Elizabeth Arden, Inc. Announces First Quarter Fiscal 2013 Results

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 Goods Sold			1,531					1,343
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 Expenses			129,407					118,447
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.

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