Exhibit 99.1
FOR IMMEDIATE RELEASE
INTER PARFUMS, INC. REPORTS 2021 FIRST QUARTER RESULTS
Net Sales Increase 37% Versus 2020 and 11% Ahead of 2019
EPS up 172% from 2020 and 45% from 2019
New York, New York, May 10, 2021: Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the first quarter ended March 31, 2021. The average dollar/euro ratio for the current first quarter was 1.20 compared to 1.10 in the first quarter of 2020 and 1.14 in the first quarter of 2019.
| ($ in millions, except per share data) | 2021 | 2021 v 2020 | 2020 | 2019 | 2021 v 2019 | |||||||||||||||
| Net Sales | $ | 198.5 | 37 | % | $ | 144.8 | $ | 178.2 | 11 | % | ||||||||||
| Gross Margin | 63.1 | % | 160 bps | 61.5 | % | 61.6 | % | 150 bps | ||||||||||||
| Operating Income | $ | 48.0 | 170 | % | $ | 17.8 | $ | 33.3 | 44 | % | ||||||||||
| Operating Margin | 24 | % | 1200 bps | 12 | % | 19 | % | 500 bps | ||||||||||||
| Net Income (attributable to IP) | $ | 27.7 | 175 | % | $ | 10.1 | $ | 18.9 | 47 | % | ||||||||||
| Diluted EPS | $ | 0.87 | 172 | % | $ | 0.32 | $ | 0.60 | 45 | % | ||||||||||
Jean Madar, Chairman & CEO of Inter Parfums, Inc. noted, “Comparisons with the first quarter of last year are not especially meaningful because of the outbreak of the COVID-19 virus and concurrent closures and restrictions imposed worldwide. As shown above, 2021 first quarter sales well exceeded those of the pre-pandemic first quarter of 2019 as did all profitability measures. Our business has been especially strong in regions where lockdowns have been lifted, stores have reopened and life has returned to near pre-pandemic standards, most notably North America and Asia, where our sales rose 56% and 34%, respectively. On the other hand, Western Europe has not regained its footing and restrictions and closures have again been imposed in connection with the third wave of COVID-19 infections. We’ve also seen business bounce back in the Middle East, Eastern Europe and Central and South America, growing 32%, 125% and 22%, respectively.”
He continued, “We continue to believe that our business model, financial resources, distribution network, and talented staff could support a substantially larger business. To accelerate our pace of growth, we have been actively pursuing prospective license agreements with brands who are seeking a new partner to jumpstart their fragrance franchise. While there can be no assurance that any agreements will be finalized, adding valued brands to our portfolio is a top corporate priority.”
Mr. Madar concluded, “The rollout of products launched in the first quarter is continuing, including Alibi for Oscar de la Renta, Bella Vita for GUESS, our MCM debut scent, and Canyon Escape for Hollister. Brand extensions dominate our new product pipeline for the remainder of the year including flankers for Montblanc Explorer, Coach Dreams, Jimmy Choo Urban Hero, the Oscar de la Renta Bella family, the Hollister Wave collection, and the Anna Sui Fantasia pillar. Entirely new fragrances are planned for the coming quarters as well, including a Lanvin women’s line, a new duo for Abercrombie & Fitch, Dunhill’s Driven collection for men, and a men’s grooming collection for GUESS.”
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Russell Greenberg, Executive Vice President and CFO, pointed out, “The 37% increase in first quarter sales, while welcome, was not anticipated. As a result, our promotion and advertising expenditures were well below what we would typically spend in a quarter generating close to $200 million in net sales. As we resume more normalized operations, S,G&A expenses should likewise normalize, especially promotional and advertising expenses which should approach historical levels of 21% of net sales.”
Mr. Greenberg concluded, “We closed the first quarter with working capital of $461 million, including approximately $294 million in cash, cash equivalents and short-term investments, a working capital ratio of more than 4 to 1 and only $9.2 million of long-term debt. Also noteworthy, cash provided by operating activities aggregated $32.5 million for the current first quarter, as compared to cash used in operating activities of $25.1 million in the same period last year.”
Affirms 2021 Guidance
The Company affirmed its 2021 guidance calling for net sales of approximately $700 million, resulting in diluted net income per share of $1.65. Guidance assumes that the average dollar/euro average exchange rate remains at current levels and that there is no significant resurgence of the COVID-19 pandemic.
Dividend
The Company’s regular quarterly cash dividend of $0.25 per share will be paid on June 30, 2021 to shareholders of record on June 15, 2021.
Conference Call
Management will conduct a conference call to discuss financial results and business developments at 11:00 am ET on Tuesday, May 11, 2021. Interested parties may participate in the call by dialing (201) 493-6749; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.interparfumsinc.com and click on the Investor Relations section.
Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade New York, MCM, Moncler, Montblanc, Oscar de la Renta, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. Inter Parfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the Company’s products are sold in over 120 countries.
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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, 2020 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 | Fred Buonocore (212) 836-9607/fbuonocore@equityny.com | |
| rgreenberg@interparfumsinc.com | Linda Latman (212) 836-9609/llatman@equityny.com | |
| www.interparfumsinc.com | www.theequitygroup.com |
See Accompanying Tables
| Inter Parfums, Inc. News Release May 10, 2021 |
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CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
| Three months ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Net sales | $ | 198,528 | $ | 144,824 | ||||
| Cost of sales | 73,280 | 55,783 | ||||||
| Gross margin | 125,248 | 89,041 | ||||||
| Selling, general and administrative expenses | 74,896 | 71,262 | ||||||
| Impairment loss | 2,393 | -- | ||||||
| Income from operations | 47,959 | 17,779 | ||||||
| Other expenses (income): | ||||||||
| Interest expense | 377 | 1,001 | ||||||
| Gain on foreign currency | (1,866 | ) | (954 | ) | ||||
| Interest income | (386 | ) | (1,007 | ) | ||||
| Other income | (192 | ) | -- | |||||
| (2,067 | ) | (960 | ) | |||||
| Income before income taxes | 50,026 | 18,739 | ||||||
| Income taxes | 13,400 | 5,440 | ||||||
| Net income | 36,626 | 13,299 | ||||||
| Less: Net income attributable to the noncontrolling interest | 8,964 | 3,240 | ||||||
| Net income attributable to Inter Parfums, Inc. | $ | 27,662 | $ | 10,059 | ||||
| Net income attributable to Inter Parfums, Inc. common shareholders: | ||||||||
| Basic | $ | 0.87 | $ | 0.32 | ||||
| Diluted | $ | 0.87 | $ | 0.32 | ||||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 31,631 | 31,530 | ||||||
| Diluted | 31,772 | 31,708 | ||||||
| Dividends declared per share | $ | 0.25 | $ | 0.33 | ||||
| Inter Parfums, Inc. News Release May 10, 2021 |
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CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
(Unaudited)
| March 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 143,313 | $ | 169,681 | ||||
| Short-term investments | 150,545 | 126,627 | ||||||
| Accounts receivable, net | 149,940 | 124,057 | ||||||
| Inventories | 148,685 | 158,822 | ||||||
| Receivables, other | 1,650 | 1,815 | ||||||
| Other current assets | 18,579 | 16,912 | ||||||
| Income taxes receivable | 404 | 2,806 | ||||||
| Total current assets | 613,116 | 600,720 | ||||||
| Equipment and leasehold improvements, net | 18,865 | 19,580 | ||||||
| Right-of-use assets, net | 22,807 | 24,734 | ||||||
| Trademarks, licenses and other intangible assets, net | 202,247 | 214,108 | ||||||
| Deferred tax assets | 7,669 | 8,041 | ||||||
| Other assets | 23,011 | 22,962 | ||||||
| Total assets | $ | 887,715 | $ | 890,145 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 1,071 | $ | 14,570 | ||||
| Current portion of lease liabilities | 4,983 | 5,133 | ||||||
| Accounts payable – trade | 44,680 | 35,576 | ||||||
| Accrued expenses | 88,600 | 95,629 | ||||||
| Income taxes payable | 12,774 | 5,297 | ||||||
| Total current liabilities | 152,108 | 156,205 | ||||||
| Long–term debt, less current portion | 9,173 | 10,136 | ||||||
| Lease liabilities, less current portion | 19,771 | 21,354 | ||||||
| Equity: | ||||||||
| Inter Parfums, Inc. shareholders’ equity: | ||||||||
| Preferred stock, $.001 par; authorized 1,000,000 shares; none issued | -- | -- | ||||||
| Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,652,038 and 31,608,588 shares at March 31, 2021 and December 31, 2020, respectively | 32 | 32 | ||||||
| Additional paid-in capital | 77,566 | 75,708 | ||||||
| Retained earnings | 523,600 | 503,567 | ||||||
| Accumulated other comprehensive loss | (23,611 | ) | (5,997 | ) | ||||
| Treasury stock, at cost, 9,864,805 shares at March 31, 2021 and December 31, 2020 | (37,475 | ) | (37,475 | ) | ||||
| Total Inter Parfums, Inc. shareholders’ equity | 540,112 | 535,835 | ||||||
| Noncontrolling interest | 166,551 | 166,615 | ||||||
| Total equity | 706,663 | 702,450 | ||||||
| Total liabilities and equity | $ | 887,715 | $ | 890,145 | ||||