In Brief: Parlux Fragrances
This article was originally published in The Rose Sheet
Executive Summary
Parlux Fragrances: Retains Montgomery Securities to "explore the alternatives for increasing shareholder value," including a possible sale or merger of the company, Parlux said Nov. 26. The firm calls its sales and income record "impressive," but maintained that "Wall Street valuation of Parlux is well below standards for...companies with comparable luxury...properties" because of earnings-per-share declines. For the first six months of FY 1997 (ended Sept. 30), Parlux' eps was 25 [cents] versus 26 [cents] in the year-ago period. The Montgomery hire is a result of Parlux' board authorizing the firm to "pursue all reasonable actions to enhance shareholder value" in September ("The Rose Sheet" Sept. 16, In Brief). In May, Parlux retained Salomon Brothers to explore its "strategic advantages"; that deal ended when Parlux signed a letter of intent with Haas Wheat & Partners extending terms of its $40 mil. debenture arrangement to 20 years ("The Rose Sheet" June 3, In Brief). Those discussions were terminated June 12...