Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 14

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 14
---
 nine months ended September 30, 2025, working capital items used $133.9 million in cash from operating activities, as compared to $147.0 million in the 2024 period. From a cash flow perspective, accounts receivables are up 23% from year end 2024. The balance is reasonable based on third quarter 2025 sales levels and seasonality of the business. Days' sales outstanding increased to 89 days, up from 83 days in the corresponding period of the prior year, driven by changes in our channel mix. Despite the increase, we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of September 30, 2025 decreased 5% from year end 2024 as we continue to drive inventory efficiencies. We are doing this by increasing conversion of raw materials into finished goods, resulting in finished goods making up 68% of our inventory levels at September 30, 2025 as compared to 63% at September 30, 2024. 

Cash flows provided by investing activities in 2025 are comprised of the net effect of purchases and sales of short-term investments. These investments consist of certificates of deposit with maturities greater than six months, marketable equity securities and other contracts. At September 30, 2025, approximately $2.3 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.

These proceeds were offset by the payment for capital expenditures during the year. In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal trademark. Additionally, during the second and third quarters the Company purchased approximately $18.2 million of additional property in Paris attached to its French headquarters. 

Our business is not capital intensive as we do not own any manufacturing facilities. On a full year basis, we typically spend approximately $5 million on tools and molds, depending on our new product development calendar. Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.

Cash flows used in financing activities in 2025 reflect issuances and repayments of debt to institutional lenders and payment of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at September 30, 2025, and by short-term credit lines provided