EX-99.1 2 v106422_ex99-1.htm
 
FOR IMMEDIATE RELEASE

INTER PARFUMS, INC. REPORTS RECORD FOURTH QUARTER AND
YEAR-END RESULTS

Fourth Quarter Diluted EPS up 52% on 32% Gain in Net Sales

Management Increases 2008 Guidance

Board of Directors Authorizes Stock Repurchase Program

New York, New York, March 10, 2008 -- Inter Parfums, Inc. (NASDAQ GS: IPAR) today announced record results for the fourth quarter and year ended December 31, 2007.

Fourth Quarter 2007 Compared to Fourth Quarter 2006
·  
Net sales rose 32% to $119.4 million from $90.2 million; at comparable foreign currency exchange rates, net sales were up 24%;
·  
Sales by European based operations were $96.6 million, up 37% compared to $70.4 million;
·  
U.S. based operations generated $22.8 million in sales, up 15% from $19.8 million;
·  
Gross margin rose to 58% from 54% due to the operations of our majority-owned distribution subsidiaries and higher margins generated by our U.S. based specialty retail products;
·  
S, G & A expense as a percentage of sales was 44% as compared to 41%;
·  
Operating margin was 14%, up from 12%;
·  
Net income rose 57% to $8.6 million from $5.5 million; and,
·  
Diluted earnings per share were $0.41, up 52% compared to $0.27

2007 Full Year Results & Review and Outlook for 2008
For the year as a whole, Inter Parfums reported record net sales of $389.6 million, up 21% from $321.1 million in 2006. At comparable foreign currency exchange rates, net sales for 2007 were up 15%. European based sales rose to $330.8 million, up 22% year over year and represented 85% of consolidated sales. The 15% increase in U.S. based sales, which approximated $58.8 million, was due to Inter Parfums’ specialty retail business with Gap, Banana Republic and New York & Company. Net income increased 34% to $23.8 million from $17.7 million in 2006, and diluted earnings per share were up 33% to $1.14, compared to $0.86 in 2006.

Jean Madar, Chairman of the Board and Chief Executive Officer, stated, “As did many of our peers, we entered the fourth quarter of 2007 with much trepidation, and looked to contain costs and brace for a turbulent holiday season. With fourth quarter sales far exceeding our expectations, fourth quarter profits came in considerably better than anticipated, and as a result, our net income and diluted earnings per share surpassed our prior 2007 guidance. With regard to U.S. based operations, among the highlights of the past year was the launch and rollout of personal care, fragrance, grooming and home fragrance products that we developed for Gap stores in North America. We also take great pride in the new products and line extensions created for Banana Republic stores. The April 2007 agreement with New York & Company moved into the fast track and the new collections were developed, produced and delivered in time for the holiday selling season. Finally, the signing of an agreement with Brooks Brothers last November was a great way to close out the year. By the end of 2008, our plans call for new products to be introduced into the 200 U.S. Brooks Brothers stores.”
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Inter Parfums, Inc. News Release 
March 10, 2008
Page 2
 
 
He went on to say, “With regard to European based operations in 2007, the license agreement for the Van Cleef & Arpels fragrance brand, the acquisition of Lanvin fragrance brands and trademarks, and the establishment of four majority-owned distribution subsidiaries were among the major developments. Of special note, Burberry fragrance, the largest brand in the prestige portfolio, performed exceptionally well, even in the absence of a major new launch. Burberry fragrance sales reached $210 million, up 10% in local currency compared to 2006. The 2007 product launches undertaken by our European based operations were much smaller in magnitude than our anticipated 2008 new product pipeline. This month marks the kickoff of the worldwide launch of the Beat, the sixth fragrance family for Burberry fragrance. We also have Roxy Love for women, a Quiksilver fragrance for men, and a Quiksilver suncare collection coming to market in 2008. In addition, there is a new women’s scent for Van Cleef & Arpels scheduled for launch this fall, which we believe will be the highest retail price cologne in the market, a 100ml. size fragrance with a suggested retail price of approximately $150. Under the Lanvin brand, we have Rumeur 2 Rose being readied, as are limited edition men’s and women’s fragrances for Paul Smith, and an S.T. Dupont fragrance line for both men and women.”

Russell Greenberg, Executive Vice President & CFO again pointed out, “Exceptionally strong sales in the final quarter of 2007, and for that matter the second half of the year, affirm our prior forecast that seasonality is a larger factor than in past years due to the timing of shipments by our majority-owned distribution subsidiaries to their customers and delivery schedules for our U.S. specialty retail customers.”

Mr. Greenberg stated, “As a result of the better than expected performance in 2007 and the initial success with our 2008 launch schedule, we are raising our 2008 guidance to net sales of approximately $442 million and net income of approximately $25.8 million or $1.25 per diluted share. This guidance assumes the dollar remains at current levels.”

Stock Repurchase Authorization
In February 2008, Inter Parfums’ Board of Directors authorized a stock repurchase program whereby the Company is authorized to repurchase a maximum of 500,000 shares of its common stock in the open market. In February 2008, the Company repurchased 129,524 shares of its common stock.

Cash Dividend
Inter Parfums also announced that its Board of Directors declared a regularly quarterly cash dividend. The first cash dividend for 2008 of $0.05 per share is to be paid on April 15, 2008 to shareholders of record on March 31, 2008.

Conference Call
Inter Parfums’ management will host a conference call at 11:00 am EDT on Tuesday, March 11, 2008. Interested parties may participate by calling 706-679-3037 approximately 10 minutes before the start time. This conference call will also be distributed live over the Internet via the Investor Relations section of the Company’s web site at www.interparfumsinc.com. To listen to the live call, please go to the web site in advance to register, and if needed, download any necessary audio software. The conference call will be archived for approximately 90 days at the web site.

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Inter Parfums, Inc. News Release 
March 10, 2008
Page 3
 
 
 
Inter Parfums develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Burberry, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver/Roxy, and Van Cleef & Arpels. The Company also owns Lanvin Perfumes and Nickel S.A., a men’s skin care company. It also produces personal care products for specialty retailers under exclusive agreements with Gap Inc., New York & Company and Brooks Brothers. In addition, Inter Parfums produces and supplies mass market fragrances and fragrance related products. The Company’s products are sold in over 120 countries worldwide.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Inter Parfums' annual report on Form 10-K for the fiscal year ended December 31, 2006, and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.


Contact at Inter Parfums, Inc. or Investor Relations Counsel
Russell Greenberg, Exec. VP & CFO The Equity Group Inc.
(212) 983-2640 Linda Latman (212) 836-9609/llatman@equityny.com
rgreenberg@interparfumsinc.com Lena Cati (212) 836-9611/lcati@equityny.com
www.interparfumsinc.com www.theequitygroup.com


(See Accompanying Tables)

 
Inter Parfums, Inc. News Release
March 10, 2008
Page 4
 
 
Inter Parfums, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Share and Per Share Amounts) 

   
Three Months Ended
December 31,
  
Year Ended
December 31,
  
   
2007
  
2006
  
2007
  
2006
  
                   
                   
Net sales
  
$
119,354
  
$
90,179
  
$
389,560
  
$
321,054
  
                           
Cost of sales
    
50,080
    
41,634
    
160,137
    
143,855
  
                           
Gross margin
    
69,274
    
48,545
    
229,423
    
177,199
  
                           
Selling, general and administrative
    
52,034
    
37,410
    
181,224
    
141,074
  
Impairment loss
    
868
    
--
    
868
    
--
  
                           
Income from operations
    
16,372
    
11,135
    
47,331
    
36,125
  
 
Other expenses (income):
                          
Interest
   
1,507
    
966
    
3,667
    
1,797
  
(Gain) loss on foreign currency
    
115
    
275
    
219
    
(172
)
Interest and dividend income
    
(1,393
)
  
(1,006
)
  
(3,166
)
  
(2,303
)
(Gain) on subsidiary’s issuance of
stock
    
(26
)
  
(314
)
  
(665
)
  
(332
)
                           
     
203
    
(79
)
  
55
    
(1,010
)
                           
Income before income taxes and minority interest
    
16,169
    
11,214
    
47,276
    
37,135
  
                           
Income taxes
    
6,260
    
4,374
    
16,675
    
13,201
  
                           
Net income before minority
interest
    
9,909
    
6,840
    
30,601
    
23,934
  
                           
Minority interest in net income
of consolidated subsidiary 
    
1,294
    
1,355
    
6,784
    
6,192
  
                           
Net income
  
$
8,615
  
$
5,485
  
$
23,817
  
$
17,742
  
                           
Net income per share:
                          
Basic
  
$
0.42
  
$
0.27
  
$
1.16
  
$
0.87
  
Diluted
  
$
0.41
  
$
0.27
  
$
1.14
  
$
0.86
  
Weighted average number of shares
outstanding:
                          
Basic
    
20,431,019
    
20,392,359
    
20,444,094
    
20,324,309
  
Diluted
    
20,620,826
    
20,620,150
    
20,669,533
    
20,568,492
  
 
 
Inter Parfums, Inc. News Release
March_10, 2008
Page 5
 
      
Inter Parfums, Inc.
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)

ASSETS
  
   
December 31,
2007
  
December 31,
2006
  
           
Current assets:
          
Cash and cash equivalents
  
$
90,034
  
$
58,247
  
Short-term investments
    
--
    
12,800
  
Account receivable, net
    
118,140
    
110,251
  
Inventories
    
106,022
    
69,537
  
Receivables, other
    
5,928
    
2,481
  
Other current assets
    
5,253
    
6,137
  
Income tax receivable
    
168
    
370
  
Deferred tax assets
    
4,300
    
2,494
  
               
Total current assets
    
329,845
    
262,317
  
               
Equipment and leasehold improvements, net
    
7,262
    
6,806
  
               
Trademarks, licenses and other intangible assets, net
    
101,577
    
58,342
  
               
Goodwill
    
6,715
    
4,978
  
               
Other assets
    
653
    
602
  
               
   
$
446,052
  
$
333,045
  

LIABILITIES AND SHAREHOLDERS’ EQUITY
  
Current liabilities:
          
Loans payable - banks
  
$
7,217
  
$
6,033
  
Current portion of long-term debt
    
16,215
    
4,214
  
Accounts payable
    
88,297
    
58,748
  
Accrued expenses
    
35,507
    
52,637
  
Income taxes payable
    
3,023
    
1,325
  
Dividends payable
    
1,026
    
813
  
               
Total current liabilities
    
151,285
    
123,770
  
               
Deferred tax liability
    
4,664
    
2,111
  
               
Long-term debt, less current portion
    
43,518
    
6,555
  
               
Put option
    
--
    
1,262
  
               
Minority interest
    
53,925
    
44,075
  
               
Shareholders’ equity:
              
Preferred stock, $0.001 par value. Authorized 1,000,000
shares; none issued
              
Common stock, $0.001 par value. Authorized 100,000,000 shares; outstanding 20,532,141 and 20,434,792 shares at December 31, 2007 and 2006, respectively
    
21
    
20
  
Additional paid-in capital
    
40,033
    
38,096
  
Retained earnings
    
147,995
    
127,834
  
Accumulated other comprehensive income
    
30,955
    
15,170
  
Treasury stock, at cost 6,202,637 and 6,247,886 common
shares at December 31, 2007 and 2006, respectively
    
(26,344
)
  
(25,848
)
               
Total shareholders’ equity
    
192,660
    
155,272
  
               
Total liabilities and shareholders’ equity
  
$
446,052
  
$
333,045