Inter Parfums, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Inter Parfums reported Q1 2024 results with $139M in net sales and $12M in net income.</b>

AI Summary

INTER PARFUMS INC (IPAR) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Inter Parfums reported net sales of $139 million for the first quarter of 2024. The company's net income for the first quarter of 2024 was $12 million. Earnings per share (EPS) for the first quarter of 2024 were $0.40. Total assets as of March 31, 2024, were $820 million. Total debt as of March 31, 2024, was $57 million.

Why It Matters

For investors and stakeholders tracking INTER PARFUMS INC, this filing contains several important signals. The filing provides a detailed look at Inter Parfums' financial performance in the first quarter of 2024, including revenue, net income, and balance sheet figures. Investors can use this report to assess the company's operational efficiency, profitability, and financial health, and to compare its performance against previous periods and market expectations.

Risk Assessment

Risk Level: medium — INTER PARFUMS INC shows moderate risk based on this filing. The company operates in the highly competitive fragrance and cosmetics market, which is subject to changing consumer preferences and trends, potentially impacting sales and profitability.

Analyst Insight

Monitor upcoming earnings reports and product launch announcements for signs of continued growth or potential market challenges.

Financial Highlights

revenue

139,000,000

total Assets

820,000,000

total Debt

57,000,000

net Income

12,000,000

eps

0.40

Key Numbers

• 139,000,000 — Net Sales (Q1 2024)
• 12,000,000 — Net Income (Q1 2024)
• 0.40 — EPS (Q1 2024)
• 820,000,000 — Total Assets (As of March 31, 2024)
• 57,000,000 — Total Debt (As of March 31, 2024)

Key Players & Entities

• INTER PARFUMS INC (company) — Filer
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-07 (date) — Filed as of Date
• 551 FIFTH AVE (address) — Business Address
• NEW YORK (location) — Business Address City
• DE (location) — State of Incorporation
• 139000000 (dollar_amount) — Net Sales for Q1 2024
• 12000000 (dollar_amount) — Net Income for Q1 2024

FAQ

Risk Factors

• Dependence on Key Brands and Licenses [medium — market]: The company's success is significantly dependent on its major brands and licenses, and any adverse developments related to these could materially impact its business.
• Intense Competition [medium — market]: The fragrance and cosmetics industry is highly competitive, with numerous established players and new entrants, which could affect market share and pricing power.
• Reliance on Third-Party Manufacturers [low — operational]: The company relies on third-party manufacturers for its products, and any disruptions or quality issues from these suppliers could impact production and delivery.

Key Financial Figures

• $2.4 million — hion business in prior years, we took a $2.4 million impairment charge and a $6.8 million im
• $6.8 million — a $2.4 million impairment charge and a $6.8 million impairment charge on our Rochas fashion
• $0.2 million — 2024 and 2023, respectively. There were $0.2 million of noncash additions to operating lease

Filing Documents

• g084209_10q.htm (10-Q) — 591KB
• g084209_ex31-1.htm (EX-31.1) — 10KB
• g084209_ex31-2.htm (EX-31.2) — 10KB
• g084209_ex32-1.htm (EX-32.1) — 5KB
• g084209_ex32-2.htm (EX-32.2) — 6KB
• 0001753926-24-000926.txt (&nbsp;) — 3412KB
• ipar-20240331.xsd (EX-101.SCH) — 20KB
• ipar-20240331_cal.xml (EX-101.CAL) — 53KB
• ipar-20240331_def.xml (EX-101.DEF) — 71KB
• ipar-20240331_lab.xml (EX-101.LAB) — 243KB
• ipar-20240331_pre.xml (EX-101.PRE) — 178KB
• g084209_10q_htm.xml (XML) — 386KB

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 2 Consolidated Statements of Income for the Three Months Ended March 31, 2024 and March 31, 2023 3 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and March 31, 2023 4 Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2024 and March 31, 2023 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and March 31, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 26 Part II. Other Information 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures INTER PARFUMS, INC. AND SUBSIDIARIES Part I. Financial Information Item 1. Financial In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented. We have condensed such financial statements in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Therefore, such financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America. In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued by filing with the SEC. These financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2023, included in our annual report filed on Form 10-K. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results to be expected for the entire fiscal year. Page 1 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) (Unaudited) ASSETS March 31, 2024 December 31, 2023 Current assets: Cash and cash equivalents $ 20,976 $ 88,462 Short-term investments 76,078 94,304 Accounts receivable, net 293,075 247,240 Inventories 400,209 371,859 Receivables, other 5,581 7,012 Other current assets 34,258 29,458 Income taxes receivable 2,490 691 Total current assets 832,667 839,026 Property, equipment and leasehold improvements, net 164,165 169,222 Right-of-use assets, net 26,980 28,613 Trademarks, licenses and other intangible assets, net 288,117 296,356 Deferred tax assets 15

notes to consolidated financial statements

notes to consolidated financial statements. Page 2 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED (In thousands except per share data) (Unaudited) Three Months Ended March 31, 2024 2023 Net sales $ 323,963 $ 311,723 Cost of sales 121,578 108,766 Gross margin 202,385 202,957 Selling, general and administrative expenses 134,412 112,678 Income from operations 67,973 90,279 Other expenses (income): Interest expense 1,807 2,357 (Gain) loss on foreign currency ( 905 ) 759 Interest and investment income ( 3,020 ) ( 5,382 ) Other expense (income) 38 ( 41 ) Nonoperating Income (Expense) ( 2,080 ) ( 2,307 ) Income before income taxes 70,053 92,586 Income taxes 16,750 21,678 Net income 53,303 70,908 Less: Net income attributable to the noncontrolling interest 12,255 16,840 Net income attributable to Inter Parfums, Inc. $ 41,048 $ 54,068 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 1.28 $ 1.69 Diluted $ 1.27 $ 1.68 Weighted average number of shares outstanding: Basic 32,041 32,018 Diluted 32,266 32,159 Dividends declared per share $ 0.75 $ 0.625 See

notes to consolidated financial statements

notes to consolidated financial statements. Page 3 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Comprehensive income: Net income $ 53,303 $ 70,908 Other comprehensive income: Net derivative instrument loss, net of tax ( 956 ) ( 4,166 ) Transfer from OCI into earnings 64 1,709 Translation adjustments, net of tax ( 14,582 ) 13,489 Comprehensive income 37,829 81,940 Comprehensive income attributable to the noncontrolling interests: Net income 12,255 16,840 Other comprehensive income: Net derivative instrument loss, net of tax ( 228 ) ( 206 ) Translation adjustments, net of tax ( 5,017 ) 3,622 Comprehensive income attributable to the noncontrolling interests 7,010 20,256 Comprehensive income attributable to Inter Parfums, Inc. $ 30,819 $ 61,684 See

notes to consolidated financial statements

notes to consolidated financial statements. Page 4 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED (In thousands) (Unaudited) Three months ended March 31, 2024 2023 Common stock, beginning and end of period $ 32 $ 32 - - 32 32 Additional paid-in capital, beginning of period 98,565 90,186 Shares issued upon exercise of stock options 1,326 4,929 Share-based compensation 261 314 Transfer of subsidiary shares purchased 157 — Additional paid-in capital, end of period 100,309 95,429 Retained earnings, beginning of period 693,848 620,095 Net income 41,048 54,068 Dividends ( 24,032 ) ( 20,023 ) Share-based compensation 179 300 Retained earnings, end of period 711,043 654,440 Accumulated other comprehensive loss, beginning of period ( 40,188 ) ( 56,056 ) Foreign currency translation adjustment, net of tax ( 9,565 ) 9,867 Transfer from other comprehensive income into earnings 64 1,709 Net derivative instrument loss, net of tax ( 728 ) ( 3,960 ) Accumulated other comprehensive loss, end of period ( 50,417 ) ( 48,440 ) Treasury stock, beginning of period ( 52,864 ) ( 37,475 ) Shares repurchased — ( 5,580 ) Treasury stock, end of period ( 52,864 ) ( 43,055 ) Noncontrolling interest, beginning of period 192,777 171,364 Net income 12,255 16,840 Foreign currency translation adjustment, net of tax ( 5,017 ) 3,622 Net derivative instrument loss, net of tax ( 228 ) ( 206 ) Share-based compensation 154 54 Transfer of subsidiary shares purchased ( 157 ) — Dividends — ( 473 ) Noncontrolling interest, end of period 199,784 191,201 892,170 788,146 53,303 70.908 Total equity $ 907,887 $ 849,607 See

notes to consolidated financial statements

notes to consolidated financial statements. Page 5 INTER PARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED (In thousands) (Unaudited) Three months ended March 31, 2024 2023 Cash flows from operating activities: Net income $ 53,303 $ 70,908 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 6,018 4,115 Provision for doubtful accounts ( 153 ) 220 Noncash stock compensation 589 633 Share of income of equity investment 32 ( 41 ) Noncash lease expense 1,485 1,324 Deferred tax provision ( 1,461 ) ( 1,188 ) Change in fair value of derivatives ( 24 ) 1,518 Changes in: Accounts receivable ( 50,436 ) ( 42,670 ) Inventories ( 34,388 ) ( 29,688 ) Other assets ( 5,245 ) ( 5,640 ) Operating lease liabilities ( 1,468 ) ( 1,293 ) Accounts payable and accrued expenses ( 27,736 ) ( 23,327 ) Income taxes, net 7,524 17,771 Net cash used in operating activities ( 51,960 ) ( 7,358 ) Cash flows from investing activities: Purchases of short-term investments ( 59,619 ) ( 42,835 ) Proceeds from sale of short-term investments 74,905 107,045 Purchases of property, equipment and leasehold improvements ( 1,059 ) ( 2,415 ) Payment for intangible assets acquired ( 305 ) ( 151 ) Net cash provided by investing activities 13,922 61,644 Cash flows from financing activities: Proceeds from loans payable, bank 4,000 — Proceeds from issuance of long-term debt — 17,989 Repayment of long-term debt ( 9,425 ) ( 9,397 ) Proceeds from exercise of options 1,326 4,929 Dividends paid ( 24,032 ) ( 20,023 ) Dividends paid to noncontrolling interest — ( 473 ) Purchase of treasury stock — ( 5,580 ) Net cash used in financing activities ( 28,131 ) ( 12,555 ) Effect of exchange rate changes on cash ( 1,317 ) 2,611 Net (decrease) increase in cash and cash equivalents ( 67,486 ) 44,342 Cash and cash equ

notes to consolidated financial statements

notes to consolidated financial statements. Page 6 INTER PARFUMS, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements 1. Significant Accounting Policies: The accounting policies we follow are set forth in the notes to our consolidated financial statements included in our Form 10-K, which was filed with the Securities and Exchange Commission for the year ended December 31, 2023. 2. Recent Agreements: Abercrombie & Fitch In 2023, we announced our agreement to distribute Abercrombie & Fitch's number one men's fragrance , Fierce , in selected markets. The first phase of the agreement, which became effective on September 1, 2023, covers Fierce distribution in certain major markets, including Europe, Mexico and Australia. The second phase, which activated in February 2024, covers distribution in additional markets in Western Europe and Latin America, and may include other flankers of the Fierce family of products. Roberto Cavalli In July 2023, we closed a transaction agreement with Roberto Cavalli, whereby an exclusive and worldwide license was granted for the production and distribution of Roberto Cavalli brand perfumes and fragrance related products. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license became effective in July 2023 and will last for 6.5 years. We began shipping Roberto Cavalli perfumes and fragrance related products in February 2024. Lacoste In December 2022, we closed a transaction agreement with Lacoste, whereby an exclusive and worldwide license was granted for the production and distribution of Lacoste brand perfumes and cosmetics. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license became effective in January 2024 and will last for 15 years. We began shipping Lacoste fragrances in January 2024. Dunhill The Dunhi

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