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Elizabeth Arden, Inc. Reports Third Quarter Results; EPS of $1.59, Before Non-Cash Charge, Ahead of Consensus Estimate of $1.50; Company Affirms Full Year Guidance

NEW YORK--(BUSINESS WIRE)--Dec. 5, 2003--Elizabeth Arden, Inc. (Nasdaq:RDEN), a global prestige fragrance and beauty products company, today reported results for the third quarter and the nine months ended October 25, 2003.

THIRD QUARTER RESULTS

Net sales for the third quarter increased to $321.3 million compared with $314.8 million for the same quarter last year and are in line with the Company's prior guidance. As previously indicated, sales results for the third quarter reflect a shift in promotional and fragrance innovation activities between the Company's third and fourth fiscal quarters as compared to the prior year period.

Net income increased to $38.9 million compared with $37.7 million for the same period last year. Third quarter earnings per fully diluted share were $1.59, before giving effect to a non-cash charge for the accretion associated with the Series D Convertible Preferred Stock converted into common stock which was sold in the Company's recent public offering. This exceeded the analysts' consensus estimate of $1.50 per share. Reported earnings, after giving effect to the above charge, were $0.88 per fully diluted share.

Earnings per fully diluted share of $1.59 were based on 24.5 million weighted average shares outstanding. This compares to $1.64 per fully diluted share, based on 23.0 million weighted average shares outstanding, in the prior year period. The increase in the number of shares is the result of the public offering of common stock completed in October 2003, as well as an increase in the Company's stock price, which increases the number of fully diluted shares based on the treasury method of accounting for the Company's outstanding stock options.

E. Scott Beattie, Chairman and Chief Executive Officer of Elizabeth Arden, Inc., commented, "The third quarter was an eventful one. The successful equity offering completed in October allowed us to accelerate our deleveraging strategy and increase our market float by over 40%. Including the $20 million of bonds we just called, we have reduced our long-term debt by over $100 million since the beginning of the year. All of our selling units performed as expected, and our mass business in particular continued to strengthen throughout the quarter."

Mr. Beattie continued, "We are optimistic as we enter the holiday selling season. While it is still early, we are encouraged by our solid retail performance to date. Moreover, we are excited about the impact our advertising efforts will have on our brands across all of our channels of distribution this season. Our first television commercial featuring global spokesperson Catherine Zeta-Jones just recently began to air and, along with television commercials supporting our Elizabeth Taylor fragrances, will continue throughout the holiday season."

NINE MONTHS RESULTS

Net sales for the first nine months of fiscal 2004 increased to $600.5 million compared with $582.3 million for the same period of the prior fiscal year. Net income for the nine month period was $13.1 million compared with net income of $17.7 million for the same period last fiscal year.

REDEMPTION OF SENIOR SECURED NOTES AND SENIOR NOTES

On November 21, 2003, the Company redeemed $56 million principal amount of its 11 3/4% Senior Secured Notes due 2011 at a redemption price of 111.75%, plus accrued interest. The Company funded the repurchase with the net proceeds from its public offering of 5,750,000 shares of common stock, which it closed on October 22, 2003. The Company sold 3,666,667 shares in the offering, and Unilever sold 2,083,333 shares, at an offering price of $18.25 per share. As previously announced, on October 24, 2003, the Company repurchased $20 million aggregate principal amount of its 10 3/8% Senior Notes due 2007 at a redemption price of 103.458%, plus accrued interest.

Also, on November 18, 2003, the Company called for redemption an additional $20 million of its 10 3/8% Senior Notes due 2007 at the same redemption price, plus accrued interest. The redemption date will be December 17, 2003.

OUTLOOK

Based on the continued strength of the mass business, increases in the Company's advertising and promotional activities, and an anticipated improvement in the holiday selling season as compared to last year, the Company confirms its previous expectations for the full fiscal year ended January 31, 2004. Annual net sales are expected to be in the range of $790 million to $805 million. Annual earnings per fully diluted share are expected to range between $0.90 and $0.95, before the non-cash charge for the accretion associated with the Series D Convertible Preferred Stock mentioned earlier, charges related to the early extinguishment of debt, and approximately a $2.0 million to $2.5 million charge related to the recently announced consolidation of its distribution facilities.

The current earnings per share guidance includes the interest savings resulting from the repurchase of senior notes with the net proceeds from the Company's recently completed common stock offering and is based on 25.1 million weighted average shares outstanding. The Company's prior guidance of earnings of $0.93 to $0.98 per fully diluted share was based on 23.4 million common shares outstanding. The increase in the weighted average number of fully diluted outstanding common shares reflects the common stock offering.

CONFERENCE CALL INFORMATION

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss third quarter results as well as its outlook for the remainder of fiscal year 2004. All interested parties can listen to a live web cast of the Company's conference call by logging on to the Company's web site at www.elizabetharden.com. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Company's web site at www.elizabetharden.com until December 19, 2003.

Elizabeth Arden is a global prestige fragrance and beauty products company. The Company's portfolio of leading brands includes the fragrance brands Red Door, Red Door Revealed, Elizabeth Arden green tea, 5th Avenue, ardenbeauty, Elizabeth Taylor's White Diamonds, Passion, Forever Elizabeth and Gardenia, White Shoulders, Geoffrey Beene's Grey Flannel, Halston, Halston Z-14, Unbound, PS Fine Cologne for Men, Design and Wings; the Elizabeth Arden skin care line, including Ceramides and Eight Hour Cream; and the Elizabeth Arden cosmetics line.

In connection with the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, Elizabeth Arden, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans" and "projection") are not historical facts and may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: our substantial indebtedness and debt service obligations; our ability to successfully and cost-effectively integrate acquired businesses or new brands; our absence of contracts with customers or suppliers and our ability to maintain and develop relationships with customers and suppliers; international and domestic economic and business changes that could impact consumer confidence; our customers' financial condition; our ability to access capital for acquisitions; the assumptions underlying our critical accounting estimates; the retention and availability of key personnel; changes in the retail, fragrance and cosmetic industries; our ability to launch new products and implement our growth strategy; the impact of competitive products and pricing; changes in product mix to less profitable products; risks of international operations, including foreign currency fluctuations; economic and political consequences of terrorist attacks and political instability in certain regions of the world; diseases affecting customer purchasing patterns, delays in shipments, inventory shortages and higher costs of production due to interruption of operations at key manufacturing or fulfillment facilities that, after consolidations of manufacturing and fulfillment locations, manufacture or provide logistic services for the majority of our supply of certain products; changes in the legal, regulatory and political environment that impact, or will impact, our business, including changes to customs or trade regulations or accounting standards; legal and regulatory proceedings that affect, or will affect, our business; and other risks and uncertainties. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

                ELIZABETH ARDEN, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENT OF OPERATIONS DATA
                             (Unaudited)
        (In thousands, except percentages and per share data)

                       Three Months Ended       Nine  Months Ended
                    October 25,  October 26,  October 25,  October 26,
                       2003         2002         2003         2002
                   ------------ ------------ ------------ ------------

Net Sales          $   321,313   $  314,807  $   600,490  $   582,277
Cost of Sales          186,276      177,738      359,331      342,577
                   ------------ ------------ ------------ ------------
Gross Profit           135,037      137,069      241,159      239,700
Gross Profit
 Percentage (a)           42.0%        43.5%        40.2%        41.2%

Selling, General
 and
 Administrative
 Expenses               64,490       61,537      176,384      163,196
Depreciation and
 Amortization            5,038        5,874       15,253       17,280
                   ------------ ------------ ------------ ------------
Total Operating
 Expenses               69,528       67,411      191,637      180,476

Interest Expense,
 Net                   (10,631)     (11,265)     (31,007)     (32,321)
Other Income
 (Expense)                (293)          77         (145)         218

Income Before
 Income Taxes           54,585       58,470       18,370       27,121
Provision for
 Income Taxes           15,664       20,738        5,272        9,455
                   ------------ ------------ ------------ ------------
Net Income              38,921       37,732       13,098       17,666
                   ------------ ------------ ------------ ------------
Accretion and
 Dividend on
 Preferred Stock         1,001          913        2,963        2,740
Accelerated
 Accretion on
 Converted
 Preferred
 Stock                  18,584          ---       18,584          ---
                   ------------ ------------ ------------ ------------
Net Income (Loss)
 Attributable to
 Common
 Shareholders      $    19,336   $   36,819  $    (8,449) $    14,926
                   ============ ============ =========================

As reported:
------------------
 Basic Income
  (Loss) Per Share $      1.07   $     2.07  $     (0.47) $      0.84
 Diluted Income
  (Loss) Per Share $      0.88   $     1.64  $     (0.47) $      0.77

 Basic Shares           18,097       17,765       17,966       17,733
 Diluted Shares         22,468       22,980       17,966       23,040

EBITDA (b)         $    70,254   $   75,609  $    64,630  $    76,722
EBITDA Percentage (a)     21.9%        24.0%        10.8%        13.2%

Adjusted before
 giving effect to
 the converted
 Series D Convertible 
 Preferred Stock (c)
---------------------
 Basic Income
   Per Share       $      2.10   $     2.07  $      0.56  $      0.84
 Diluted Income
   Per Share       $      1.59   $     1.64  $      0.55  $      0.77

 Basic Shares           18,097       17,765       17,966       17,733
 Diluted Shares         24,529       22,980       23,879       23,040

(a) Based on the percentages of net sales for the periods.

(b) EBITDA is defined as net income plus the provision for income
taxes (or net loss less the benefit from income taxes), plus interest
expense, plus depreciation and amortization. EBITDA should not be
considered as an alternative to operating income (loss) or net income
(loss) (as determined in accordance with generally accepted accounting
principles) as a measure of our operating performance or to net cash
provided by operating, investing and financing activities (as
determined in accordance with generally accepted accounting
principles) as a measure of our ability to meet cash needs. We believe
that EBITDA is a measure commonly reported and widely used by
investors and other interested parties as a measure of a company's
operating performance and debt servicing ability because it assists in
comparing performance on a consistent basis without regard to capital
structure (particularly when acquisitions are involved), depreciation
and amortization, which can vary significantly depending upon
accounting methods (particularly when acquisitions are involved) or
non-operating factors (such as historical cost). Accordingly, as a
result of our capital structure and the accounting method used for our
acquisitions, we believe EBITDA is a relevant measure. This
information has been disclosed here to permit a more complete
comparative analysis of our operating performance relative to other
companies and of our debt servicing ability. EBITDA may not, however,
be comparable in all instances to other similar types of measures.
The following is a reconciliation of net income, as determined in
accordance with generally accepted accounting principles, to EBITDA:
(For a reconciliation of net income to EBITDA for prior fiscal year
periods, see the Company's Annual Report on Form 10-K for the fiscal
year ended January 31, 2003 which can be found on the Company's
website at www.elizabetharden.com). (In thousands)

                      Three Months Ended         Nine Months Ended
                   ------------------------- -------------------------
                    October 25,  October 26,  October 25,  October 26,
                       2003         2002         2003         2002
                   ------------ ------------ ------------ ------------
Net income         $    38,921  $    37,732  $    13,098  $    17,666
Plus:
  Provision for
   income taxes         15,664       20,738        5,272        9,455
  Interest expense      10,631       11,265       31,007       32,321
  Depreciation and
   amortization          5,038        5,874       15,253       17,280
                   ------------ ------------ ------------ ------------
EBITDA                  70,254       75,609       64,630       76,722
Debt extinguishment
 charges                   290           --          168           --
                   ------------ ------------ ------------ ------------
EBITDA excluding
 debt
 extinguishment
 charges           $    70,544  $    75,609  $    64,798  $    76,722
                   ============ ============ ============ ============
(c) The following tables reconcile the calculation of net income
(loss) per share on a basic and fully diluted basis from the amounts
reported in accordance with generally accepted accounting principles
("GAAP") to such amounts before giving effect to the accretion on the
converted Series D Convertible Preferred Stock ("Preferred Stock").
This disclosure is being provided as we believe it is meaningful to
our investors and other interested parties to understand the Company's
operating performance on a consistent basis without regard to the
anti-dilutive effects of the timing of the accretion charges on the
Preferred Stock. The presentation of the non-GAAP information titled
"Net Income Per Share As Adjusted" or " Net Income Per Diluted Share
As Adjusted" is not meant to be considered in isolation or as a
substitute for net income or diluted income per share prepared in
accordance with GAAP.
(In thousands, except per share data)

                       Three Months Ended        Nine Months Ended
                   ------------------------- -------------------------
                    October 25,  October 26,  October 25,  October 26,
                       2003         2002         2003         2002
                   ------------ ------------ ------------ ------------
As reported:
-----------
Basic
 Net Income (loss)
  attributable to
  common
  shareholders as
  reported         $    19,336  $    36,819  $    (8,449) $    14,926
                   ============ ============ ============ ============
 Weighted average
  shares
  outstanding as
  reported              18,097       17,765       17,966       17,733
                   ============ ============ ============ ============
 Net income (loss)
  per basic share
  as reported      $      1.07  $      2.07  $     (0.47) $      0.84
                   ============ ============ ============ ============

Diluted
 Net income (loss)
  attributable to
  common
  shareholders as
  reported         $    19,336  $    36,819  $    (8,449) $    14,926
 Accretion and
  dividend on the
  Preferred Stock
  not converted
  during the period        500          913           --        2,740
                   ------------ ------------ ------------ ------------
   Net income
    (loss) as
    adjusted       $    19,836  $    37,732  $    (8,449) $    17,666
                   ============ ============ ============ ============

 Weighted average
  basic shares
  outstanding as
  reported              18,097       17,765       17,966       17,733
 Potential common
  shares - treasury
  method                 2,130        1,048           --        1,140
 Assumed conversion
  of the Preferred
  Stock                  2,083        4,167           --        4,167
 Dividend shares on
  the Preferred
  Stock                    158           --           --           --
                   ------------ ------------ ------------ ------------
  Weighted average
   shares and
   potential
   dilutive shares
   as reported          22,468       22,980       17,966       23,040
                   ============ ============ ============ ============

  Net income (loss)
   per diluted
   share as
   reported        $      0.88  $      1.64  $     (0.47) $      0.77
                   ============ ============ ============ ============

Adjusted before giving effect
 to the converted Preferred
 Stock:
-----------------------------
Basic
 Net income (loss)
  attributable to
  common
  shareholders as
  reported         $    19,336  $    36,819  $    (8,449) $    14,926
 Accelerated
  accretion on the
  converted
  Preferred Stock       18,584           --       18,584           --
                   ------------ ------------ ------------ ------------
  Net income
   attributable to
   common
   shareholders as
   adjusted        $    37,920  $    36,819  $    10,135  $    14,926
                   ============ ============ ============ ============

 Weighted average
  shares
  outstanding as
  reported              18,097       17,765       17,966       17,733
                   ============ ============ ============ ============
 Net income per
  share as adjusted$      2.10  $      2.07  $      0.56  $      0.84
                   ============ ============ ============ ============

Diluted
 Net income (loss)
  as adjusted      $    19,836  $    37,732  $    (8,449) $    17,666
 Accretion and
  dividend on the
  Preferred Stock
  converted during
  the period               501           --        2,963           --
 Accelerated
  accretion on the
  Preferred Stock
  converted during
  the period            18,584           --       18,584           --
                   ------------ ------------ ------------ ------------
  Net income as
   adjusted before
   giving effect to
   the converted
   Preferred Stock $    38,921  $    37,732  $    13,098  $    17,666
                   ============ ============ ============ ============

Weighted average
 shares and
 potential dilutive
 shares as reported     22,468       22,980       17,966       23,040
Potential common
 shares - treasury
 method                     --           --        1,596           --
Effect of assumed
 conversion of
 Preferred Stock at
 beginning of
 period                  2,061           --        4,159           --
Dividend shares on
 the Preferred
 Stock                      --           --          158           --
                   ------------ ------------ ------------ ------------
 Weighted average
  shares and
  potential
  dilutive shares
  as adjusted           24,529       22,980       23,879       23,040
                   ============ ============ ============ ============

 Net income per
  diluted share as
  adjusted before
  giving effect to
  the converted
  Preferred Stock  $      1.59  $      1.64  $      0.55  $      0.77
                   ============ ============ ============ ============
                ELIZABETH ARDEN, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                (Unaudited except for January 31, 2003)
                            (In thousands)

                                -----------------As of----------------
                                 October 25,  January 31,  October 26,
                                    2003         2003         2002
                                ------------ ------------ ------------
Cash                                $22,771      $22,663      $14,347
Accounts Receivable, Net            275,916      118,844      285,367
Inventories                         213,251      200,876      199,702
Property and Equipment, Net          36,516       36,216       35,843
Exclusive Brand Licenses,
 Trademarks and Intangibles, Net    196,702      205,534      204,773
Total Assets                        786,820      627,620      791,198
Short-Term Debt                      87,010        2,068      125,000
Current Liabilities                 264,286      150,833      312,557
Long-Term Liabilities               295,391      329,309      333,741
Total Debt                          378,842      322,397      450,962
Preferred Stock                      10,253       15,634       14,720
Shareholders' Equity                216,890      131,844      130,180
Working Capital                     272,960      216,461      218,618

Contacts
Elizabeth Arden, Inc.
Senior Vice President, Finance
Marcey Becker, 203-462-5809
or
Investor Contact:
Financial Dynamics
Cara O'Brien/Lila Sharifian, 212-850-5600
or
Press Contact:
Financial Dynamics
Stephanie Sampiere, 212-850-5600
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