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 2005 RESULTS
New York, New York, May 13, 2005 -- Marisa Christina, Incorporated (OTC:
MRSA) today reported results for the first quarter ended March 31, 2005.
Net sales for the 2005 first quarter were $4.9 million compared with $5.6
million in the first quarter of 2004, a 13.4% decrease, primarily as a result of
lower sales to department stores.
Gross profit was the same, $1.4 million for the first quarter of 2005 and
2004. Gross profit as a percent of net sales increased from 25.3% in the first
quarter of 2004 to 29.0% in the first quarter of 2005. Operating expenses were
the same, $1.8 million for the first quarter of 2005 and 2004.
The first quarter of 2005 showed a loss before income tax benefit of $375
thousand compared to a loss of $384 thousand in the first quarter of 2004.
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-
MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended
March 31,
---------------------------
2005 2004
-------- --------
Net sales $ 4,867 $ 5,621
Cost of goods sold 3,457 4,199
-------- --------
Gross profit 1,410 1,422
Selling, general and administrative expenses 1,809 1,848
-------- --------
Operating loss (399) (426)
Interest income, net 23 8
Other income, net 1 34
-------- --------
Loss before income tax benefit (375) (384)
Income tax benefit 0 (108)
-------- --------
Net loss $ (375) $ (276)
======== ========
Basic and diluted net loss per
weighted average common share $ (0.05) $ (0.04)
======== ========
Basic and diluted weighted average
common shares outstanding 7,295 7,295
======== ========