The Brand America Trusts...The Jewelry [MICHAEL ANTHONY LOGO]
Allan Corn 115 South MacQuesten Pkwy
Chief Financial Officer Mt. Vernon, New York 10550-1724
(914) 699-0000 Ext. 464 Phone: (914)-699-0000
Fax: (914)-699-2335
MICHAEL ANTHONY JEWELERS, INC. REPORTS
THIRD QUARTER, NINE MONTHS RESULTS
Mt. Vernon, NY - December 5, 2003. Michael Anthony Jewelers, Inc.
(ASE:MAJ), a leading marketer and manufacturer of gold jewelry, today reported
results for the third quarter and nine months ended November 1, 2003.
Sales for the third quarter were $29,160,000, compared to sales of
$39,593,000 in the prior year. Third quarter net loss was $154,000 or $.02 per
share on 6,256,000 weighted average shares outstanding, compared to $580,000 or
$.09 per share on 6,245,000 weighted shares outstanding.
Sales for the nine month period were $70,216,000, compared to sales of
$90,023,000 in the prior year. The net loss for the nine month period was
$1,555,000 or $.25 per share on 6,251,000 weighted average shares outstanding,
compared to $2,622,000 or $.42 per share on 6,241,000 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 revenues continue to
lag behind last year, our expenses are down dramatically. For the quarter, our
selling, general and administrative expenses were down over $2 million, or 29%,
from last year's comparable period. For the nine-month period," Mr. Paolercio
continued, "selling, general and administrative expenses were down over $4
million, or 23%, from last year's comparable period." Mr. Paolercio noted that
the sharp reductions in operating expenses enabled the Company to report smaller
losses in both the quarter and nine-month periods.
Mr. Paolercio also stated, "While we continue to work hard at
controlling the expense side of the business, we expect that our revenues will
not grow as originally planned. In addition, rising gold prices may negatively
impact consumer demand for our products." Mr. Paolercio concluded by saying, "In
our efforts to return the Company to profitability we will continue to execute
our manufacturing consolidation and restructuring plan and realign our expenses
to current revenue expectations."
In other news, Mr. Paolercio announced that Allan Corn, the Company's
chief financial officer for the past sixteen years, will be retiring at the end
of the year. He will retain his seat on the Board of Directors. "Allan's
contribution to Michael Anthony has been immeasurable," said Mr. Paolercio. "We
thank him for all his hard work and dedication."
- more -
Page 3 of 4
Exhibit Index on Page 2
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 Nine Months Ended
--------------------------------------------------- -------------------------------------------------
November 1, 2003 November 2, 2002 November 1, 2003 November 2, 2002
---------------------- ---------------------- ---------------------- ----------------------
Net sales $29,160,000 100.0% $39,593,000 100.0% $70,216,000 100.0% $90,023,000 100.0%
Gross profit on sales 5,453,000 18.7 7,584,000 19.2 13,157,000 18.7 16,609,000 18.4
Selling, general
and administrative
expenses 5,639,000 19.3 7,894,000 20.0 14,743,000 21.0 19,196,000 21.3
Other expense 63,000 .2 627,000 1.6 922,000 1.3 1,644,000 1.8
Loss before taxes (249,000) (.9) (937,000) (2.4) (2,508,000) (3.6) (4,231,000) (4.7)
Net loss (154,000) (.5) (580,000) (1.5) (1,555,000) (2.2) (2,622,000) (2.9)
Loss per share ($.02) ($.09) ($.25) ($.42)
- basic and diluted
Weighted average
number of shares
outstanding
- basic and diluted 6,256,000 6,245,000 6,251,000 6,241,000
#####
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.
Page 4 of 4
Exhibit Index on Page 2