SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(MARK ONE)

☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2021.

☐	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___________to ________.

Commission File No. 0-16469

INTER PARFUMS, INC.

(Exact name of registrant as specified in its charter)

Delaware		13-3275609
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

551 Fifth Avenue, New York, New York 10176

(Address of Principal Executive Offices) (Zip Code)

(212) 983-2640

(Registrants telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.001 par value per share		IPAR		The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act).

Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	Smaller reporting company ☐
	Emerging Growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

At November 8, 2021, there were 31,733,880 shares of common stock, par value $.001 per share, outstanding.

INTER PARFUMS, INC. AND SUBSIDIARIES

INDEX

		Page Number

Part I.	Financial Information	1

	Item 1. Financial Statements

	Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	2

	Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2021 and September 30, 2020	3

	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2021 and September 30, 2020	4

	Consolidated Statements of Changes in Equity for the Nine Months Ended September 30, 2021 and September 30, 2020	5

	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and September 30, 2020	6

	Notes to Consolidated Financial Statements	7

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	29

	Item 4. Controls and Procedures	30

Part II.	Other Information	30

	Item 6. Exhibits	30

Signatures		31

INTER PARFUMS, INC. AND SUBSIDIARIES

Part I. Financial Information

Item 1. Financial Statements

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, 2020, included in our annual report filed on Form 10-K.

The results of operations for the nine months ended September 30, 2021, 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
	September 30, 2021			December 31, 2020
Current assets:
Cash and cash equivalents	$	174,848		$	169,681
Short-term investments		149,192			126,627
Accounts receivable, net		193,868			124,057
Inventories		156,025			158,822
Receivables, other		3,951			1,815
Other current assets		24,626			16,912
Income taxes receivable		1,448			2,806
Total current assets		703,958			600,720
Buildings, equipment and leasehold improvements, net		142,823			19,580
Right-of-use assets, net		31,428			24,734
Trademarks, licenses and other intangible assets, net		203,961			214,108
Deferred tax assets		6,916			8,041
Other assets		37,465			22,962
Total assets	$	1,126,551		$	890,145

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	15,025		$	14,570
Current portion of lease liabilities		6,128			5,133
Accounts payable – trade		46,874			35,576
Accrued expenses		117,775			95,629
Income taxes payable		26,547			5,297
Total current liabilities		212,349			156,205

Long–term debt, less current portion		126,636			10,136

Lease liabilities, less current portion		27,771			21,354

Equity:
Inter Parfums, Inc. shareholders’ equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued		—			—
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,722,300 and 31,608,588 shares at September 30, 2021 and December 31, 2020, respectively		32			32
Additional paid-in capital		83,070			75,708
Retained earnings		569,354			503,567
Accumulated other comprehensive loss		(29,322	)		(5,997	)
Treasury stock, at cost, 9,864,805 shares at September 30, 2021 and December 31, 2020		(37,475	)		(37,475	)
Total Inter Parfums, Inc. shareholders’ equity		585,659			535,835
Noncontrolling interest		174,136			166,615
Total equity		759,795			702,450
Total liabilities and equity	$	1,126,551		$	890,145

See notes to consolidated financial statements.

Page 2

INTER PARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data)

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020

Net sales	$	262,696		$	160,637		$	668,797		$	354,967

Cost of sales		95,269			63,439			243,772			141,883

Gross margin		167,427			97,198			425,025			213,084

Selling, general and administrative expenses		99,788			65,841			262,379			169,471

Impairment loss		—			—			2,393			—

Income from operations		67,639			31,357			160,253			43,613

Other expenses (income):
Interest expense		1,697			148			3,344			1,510
(Gain) loss on foreign currency		(613	)		891			(2,169	)		(76	)
Interest income		(233	)		(393	)		(1,388	)		(2,154	)
Other income expense		(36	)		—			(135	)		—

Other expenses (income)		815			646			(348	)		(720	)

Income before income taxes		66,824			30,711			160,601			44,333

Income taxes		16,997			8,859			45,112			12,165

Net income		49,827			21,852			115,489			32,168

Less: Net income attributable to the noncontrolling interest		11,511			5,314			26,854			8,688

Net income attributable to Inter Parfums, Inc.	$	38,316		$	16,538		$	88,635		$	23,480

Earnings per share:

Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$	1.21		$	0.52		$	2.80		$	0.74
Diluted	$	1.20		$	0.52		$	2.79		$	0.74

Weighted average number of shares outstanding:
Basic		31,659			31,533			31,648			31,531
Diluted		31,807			31,619			31,793			31,651

Dividends declared per share	$	0.25			—		$	0.75		$	0.33

See notes to consolidated financial statements.

Page 3

INTER PARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
Comprehensive income:

Net income	$	49,827		$	21,852	$	115,489		$	32,168

Other comprehensive income:

Net derivative instrument (loss), net of tax		(609	)		—		(703	)		(19	)

Transfer from OCI into earnings		—			—		—			(52	)

Translation adjustments, net of tax		(15,396	)		22,604		(33,203	)		21,770

Comprehensive income		33,822			44,456		81,583			53,867

Comprehensive income attributable to the noncontrolling interests:

Net income		11,511			5,314		26,854			8,688

Other comprehensive income (loss):

Net derivative instrument (loss), net of tax		(166	)		—		(192	)		(19	)

Translation adjustments, net of tax		(3,974	)		6,596		(10,389	)		6,423

Comprehensive income attributable to the noncontrolling interests		7,371			11,910		16,273			15,092

Comprehensive income attributable to Inter Parfums, Inc.	$	26,451		$	32,546	$	65,310		$	38,775

See notes to consolidated financial statements.

Page 4

INTER PARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands)
(Unaudited)

	Nine months ended September 30,
	2021			2020

Common stock, beginning and end of period	$	32		$	31
Shares issued upon exercise of stock options		—			1
Common stock, end of period		32			32

Additional paid-in capital, beginning of period		75,708			70,664
Shares issued upon exercise of stock options		1,727			796
Share-based compensation		1,175			1,283
Shares issued for license acquisition		5,000			—
Transfer of subsidiary shares purchased		(540	)		525
Additional paid-in capital, end of period		83,070			73,268

Retained earnings, beginning of period		503,567			474,637
Net income		88,635			23,480
Dividends		(23,740	)		(10,406	)
Share-based compensation (adjustment)		892			482
Retained earnings, end of period		569,354			488,193

Accumulated other comprehensive loss, beginning of period		(5,997	)		(39,853	)
Foreign currency translation adjustment, net of tax		(22,814	)		15,347
Transfer from other comprehensive income into earnings		—			(52	)
Net derivative instrument loss, net of tax		(511	)		—
Accumulated other comprehensive loss, end of period		(29,322	)		(24,558	)

Treasury stock, beginning and end of period		(37,475	)		(37,475	)
Net income		-			-
		(37,475)			(37,475)

Noncontrolling interest, beginning of period		166,615			140,994
Net income

SEC Form 10-Q filed by Inter Parfums, Inc.