EXHIBIT 99.1
ELIZABETH ARDEN
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ELIZABETH ARDEN, INC. ANNOUNCES IMPROVED CREDIT FACILITY
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~ SUBSTANTIAL REDUCTION IN INTEREST COSTS ~
~ EXPANDS BORROWING AVAILABILITY ~
~ ELIMINATION OF FINANCIAL COVENANTS ~
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Miami, Florida (December 30, 2002) - Elizabeth Arden, Inc. (NASDAQ:
RDEN), a leading global prestige fragrance and beauty products company, today
announced that as a result of the Company's improved financial and operating
performance, the Company executed an amendment and restatement to its asset
based credit facility maturing in 2006. The amended facility substantially
improves the Company's financial flexibility and liquidity by increasing its
borrowing capacity, lowering its cost of capital and removing potentially
restrictive covenants for the remainder of the facility. The key terms of the
bank facility amendment include (i) lowering the interest rate charged on the
Company's loans by 50 to 75 basis points, (ii) incorporating a broader borrowing
base formula with more favorable advance rates and removing the inventory cap,
(iii) expanding the total size of the facility from $175 million to $200
million, and (iv) eliminating all of the financial maintenance covenants, except
for a fixed charge coverage ratio of 1.1 to 1.0 that will only apply if
availability under the facility declines to less than $50 million. Currently,
the availability under the credit facility is $133 million.
Stephen J. Smith, Executive Vice President and Chief Financial
Officer of the Company commented, "We are pleased with our banks' recognition of
the improved operating and financial performance of the Company and our ability
to secure an enhanced credit facility. The amendment not only provides for lower
borrowing costs but also provides significant additional liquidity and growth
capital over the next several years and removes potentially restrictive
covenants for the term of the facility. We also are pleased to have expanded our
banking relationships and to include JPMorgan Chase in our facility in
partnership with Fleet and our existing bank group." JPMorgan Chase Bank,
Administrative Agent, and Fleet Securities, Inc., Collateral Agent, acted as
Co-Arrangers on the amendment of the facility.
Elizabeth Arden is a leading global prestige fragrance and beauty
products company. The Company's portfolio of leading brands includes the
fragrance brands Red Door, Elizabeth Arden green tea, 5th Avenue, ardenBEAUTY,
Elizabeth Taylor's White Diamonds, Passion and Forever Elizabeth, White
Shoulders, Geoffrey Beene's Grey Flannel, Halston, Halston Z-14, Unbound, PS
Fine Cologne for Men, Design and Wings; the Elizabeth Arden skin care line,
including Ceramides and Millenium; and the Elizabeth Arden cosmetics line.
COMPANY CONTACT: Marcey Becker, Senior Vice President, Finance
(203) 462-5809
INVESTOR CONTACT: Cara O'Brien
FD Morgen-Walke Associates
(212) 850-5600
PRESS CONTACT: Laura Novak
FD Morgen-Walke Associates
(212) 850-5600
In connection with the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995, Elizabeth Arden, Inc., is hereby providing
cautionary statements identifying important factors that could cause our actual
results to differ materially from those projected in forward-looking statements
(as defined in such act). Any statements that express, or involve discussions as
to, expectations, beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of words or phrases such as
"will likely result," "are expected to," "will continue," "is anticipated,"
"estimated," "intends," "plans" and "projection") are not historical facts and
may be forward-looking and may involve estimates and uncertainties which could
cause actual results to differ materially from those expressed in the
forward-looking statements. Accordingly, any such statements are qualified in
their entirety by reference to, and are accompanied by, the following key
factors that have a direct bearing on our results of operations: our substantial
indebtedness and debt service obligations; our ability to successfully and
cost-effectively integrate acquired businesses or new brands; our absence of
contracts with customers or suppliers and our ability to maintain and develop
relationships with customers and suppliers; international and domestic economic
and business changes that could impact consumer confidence, our customers'
financial condition, our ability to access capital for acquisitions and the
assumptions underlying our critical accounting estimates; the retention and
availability of key personnel; changes in the retail, fragrance and cosmetic
industries; our ability to launch new products and implement our growth
strategy; the impact of competitive products and pricing; changes in product mix
to less profitable products; risks of international operations, including
foreign currency fluctuations; economic and political consequences of terrorist
attacks and political instability in certain regions of the world; delays in
shipments, inventory shortages and higher costs of production due to
interruption of operations at key manufacturing or fulfillment facilities that,
after consolidations of manufacturing and fulfillment locations, manufacture or
provide logistic services for the majority of our supply of certain products;
changes in the legal, regulatory and political environment that impact, or will
impact, our business, including changes to customs or trade regulations or
accounting standards; legal and regulatory proceedings that affect, or will
affect, our business; and other risks and uncertainties. We caution that the
factors described herein could cause actual results to differ materially from
those expressed in any forward-looking statements we make and that investors
should not place undue reliance on any such forward-looking statements. Further,
any forward-looking statement speaks only as of the date on which such statement
is made, and we undertake no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which such statement is
made or to reflect the occurrence of anticipated or unanticipated events or
circumstances. New factors emerge from time to time, and it is not possible for
us to predict all of such factors. Further, we cannot assess the impact of each
such factor on our results of operations or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
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