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NEWS RELEASE
Marisa Christina Reports Second Quarter Results
NEW YORK, Aug. 12 / PRNewswire / -- Marisa Christina, Incorporated (Nasdaq:
MRSA) today reported results for its second quarter and first half ended June
30, 1998. The second quarter 1998 results are in line with expectations.
Net sales were $13.3 million compared with $19.6 million in the second
quarter of 1997. The net loss for the 1998 second quarter was $1.6 million, or
$0.19 per diluted share, compared with net income of $474,230, or $0.06 per
diluted share, in the year ago quarter.
For the first six months of 1998, net sales were $33.3 million compared
with $45.2 million in the 1997 first half. The net loss was $2.4 million, or
$0.29 per diluted share, compared with net income of $965,000, or $0.12 per
diluted share, in the same period of 1997.
Michael Lerner, Chairman and Chief Executive Officer, commented: "We
finished the first half of the year where we expected. The reception to our
products at both retail and wholesale is improving, as we continue to strengthen
the price-value relationship. We feel we are on track to reach our sales volume
target for full year 1998 of approximately $80 million."
Marisa Christina, Inc. designs, manufactures, sources and markets a broad
line of high quality "better" and "bridge" clothing for women and children. The
Marisa Christina label includes sweaters characterized by classic, timeless
styling and unique details. Flapdoodles apparel consists of casual children's
and infant's sportswear, swimwear, and outerwear featuring vibrant colors,
all-natural fabrics and unique patterns. The Adrienne Vittadini line includes
women's knit-oriented casual coordinates and licensed products characterized by
distinctive and elegant designer styling.
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.
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MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
AND COMPREHENSIVE INCOME
FOR THREE AND SIX MONTHS ENDED
JUNE 30, 1998 AND 1997
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net Sales $13,280 $19,600 $33,300 $45,170
Cost of goods sold 10,143 13,601 24,415 31,121
Gross profit 3,137 5,999 8,885 14,049
Selling, general and
administrative expenses 5,734 5,889 12,791 13,787
Operating earnings
(loss) (2,597) 110 (3,906) 262
Other income, net 558 760 876 1,498
Interest expense, net (157) (87) (320) (165)
Earnings (loss) before
income tax expense
(benefit) (2,196) 783 (3,350) 1,595
Income tax expense
(benefit) (630) 309 (962) 630
Net earnings (loss) $(1,566) $474 $(2,388) $965
Net earnings (loss)
Per share:
Basic $(0.19) $0.06 $(0.29) $0.12
Diluted $(0.19) $0.06 $(0.29) $0.12
Weighted average
shares outstanding 8,160 8,385 8,161 8,385
SOURCE Marisa Christina, Incorporated
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/CONTACT: Michael Lerner, Chairman and Chief Executive Officer, or
Melvin Hecht, Chief Financial Officer, 212-221-5770, of Marisa Christina;
June Filingeri or Eric Boyriven of Morgen-Walke Associates, 212-850-5600, for
Marisa Christina/
(MRSA)
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