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 SECOND QUARTER 2003 RESULTS
New York, New York, August 8, 2003 -- Marisa Christina, Incorporated
(Nasdaq: MRSA) today reported results for the quarter and six months ended June
30, 2003.
Net sales for the 2003 second quarter were $2.8 million compared with $3.3
million in the second quarter of 2002, a 15.6 % 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 second quarter of 2003 was $405,000 compared with the
second quarter of 2002, when the gross profit was $355,000. Gross profit as a
percent of net sales increased from 10.9% in the second quarter of 2002 to 14.7
% in the second quarter of 2003.
The second quarter of 2003 showed a net loss of $706,000 compared to the
second quarter of 2002 net loss of $1.4 million. For the first six months of
2003 the net loss was $993,000 compared with a $1.1 million net loss in the
first half of 2002, an 11.3% improvement.
Michael H. Lerner, Chairman of Marisa Christina, Inc. had these comments,
"The second quarter is historically the weakest and we fully expected this loss.
We knew that our first six months sales volume would be lower than the previous
year, due to the state of the economy and careful retailers. Our sales volume
for the second half of 2003 will bring our top line equal to the level in 2002.
We anticipate an operating profit for the year 2003, which should equal or
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.
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Except 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-
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MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2003 2002 2003 2002
------- ------ ------- ------
Net sales $ 2,752 3,260 $ 8,059 9,524
Cost of goods sold 2,347 2,905 5,877 6,887
------- ------ ------- ------
Gross profit 405 355 2,182 2,637
Selling, general and administrative expenses 1,654 1,812 3,775 3,881
------- ------ ------- ------
Operating loss (1,249) (1,457) (1,593) (1,244)
Interest income, net 10 22 22 40
Other income, net 63 67 76 87
------- ------ ------- ------
Loss before income tax expense (benefit) (1,176) (1,368) (1,495) (1,117)
Income tax expense (benefit) (470) -- (502) 3
------- ------ ------- ------
Net loss $ (706) (1,368) $ (993) (1,120)
Basic and diluted net loss per weighted average ======= ======= ======== =======
common share $ (0.10) (0.19) $ (0.14) (0.15)
======= ====== ======= ======
Weighted average common shares outstanding 7,295 7,295 7,295 7,295
======= ====== ======= ======
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