Exhibit 99
[Logo] Michael Anthony(R)
Michael Anthony Jewelers, Inc.
115 South MacQuesten Pkwy
Mt. Vernon, New York 10550-1724
Phone: (914)-699-0000
Fax: (914)-699-2335
The Brand America Trusts... The Jewelry America Wears
Contact: ALLAN CORN, CFO
(914) 699-0000 Ext. 464
FOR IMMEDIATE RELEASE
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MICHAEL ANTHONY JEWELERS, INC. REPORTS
FOURTH QUARTER AND YEAR END RESULTS
Mt. Vernon, NY - April 17. Michael Anthony Jewelers, Inc., a leading designer,
marketer and manufacturer of gold jewelry, today reported results for the fourth
quarter and fiscal year ended February 1, 2003.
Fourth quarter net sales decreased to $28,557,000 from $33,551,000 in the prior
year's comparable period. The net loss for the fourth quarter was $1,552,000 or
$.25 per share on 6,245,000 fully diluted average shares outstanding, compared
to a net income in last year's comparable period of $2,000 or $.00 per share on
6,387,000 fully diluted average shares outstanding.
For the fiscal year, net sales decreased to $118,580,000 from $141,918,000 for
last year's comparable period. The net loss for the year was $4,174,000 or $.67
per share on 6,242,000 fully diluted average shares outstanding, compared to a
net income last year of $951,000 or $.15 per share on 6,314,000 fully diluted
average shares outstanding.
Commenting on the fourth quarter results, Michael Paolercio, Chief Executive
Officer, stated, "The weak economic and business conditions and the retail
climate that existed for much of 2002 continued through the Holiday selling
season, which has been described as the poorest in many years. Core sales to a
number of our largest customers were lower than last year and certain promotions
from last year were not repeated. In addition, the loss of Service Merchandise
and K-Mart as major customers negatively impacted the Company's revenues." Mr.
Paolercio continued, "Gross profits as a percent of sales were lower than last
year, both for the quarter and the year, for two reasons: higher gold prices and
higher product returns as our larger customers reacted to the weak retail
climate." Mr. Paolercio also noted that selling, general and administrative
expenses were higher for the year, primarily due to higher than expected
advertising expenses for one of the Company's largest customers. "However," he
stated, "in the fourth quarter, selling general and administrative expenses were
lower than last year as our expense reduction plans began to impact our
numbers."
Mr. Paolercio advised that despite the loss from operations, the Company's
balance sheet remains strong. "We maintain a healthy financial condition and
this has recently been reaffirmed by the Company's major credit grantors," he
stated. As previously reported, a group of lenders has recently approved
substantial gold consignment credit facilities and a revolving dollar line of
credit. "Our bankers recognize that Michael Anthony is one of the leading gold
jewelry manufacturers in the United States and they have the confidence in us to
provide the financial resources that are necessary for the Company to achieve
its strategies."
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News Release ... News Release ... News Release
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Mr. Paolercio also commented on the steps the Company has taken to return the
Company to profitability. "We are in the final phase of reducing the Company's
cost structure both in manufacturing operations and in product distribution. We
are cutting expenses in New York by re-engineering our distribution facility,
selling certain real estate assets, and instituting headcount reductions across
all areas of the Company. We believe that the combination of these measures will
enable Michael Anthony to operate more effectively during these uncertain
times."
Michael Anthony Jewelers is a leading designer, marketer and manufacturer of
affordable fine jewelry, whose customers include jewelry chain stores, discount
stores, department stores, television shopping networks and wholesalers.
MICHAEL ANTHONY JEWELERS, INC.
Financial Highlights
For the Three Months Ended For the Twelve Months Ended
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February 1, 2003 February 2, 2002 February 1, 2003 February 2, 2002
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Net sales $28,557,000 100.0% $33,551,000 100.0% $118,580,000 100.0% $141,918,000 100.0%
Gross Profit on sales 3,966,000 13.9 6,868,000 20.5 20,575,000 17.4 28,655,000 20.2
Selling, general and
Administrative expenses 5,852,000 20.5 6,154,000 18.3 25,048,000 21.1 24,435,000 17.2
Other expenses - net 617,000 2.2 710,000 2.1 2,261,000 1.9 2,687,000 1.9
(Loss)/income before
extraordinary item and
income taxes (2,503,000) (8.8) 4,000 0.0 (6,734,000) (5.7) 1,533,000 1.1
Income tax (benefit)/provision (951,000) (3.3) 2,000 0.0 (2,560,000) (2.2) 582,000 .4
Net (loss)/income (1,552,000) (5.4) 2,000 0.0 (4,174,000) (3.5) 951,000 .7
Net (loss)/earnings per
share - Basic $(.25) $.00 $(.67) $.15
Net (loss)/earnings per
share - Diluted $(.25) $.00 $(.67) $.15
Weighted average number of
shares outstanding - Basic 6,245,000 6,198,000 6,242,000 6,203,000
Weighted average number of
shares outstanding - Diluted 6,245,000 6,387,000 6,242,000 6,314,000
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Except for historical information contained herein, the matters set forth in
this news release are forward-looking statements that involve certain risks
and uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. These uncertainties include
general economic conditions, jewelry industry conditions, the seasonality
of the Company's business, the retail sales environment, fluctuations in
gold prices, the effects of competition and the success of new products and
programs.