Parlux Fragrances, Inc. (NASD: PARL) recently announced their financial figures for the fiscal year ended March 31, 2008. Parlux is a manufacturer and international distributor of beauty products. They hold licenses for Paris Hilton fragrances, watches, cosmetics, sunglasses, handbags, and other beauty accessories, along with licenses to manufacture and distribute designer fragrance brands of GUESS?, Jessica Simpson, Nicole Miller, Natori, Queen Latifah, XOXO, Ocean Pacific, Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
Sales for the first quarter of 2008 totaled $153,696,374 compared to the year prior of $134,365,094, an increase of 14%. The company’s income from continuing operations was reported at $5,010,751 compared to a loss of $27,864,295 in the previous year. Net income with the addition of discontinued operations totaled $5,036,101, or $0.24 per diluted share. Last year’s figures for net income were significantly lower at $2,882,232, or $0.16 per diluted share.
Commenting on the company’s recent financial figures was Mr. Neil Katz, chairman and CEO of Parlux, “The company achieved a $51 million improvement in income from continuing operations before income taxes, on a year to year basis, which underscores our success in restructuring our operations and refocusing our business. We have reduced our operating costs by 33% by centralizing warehousing/distribution in New Jersey, and moving all corporate management and administrative activities into new office facilities in South Florida. We have reduced inventories by 35%, reduced G&A by 39% (excluding non-cash share-based compensation charges of $244,662 in 2008 and $18,946,950 in 2007), and reduced advertising by 22%, while concurrently increasing sales by 14%.
“Most significantly the company had over $21 million in cash on hand at year end, and our $35 million bank line was not utilized. These funds will be available to support the launch of new licenses which we have signed, specifically Jessica Simpson, Nicole Miller, Natori and Queen Latifah, and to fully support our ongoing base business of Paris Hilton and GUESS?. Additionally, we will be launching a new Paris Hilton fragrance this Fall, as well as a new GUESS? men’s fragrance in the Spring of 2009,” Mr. Katz added.
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