Contact: Allan Corn
Chief Financial Officer
(914) 699-0000 Ext. 464
FOR IMMEDIATE RELEASE:
MICHAEL ANTHONY JEWELERS, INC. REPORTS LOWER
SECOND QUARTER, SIX MONTHS RESULTS
Mt. Vernon, NY - September 12, 2003. Michael Anthony Jewelers, Inc., a
leading marketer and manufacturer of gold jewelry, today reported results for
the second quarter and six months ended August 2, 2003.
Sales for the second quarter were $20,437,000, an increase of $141,000 from
sales of $20,296,000 in the prior year's comparable period. The net loss for the
quarter was $396,000 or $.06 per share on 6,251,000 weighted average shares
outstanding, compared to a net loss of $1,754,000, or $.28 per share on
6,242,000 weighted average shares outstanding in last year's comparable period.
Sales for the six month period were $41,056,000, a decrease of $9,374,000
from sales of $50,430,000 in the prior year's comparable period. The net loss
for the six month period was $1,401,000 or $.22 per share on 6,248,000 weighted
average shares outstanding, compared to a net loss of $2,042,000 or $.33 per
share on 6,239,000 weighted average shares outstanding in last year's comparable
period.
Commenting on the Company's performance for the quarter, Michael Paolercio,
Chief Executive Officer stated, "Although our sales for the quarter were
basically equal to last year, our gross margin improved to 20%, even after the
effect of higher gold prices. The improved margin is primarily due to the
increased utilization of our offshore manufacturing facility and the reduced
manufacturing costs in New York. Our selling, general and administrative
expenses were also down sharply, decreasing more than $1.1 million, or 21%, from
the prior year's comparable period. For the six-month period," Mr. Paolercio
continued, "despite the sales decrease, gross margin was up and operating
expenses were down, resulting in a lower reported loss for the period when
compared to last year".
In conclusion, Mr. Paolercio stated, "For the balance of the year, we
expect to continue to struggle as our industry is coping with reduced consumer
confidence, higher fuel prices, and peacetime uncertainties. We expect that the
all-important holiday season retail sales will be at best flat to last year and
with the higher gold prices this will present an even bigger challenge. However,
Michael Anthony has withstood economic storms in the past and we will weather
this one as well. While we have made many changes, the most affected are our
people and we appreciate their sacrifices. What we have not changed is the
integrity of our customer service and all that is important to our customers."
-more-
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Michael Anthony Jewelers is a leading designer, marketer and manufacturer
of branded affordable fine jewelry and watches, whose customers include jewelry
chain stores, discount stores, department stores, television shopping networks
and wholesalers.
MICHAEL ANTHONY JEWELERS, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
For the Three Months Ended For the Six Months Ended
------------------------------------------ ----------------------------------------
August 2, 2003 August 3, 2002 August 2, 2003 August 3, 2002
---------------- --------------- --------------- ---------------
Net sales $20,437,000 100.0% $20,296,000 100.0% $41,056,000 100.0% $50,430,000 100.0%
Gross profit on sales 4,095,000 20.0 3,161,000 15.6 7,704,000 18.8 9,025,000 17.9
Selling, general
and administrative
expenses 4,337,000 21.2 5,467,000 26.9 9,104,000 22.2 11,302,000 22.4
Other expense (396,000) (1.9) (523,000) (2.6) (859,000) (2.1) (1,017,000) (2.0)
Loss before taxes (638,000) (3.1) (2,829,000) (14.0) (2,259,000) (5.5) (3.294,000) (6.5)
Net loss (396,000) (1.9) (1,754,000) (8.6) (1,401,000) (3.4) (2,042,000) (4.0)
Loss per share ($.06) ($.28) ($.22) ($.33)
Weighted average
number of shares
outstanding 6,251,000 6,242,000 6,248,000 6,239,000
#####
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 effects of competition and the
success of new products and programs.
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