Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty
products company, today announced financial results for its third
fiscal quarter ended March 31, 2014.
THIRD QUARTER RESULTS
Net sales for the third fiscal quarter were $210.8 million, a
decrease of 20.3%, or 19.4% excluding the impact of foreign
currency rates. Net loss per diluted share was $0.89. On an
adjusted basis, excluding non-recurring items, net loss per diluted
share was $0.84. The non-recurring items include Elizabeth Arden
repositioning and restructuring costs. A reconciliation between
GAAP and adjusted results can be found in the tables and footnotes
at the end of this press release.
Net sales of the Company’s North America segment decreased 23%
to $121.9 million from $158.7 million in the prior year. The
decline in net sales was primarily due to fewer fragrance launches
in the fiscal 2014 period as compared to the prior year and lower
replenishment orders at a number of non-prestige retail accounts.
Net sales of the Company’s international segment decreased 16% to
$89 million from $106 million in the prior year. At constant
currency rates, net sales decreased 14%. The sales decline in the
international segment reflects the Company’s efforts to maintain
product pricing across both Elizabeth Arden branded products and
its key fragrance brands.
Net sales of Elizabeth Arden branded skin care, color and
fragrance products declined by 19% for the third fiscal quarter and
by 3% fiscal year-to-date, in each case at constant currency rates.
Retail sales at the Company's Elizabeth Arden flagship counters
have increased 11% in North America year-over-year since
conversion, and retail sales at the Company’s international
flagship doors have increased 11% since conversion, or 19%
excluding underperforming travel retail doors in Korea. The Company
remains encouraged by the results, particularly given that all of
the flagship doors are now reaching the anniversary of their reset
dates.
NINE MONTH RESULTS
Net sales for the nine months ended March 31, 2014, were $972.6
million, a decrease of 9.7%, or 9.0%, excluding the impact of
foreign currency rates. Net income per diluted share was $0.34. On
an adjusted basis, excluding non-recurring items, net income per
diluted share was $0.48. The non-recurring items include Elizabeth
Arden repositioning and restructuring costs and a one-time gain
related to the reversal of a contingent liability associated with
an acquisition. A reconciliation between GAAP and adjusted results
can be found in the tables and footnotes at the end of this press
release.
E. Scott Beattie, Chairman, President and Chief Executive
Officer commented, “Clearly these results are not indicative of the
strength and potential of our brand portfolio. We have been
hampered this year by weak performance in our North American mass
fragrance business and a global environment that has been highly
promotional. We also did not have the same level of significant
fragrance innovation as we did last year. This coincided with an
unprecedented number of weather-related store closures in our North
America business during the quarter, which is our seasonally
weakest quarter, exacerbating the impact of these other factors and
contributing to the weak overall results.”
Mr. Beattie continued, “These results are clearly disappointing,
particularly after several years of consistent improvement in gross
margins and earnings. The status quo is not acceptable. While we
are encouraged by recent retail sales performance in our North
American mass fragrance business, we must position the Company for
success in an economic environment that remains challenging. We are
taking corrective action to improve the performance of the
business, focusing on tightening distribution, improving gross
margins and restoring profitability and return on invested capital
to levels consistent with historical results.”
As part of this process, the Company is proactively implementing
a broad restructuring and cost savings program across multiple
dimensions focused on reducing its overhead structure and improving
gross margins. The Company is currently targeting annual savings in
the range of $40 million to $50 million upon full implementation of
this program. The Company is also evaluating a shift in the focus
of its international business to rely more heavily on distributors
and regional joint ventures that allow its brands to leverage
established commercial infrastructures with strong retail market
share and expertise. The Company will provide more detail on this
plan, along with its cost savings initiatives, on its call in
August 2014.
Mr. Beattie concluded, “We fully recognize that we have a lot of
work to do. Our new Chief Financial Officer recently joined us and
is now fully engaged. He, along with our new Executive Vice
President, International and the rest of our commercial teams are
fully committed to making the changes necessary to move us towards
more predictable and sustainable profitability.”
EXPLORATION OF STRATEGIC
ALTERNATIVES
The Company has engaged Goldman, Sachs & Co. to assist the
Board of Directors in exploring potential strategic alternatives to
enhance shareholder value and to accelerate the growth and maximize
the value of its brand portfolio. There can be no assurance that
the Company will pursue any strategic alternatives, whether its
review will result in any transaction being entered into or
consummated or what the form or terms and conditions of any such
strategic alternative may be. The Company does not intend to make
any additional disclosure unless and until such disclosure is
required.
The Company will host a conference call today, May 12, 2014 at
4:30 p.m. Eastern Time to discuss its results. 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 June 12, 2014.
Elizabeth Arden is a global prestige beauty products company
with an extensive portfolio of prestige beauty brands sold in over
120 countries. The Company's brand portfolio includes Elizabeth
Arden skincare, color and fragrance products; its professional skin
care line, Elizabeth Arden Rx; the celebrity fragrance brands of
Britney Spears, Elizabeth Taylor, Jennifer Aniston, Justin Bieber,
Mariah Carey, Nicki Minaj, Usher and Taylor Swift; the designer
fragrance brands of Juicy Couture, Alfred Sung, BCBGMAXAZRIA,
Geoffrey Beene, Halston, Ed Hardy, John Varvatos, Lucky Brand, True
Religion and Rocawear; and the lifestyle fragrance brands Curve,
Giorgio Beverly Hills, and PS Fine Cologne.
ELIZABETH ARDEN, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENT OF OPERATIONS
DATA(Unaudited)(In thousands, except percentages and per share
data)
Three Months Ended Nine Months Ended March
31, March 31, March 31, March
31, 2014 2013 2014
2013 Net Sales $ 210,841 $ 264,484 $ 972,587 $
1,076,944 Cost of Goods Sold: Cost of Sales 119,205 136,643 538,115
562,220 Depreciation Related to Cost of Goods Sold 1,967
1,656 5,784 4,674 Total Cost of Goods Sold
121,172 138,299 543,899 566,894 Gross Profit 89,669 126,185
428,688 510,050 Gross Profit Percentage 42.5 % 47.7 % 44.1 % 47.4 %
Selling, General and Administrative Expenses 107,338 111,597
365,713 404,257 Depreciation and Amortization 11,286
10,254 33,122 28,755 Total Operating Expenses 118,624
121,851 398,835 433,012 Interest Expense, Net 6,605
5,893 18,371 18,515 (Loss) Income Before
Income Taxes (35,560 ) (1,559 ) 11,482 58,523 (Benefit from)
Provision for Income Taxes (8,626 ) (286 )
2,172 12,803 Net (Loss) Income (26,934 ) (1,273 ) 9,310
45,720
Net Loss Attributable to Noncontrolling
Interests
(491 ) -- (897 ) --
Net (Loss) Income Attributable to
Elizabeth Arden Shareholders
$ (26,443 ) $ (1,273 ) $ 10,207 $ 45,720
As
reported:
Net (Loss) Income Per Basic Share
Attributable to Elizabeth Arden Shareholders
$ (0.89 ) $ (0.04 ) $ 0.34 $ 1.54
Net (Loss) Income Per Diluted Share
Attributable to Elizabeth Arden Shareholders
$ (0.89 ) $ (0.04 ) $ 0.34 $ 1.50 Basic Shares 29,697 29,607
29,664 29,658 Diluted Shares 29,697 29,607 30,173 30,498
EBITDA (a) $ (15,702 ) $ 16,244 $ 68,759 $ 110,467 EBITDA margin
(a) (7.4 )% 6.1 % 7.1 % 10.3 %
Adjusted to exclude
non-recurring costs, net of taxes (b)(c)(d):
Gross Profit $ 92,401 $ 129,561 $ 444,326 $ 533,578 Gross
Profit Percentage 43.8 % 49.0 % 45.7 % 49.5 %
Net (Loss) Income attributable to
Elizabeth Arden Shareholders
$ (24,854 ) $ 716 $ 14,548 $ 62,214
Net (Loss) Income Per Basic Share
Attributable to Elizabeth Arden Shareholders
$ (0.84 ) $ 0.02 $ 0.49 $ 2.10
Net (Loss) Income Per Diluted Share
Attributable to Elizabeth Arden Shareholders
$ (0.84 ) $ 0.02 $ 0.48 $ 2.04 EBITDA (a) $ (12,350 ) $
19,768 $ 72,197 $ 134,869 EBITDA margin (a) (5.9 )% 7.5 % 7.4 %
12.5 %
(a) EBITDA is defined as net income
attributable to Elizabeth Arden shareholders plus the provision for
income taxes (or net loss attributable to Elizabeth Arden
shareholders, less the benefit from income taxes) plus interest
expense, plus depreciation and amortization, plus net income or
loss attributable to noncontrolling interest. EBITDA should not be
considered as an alternative to income from operations or net
income attributable to Elizabeth Arden shareholders (as determined
in accordance with generally accepted accounting principles (GAAP))
as a measure of our operating performance or to net cash provided
by operating activities (as determined in accordance with GAAP) or
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 without giving
effect to acquisition-related, Elizabeth Arden brand repositioning
and restructuring costs, as well as other non-recurring costs. This
disclosure is being provided for comparability purposes because we
believe it is meaningful to our investors and other interested
parties to understand the EBITDA performance of the Company on a
consistent basis without regard to the effect of
acquisition-related, Elizabeth Arden brand repositioning and
restructuring and other non-recurring costs.
The table below reconciles net income attributable to Elizabeth
Arden shareholders, as determined in accordance with GAAP, to
EBITDA and to EBITDA as adjusted: (For a reconciliation of net
income attributable to Elizabeth Arden shareholders or 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 Nine Months Ended March
31,2014 March 31,2013
March 31,2014 March
31,2013 Net (Loss) Income Attributable to
Elizabeth Arden Shareholders $ (26,443 ) $ (1,273 ) $ 10,207 $
45,720 Plus: (Benefit from) provision for income taxes (8,626 )
(286 ) 2,172 12,803 Interest expense, net 6,605 5,893 18,371 18,515
Depreciation related to cost of goods sold 1,967 1,656 5,784 4,674
Depreciation and amortization 11,286 10,254 33,122 28,755 Net loss
attributable to noncontrolling interest (491 ) --
(897 ) -- EBITDA (15,702 ) 16,244 68,759 110,467
Non-recurring costs (c) (d) 3,352 3,524 3,438
24,402 EBITDA as adjusted $ (12,350 ) $ 19,768 $ 72,197 $
134,869
The table below reconciles net cash flow used in operating
activities, as determined in accordance with GAAP, to EBITDA:
(Amounts in thousands)
Nine Months Ended
March 31,2014 March
31,2013 Net cash used in operating activities $
(35,062 ) $ (8,848 ) Changes in assets and liabilities, net of
acquisitions 84,054 99,639 Interest expense, net 18,371 18,515
Amortization of senior note offering and credit facility costs
(1,079 ) (1,024 ) Amortization of senior note premium 127 --
Provision for income taxes 2,172 12,803 Deferred income taxes 4,727
(6,371 ) Amortization of share-based awards (4,551 )
(4,247 ) EBITDA $ 68,759 $ 110,467
(b) The table below reconciles the calculation of (i) gross
profit and net (loss) income attributable to Elizabeth Arden
shareholders and (ii) net (loss) income per share attributable to
Elizabeth Arden shareholders on a basic and diluted basis from the
amounts reported in accordance with GAAP to such amounts before
giving effect to acquisition-related, Elizabeth Arden brand
repositioning and restructuring costs, as well as other
non-recurring costs. 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, Elizabeth Arden brand repositioning and
restructuring costs, as well as other non-recurring costs. The
presentation in the table below of the non-GAAP information titled
"Gross profit as adjusted," "Net (loss) income attributable to
Elizabeth Arden shareholders as adjusted" and "Net (loss) income
per basic and diluted share attributable to Elizabeth Arden
shareholders as adjusted" is not meant to be considered in
isolation or as a substitute for gross profit, net (loss) income
attributable to Elizabeth Arden shareholders or net (loss) income
per basic or diluted share attributable to Elizabeth Arden
shareholders prepared in accordance with GAAP.
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31, March 31,
March 31, 2014 2013 2014
2013
Gross
Profit:
Gross Profit, as reported $ 89,669 $ 126,185 $ 428,688 $ 510,050
Non-recurring costs (c) (d) 2,732 3,376 15,638
23,528 Gross Profit, as adjusted $ 92,401 $ 129,561 $
444,326 $ 533,578
Net (Loss) Income
Attributable to Elizabeth Arden Shareholders:
Net (loss) income attributable to
Elizabeth Arden shareholders, as reported
$ (26,443 ) $ (1,273 ) $ 10,207 $ 45,720 Non-recurring costs, net
of tax (c) (d) (e) 1,589 1,989 4,341 16,494
Net (loss) income attributable to
Elizabeth Arden shareholders, as adjusted
$ (24,854 ) $ 716 $ 14,548 $ 62,214
Net (Loss) Income
Per Basic Share Attributable to Elizabeth Arden
Shareholders:
Net (loss) income per basic share
attributable to Elizabeth Arden shareholders, as reported
$ (0.89 ) $ (0.04 ) $ 0.34 $ 1.54 Non-recurring costs, net of tax
(c) (d) (e) 0.05 0.06 0.15 0.56
Net (loss) income per basic share
attributable to Elizabeth Arden shareholders, as adjusted
$ (0.84 ) $ 0.02 $ 0.49 $ 2.10
Net (Loss) Income
Per Diluted Share Attributable to Elizabeth Arden
Shareholders:
Net (loss) income per diluted share
attributable to Elizabeth Arden shareholders, as reported
$ (0.89 ) $ (0.04 ) $ 0.34 $ 1.50 Non-recurring costs, net of tax
(c) (d) (e) 0.05 0.06 0.14 0.54
Net (loss) income per diluted share
attributable to Elizabeth Arden shareholders, as adjusted
$ (0.84 ) $ 0.02 $ 0.48 $ 2.04
(c) For the three months ended March 31, 2014, gross profit and
net loss includes $1.8 million (pre-tax) of non-recurring product
changeover costs related to the repositioning of the Elizabeth
Arden brand and $0.9 million (pre-tax) of transition costs incurred
related to the restructuring discussed in the following sentence.
In addition, net loss includes $0.6 million (pre-tax) of
restructuring and related transition expenses primarily incurred
with respect to the elimination of sales and other staff positions.
For the nine months ended March 31, 2014, gross profit and net
income includes $14.2 million (pre-tax) of non-recurring product
changeover costs related to the repositioning of the Elizabeth
Arden brand and $1.4 million (pre-tax) of transition costs incurred
related to the restructuring discussed above. In addition, net
income includes (i) a credit of $17.2 million (pre-tax) for the
complete reversal of the remaining balance of the contingent
liability for potential payments to Give Back Brands LLC based on
our determination during the second quarter of fiscal 2014 that it
is not probable that the performance targets for fiscal 2014 and
2015 would be met, (ii) $3.9 million (pre-tax) of restructuring
expenses and related transition expenses, and (iii) $1.1 million
(pre-tax) of non-recurring product changeover expenses related to
the repositioning of the Elizabeth Arden brand.
(d) For the three months ended March 31, 2013, gross profit and
net loss includes (i) $0.6 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,
and other transition costs, and (ii) $2.8 million (pre-tax) of
non-recurring product changeover costs related to the repositioning
of the Elizabeth Arden brand. In addition, net loss for the three
months ended March 31, 2013, includes $0.1 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 expenses related to the
repositioning of the Elizabeth Arden brand. For the nine months
ended March 31, 2013, gross profit and net income include $13.8
million (pre-tax) of inventory-related costs primarily for
inventory purchased by us from New Wave Fragrances LLC and Give
Back Brands LLC discussed above, and $9.7 million (pre-tax) of
non-recurring product changeover costs related to the repositioning
of the Elizabeth Arden brand. In addition, net income includes $0.4
million (pre-tax) in transition costs associated with the New Wave
Fragrances LLC and Give Back Brands LLC acquisitions, and $0.5
million (pre-tax) of non-recurring product changeover expenses
related to the repositioning of the Elizabeth Arden brand.
(e) Our tax rates for fiscal 2014 were calculated using the
discrete method for our U.S. pre-tax income. Our tax rate on a
reported basis, which is calculated as a percentage of income or
loss before income taxes, was 24.3% and 18.9% for the three and
nine months ended March 31, 2014, respectively. On a reported
basis, for the three and nine months ended March 31, 2013, our
effective tax rate was 18.3% and 21.9%, respectively. On an
adjusted basis, our tax rate was 21.3% and 8.5% for the three and
nine months ended March 31, 2014, respectively. On an adjusted
basis, for the three and nine months ended March 31, 2013, our
effective tax rate was 63.6% and 25.0%, respectively.
SEGMENT NET SALES
The table below is a comparative summary of our net sales by
reportable segment for the three and nine months ended March 31,
2014 and 2013:
(In thousands) Three Months Ended
% Decrease Nine Months
Ended % Increase(Decrease) March
31,2014 March 31,2013
GAAP ConstantRates (f) March
31,2014 March 31,2013
GAAP ConstantRates (f)
Segment Net Sales
North America $ 121,877 $ 158,746 (23.2 )% (22.8 )% $ 616,183 $
701,380 (12.1 )% (11.8 )% International 88,964
105,738 (15.9 )% (14.3 )% 356,404
375,564 (5.1 )% (3.7 )% Total $
210,841 $ 264,484 (20.3 )% (19.4 )% $
972,587 $ 1,076,944 (9.7 )% (9.0
)%
PRODUCT CATEGORY NET SALES
The table below is a comparative summary of our net sales by
product category for the three and nine months ended March 31, 2014
and 2013:
(In
thousands) Three Months Ended % Decrease Nine
Months Ended % Increase (Decrease) March
31,2014 March 31,2013
GAAP ConstantRates (f) March
31,2014 March 31,2013
GAAP ConstantRates (f)
Product
CategoryNet Sales
Elizabeth Arden Brand
$ 85,857 $ 106,239 (19.2 )% (18.5 )% $ 348,539 $ 362,675 (3.9) %
(3.2 )%
Celebrity, Lifestyle, Designer and Other
Fragrances
124,984 158,245 (21.0 )%
(20.0 )% 624,048 714,269 (12.6 )%
(11.9 )% Total $ 210,841 $ 264,484 (20.3 )%
(19.4 )% $ 972,587 $ 1,076,944
(9.7 )% (9.0 )%
(f) 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
SUBSIDIARIESCONSOLIDATED BALANCE SHEET
DATA(Unaudited)
(In thousands)
March 31,2014 June
30,2013 March 31,2013 Cash $ 54,096
$ 61,674 $ 31,442 Accounts Receivable, Net 207,990 211,763 230,757
Inventories 362,802 310,934 326,430 Property and Equipment, Net
112,445 106,588 96,166
Exclusive Brand Licenses, Trademarks and
Intangibles, Net
285,276 296,416 301,061 Goodwill 31,607 21,054 21,054 Total Assets
1,157,954 1,103,732 1,104,335 Short-Term Debt 65,113 88,000 116,250
Current Liabilities 243,498 293,359 283,311 Long-Term Liabilities
384,666 295,091 295,612 Long-Term Debt 356,623 250,000 250,000
Redeemable Noncontrolling Interest 6,124 -- -- Shareholders' Equity
523,666 515,282 525,412 Working Capital 455,436 364,320 379,450
SUPPLEMENTARY CASH FLOW
INFORMATION(Unaudited)(In thousands)
Nine Months Ended March 31,2014
March 31,2013 Net cash used in operating
activities $ (35,062) $ (8,848 ) Net cash used in investing
activities (39,454 ) (38,456 ) Net cash provided by financing
activities 67,182 20,410 Net decrease in cash and cash equivalents
(7,578 ) (27,638 )
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 most 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
international 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; * our ability to successfully manage
our inventories; * 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, second lien
facility 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; * decisions or
actions resulting from our current reexamination of our business
and the broad restructuring and cost savings program that we are
undertaking, including the timing and amount of any costs, expenses
or charges that may be incurred as a result; * 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, 2010, 2011 and 2012, changes in tax
laws or tax rates, and our ability to utilize our deferred tax
assets and/or the establishment of valuation allowances related
thereto; * 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, including our ability to successfully and cost
effectively implement the last phase of our Oracle global
enterprise system; * our reliance on third parties for certain
outsourced business services, including information technology
operations, logistics management and employee benefit plan
administration; * the potential for significant impairment charges
relating to our trademarks, goodwill, investments in other entities
or other intangible assets that could result from a number of
factors, including such entities' business performance or 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, 2013.
Elizabeth Arden, Inc.Marcey BeckerSenior Vice President,
FinanceorInvestors/Press:Integrated Corporate RelationsAllison
Malkin/Michael Fox203-682-8200
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