|
Six Months Ended
June 30,
|
|
2003 |
|
2002 |
|
|
|
|
| Reported net income |
$ 5,439,748 |
|
$ 3,936,190 |
Stock-based employee compensation expense included in
reported net income, net of related tax effect |
0 |
|
0 |
Stock-based employee compensation determined under the
fair
value based method, net of tax effect |
(21,691) |
|
(12,399) |
|
|
|
|
Pro forma net income |
$
5,418,057 |
|
$ 3,923,791 |
|
|
|
|
| Income per share, as reported: |
|
|
|
| Basic |
$ 0.29 |
|
$ 0.21 |
| Diluted |
$ 0.27 |
|
$ 0.20 |
|
|
|
|
| Pro forma net income per share: |
|
|
|
| Basic |
$ 0.29 |
|
$ 0.21 |
| Diluted |
$ 0.27 |
|
$ 0.20 |
Page 6
INTER PARFUMS, INC . AND SUBSIDIARIES
6. Stock-based Compensation (continued):
The weighted average fair values of the options granted during 2003 and 2002 are estimated as
$2.07 and $2.30 per share, respectively, on the date of grant using the Black-Scholes option
pricing model with the following assumptions: dividend yield 1.0% in 2003 and 0.8% in 2002;
volatility of 50% in both 2003 and 2002; risk-free interest rates at the date of grant, 1.70% in
2003 and 3.11% in 2002; and an expected life of the option of two years.
7. Shareholders Equity:
In April 2003, the Chief Executive Officer exercised 67,500 outstanding stock options of the
Company's common stock. The aggregate exercise price of $232,475 was paid by him tendering
to the Company 33,692 shares of the Company's common stock, previously owned by him,
valued at $6.90 per share, the fair market value on the date of exercise. All shares issued
pursuant to the option exercises were issued from treasury stock of the Company. In addition,
the Chief Executive Officer tendered an additional 9,298 shares for payment of withholding taxes
resulting from the option exercises. As a result of this transaction, the Company expects to
receive a tax benefit of approximately $80,000, which will be reflected as an increase to
additional paid-in capital in the Company's financial statements.
Page 7
INTER PARFUMS, INC . AND SUBSIDIARIES
Item 2: MANAGEMENTS'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
We are a leading manufacturer and distributor of fragrances, cosmetics and health and beauty
aids. We combine innovation and creativity to produce quality products for our customers
around the world.
We operate in the fragrance and cosmetic industry, specializing in prestige perfumes and cosmetics
and mass market perfumes, cosmetics and health and beauty aids:
* Prestige products -- for each prestige brand, owned or licensed by us, we create an original
concept for the perfume consistent with world market trends;
* Mass market products -- we design, market and distribute inexpensive fragrances and
personal care products including alternative designer fragrances, mass market cosmetics and
health and beauty aids.
Forward Looking
Information
Statements in this document, which are not historical in nature, are forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results to be materially different from projected results. Given these
risks, uncertainties and other factors, persons are cautioned not to place undue reliance on the
forward-looking statements.
Such factors include effectiveness of sales and marketing efforts and product acceptance by
consumers, dependence upon management, competition, currency fluctuation and international tariff
and trade barriers, governmental regulation and possible liability for improper comparative
advertising or "Trade Dress".
Related Party Transactions
We operate under various license agreements, including two licenses that are with affiliates of our
strategic partner, LV Capital USA, Inc. ("LV Capital"), a wholly-owned subsidiary of LVMH Moët
Hennessy Louis Vuitton S.A. In May 2000 we entered into an exclusive worldwide license for
prestige fragrances for the Celine brand, and in March 1999 we entered into an exclusive worldwide
license for Christian Lacroix fragrances. Both licenses are subject to certain minimum sales
requirements, advertising expenditures and royalty payments as are customary in our industry.
Three and Six Months Ended June 30, 2003 as Compared to the Three and
Six
Months Ended June 30, 2002
Net sales for the three months ended June 30, 2003 increased 51% to a record $41.4 million, as
compared to $27.4 million for the corresponding period of the prior year. At comparable foreign
currency exchange rates, net sales increased 38% for the period.
Page 8
INTER PARFUMS, INC . AND SUBSIDIARIES
Net sales for the six months ended June 30, 2003 increased 41% to a record $79.0 million, as
compared to $55.9 million for the corresponding period of the prior year. At comparable foreign
currency exchange rates, net sales increased 28% for the period. The increase in net sales is
attributable to increases in both our prestige and mass market product lines.
Prestige product sales were up 64% (45% in constant dollars) for the three months ended
June 30, 2003 and 50% (31% in constant dollars) for the six months ended June 30, 2003, as
compared to the 2002 period. The strong growth achieved in the second half of 2002 continued
through the first half of 2003. For the three months ended June 30, 2003 Burberry, S.T. Dupont
and Paul Smith fragrance products were responsible for the dramatic rise in second quarter
prestige product sales. Also contributing to our growth were two new product launches, both
seasonal scents, one by Celine and another by Christian Lacroix.
We are eagerly anticipating our two major upcoming launches where we plan to unveil a
completely new Burberry fragrance line and a fragrance and beauty line under the Diane von
Furstenberg label. Later this year, the international launch of Burberry Brit begins. This will be
our fourth Burberry fragrance family since our 1995 introduction of Burberry London. We have
high expectations for this new women's line which should play a strategic role in the future
development of the Burberry fragrance business.
In terms of fashion industry recognition, Diane is a rising star, who has been instrumental in the
early success we are enjoying in the reception of her beauty line. The official launch in mid-September at Henri Bendel will be followed by the addition of certain Saks Fifth Avenue and
Nordstrom locations. Total US distribution will be limited to 35 of the finest specialty stores in
the country.
Our mass market product line sales were up 21% for both the three and six months ended June 30,
2003, as compared to the 2002 periods. We continue to see growth in our fragrances lines as a result
of our acquisition of certain fragrance brands from Tristar Corporation ("Tristar"), a Debtor-in-possession in a Chapter 11 proceeding. In May 2002, we purchased trademarks and related
intellectual property of certain brands and acquired certain existing inventory. Tristar was one of
our most significant competitors in mass market fragrances and the brands acquired are being sold
in the same distribution channels as that of our other mass market fragrance lines. New product line
extensions and an expanding distribution network continue to benefit sales volume in our Intimate
health and beauty aids and our Aziza cosmetics lines.
Our new product development program for all three of our mass market product groups is well
under way, and we expect to roll out new mass market products throughout 2003. In addition,
we are actively pursuing other new business opportunities. However, we cannot assure you that
any new license or acquisitions will be consummated.
Gross profit margins were 50% and 49% for the three and six months ended June 30, 2003,
respectively, as compared to 47% for both of the 2002 periods. The effect of the declining rate of
the dollar relative to the Euro puts pressure on our gross margins. This effect was mitigated
during the three and six months ended June 30, 2003 by raising selling prices and as a result of
our product sales mix. Gross profit margins remain well ahead of our target rates of 45% to
46%.
Page 9
INTER PARFUMS, INC . AND SUBSIDIARIES
Selling, general and administrative expenses aggregated $14.9 million for the three months ended
June 30, 2003, as compared to $9.2 million for the corresponding period of the prior year.
Selling, general and administrative expenses aggregated $28.1 million for the six months ended
June 30, 2003, as compared to $19.1 million for the corresponding period of the prior year. As a
percentage of sales, selling, general and administrative expenses were 36% for the three and six
months ended June 30, 2003, as compared to 34% for the 2002 periods.
Our mass market sales do not require extensive advertising and therefore, more of our selling,
general and administrative expenses are fixed rather than variable. As a result, the increase in
mass market sales enables us to spread our fixed costs over a larger net sales base. On the other
hand, promotion and advertising are prerequisites for sales of designer products. We develop a
complete marketing and promotional program to support our growing portfolio of prestige
fragrance brands and to build upon each brand's awareness. In addition, recent increases in
certain fixed costs, including insurance, rent and wages, is expected to cause a slight rise in
selling, general and administrative expenses as a percentage of sales throughout 2003.
Interest expense was $31,000 and $167,000 for the three and six months ended June 30, 2003, as
compared to $169,000 and $249,000 for the corresponding periods of the prior year. We use the
credit lines available to us, as needed, to finance our working capital needs.
We recorded a loss on foreign currency of $200,000 and $145,000 for the three and six months
ended June 30, 2003, as compared to a loss $58,000 and $57,000 for the corresponding periods of
the prior year. Occasionally, we enter into foreign currency forward exchange contracts to manage
exposure related to certain foreign currency commitments.
Our effective income tax rate was 34% for the three months ended June 30, 2003, as compared to
35% for the corresponding period of the prior year. Our effective income tax rate was 35% for
the six months ended June 30, 2003, as compared to 36% for the corresponding period of the
prior year. The small decline in our effective tax rate is the result of slightly lower foreign tax
rates.
Net income increased 52% to $2.9 million for the three months ended June 30, 2003, as
compared to $1.9 for the corresponding period of the prior year. Net income increased 38% to
$5.4 million for the six months ended June 30, 2003, as compared to $3.9 for the corresponding
period of the prior year.
Diluted earnings per share increased 50% to $0.15 for the three months ended June 30, 2003, as
compared to $0.10 for the corresponding period of the prior year. Diluted earnings per share
increased 35% to $0.27 for the six months ended June 30, 2003, as compared to $0.20 for the
corresponding period of the prior year.
Weighted average shares outstanding aggregated 19.0 million for both the three and six month
periods ended June 30, 2003, as compared to 18.8 million for both the three and six month
periods ended June 30, 2002. On a diluted basis, average shares outstanding were 19.9 million
for both the three and six month periods ended June 30, 2003, as compared to 20.0 million for
both the three and six month periods ended June 30, 2002, respectively.
Page 10
INTER PARFUMS, INC . AND SUBSIDIARIES
Liquidity and Capital Resources
Profitable operating results continue to strengthen our financial position. At June 30, 2003, working
capital aggregated $95 million and we had a working capital ratio of 2.9 to 1. Cash and cash
equivalents aggregated $44 million and our net book value was $4.74 per outstanding share as of
June 30, 2003. Furthermore, we had no long-term debt.
Our short-term financing requirements are expected to be met by available cash at June 30, 2003,
cash generated by operations and short-term credit lines provided by domestic and foreign banks.
The principal credit facilities for 2003 are a $12.0 million unsecured revolving line of credit
provided by a domestic commercial bank and approximately $12.0 million in credit lines provided
by a consortium of international financial institutions.
Cash provided by operating activities aggregated $3.7 million for the six months ended June 30,
2003 as compared to $1.0 million for the corresponding period of the prior year. In constant dollars,
accounts receivable and inventories were up 11% and 38%, respectively, as compared to December
31, 2002. These increases are very reasonable considering the 28% constant dollar sales increase
for the period and the inventory buildup needed for our upcoming Burberry fragrance and Diane von
Furstenberg beauty launches. Cash provided by operating activities continues to be the primary
source of funds to finance operating needs and investments in new ventures.
Commencing in March 2002, our Board of Directors authorized our first cash dividend of $.06
per share, approximately $1.1 million per annum, payable $.015 per share quarterly. In March
2003, our board of directors increased the cash dividend to $.08 per share, approximately $1.5
million per annum, payable $.02 per share on a quarterly basis. This increased cash dividend
represents a small part of our cash position and is not expected to have any significant impact on
our financial position.
We believe that funds generated from operations, supplemented by our present cash position and
available credit facilities, will provide us with sufficient resources to meet all present and reasonably
foreseeable future operating needs.
Inflation rates in the U.S. and foreign countries in which we operate have not had a significant
impact on operating results for the three months ended June 30, 2003.
Discussion of Critical Accounting Policies
We make estimates and assumptions in the preparation of our financial statements in conformity
with accounting principles generally accepted in the United States of America. Actual results could
differ significantly from those estimates under different assumptions and conditions. We believe that
the following discussion addresses our most critical accounting policies, which are those that are
most important to the portrayal of our financial condition and results of operations and which require
our management's most difficult and subjective judgments, often as a result of the need to make
estimates about the effect of matters that are inherently uncertain. The following is a brief discussion
of the more critical accounting policies that we employ.
Page 11
INTER PARFUMS, INC . AND SUBSIDIARIES
Revenue Recognition
We sell our products to department stores, perfumeries, mass market retailers, supermarkets and
domestic and international wholesalers and distributors. Sales of such products by domestic
subsidiaries are denominated in U.S. dollars and sales of such products by foreign subsidiaries are primarily denominated in either Euros or U.S. dollars. Accounts receivable reflect the granting
of credit to these customers. We generally grant credit based upon analysis of the customer's financial position and previously established buying patterns. We do not generally bill
customers for shipping and handling costs and, accordingly, classify such costs as selling and
administrative expenses. Revenues are recognized when merchandise is shipped and the risk of loss
passes to the customer. Net sales are comprised of gross revenues less returns and trade discounts
and allowances.
We do not generally allow customers to return their unsold products. However, on a case-by-case
basis we occasionally allow customer returns. We regularly review and revise, as deemed necessary,
our estimate of reserves for future sales returns based primarily upon historic trends and relevant
current data. We record estimated reserves for sales returns as a reduction of sales, cost of sales and
accounts receivable. Returned products are recorded as inventories and are valued based on
estimated realizable value. The physical condition and marketability of returned products are the
major factors we consider in estimating realizable value. Actual returns, as well as estimated
realizable values of returned products, may differ significantly, either favorably or unfavorably, from
estimates if factors such as economic conditions, inventory levels or competitive conditions differ
from expectations.
Promotional Allowances
We have various performance-based arrangements with retailers to reimburse them for all or a
portion of their promotional activities related to our products. These arrangements primarily allow
customers to take deductions against amounts owed to us for product purchases.
Estimated accruals for promotions and co-operative advertising programs are recorded in the period
in which the related revenue is recognized. We review and revise the estimated accruals for the
projected costs for these promotions. Actual costs incurred may differ significantly, either favorably
or unfavorably, from estimates if factors such as the level and success of the retailers' programs or
other conditions differ from our expectations.
Inventories
Inventories are stated at the lower of cost or market value. Cost is principally determined by the first-in, first-out method. We record adjustments to the cost of inventories based upon our sales forecast
and the physical condition of the inventories. These adjustments are estimates, which could vary
significantly, either favorably or unfavorably, from actual requirements if future economic conditions
or competitive conditions differ from our expectations.
Page 12
INTER PARFUMS, INC . AND SUBSIDIARIES
Equipment
Equipment, which includes tools and molds, is recorded at cost and is depreciated on a straight-line
basis over the estimated useful lives of such assets. Changes in circumstances such as technological
advances, changes to our business model or changes in our capital spending strategy can result in the
actual useful lives differing from our estimates. In those cases where we determine that the useful
life of equipment should be shortened, we would depreciate the net book value in excess of the
salvage value, over its revised remaining useful life, thereby increasing depreciation expense. Factors
such as changes in the planned use of equipment could result in shortened useful lives.
Other Long-Lived Assets
Long-lived assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of any such asset may not be recoverable. If the sum of the
undiscounted cash flows (excluding interest) is less than the carrying value, we recognize an
impairment loss, measured as the amount by which the carrying value exceeds the fair value of
the asset. The estimate of undiscounted cash flow is based upon, among other things, certain
assumptions about expected future operating performance. Our estimates of undiscounted cash
flow may differ from actual cash flow due to, among other things, economic conditions, changes
to our business model or changes in consumer acceptance of our products. In those cases where
we determine that the useful life of other long-lived assets should be shortened, we would
depreciate the net book value in excess of the salvage value (after testing for impairment as
described above), over the revised remaining useful life of such asset thereby increasing
amortization expense.
Page 13
INTER PARFUMS, INC . AND SUBSIDIARIES
Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
General
We address certain financial exposures through a controlled program of risk management that
primarily consists of the use of derivative financial instruments. We primarily enter into foreign
currency forward exchange contracts in order to reduce the effects of fluctuating foreign currency
exchange rates. We do not engage in the trading of foreign currency forward exchange contracts
or interest rate swaps.
Foreign Exchange Risk Management
We periodically enter into foreign currency forward exchange contracts to hedge exposure related
to receivables denominated in a foreign currency and to manage risks related to future sales expected
to be denominated in a foreign currency. We enter into these exchange contracts for periods
consistent with our identified exposures. The purpose of the hedging activities is to minimize the
effect of foreign exchange rate movements on the receivables and cash flows of Inter Parfums, S.A.,
our French subsidiary, whose functional currency is the Euro. All foreign currency contracts are
denominated in currencies of major industrial countries and are with large financial institutions,
which are rated as strong investment grade.
All derivative instruments are required to be reflected as either assets or liabilities in the balance
sheet measured at fair value. Generally, increases or decreases in fair value of derivative instruments
will be recognized as gains or losses in earnings in the period of change. If the derivative is
designated and qualifies as a cash flow hedge, the changes in fair value of the derivative instrument
will be recorded in other comprehensive income.
Before entering into a derivative transaction for hedging purposes, we determine that the change in
the value of the derivative will effectively offset the change in the fair value of the hedged item from
a movement in foreign currency rates. Then, we measure the effectiveness of each hedge throughout
the hedged period. Any hedge ineffectiveness is recognized in the income statement.
We believe that our risk of loss as the result of nonperformance by any of such financial
institutions is remote and in any event would not be material. The contracts have varying
maturities with none exceeding one year. Costs associated with entering into such contracts have
not been material to our financial results. At June 30, 2003, we had foreign currency contracts in
the form of forward exchange contracts in the amount of approximately U.S. $5.5 million and
GB Pounds 2.1 million.
Page 14
INTER PARFUMS, INC . AND SUBSIDIARIES
Item 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our Chief Executive Officer and Chief Financial Officer have reviewed and evaluated the
effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange
Act of 1934 Rule 13a-14(c)) as of the end of the period covered by this quarterly report on Form
10-Q (the "Evaluation Date"). Based on their review and evaluation, our Chief Executive
Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, our
Company's disclosure controls and procedures were adequate and effective to ensure that
material information relating to our Company and its consolidated subsidiaries would be made
known to them by others within those entities, so that such material information is recorded,
processed and reported in a timely manner, particularly during the period in which this quarterly
report on Form 10-Q was being prepared, and that no changes were required at this time.
Changes in Internal Controls
There were no significant changes in our Company's internal controls or in other factors that
could significantly affect our internal controls after the Evaluation Date, or any significant
deficiencies or material weaknesses in such internal controls requiring corrective actions. As a
result, no corrective actions were taken.
Page 15
INTER PARFUMS, INC . AND SUBSIDIARIES
Part II. Other Information
Items 1 and 3 are omitted as they are either not applicable or have been
included in Part I.
Item 2. Changes in Securities and Use of Proceeds
The information contained in note 7 at page 7 relating to the exercise of an outstanding stock option
is incorporated by reference herein. The transaction was exempt from the registration requirements
of Section 5 of the Securities Act under Sections 4(2) and 4(6) of the Securities Act. The option
holder agreed to purchase the common stock for investment and not for resale to the public.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Stockholders of Inter Parfums, Inc. was held on 8 August 2003 at 10:00
a.m., local time, at the offices of the Company, 551 Fifth Avenue, New York, New York 10176.
(b) The following individuals were nominated for election as members of the Board of Directors to
hold office for a term of one (1) year until the next annual meeting of stockholders and until their
successors are elected and qualify: Jean Madar, Philippe Benacin, Russell Greenberg, Francois
Heilbronn, Joseph A. Caccamo, Jean Levy, Robert Bensoussan-Torres, Daniel Piette, Jean Cailliau,
Philippe Santi and Serge Rosinoer.
The results of the voting were as set forth below. A plurality of the votes having been cast in
favor of each of the above-named Directors, they were duly elected to serve a one (1) year term.
Nominee
|
Votes For |
Votes Withheld |
| Jean Madar |
17,274,479 |
553,156 |
| Philippe Benacin |
17,274,479 |
553,156 |
| Russell Greenberg |
17,274,479 |
553,156 |
| Francois Heilbronn |
17,389,754 |
437,881 |
| Joseph A. Caccamo |
17,287,979 |
539,656 |
| Jean Levy |
17,389,754 |
437,881 |
| Robert Bensoussan-Torres |
17,389,754 |
437,881 |
| Daniel Piette |
17,389,754 |
437,881 |
| Jean Cailliau |
17,389,754 |
437,881 |
| Philippe Santi |
17,274,479 |
553,156 |
| Serge Rosinoer |
17,389,754 |
437,881 |
Item 5. Other Information
In accordance with Section 10A(i)(2) of the Securities Exchange Act of 1934, as added by
Section 202 of the Sarbanes-Oxley Act of 2002, our Company is responsible for disclosing the
"non-audit services" to be performed by our auditors that were approved by our Company's
Audit Committee during the quarterly period covered by this report. Non-audit services are
defined in the law as services other than those provided in connection with an audit or a review
of the financial statements of the Company.
Page 16
INTER PARFUMS, INC . AND SUBSIDIARIES
During the quarterly period covered by this report, the Audit Committee did not authorize any non-audit services to be performed by our auditors.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
The following documents are filed herewith:
Exhibit No.
|
Description |
Edgar Page
Number |
| 31 |
Certifications required by Rule 13a-14(a) |
|
| |
| 32 |
Certification Required by Section 906 of the Sarbanes-Oxley Act |
|
(b) We filed the following Current Reports on Form 8-K:
(1) Date of event - May 6, 2003, reporting Items 7 and 12;
(2) Date of event - July 10, 2003, reporting Items 7 and 12 and
(3) Date of event - August 6, 2003, reporting Items 7 and 12.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized on the 13 day of
August 2003.
|
By: |
INTER PARFUMS, INC.
/s/ Russell Greenberg
Executive Vice President and
Chief Financial Officer
|
Page 17
INTER PARFUMS, INC . AND SUBSIDIARIES
Exhibit 31
CERTIFICATIONS
I, Jean Madar, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Inter Parfums, Inc.
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be
designed under our supervision to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared;
b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent function):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrant's internal control over financial reporting.
Date: August 13, 2003
/s/ Jean Madar
Jean Madar
Chief Executive Officer
Page 18
INTER PARFUMS, INC . AND SUBSIDIARIES
CERTIFICATIONS
I, Russell Greenberg, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Inter Parfums, Inc.
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be
designed under our supervision to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared;
b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent function):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and
report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrant's internal control over financial reporting.
Date: August 13, 2003
/s/ Russell Greenberg
Russell Greenberg
Chief Financial Officer
Page 19
INTER PARFUMS, INC . AND SUBSIDIARIES
Exhibit 32
CERTIFICATION
Each of the undersigned hereby certifies, in accordance with 18 U.S.C. 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as an officer of Inter Parfums, Inc., that
the Quarterly Report of Inter Parfums, Inc. on Form 10-Q for the period ended June 30, 2003, fully
complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the
information contained in such report fairly presents, in all material respects, the financial condition and
results of operation of Inter Parfums, Inc.
| Date: August 13,2003 |
By: |
/s/Jean Madar
Jean Madar
Chief Executive Officer |
| Date: August 13, 2003 |
By: |
/s/Russell Greenberg
Russell Greenberg
Executive Vice President,
Chief Financial Officer and
Principal Accounting Officer |
A signed original of this written statement required by Section 906 has been provided to Inter
Parfums, Inc. and will be retained by Inter Parfums, Inc. and furnished to the Securities and Exchange
Commission or its staff upon request.
Page 20