Mayors Jewelers (MYR) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED

(Amounts shown in thousands except share and per share data)

	Thirteen Weeks Ended March 26, 2005			Thirteen Weeks Ended March 26, 2005
				(as Revised)
Net sales	$	30,851		$	30,851
Cost of sales		17,470			17,470
Gross profit		13,381			13,381
Selling, general and administrative expenses (including non-cash compensation expense, net of $145)		12,214			12,730
Restructuring, asset impairments and other charges		—			(422	)
Depreciation and amortization		797			797
Total operating expenses		13,011			13,105
Operating income (loss)		370			276
Interest and other income		—			—
Interest and other financial costs		(1,133	)		(1,133	)
Net loss		(763	)		(857	)
Preferred stock cumulative dividend		(134	)		(100	)
Value of the increase in the Series A Preferred conversion ratio and the additional warrants issued to Birks		—			(17	)
Net loss attributable to common stockholders	$	(897	)	$	(974	)
Weighted average shares outstanding, basic and diluted		36,989,262			36,989,262
Loss per share, basic and diluted	$	(0.02	)	$	(0.02	)

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts shown in thousands except share and per share data)

	Fiscal Year Ended March 26, 2005			Fiscal Year Ended March 26, 2005
				(as Revised)
Net sales	$	142,710		$	142,710
Cost of sales		81,715			81,715
Gross profit		60,995			60,995
Selling, general and administrative expenses (including non-cash compensation expense, net of $103)		52,423			53,729
Restructuring, asset impairments and other charges		—			(1,212	)
Depreciation and amortization		3,289			3,289
Total operating expenses		55,712			55,806
Operating income (loss)		5,283			5,189
Interest and other income		—			—
Interest and other financial costs		(4,501	)		(4,501	)
Net income (loss)		782			688
Preferred stock cumulative dividend		(134	)		(100	)
Value of the increase in the Series A Preferred conversion ratio and the additional warrants issued to Birks		—			(17	)
Net income (loss) attributable to common stockholders	$	648		$	571
Weighted average shares outstanding:
Basic		36,968,296			36,968,296
Diluted		93,177,445			93,177,445
Income (loss) per share:
Basic	$	0.02		$	0.02
Diluted	$	0.01		$	0.01

SUPPLEMENTAL INFORMATION:

Reconciliation of Diluted Income Per

Share – Year Ended March 26, 2005:

Income (Numerator):
Net income	$	688,000
Weighted Average Shares (Denominator):
Basic		36,968,296
Diluted Options		1,572,988
Diluted Preferred Shares		51,499,525
Diluted Warrants		3,136,636
		93,177,445
Diluted Earnings Per Share:	$	0.0l

MAYOR’S JEWELERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts shown in thousands except share and per share data)

	March 26, 2005			March 26, 2005
				(as Revised)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,220		$	1,220
Accounts receivable (net of allowance for doubtful accounts of $962)		6,936			6,936
Inventories		80,439			80,439
Other current assets		632			632
Total current assets		89,227			89,227
Property, net		13,143			13,143
Other assets		416			416
Total non-current assets		13,559			13,559
Total assets	$	102,786		$	102,786
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	13,045		$	13,139
Accrued expenses		6,786			6,786
Credit facility		33,501			33,501
Total current liabilities		53,332			53,426
Term loan		12,668			12,668
Other long term liabilities		2,401			2,401
Total long term liabilities		15,069			15,069
Stockholders’ Equity:
Series A-1 convertible preferred stock, $.001 par value, 15,050 authorized, issued and outstanding.		—			—
Common stock, $.0001 par value, 50,000,000 shares authorized, 46,975,546. issued		5			5
Additional paid-in capital		207,100			207,100
Accumulated deficit		(143,320	)		(143,414	)
Less: 9,983,954 shares of treasury stock, at cost		(29,400	)		(29,400	)
Total stockholders’ equity		34,385			34,291
Total liabilities and stockholders’ equity	$	102,786		$	102,786