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 FOURTH QUARTER AND 2003 YEAR-END RESULTS
New York, New York, March 22, 2004 -- Marisa Christina, Incorporated
(Nasdaq: MRSA) today reported results for the fourth quarter and year ended
December 31, 2003.
Net sales for the fourth quarter of 2003 were $5.0 million compared with
$6.9 million in the comparable quarter of 2002. For the year 2003, sales were
$23.4 million compared with $27.0 million in 2002.
Operating loss for 2003 was $826,000 compared with operating earnings of
$792,000 in 2002. The Company reported a loss before income tax benefit of
$641,000 for 2003 compared with earnings before income tax benefit of $1.0
million in 2002. There was a net loss of $431,000 in 2003 compared with net
earnings of $7.3 million in 2002. There was a tax benefit of $210,000 in 2003,
while annual results for 2002 were favorably impacted by a $6.3 million income
tax benefit resulting from reinstatement of net deferred tax assets that had
been reserved in prior years.
Operating expenses for the fourth quarter of 2003 were $1.9 million
compared with the fourth quarter of 2002 operating expenses of $2.0 million, a
reduction of 6.4%. Operating expenses for the year ended December 31, 2003 were
$8.0 million compared with $8.5 million in 2002, a reduction of 5.9%.
Michael H. Lerner, Chairman of Marisa Christina, Inc. commented, "While
the soft economy caused disappointing results for 2003, Marisa Christina has
positioned itself to realize a return to prosperity in 2004. We've restructured
our sales department and have a new group of highly experienced salespeople who
are focused on rebuilding the volume of our core business. Furthermore, we are
working diligently with our suppliers to improve efficiency and thereby reduce
the cost of our purchases. We've also introduced an exciting new line that we
hope will add meaningful volume to the third and fourth quarters. Our balance
sheet remains strong, which puts us in an excellent position going forward."
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"All these factors, as well as the improving economy should bring a
profitable year to Marisa Christina in 2004," he concluded.
Marisa Christina, Inc. designs, manufactures, sources and markets a broad
line of high quality "better" clothing for women and children. The Marisa
Christina label includes sweaters characterized by classic, timeless styling and
unique details.
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 DECEMBER 31, TWELVE MONTHS ENDED DECEMBER 31,
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 4,987 $ 6,922 $ 23,393 $ 26,975
Cost of goods sold 3,968 4,728 16,268 17,732
------- ------- -------- --------
Gross profit 1,019 2,194 7,125 9,243
Selling, general and administrative expenses 1,891 2,021 7,951 8,451
------- ------- -------- --------
Operating earnings (loss) (872) 173 (826) 792
Interest income (expense), net (2) 5 21 63
Other income, net 73 84 164 190
------- ------- -------- --------
Earnings (loss) before income tax benefit (801) 262 (641) 1,045
Income tax benefit 278 6,275 210 6,249
------- ------- -------- --------
Net earnings (loss) $ (523) $ 6,537 $ (431) $ 7,294
======= ======= ======== ========
Basic and diluted net earnings (loss)
per weighted average common share $ (0.07) $ 0.90 $ (0.06) $ 1.00
======= ======= ======== ========
Basic and diluted weighted average
common shares outstanding 7,295 7,295 7,295 7,295
======= ======= ======== ========
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