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MARISA CHRISTINA REPORTS SECOND QUARTER 1999 RESULTS;
- BACKLOG AT JULY 31ST IS $35.5 MILLION; 15% ABOVE LAST YEAR -
Monday, August 16, 1999 09:43 AM
NEW YORK, Aug. 16 /PRNewswire/ -- Marisa Christina, Incorporated
(Nasdaq: MRSA) today reported results for the second quarter ended
June 30, 1999.
Net sales for the second quarter were $10.7 million compared with $13.3
million in the comparable quarter of 1998. The net loss for the quarter
was $1.8 million, or $0.23 per diluted share, compared to a net loss of
$1.6 million, or $0.19 per diluted share, in the same period a year
ago.
For the first six months of 1999, net sales were $25.0 million compared
with $33.3 million in the 1998 first half. The net loss was $3.2
million, or $0.42 per diluted share, compared with a loss of $2.4
million, or $0.29 per diluted share, in the same period of 1998.
Michael Lerner, Chairman and Chief Executive Officer, commented,
"Results in the second quarter were consistent with our expectations as
we continue to refocus our business. We were pleased with the 27% year
over year sales increase in our core Marisa Christina division. The
sales declines at Adrienne Vittadini and Flapdoodles, as forecast, were
due to the continued softness in the bridge market and our efforts to
reduce sales to discounters and less productive outlets."
Mr. Lerner continued, "We also made further progress in bringing our
expense base into line with the current scope of our business. Overall
selling, general, and administrative expenses declined over 17% for the
quarter and almost 22% for the six months from the same periods last
year as we maintained our focus on reducing operating costs. While we
are gratified by the reductions we have achieved to date, we are
encouraged by the further opportunities that we see to improve our
efficiencies and cost structure."
Mr. Lerner concluded, "Recent events have given us cause for optimism
looking forward. Our newest collections, most notably Resort and
Spring, have been well received by the market. In addition, our
merchandise is performing better at the retail level. As a result, our
backlog at July 31, 1999 of $35.5 million is 15% ahead of the $30.8
million it was at the same time last year. We are hopeful that the
prospects for improved sales from our new collections, combined with
our concerted focus on the management of our costs, have the Company
well positioned to produce better results over the balance of 1999 and
into next year."
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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 OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net sales $10,726 $13,280 $24,990 $33,300
Cost of goods sold 8,850 10,143 20,274 24,414
Gross profit 1,876 3,137 4,716 8,886
Selling, general and
administrative expenses 4,753 5,734 9,998 12,791
Operating loss (2,877) (2,597) (5,282) (3,905)
Other income, net 428 558 851 876
Interest expense, net (233) (157) (431) (320)
Loss before income
tax benefit (2,682) (2,196) (4,862) (3,349)
Income tax benefit (898) (630) (1,628) (961)
Net loss (1,784) (1,566) (3,234) (2,388)
Other comprehensive income
(loss), net of tax -
foreign currency
translation adjustment 4 (9) 5 0
Comprehensive loss $(1,780) $(1,575) $(3,229) $(2,388)
Loss per share:
Basic $(0.23) $(0.19) $(0.42) $(0.29)
Diluted $(0.23) $(0.19) $(0.42) $(0.29)
Weighted average shares
outstanding 7,765,769 8,159,769 7,765,769 8,161,439
SOURCE Marisa Christina, Incorporated
CONTACT: Michael Lerner, Chairman and Chief Executive Officer, or
Melvin Hecht, Chief Financial Officer, both of Marisa Christina,
212-221-5770; or Gordon McCoun or Eric Boyriven of Morgen-Walke
Associates, 212-850-5600, for Marisa Christina
Quote for referenced ticker symbols: MRSA
(C) 1999, PR Newswire