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Elizabeth Arden, Inc. Announces First Quarter Fiscal 2013 Results

  Elizabeth Arden, Inc. Announces First Quarter Fiscal 2013 Results

               ~ Net Sales of $345 Million; Increase of 13.5% ~

                 ~ Adjusted EPS of $0.44; Increase of 41.9% ~

Business Wire

NEW YORK -- November 05, 2012

Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products
company, today announced financial results for its first fiscal quarter ended
September 30, 2012.

FIRST QUARTER RESULTS

For the quarter ended September 30, 2012, the Company reported net sales of
$344.5 million, an increase of 13.5%, as compared to the first quarter of the
prior fiscal year. Excluding the unfavorable impact of foreign currency
translation, net sales increased by 16.1%.

On a reported basis, net income per diluted share for the current year period
was $0.07. On an adjusted basis, net income per diluted share for the quarter
ended September 30, 2012 was $0.44, as compared to net income per diluted
share of $0.31 for the prior year period. Adjusted net income per diluted
share excludes acquisition-related expenses and non-recurring charges
associated with the Elizabeth Arden brand repositioning. A reconciliation
between GAAP and adjusted results can be found in the tables and footnotes at
the end of this press release.

Net sales for the Company's international segment increased by 2.2%, or 8.8%
at constant rates, over the prior fiscal year, and net sales in the Company's
North America segment grew by 20.0%. Net sales growth in North America
benefitted from several new fragrance launches. Internationally, sales growth
was strongest in the Company's European and emerging markets. Sales of
Elizabeth Arden branded products decreased by 5.1%, or 0.9% at constant rates,
as compared to the prior year and reflect the Company's continued wind down of
retailer inventory in advance of the broader roll-out of the Elizabeth Arden
brand repositioning.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth
Arden, Inc., commented, "We have begun the year strongly, reporting double
digit growth in net sales and adjusted earnings per share. Although early in
the roll-out, we are experiencing strong retail sales performance at the
flagship doors with our revitalized Elizabeth Arden products. As we look
forward to the holiday season, we believe that our significant innovation
along with the continued rollout of Elizabeth Arden branded products has us
well positioned to continue our positive performance."

OUTLOOK

The Company is confirming its guidance for the first half of fiscal 2013 of
net sales of $825 million to $840 million and earnings per diluted share of
$1.98 to $2.08. For the second quarter of fiscal 2013, the Company expects net
sales of $480 million to $495 million as compared to $430 million of net sales
for the second quarter of the prior fiscal year. Earnings per diluted share
for the second quarter of fiscal 2013 are expected to be in the range of $1.54
to $1.64.

The Company is also confirming its guidance for fiscal 2013 for a net sales
increase of 13.5% to 15.0% over the prior fiscal year and for earnings per
diluted share of a range of $2.55 to $2.70. Gross margin (adjusted) for fiscal
2013 is expected to increase by 175 to 200 basis points as compared to gross
margin (adjusted) for fiscal 2012. The annual net sales guidance assumes an
unfavorable impact from foreign currency rates of approximately 0.70% as
compared to rates in effect for fiscal 2012.

The earnings guidance excludes non-recurring charges related to the Elizabeth
Arden brand repositioning and expenses related to the acquisitions completed
in the fourth quarter of fiscal 2012. The Company expects to incur the
remainder of these charges, currently estimated at $4.6 million, primarily
during the second quarter of fiscal 2013.

The guidance is based on current foreign currency rates. The Company also
notes that continued global economic uncertainty may have a negative effect on
retailer and consumer confidence and demand, and, along with the foreign
currency volatility, makes forecasting difficult.

CONFERENCE CALL INFORMATION

The Company will host a conference call on Monday, November 5, 2012 at 9:30
a.m. Eastern Time. All interested parties can listen to a live web cast of the
Company's conference call by visiting the Investor Relations section of the
Corporate tab on the Company's web site at http://ir.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 until
December 5, 2012.

Elizabeth Arden is a global prestige beauty products company with an extensive
portfolio of prestige beauty brands sold in over 100 countries. The company's
brand portfolio includes Elizabeth Arden skincare, color and fragrance
products, the celebrity fragrance brands of Britney Spears, Elizabeth Taylor,
Justin Bieber, Mariah Carey, Nicki Minaj, Taylor Swift, and Usher; the
designer fragrance brands of Juicy Couture, Alfred Sung, BCBGMAXAZRIA,
Geoffrey Beene, Halston, Bob Mackie, Ed Hardy, John Varvatos, Kate Spade,
Lucky Brand, True Religion and Rocawear; and the lifestyle fragrance brands
Curve, Giorgio Beverly Hills, and PS Fine Cologne.

                                     
ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME DATA

(Unaudited)

(In thousands, except percentages and per share data)
                                                                             
                                       Three Months Ended
                                         September 30,       September 30,
                                        2012                 2011
                                                                             
Net Sales                              $ 344,541             $ 303,534
                                                                             
Cost of Goods Sold:
Cost of Sales                            195,611               159,755
Depreciation Related to Cost of         1,531                1,343
Goods Sold
Total Cost of Goods Sold                 197,142               161,098
                                                                             
Gross Profit                             147,399               142,436
Gross Profit Percentage                  42.8          %       46.9          %
                                                                             
Selling, General and Administrative      129,407               118,447
Expenses
Depreciation and Amortization           9,129                6,718
Total Operating Expenses                 138,536               125,165
                                                                             
Interest Expense, Net                   6,198                5,262
Income Before Income Taxes               2,665                 12,009
Provision for Income Taxes              481                  2,777
Net Income                             $ 2,184               $ 9,232
As reported:
                                                                             
Net Income Per Basic Share             $ 0.07                $ 0.32
Net Income Per Diluted Share           $ 0.07                $ 0.31
                                                                             
Basic Shares                             29,417                28,746
Diluted Shares                           30,369                29,791
                                                                             
EBITDA (a)                             $ 19,523              $ 25,332
EBITDA margin (a)                        5.7           %       8.3           %
                                                                             
Adjusted to exclude
acquisition-related and Elizabeth
Arden repositioning costs, net of
taxes (b)(c):
                                                                             
Gross Profit                           $ 162,119             $ 142,436
Gross Profit Percentage                  47.1          %       46.9          %
                                                                             
Net Income                             $ 13,441              $ 9,232
                                                                             
Net Income Per Basic Share             $ 0.46                $ 0.32
Net Income Per Diluted Share           $ 0.44                $ 0.31
                                                                             
EBITDA (a)                             $ 34,587              $ 25,332
EBITDA margin (a)                        10.0          %       8.3           %


(a) EBITDA is defined as net income plus the provision for income taxes plus
interest expense, plus depreciation and amortization. EBITDA should not be
considered as an alternative to income from operations or net income (as
determined in accordance with generally accepted accounting principles (GAAP))
as a measure of our operating performance or to net cash provided by
operating, investing and financing activities (as determined in accordance
with GAAP) 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, depreciation and amortization or
non- operating factors (such as historical cost). Accordingly, as a result of
our capital structure, 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. We have also disclosed EBITDA as
adjusted to reflect the effect of acquisition–related costs and the
non-recurring product changeover costs related to the Elizabeth Arden brand
repositioning. This disclosure is being provided for comparability purposes
because we believe it is meaningful to our investors and other interested
parties to understand our EBITDA performance on a consistent basis without
regard to the effect of acquisition-related costs and non-recurring product
changeover costs related to the Elizabeth Arden brand repositioning. EBITDA
margin represents EBITDA divided by Net Sales.

The table below reconciles net income, as determined in accordance with GAAP,
to EBITDA and to EBITDA as adjusted: (For a reconciliation of net income to
EBITDA for prior periods, see the Company's filings with the Securities and
Exchange Commission which can be found on the Company's website at
www.elizabetharden.com.)

                                            
(Amounts in thousands)                         Three Months Ended
                                               September 30,   September 30,
                                               2012              2011
                                                                      
Net income                                     $    2,184        $    9,232
Plus:
Provision for income taxes                          481               2,777
Interest expense, net                               6,198             5,262
Depreciation related to cost of goods sold          1,531             1,343
Depreciation and amortization                      9,129            6,718
EBITDA                                              19,523            25,332
Acquisition-related and Elizabeth Arden            15,064           -
brand repositioning costs (c)
EBITDA, as adjusted                            $    34,587       $    25,332

The table below reconciles net cash flow used in operating activities, as
determined in accordance with GAAP, to EBITDA:

(Amounts in thousands)                   Three Months Ended
                                           September 30,     September 30,
                                           2012                2011
                                                                             
Net cash used in operating activities      $   (141,261  )     $   (115,584  )
Changes in assets and liabilities, net         153,011             135,523
of acquisitions
Interest expense, net                          6,198               5,262
Amortization of senior note offering           (340      )         (310      )
and credit facility costs
Provision for income taxes                     481                 2,777
Deferred income taxes                          2,811               (1,116    )
Amortization of share-based awards            (1,377    )        (1,220    )
EBITDA                                     $   19,523          $   25,332
                                                                             

(b) The table below reconciles the calculation of (i) net income and (ii) net
income per share on a basic and diluted basis from the amounts reported in
accordance with GAAP to such amounts before giving effect to
acquisition-related costs and non-recurring product changeover costs related
to the Elizabeth Arden brand repositioning. This disclosure is being provided
for comparability purposes because we believe it is meaningful to our
investors and other interested parties to understand our operating performance
on a consistent basis without regard to the effect of acquisition-related
costs and non-recurring product changeover costs related to the Elizabeth
Arden brand repositioning. The presentation in the table below of the non-GAAP
information titled "Net income as adjusted" and "Net income per basic and
diluted share as adjusted" is not meant to be considered in isolation or as a
substitute for net income or net income per basic and diluted share prepared
in accordance with GAAP.

                                             
(In thousands, except per share data)          Three Months Ended
                                               September 30,   September 30,
                                               2012              2011
Gross Profit:
Gross Profit as reported                       $   147,399       $   142,436
Acquisition-related and Elizabeth Arden           14,720           -
brand repositioning costs (c)
Gross Profit as adjusted                       $   162,119       $   142,436
                                                                     
Net Income:
Net income as reported                         $   2,184         $   9,232
Acquisition-related and Elizabeth Arden
brand repositioning costs, net of tax (c)         11,257           --
(d)
Net income as adjusted                         $   13,441        $   9,232
                                                                     
Net Income Per Basic Share:
Net income per basic share, as reported        $   0.07          $   0.32
Acquisition-related and Elizabeth Arden
brand repositioning costs, net of tax (c)         0.39             --
(d)
Net income per basic share, as adjusted        $   0.46          $   0.32
                                                                     
Net Income Per Diluted Share:
Net income per diluted share, as reported      $   0.07          $   0.31
Acquisition-related and Elizabeth Arden
brand repositioning costs, net of tax (c)         0.37             --
(d)
Net income per diluted share, as adjusted      $   0.44          $   0.31
                                                                     

(c) For the three months ended September 30, 2012, gross profit and net income
include $11.3 million (pre-tax) of inventory–related costs primarily for
inventory purchased by us from New Wave Fragrances LLC and Give Back Brands
LLC prior to the acquisitions of fragrance licenses and certain other assets
from those companies, of which $6.4 million were non-cash, and $3.4 million
(pre-tax) of non-recurring product changeover costs related to the Elizabeth
Arden brand repositioning. In addition, net income includes $0.3 million
(pre-tax) in transition costs associated with the New Wave Fragrances LLC and
Give Back Brands LLC acquisitions and $0.1 million (pre-tax) of non-recurring
product changeover costs related to the Elizabeth Arden brand repositioning.

(d) On a reported basis, for the three months ended September 30, 2012 and
2011, our effective tax rate, which is calculated as a percentage of income
before income taxes, was 18.1% and 23.1%, respectively. On an adjusted basis,
for the three months ended September 30, 2012 and 2011, our effective tax rate
was 24.2% and 23.1%, respectively.

                                                 
SEGMENT NET SALES
The table below is a comparative summary of our net sales by reportable
segment for the three months ended September 30, 2012 and 2011:
                                                      
                                                      
(In thousands)       Three Months Ended               % Increase (Decrease)
                     September         September                      Constant
                     30,             30,              GAAP       Rates
                     2012              2011                           (e)
                                                                      
Segment Net
Sales:
North America        $  231,557        $  192,966        20.0  %      20.2%
International          112,984          110,568        2.2   %      8.8%
Total                $  344,541        $  303,534        13.5  %      16.1%
                                                                      

                                                 
PRODUCT CATEGORY NET SALES
The table below is a comparative summary of our net sales by product category
for the three months ended September 30, 2012 and 2011:
                                                                            
(In                Three Months Ended               % Increase (Decrease)
thousands)
                   September         September                     Constant
                   30,             30,            GAAP         Rates
                   2012              2011                          (e)
                                                                            
Product
Category Net
Sales:
Elizabeth          $  108,480        $  114,298      (5.1  %)      (0.9     %)
Arden Brand
Celebrity,
Lifestyle,
Designer and         236,061          189,236      24.7  %       26.3     %
Other
Fragrances
Total              $  344,541        $  303,534      13.5  %       16.1     %
                                                                            

(e) Constant currency information compares results between periods assuming
exchange rates had remained constant period-over-period and excludes gains and
losses from foreign currency contracts in all periods. We calculate constant
currency information by translating current-period results using prior-year
GAAP foreign currency exchange rates. The gains and/or losses from foreign
currency contracts were not material for all periods presented.

                                                          
ELIZABETH ARDEN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
                                                                 
(Amounts In thousands)         September 30,     June 30,        September 30,
                               2012              2012            2011
                                                                 
Cash                           $  35,917         $ 59,080        $  34,450
Accounts Receivable, Net          310,098          188,141          237,090
Inventories                       396,059          291,987          327,945
Property and Equipment,           89,261           89,438           80,128
Net
Exclusive Brand Licenses,
Trademarks and                    309,806          314,502          226,465
Intangibles, Net
Goodwill                          21,054           21,054           21,054
Total Assets                      1,265,621        1,066,754        1,031,495
Short-Term Debt                   214,000          89,200           137,200
Current Liabilities               483,005          278,679          334,755
Long-Term Liabilities             292,972          306,348          270,741
Long-Term Debt                    250,000          250,000          250,000
Shareholders' Equity              489,644          481,727          426,000
Working Capital                   340,158          345,818          351,936
                                                                    


SUPPLEMENTARY CASH FLOW INFORMATION
(Unaudited)
(In thousands)
                                          Three Months Ended
                                          September 30,    September 30,
                                          2012                2011
Net cash used in operating activities     $  (141,261)        $  (115,584)
Net cash used in investing activities        (14,334)            (47,834)
Net cash provided by financing activities    132,323             140,704
Net decrease in cash and cash equivalents    (23,163)            (24,400)
                                                                 

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 are not historical
facts and that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance (often, but not
always, indicated through the use of words or phrases such as "will likely
result," "are expected to," "will continue," "is anticipated," "should,"
"estimated," "intends," "plans," "believes" and "projects") 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. These statements include, but are not limited to,
our guidance and expectations regarding net sales, earnings, gross margins,
operating cash flow and returns on invested capital. In addition, 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:

      factors affecting our relationships with our customers or our customers'
      businesses, including the absence of contracts with customers, our
      customers' financial condition, and changes in the retail, fragrance and
 *  cosmetic industries, such as the consolidation of retailers and the
      associated closing of retail doors as well as retailer inventory control
      practices, including, but not limited to, levels of inventory carried at
      point of sale and practices used to control inventory shrinkage;
      risks of international operations, including foreign currency
      fluctuations, hedging activities, economic and political consequences of
  *   terrorist attacks, disruptions in travel, unfavorable changes in U.S. or
      international laws or regulations, diseases and pandemics, and political
      instability in certain regions of the world;
  *   our reliance on license agreements with third parties for the rights to
      sell many of our prestige fragrance brands;
      our reliance on third-party manufacturers for substantially all of our
  *   owned and licensed products and our absence of contracts with suppliers
      of distributed brands and components for manufacturing of owned and
      licensed brands;
      delays in shipments, inventory shortages and higher supply chain costs
  *   due to the loss of or disruption in our distribution facilities or at
      key third party manufacturing or fulfillment facilities that manufacture
      or provide logistic services for our products;
      our ability to respond in a timely manner to changing consumer
      preferences and purchasing patterns and other international and domestic
  *   conditions and events that impact retailer and/or consumer confidence
      and demand, such as domestic or global recessions or economic
      uncertainty;
  *   our ability to protect our intellectual property rights;
  *   the success, or changes in the timing or scope, of our new product
      launches, advertising and merchandising programs;
  *   the quality, safety and efficacy of our products;
  *   the impact of competitive products and pricing;
      our ability to (i) implement our growth strategy and acquire or license
      additional brands or secure additional distribution arrangements, (ii)
  *   successfully and cost-effectively integrate acquired businesses or new
      brands, and (iii) finance our growth strategy and our working capital
      requirements;
      our level of indebtedness, our ability to realize sufficient cash flows
  *   from operations to meet our debt service obligations and working capital
      requirements, and restrictive covenants in our revolving credit
      facility, term loan and the indenture for our 7 3/8% senior notes;
  *   changes in product mix to less profitable products;
  *   the retention and availability of key personnel;
      changes in the legal, regulatory and political environment that impact,
      or will impact, our business, including changes to customs or trade
  *   regulations, laws or regulations relating to ingredients or other
      chemicals or raw materials contained in products or packaging, or
      accounting standards or critical accounting estimates;
      the success of our global Elizabeth Arden brand repositioning efforts;
  *
      the impact of tax audits, including the ultimate outcome of the pending
  *   Internal Revenue Service examination of our U.S. federal tax returns for
      the fiscal years ended June 30, 2008 and June 30, 2009, changes in tax
      laws or tax rates, and our ability to utilize our deferred tax assets;
      our ability to effectively implement, manage and maintain our global
  *   information systems and maintain the security of our confidential data
      and our employees' and customers' personal information;
      our reliance on third parties for certain outsourced business services,
  *   including information technology operations and employee benefit plan
      administration;
      the potential for significant impairment charges relating to our
  *   trademarks, goodwill or other intangible assets that could result from a
      number of factors, including downward pressure on our stock price; and
  *   other unanticipated 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. This press release is qualified in its entirety by
the cautionary statements and risk factor disclosure contained in our
Securities and Exchange Commission filings, including our Annual Report on
Form 10-K for the year ended June 30, 2012.

Contact:

Elizabeth Arden, Inc.
Marcey Becker, 212-261-1068
Senior Vice President, Finance
or
Investors/Press:
Integrated Corporate Relations
Allison Malkin/Michael Fox, 203-682-8200