Parlux Fragrances Inc announced its results for the three months ended September 30, 2006. Net sales were $38,875,830 compared to $39,328,298 in the same period of the prior year, a decrease of 1%.
The current period includes a gain of $1,774,624 from the sale of its investment in E Com Ventures Inc as the Company divested of its ownership position. Net income was $3,649,310 compared to $4,439,870 in the same period of the prior year. Earnings per share on a diluted basis were $0.18 compared to prior-year earnings of $0.21 per share, a decrease of 5%.
For the six-month period ended September 30, 2006, net sales were $79,659,895 compared to $73,145,627 in the prior period, an increase of 9%. Net loss was $10,471,648 (or $0.58 per share or a diluted basis) compared to net income of $8,251,493 ($0.39 per share on a diluted basis) in the same period of the prior year.
The current period loss was solely attributable to a non-cash, share-based compensation charge in the amount of $16,201,950, relating to the modification of outstanding warrants to effect the Company's June 16, 2006 stock split.
This charge, net of a deferred tax benefit of $1,058,034, negatively impacted earnings for the current period by $0.84 per share. The non-cash charge did not have a negative effect on the Company's financial position as an increase for the same amount was recorded directly to additional paid-in-capital within stockholders' equity.
Commenting on the second quarter results, Neil J. Katz, Interim CEO said, "I am pleased, after over four months of delays, we are moving forward with our reporting responsibilities. I am optimistic that we will be issuing our third quarter results in a short period of time. We expect that our reporting delinquencies will shortly be a thing of the past."
marketing@alchempro.com
