EX-99.1 2 v122776_ex99-1.htm
  
FOR IMMEDIATE RELEASE

INTER PARFUMS, INC. ANNOUNCES RECORD SECOND QUARTER RESULTS

New York, New York, August 11, 2008: Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported record results for the second quarter ended June 30, 2008. All share and per share amounts have been adjusted to reflect the retroactive effect of the 3 for 2 stock split effected on May 30, 2008.

Second Quarter 2008 Compared to Second Quarter 2007:
·  
Net sales rose 20% to $99.1 million from $82.8 million; at comparable foreign currency exchange rates, net sales were up 12% for the period;
·  
European-based operations achieved sales of $83.9 million, a 19% increase compared to $70.5 million, in the same period last year;
·  
Sales by U.S.-based operations rose 23% to $15.2 million from $12.3 million in the same period last year;
·  
Gross margin was 57% compared to 58% with the slight decrease attributable to the effect the decline of the U.S. dollar against the euro had on European-based product sales to U.S. customers. Sales to these customers are denominated in dollars while costs are incurred in euro;
·  
S, G & A expense as a percentage of sales was 50% for both periods;
·  
Operating margins were 6.9% of net sales as compared to 8.2%;
·  
Net income was $3.8 million as compared to $3.7 million; and,
·  
Diluted earnings per share were $0.12 in both periods.

Thus, net sales for the six months ended June 30, 2008 increased 32% to $222.2 million from last year’s $167.9 million; in constant dollars, first half net sales were up 24%. Net income increased 31% to $12.5 million or $0.40 per diluted share from $9.5 million or $0.31 per diluted share in the first half of 2007.

Discussing second quarter sales, Jean Madar, Chairman of the Board and Chief Executive Officer, noted, “As we previously reported, sales by European operations rose 19% to $83.9 million from last year’s $70.5 million. Burberry brand sales were especially strong due to the continued rollout of the latest fragrance, Burberry The Beat and the exceptional growth and staying power of Burberry Brit, which launched in 2003. Van Cleef & Arpels brand sales also contributed to the top line gains. Our U.S. operations achieved growth of 23%, as sales rose to $15.2 million from $12.3 million driven by the international distribution of Gap and Banana Republic fragrance and personal care products.”

Reviewing the new product pipeline by European-based operations, Mr. Madar noted, “With three major fragrance brands launching globally this year, as well as several smaller brand introductions and fragrance flankers, 2008 is proving to be one of our most ambitious years ever. Although Burberry, The Beat initially launched during the first quarter of 2008, additional geographic expansion is still underway. Jeanne Lanvin, which is previewing in Paris this summer, is scheduled to go global beginning in September. In addition, Feerie will be our first major new fragrance family under the Van Cleef & Arpels brand. We also brought the Quiksilver suncare collection to market this year and have ST Dupont Passenger, a new scent for men and women, ready for launch during the third quarter.”
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Inter Parfums, Inc. News Release 
August 11, 2008
Page 2
 
He continued, “Specialty retail has become an increasingly important part of our overall business. As we announced last month, bebe stores, inc. teamed up with Inter Parfums to create and produce brand appropriate fragrance and beauty products, the first of which will be lip glosses which are expected to be in stores for the holiday season. A new bebe fragrance is on our launch schedule for next year. We are readying our first new Brooks Brothers fragrance collection for debut later this year at U.S. Brooks Brothers stores followed by international distribution in 2009. For Gap and Banana Republic, we continue to introduce new products and create variations of existing ones. Based upon results to date and plans underway, we are finding international markets to be very receptive to Gap and Banana Republic products and we have achieved excellent placement in department and specialty stores in certain international markets, including travel related retail.”

Russell Greenberg, Executive Vice President & CFO added, “It bears repeating that our business has become increasingly seasonal due to the timing of shipments by our majority-owned distribution subsidiaries to their customers and because delivery schedules for our U.S. specialty retail customers are weighted toward the second half. Thus, we are track to meet our 2008 guidance with net sales of approximately $460 million and net income of approximately $26.8 million or $0.87 per diluted share. Our guidance assumes the dollar remains at current levels.”

Quarterly Dividend
The Company’s regular quarterly cash dividend of $0.033 per share will be payable on October 15, 2008 to shareholders of record on September 30, 2008.

Conference Call
Management will conduct a conference call to discuss financial results and business developments at 9:00 am EDT on Tuesday, August 12, 2008. Interested parties may participate in the call by dialing 706-679-3037; 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. Please go to the website at least 15 minutes early to register, and download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website. We suggest listeners use Microsoft Explorer as their browser.

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, and as recently announced, bebe stores. 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.


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Inter Parfums, Inc. News Release 
August 11, 2008
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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, 2007 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
  
Inter Parfums, Inc. News Release 
August 11, 2008
Page 4
 
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)

   
Three Months Ended
June 30,
  
Six Months Ended
June 30,
  
   
2008
  
2007
  
2008
  
2007
  
                   
Net sales
  
$
99,078
  
$
82,764
  
$
222,241
  
$
167,885
  
                           
Cost of sales
    
43,104
    
34,615
    
92,179
    
67,803
  
                           
Gross margin
    
55,974
    
48,149
    
130,062
    
100,082
  
                           
Selling, general and administrative
    
49,142
    
41,366
    
104,085
    
81,508
  
                           
Income from operations
    
6,832
    
6,783
    
25,977
    
18,574
  
                           
Other expenses (income):
                          
Interest expense
    
376
    
632
    
1,447
    
1,215
  
(Gain) loss on foreign currency
    
(181
)
  
10
    
186
    
123
  
Interest income
    
(551
)
  
(790
)
  
(1,165
)
  
(1,589
)
Gain on subsidiary’s issuance of stock
    
--
    
(369
)
  
--
    
(526
)
                           
     
(356
)
  
(517
)
  
468
    
(777
)
                           
Income before income taxes and
minority interest
    
7,188
    
7,300
    
25,509
    
19,351
  
                           
Income taxes
    
2,698
    
2,272
    
9,882
    
6,448
  
                           
Income before minority interest
    
4,490
    
5,028
    
15,627
    
12,903
  
                           
Minority interest in net income
of consolidated subsidiary
    
718
    
1,279
    
3,147
    
3,361
  
                           
Net income
  
$
3,772
  
$
3,749
  
$
12,480
  
$
9,542
  
                           
Net income per share:
                          
Basic
  
$
0.12
  
$
0.12
  
$
0.41
  
$
0.31
  
Diluted
  
$
0.12
  
$
0.12
  
$
0.40
  
$
0.31
  
                           
Weighted average number of shares
outstanding:
                          
Basic
    
30,627
    
30,656
    
30,674
    
30,655
  
Diluted
    
30,914
    
31,087
    
30,861
    
31,009
  
 
Inter Parfums, Inc. News Release 
August 11, 2008
Page 5
 
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)

ASSETS
  
   
June 30,
2008
  
December 31,
2007
  
   
(unaudited)
      
Current assets:
          
Cash and cash equivalents
  
$
43,694
  
$
90,034
  
Short-term investments
    
5,517
    
--
  
Accounts receivable, net of allowance for doubtful accounts
of $1,371 and $2,357 at June 30, 2008 and December 31,
2007, respectively
    
120,939
    
118,140
  
Inventories
    
152,704
    
106,022
  
Receivables, other
    
4,478
    
5,928
  
Other current assets
    
6,295
    
5,253
  
Income tax receivable
    
186
    
168
  
Deferred tax assets
    
3,937
    
4,300
  
               
Total current assets
    
337,750
    
329,845
  
               
Equipment and leasehold improvements, net
    
7,938
    
7,262
  
               
Trademarks, licenses and other intangible assets, net
    
121,464
    
101,577
  
               
Goodwill
    
7,179
    
6,715
  
               
Other assets
    
1,146
    
653
  
               
   
$
475,477
  
$
446,052
  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
              
Loans payable - banks
  
$
11,678
  
$
7,217
  
Current portion of long-term debt
    
17,533
    
16,215
  
Accounts payable - trade
    
94,352
    
88,297
  
Accrued expenses
    
37,705
    
35,507
  
Income taxes payable
    
216
    
3,023
  
Dividends payable
    
1,017
    
1,026
  
               
Total current liabilities
    
162,501
    
151,285
  
               
Long-term debt, less current portion
    
37,725
    
43,518
  
               
Deferred tax liability
    
10,171
    
4,664
  
               
Minority interest
    
51,829
    
53,925
  
               
Shareholders’ equity:
              
Preferred stock, $.001 par; authorized
1,000,000 shares; none issued
              
Common stock, $.001 par; authorized 100,000,000 shares;
outstanding 30,631,076 and 30,798,212 shares at
June 30, 2008 and December 31, 2007, respectively
    
31
    
31
  
Additional paid-in capital
    
40,649
    
40,023
  
Retained earnings
    
158,608
    
147,995
  
Accumulated other comprehensive income
    
42,513
    
30,955
  
Treasury stock, at cost, 9,498,242 and 9,303,956 common
shares at June 30, 2008 and December 31, 2007,
respectively
    
(28,550
)
  
(26,344
)
               
     
213,251
    
192,660
  
               
   
$
475,477
  
$
446,052