Exhibit 99.1
I.C.Isaacs Reports Second Quarter 2003 Income
NEW YORK--(BUSINESS WIRE)--Aug. 5, 2003--I.C.Isaacs & Company,
Inc. (OTCBB: ISAC.OB) today announced its financial results for the
second quarter ended June 30, 2003. I.C.Isaacs reported net income of
$0.5 million or $0.04 per share for the second quarter of 2003
compared to net income of $0.2 million or $0.03 per share for the
second quarter of 2002. Net sales decreased 4.7% to $16.2 million in
the three months ended June 30, 2003 from $17.0 million in the three
months ended June 30, 2002. All sales were the Marithe & Francois
Girbaud brand. Gross profit decreased 19.7% to $5.7 million in the
second quarter of 2003 from $7.1 million in the second quarter of
2002. The second quarter decline in net sales and gross profit was
more than offset by lower operating expenses. Operating expenses
decreased 25.4% to $5.0 million in the second quarter of 2003 from
$6.7 million in the second quarter of 2002.
For the six months ended June 30, 2003 the Company reported a net
loss of $0.2 million or ($0.02) per share compared to net income of
$1.9 million or $0.24 per share in the same period of 2002. For the
six months ended June 30, 2003 net sales decreased 11.6% to $32.8
million compared to $37.1 million in the same period of 2002. Gross
profit decreased 33.3% to $10.4 million in the first half of 2003 from
$15.6 million in the first half of 2002. Operating expenses decreased
23.9% to $10.2 million in the first half of 2003 from $13.4 million in
the first half 2002.
Staffan Ahrenberg, Chairman of I.C.Isaacs, commented, "We are
pleased with our second quarter results. In the second quarter of
2003, the Company continued to make progress in its ongoing efforts in
reducing operating expenses. 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.
However, the retail environment continues to be challenging."
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, 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
(000's omitted except per share data)
June 30, Dec. 31,
2003 2002
----------- -----------
(Unaudited)
Assets
Current
Cash, including temporary investments of
$27 and $82 $661 $601
Accounts receivable, less allowance for
doubtful accounts of $225 and $245 11,983 8,319
Inventories 3,885 6,445
Prepaid expenses and other 472 206
----------- -----------
Total current assets 17,001 15,571
Property, plant and equipment, at cost, less
accumulated depreciation and amortization 1,567 1,780
Other assets 4,873 5,097
----------- -----------
$23,441 $22,448
=========== ===========
Liabilities And Stockholders' Equity
Current
Checks issued against future deposits $437 $626
Current maturities of revolving line of
credit 5,673 5,030
Current maturities of long-term debt 1,379 767
Accounts payable 1,838 908
Accrued expenses and other current
liabilities 1,864 2,085
----------- -----------
Total current liabilities 11,191 9,416
----------- -----------
Long-term debt 5,179 5,790
Commitments and Contingencies
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 (34,266) (34,095)
Treasury stock, at cost (1,177 shares) (2,323) (2,323)
----------- -----------
Total stockholders' equity 7,071 7,242
----------- -----------
$23,441 $22,448
=========== ===========
I.C. Isaacs & Company, Inc.
Consolidated Statements of Operations (Unaudited)
(000's omitted except per share data)
Three Months Six Months
Ended Ended
June 30, June 30,
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $16,230 $16,987 $32,773 $37,144
Cost of sales 10,534 9,894 22,407 21,580
-------- -------- -------- --------
Gross profit 5,696 7,093 10,366 15,564
-------- -------- -------- --------
Operating Expenses
Selling 2,282 3,234 4,739 6,227
License fees 925 1,240 1,853 2,683
Distribution and shipping 475 551 1,071 1,252
General and administrative 1,355 1,689 2,512 3,215
-------- -------- -------- --------
Total operating expenses 5,037 6,714 10,175 13,377
-------- -------- -------- --------
Operating income 659 379 191 2,187
-------- -------- -------- --------
Other income (expense)
Interest, net of interest
income (238) (139) (467) (310)
Other, net 50 3 106 9
-------- -------- -------- --------
Total other income (expense) (188) (136) (361) (301)
-------- -------- -------- --------
Net income (loss) $471 $243 $(170) $1,886
-------- -------- -------- --------
Basic earnings (loss) per share $0.04 $0.03 $(0.02) $0.24
Weighted average shares
outstanding 11,135 7,835 11,135 7,835
Diluted earnings (loss) per share $0.04 $0.03 $(0.02) $0.22
Weighted average shares
outstanding 11,135 9,569 11,135 8,683
CONTACT: I. C. Isaacs & Company, Inc.
Robert J. Conologue, 212-563-0761