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 2004 RESULTS
New York, New York, August 9, 2004 -- Marisa Christina, Incorporated
(Nasdaq: MRSA) today reported results for the quarter and six months ended June
30, 2004.
Net sales for the second quarter of 2004 were $2.5 million compared with
$2.8 million in the second quarter of 2003, a 9.2 % decrease, primarily due to
timing differences, whereby some sales were shipped in the first quarter of
2004. Net sales were level at $8.1 million for the six months ended June 30,
2004 and 2003.
Gross profit for the second quarter of 2004 was $238,000 compared with the
second quarter of 2003, when the gross profit was $405,000.
Operating expenses for the second quarter of 2004 were $1.5 million
compared with $1.7 million in the second quarter of 2003, a reduction of 11%.
The second quarter of 2004 showed a net loss of $748,000 compared to the
second quarter of 2003 net loss of $706,000. For the first six months of 2004
and 2003 the net loss was $1.0 million.
Michael H. Lerner, Chairman of Marisa Christina, Inc. had these comments,
"We fully expected this loss since the second quarter is historically the
weakest. Our sales volume for the first half of 2004 is level with the previous
year, as anticipated."
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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.
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
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2004 2003 2004 2003
------- ------- ------- -------
Net sales $ 2,498 $ 2,752 $ 8,119 $ 8,059
Cost of goods sold 2,260 2,347 6,458 5,877
------- ------- ------- -------
Gross profit 238 405 1,661 2,182
Selling, general and administrative expenses 1,472 1,654 3,321 3,775
------- ------- ------- -------
Operating loss (1,234) (1,249) (1,660) (1,593)
Interest income, net 9 10 17 22
Other income, net 60 63 94 76
------- ------- ------- -------
Loss before income tax benefit (1,165) (1,176) (1,549) (1,495)
Income tax benefit (417) (470) (524) (502)
------- ------- ------- -------
Net loss $ (748) $ (706) (1,025) $ (993)
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Basic and diluted net loss per
weighted average common share $ (0.10) $ (0.10) (0.14) (0.14)
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Basic and diluted weighted average
common shares outstanding 7,295 7,295 7,295 7,295
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