EXHIBIT 99.1
NEWS RELEASE
FOR: Marisa Christina, Incorporated
CONTACT: Michael Lerner
Chairman and Chief Executive Officer
(212) 221-5770
S.E. Melvin Hecht
Vice-Chairman and Chief Financial Officer
(201) 758-9800
FOR IMMEDIATE RELEASE
MARISA CHRISTINA REPORTS FIRST QUARTER 2003 RESULTS
New York, New York, May 13, 2003 -- Marisa Christina, Incorporated (Nasdaq:
MRSA) today reported results for the first quarter ended March 31, 2003.
Net sales for the 2003 first quarter were $5.3 million compared with $6.3
million in the first quarter of 2002, a 15.3% decrease, primarily due to a
continued softening in the economy resulting in lower customer bookings for the
first half of the year.
Gross profit for the first quarter of 2003 was $1.8 million, compared with
the first quarter of 2002, when the gross profit was $2.3 million. Gross profit
as a percent of net sales decreased from 36.4% in the first quarter of 2002 to
33.5% in the first quarter of 2003.
The first quarter of 2003 showed a net loss of $287 thousand compared to
the first quarter of 2002, net income of $249 thousand.
Michael H. Lerner, Chairman of Marisa Christina, Inc. had these comments,
"The first quarter results are in line with our projections. We expected that
our first quarter sales volume would be lower than the prior year, due to a soft
economy and cautious retailers. We put in place a very specific marketing plan
designed to increase our customers' awareness of all Marisa Christina has to
offer. This resulted in a higher percentage of operating expense for the first
quarter, but we feel that our sales volume for the second half of 2003 will
bring our top line equal to the level in 2002. We fully expect to have operating
profit for the year 2003, which should exceed 2002."
Marisa Christina, Inc. designs, manufactures, sources and markets a broad
line of high quality "better" clothing for women. The Marisa Christina label
includes sweaters characterized by classic, timeless styling and unique details.
Excerpts for historical information contained herein, the statements in
this release are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among others, risks
associated with the success of future advertising and marketing programs, the
receipt and timing of future customer orders, price pressures and other
competitive factors and a softening of retailer or consumer acceptance of the
Company's products leading to a decrease in anticipated revenues and gross
profit margins. Those and other risks are described in the Company's filings
with the Securities and Exchange Commission (SEC), copies of which are available
from the SEC or may be obtained upon request from the Company.
-- Financial Table Follows --
MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31, 2003 and 2002
(In thousands, except per share amounts)
(Unaudited)
2003 2002
--------- ---------
Net sales $ 5,307 6,264
Cost of goods sold 3,530 3,981
--------- ---------
Gross profit 1,777 2,283
Selling, general and administrative expenses 2,121 2,070
--------- ---------
Operating income (loss) (344) 213
Interest income, net 12 18
Other income, net 13 21
--------- ---------
Income (loss) before income tax expense (benefit) (319) 252
Income tax expense (benefit) (32) 3
--------- ---------
Net income (loss) $ (287) 249
Basic and diluted net income (loss) per weighted average
common share $ (0.04) 0.03
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Weighted average common shares outstanding 7,295 7,295
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