PRESS RELEASE EXHIBIT 99
FOR IMMEDIATE RELEASE
PARLUX REPORTS THIRD QUARTER RESULTS
FORT LAUDERDALE, FLORIDA February 13, 2004. Parlux Fragrances, Inc.
(NASDAQ:PARL) announced today results for its third quarter ended December 31,
2003.
Net sales for the quarter were $25,763,661 compared to $19,780,626 for the same
quarter of the prior year, an increase of 30%, which is attributable to new
product launches during the holiday period and the strengthening of sell-through
in all distribution channels. Net income for the quarter was $1,687,246 ($0.18
per share), compared to a net income of $106,820 ($0.01 per share), for the
comparable prior year period, due to higher sales coupled with controlled
spending.
For the nine-month period ended December 31, 2003, net sales were $60,957,182,
compared to $57,613,990, an increase of 6%. Net income of $3,806,439 ($0.40 per
share) compared to net income of $4,333,235 ($0.43 per share) for the comparable
prior year period. The prior year included pre-tax income of $4,000,564 relating
to a one-time settlement of a lawsuit against a supplier. Excluding the effect
of this settlement, net income for the prior period would have been $1,852,885
($0.18 per share).
Commenting on the results, Mr. Ilia Lekach, Chairman and Chief Executive Officer
said, "Our business has strengthened and our new product launches have
contributed to our growth. We trimmed operating expenses, and have achieved
profitability as planned. We are optimistic that the agreement we reached with
GUESS?, Inc. for a new fragrance to be launched on a worldwide basis will help
contribute to Parlux's future success."
Parlux Fragrances, Inc. is a manufacturer and international distributor of
prestige fragrances and holds the licenses to manufacture and distribute the
designer fragrance brands of Perry Ellis, Ocean Pacific (OP), Fred Hayman
Beverly Hills, and GUESS?, Inc.
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
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 table attached)
FOR: PARLUX FRAGRANCES, INC.
CONTACT: Ilia Lekach 954-316-9008 Ext. 116 Frank A. Buttacavoli Ext. 117
PR NEWSWIRE: COMPANY NEWS ON-CALL: (800) 758-5804 Parlux code 674987
COMPANY NEWS ON-INTERNET: http://www.prnewswire.com
PARLUX FRAGRANCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2003 2002
- ------------------------------- ------------ ------------
Net sales
Unrelated customers $ 12,009,892 $ 14,734,673
Related customers 13,753,769 5,045,953
------------ ------------
25,763,661 19,780,626
Cost of goods sold, including
$1,082,352 and $1,219,060
of promotional items for
the three months ended
December 31, 2003 and 2002,
respectively 12,954,375 9,676,379
------------ ------------
Gross margin 12,809,286 10,104,247
Operating expenses 10,008,656 9,754,360
------------ ------------
Operating income 2,800,630 349,887
Interest expense and
bank charges, net 79,266 177,598
------------ ------------
Income before taxes 2,721,364 172,289
------------ ------------
Income tax provision 1,034,118 65,469
------------ ------------
Net income $ 1,687,246 $ 106,820
============ ============
Fully diluted earnings per share $ 0.18 $ 0.01
============ ============
Weighted average shares outstanding 9,467,609 10,261,826
NINE MONTHS ENDED DECEMBER 31, 2003 2002
- ------------------------------ ------------ ------------
Net sales
Unrelated customers $ 30,243,016 $ 40,418,550
Related customers 30,714,166 17,195,440
------------ ------------
60,957,182 57,613,990
Cost of goods sold, including
$2,512,939 and $2,892,509
of promotional items for
the nine months ended
December 31, 2003 and 2002,
respectively 31,309,902 29,088,982
------------ ------------
Gross margin 29,647,280 28,525,008
Operating expenses 23,313,194 24,465,562
------------ ------------
Operating income 6,334,086 4,059,446
Interest expense and bank charges, net 194,668 612,441
Litigation settlement, net of expenses 0 (3,542,083)
------------ ------------
Income before taxes 6,139,418 6,989,088
Income tax provision 2,332,979 2,655,853
------------ ------------
Net income $ 3,806,439 $ 4,333,235
============ ============
Fully diluted earnings per share $ 0.40 $ 0.43(1)
============ ============
Weighted average shares outstanding 9,497,239 10,168,102
- ----------
(1) Excluding the effect of the proceeds from the settlement of the litigation
with a supplier in the amount of $4,000,564 (which is presented net of
related expenses above), diluted earnings per share would have been $0.18
for the nine-month period ended December 31, 2002.
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