Exhibit 99.1
I.C.Isaacs Reports First Quarter 2003 Results
NEW YORK--(BUSINESS WIRE)--May 15, 2003--I.C.Isaacs & Company,
Inc. (OTCBB:ISAC) today announced its financial results for the first
quarter ended March 31,2003.
I.C.Isaacs reported a net loss $.6 million or ($0.06) per share
for the first quarter of 2003 compared to net income of $1.6 million
or $0.21 per share for the first quarter of 2002. Net sales decreased
18.3% to $16.5 million in the three months ended March 31,2003 from
$20.2 million in the three months ended March 31,2002.
Gross profit decreased 44.7% to $4.7 million in the first quarter
of 2003 from $8.5 million in the first quarter of 2002. The decrease
in gross profit is a result of lower sales volume and sales of goods
to off-price retailers. Operating expenses decreased 23.9% to $5.1
million in the first quarter of 2003 from $6.7 million in the first
quarter of 2002.
Staffan Ahrenberg, Chairman of I.C.Isaacs, commented, "The first
quarter of 2003 continued to be a difficult time for the Company and
the U.S. retail environment. However, the Girbaud brand continues to
be well received in the market and the Company is proceeding with its
plan to become more efficient in delivering its product to the
marketplace. This should have a favorable impact on results going
forward."
THE COMPANY
I.C.Isaacs & Company, Inc. is a designer and marketer of branded
jeanswear and sportswear based in New York and Baltimore. The Company
offers full lines of jeanswear and sportswear for men and women under
the Marithe & Francois Girbaud brand in the United States and Puerto
Rico.
This announcement contains forward- looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Those statements include statements regarding the intent, belief,
or current expectations of I.C.Isaacs and its management with respect
to expenses and expected financial results of the Company for the year
2003, including without limitation statements regarding the Company's
expectations with respect to the economic environment in 2003 and
belief in the strength and future of the Girbaud brand.
Such statements are subject to a variety of risk and
uncertainties, many of which are beyond the Company's control, which
may cause actual results to differ materially from those contemplated
in such forward-looking statements, including in particular, the risk
and uncertainties described under "Risk Factors" in the Company's
Prospectus, which include, among other things, (i) changes in the
marketplace for the Company's products, including customers' taste,
(ii) the introduction of new products or pricing changes by the
Company's competitors, (iii) changes in the economy, (iv) termination
of one or more of its agreements for the use of the Girbaud brand
names and images, and (v) the risk that the Company's sales estimate
will differ from actual orders and the Company will order too much or
too little inventory.
Existing and prospective investors are cautioned not to place
undue reliance on these forward-looking statements, which speak only
as of the date hereof. The Company undertakes no obligation to update
or revise the information contained in this press release, whether as
a result of new information, future events or circumstances or
otherwise.
I.C. Isaacs & Company, Inc.
Consolidated Balance Sheets
(in 1,000's except per share data)
December 31, March 31,
2002 2003
------------ ------------
(Unaudited)
Assets
Current
Cash, including temporary investments $601 $1,179
Accounts receivable 8,319 11,390
Inventories 6,444 4,290
Prepaid expenses and other 206 439
------------ ------------
Total current assets 15,570 17,298
Property, plant and equipment 1,781 1,679
Trademark and licenses 55 --
Other assets 5,042 4,967
------------ ------------
$22,448 $23,944
============ ============
Liabilities And Stockholders' Equity
Current
Checks issued against future deposits $626 $225
Current maturities of revolving line of
credit 5,030 7,613
Current maturities of long-term debt 767 1,070
Accounts payable 908 863
Accrued expenses and other current
liabilities 2,085 2,085
------------ ------------
Total current liabilities 9,416 11,856
------------ ------------
Long-term debt 5,790 5,488
Stockholders' Equity
Preferred stock; $.0001 par value; 5,000
shares authorized, none outstanding -- --
Common stock; $.0001 par value; 50,000
shares authorized, 12,311 shares issued;
11,135 shares outstanding 1 1
Additional paid-in capital 43,659 43,659
Accumulated deficit (34,095) (34,737)
Treasury stock, at cost (1,177 shares) (2,323) (2,323)
------------ ------------
Total stockholders' equity 7,242 6,600
------------ ------------
$22,448 $23,944
============ ============
I.C. Isaacs & Company, Inc.
Consolidated Statements of Operations (Unaudited)
(in 1,000's except per share data)
Three Months Ended
March 31,
--------------------------
2002 2003
------------ ------------
Net sales $20,156 $16,544
Cost of sales 11,686 11,873
------------ ------------
Gross profit 8,470 4,671
------------ ------------
Operating Expenses
Selling 2,993 2,457
License fees 1,443 928
Distribution and shipping 701 596
General and administrative 1,526 1,158
------------ ------------
Total operating expenses 6,663 5,139
------------ ------------
Operating income (loss) 1,807 (468)
Other expense (165) (174)
------------ ------------
Net income (loss) $1,642 $(642)
------------ ------------
Basic earnings (loss) per share $0.21 $(0.06)
Weighted average shares outstanding 7,835 11,135
Diluted earnings (loss) per share $0.21 $(0.06)
Weighted average shares outstanding 7,845 11,135
CONTACT: I.C.Isaacs & Company, Inc.
Robert Conologue, 212/563-0761