SOURCE: Parlux Fragrances, Inc.

August 17, 2007 17:01 ET

/ CORRECTION - Parlux Fragrances, Inc.

FORT LAUDERDALE, FL--(Marketwire - August 17, 2007) - In the news release, "Parlux Announces Results for the Quarter Ended June 30, 2007" issued Tuesday, August 14, 2007 by Parlux Fragrances, Inc. (NASDAQ: PARL), we are advised by the company that the first sentence of the third paragraph should read "Due to shareholder interest, the Company will hold a conference call on Thursday, August 30, 2007 at 10:00 a.m. (EDT) to discuss the Company's quarterly results and to provide additional outlook on the next quarter" rather than "Due to shareholder interest, the Company will hold a conference call on Tuesday, August 28, 2007 at 10:00 a.m. (EDT) to discuss the Company's quarterly results and to provide additional outlook on the next quarter" as originally issued. Additionally, the third sentence of the third paragraph should read "A replay of the conference call will also be available from Thursday, August 30, 2007, after 1:00 p.m., until midnight September 7, 2007" rather than " A replay of the conference call will also be available from Tuesday, August 28, 2007, after 1:00 p.m., until midnight August 31, 2007." Complete corrected text follows.

Parlux Announces Results for the Quarter Ended June 30, 2007

FORT LAUDERDALE, FL --(August 14, 2007) - Parlux Fragrances, Inc. (NASDAQ: PARL) announced today its results for the three months ended June 30, 2007. Net sales from continuing operations were $31,380,468, compared to $28,248,179 in the same period of the prior year, an increase of 11%. Operating expenses from continuing operations were $15,602,803 compared to $32,228,654 in the prior year period, which included a non-cash share based compensation charge of $16,201,950. Operating income for the three months ended June 30, 2007 was $367,979 as compared to an operating loss of $18,900,857 for the same period of the prior year. Net loss from continuing operations was $49,613 compared to a loss of $17,235,703 in the same period of the prior year. Net loss for the three months ended June 30, 2007 was $97,628 compared to a loss of $14,120,958 in the same period of the prior year. Earnings per share on a diluted basis were a loss of $0.00 compared to a loss of $0.78 per share in the same period of the prior year.

Mr. Neil Katz, Chairman and CEO, noted that, "The Company has made significant progress on many fronts. We have assessed the strengths and weaknesses of the organization, expanded our financial team, consolidated our distribution facilities, and defined a strategic plan." Mr. Katz continued, "A significant part of the strategic plan has been initiated through the signing of worldwide fragrance license agreements with Jessica Simpson, and most recently, with Nicole Miller. We have moved aggressively to build our core business in prestige distribution, and have positioned ourselves for strong profitable growth."

Conference Call

Due to shareholder interest, the Company will hold a conference call on Thursday, August 30, 2007 at 10:00 a.m. (EDT) to discuss the Company’s quarterly results and to provide additional outlook on the next quarter. To participate, please call: Participant Toll Free: 866-542-4239 or Participant International: 416-641-6125. A replay of the conference call will also be available from Thursday, August 30, 2007, after 1:00 p.m., until midnight September 7, 2007. To access the rebroadcast, Digital Replay Toll Free: 800-408-3053 or Digital Replay International: 416-695-5800 (Digital Pin: 3227865).

About Parlux

Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton fragrances, watches, cosmetics, sunglasses, handbags and other small leather accessories in addition to licenses to manufacture and distribute the designer fragrance brands of Nicole Miller, GUESS?, Jessica Simpson, XOXO, Ocean Pacific (OP), Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.

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 Parlux 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 Parlux's ability to successfully introduce, acquire, or launch new brands, licenses, or products in a cost-effective manner, general economic conditions and continued compliance with the covenants in our credit facility. 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. Parlux 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
                                (Unaudited)


Three Months Ended June 30,                       2007           2006
                                              -------------  -------------

Net sales:
   Unrelated customers                        $  12,568,507  $  20,183,483
   Related parties                               18,811,961      8,064,696
                                              -------------  -------------
                                                 31,380,468     28,248,179
                                              -------------  -------------

Cost of goods sold:
   Unrelated customers                            5,865,105     10,913,456
   Related parties                                9,544,581      4,501,391
                                              -------------  -------------
                                                 15,409,686     15,414,847
                                              -------------  -------------

Operating expenses:

  Advertising and promotional                     7,000,320      9,214,485
  Selling and distribution                        2,578,050      2,829,290
  Royalties                                       2,712,341      1,595,594
  General and administrative,
   (including share-based compensation
   charge of $16,201,950 in 2006)                 2,705,189     18,112,255
  Depreciation and amortization                     606,903        477,030
                                              -------------  -------------

  Total operating expenses                       15,602,803     32,228,654
                                              -------------  -------------

  Gain on sale of property held for sale                 --        494,465
                                              -------------  -------------

Operating income (loss) from continuing
 operations                                         367,979    (18,900,857)

Interest expense, net                              (446,669)      (689,273)
Foreign exchange (loss) gain                         (1,332)        14,331
                                              -------------  -------------
Loss from continuing operations before income
 taxes                                              (80,022)   (19,575,799)
Income tax benefit                                   30,409      2,340,096
                                              -------------  -------------
Net loss from continuing operations                 (49,613)   (17,235,703)
                                              -------------  -------------


Discontinued operations:
   (Loss) income from operations of Perry
    Ellis fragrance brand,                          (77,443)     5,023,782
   Income tax benefit (provision) related to
    Perry Ellis brand activity                       29,428     (1,909,037)
                                              -------------  -------------
   (Loss) income from discontinued operations       (48,015)     3,114,745
                                              -------------  -------------
Net loss                                      $     (97,628) $ (14,120,958)
                                              =============  =============
Diluted earnings (loss) per common share:
      Continuing operations                   $       (0.00) $       (0.95)
                                              -------------  -------------
      Discontinued operations                 $       (0.00) $        0.17
                                              -------------  -------------
   Total                                      $       (0.00) $       (0.78)
                                              =============  =============

Weighted average shares outstanding:             18,108,154     18,035,431

Contact Information

  • FOR:
    Parlux Fragrances, Inc.
    (954) 316-9008
    CONTACT:
    Neil J. Katz, Ext. 8116
    Raymond J. Balsys, Ext. 8106
    Web site: http://www.parlux.com