.
Certain Information Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 are discussed 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 update forward-looking statements that may be made herein or otherwise 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 number of shares and per share data) | ||||
| Three Months Ended | Twelve Months Ended | |||
| March 31, | March 31, | |||
| 2011 | 2010 | 2011 | 2010 | |
| (Unaudited) | ||||
| Net sales: | ||||
| Unrelated customers | $ 19,262 | $ 7,519 | $ 70,421 | $ 93,861 |
| Related parties | 9,654 | 9,062 | 51,162 | 49,615 |
| Sales - expired license | -- | 1,136 | 1,423 | 4,626 |
| 28,916 | 17,717 | 123,006 | 148,102 | |
| Cost of goods sold: | ||||
| Unrelated customers | 7,634 | 5,089 | 29,419 | 44,942 |
| Related parties | 4,529 | 5,332 | 24,024 | 29,147 |
| Cost of sales - expired license | -- | 6,949 | 1,422 | 11,871 |
| 12,163 | 17,370 | 54,865 | 85,960 | |
| Operating expense | 16,385 | 16,198 | 65,668 | 85,651 |
| Operating income (loss) | 368 | (15,851) | 2,473 | (23,509) |
| Interest (expense) income, net | (197) | 47 | (597) | (236) |
| Foreign exchange loss | (2) | -- | (1) | (1) |
| Income (loss) before income taxes | 169 | (15,804) | 1,875 | (23,746) |
| Income tax provision (benefit) | (15) | (5,969) | 633 | (8,987) |
| Net income (loss) | $ 184 | $ (9,835) | $ 1,242 | $ (14,759) |
| Income (loss) per common share: | ||||
| Basic | $ 0.01 | $ (0.48) | $ 0.06 | $ (0.73) |
| Diluted | $ 0.01 | $ (0.48) | $ 0.06 | $ (0.73) |
| Weighted average number of shares outstanding: | ||||
| Basic | 20,528,856 | 20,347,145 | 20,497,701 | 20,330,395 |
| Diluted | 20,889,682 | 20,347,145 | 20,653,305 | 20,330,395 |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||
| (In thousands) | ||||
| March 31, | March 31, | |||
| 2011 | 2010 | |||
| Cash and cash equivalents | $ 20,511 | $ 17,579 | ||
| Trade receivables, net | 24,758 | 14,245 | ||
| Inventories | 37,373 | 41,846 | ||
| Other current assets | 21,352 | 29,703 | ||
| Current Assets | 103,994 | 103,373 | ||
| Equipment and leasehold improvements, net | 1,844 | 2,679 | ||
| Trademarks and licenses, net | 4,195 | 4,654 | ||
| Other assets | 2,673 | 3,626 | ||
| Total Assets | $ 112,706 | $ 114,332 | ||
| Borrowings | $ -- | $ -- | ||
| Other current liabilities | 10,975 | 14,532 | ||
| Current Liabilities | 10,975 | 14,532 | ||
| Total Liabilities | 10,975 | 14,532 | ||
| Stockholders' Equity | 101,731 | 99,800 | ||
| Total Liabilities and Stockholders' Equity | $ 112,706 | $ 114,332 | ||