Marisa Christina Reports Fourth Quarter and 2000 Year-End Results

Increase In Sales 14% for The Year 2000 for The Marisa Christina

Apparel Division



Apr 02, 2001, 01:00 ET from Marisa Christina, Incorporated

    NEW YORK, April 2 /PRNewswire/ --
 Marisa Christina, Incorporated (Nasdaq:   MRSA) today reported results for the
 fourth quarter and year ended December 31, 2000.
     Net sales for the fourth quarter of 2000 were $12.3 million compared with
 $17.1 million in the comparable quarter of 1999.  For the year 2000, sales
 were $58.0 million compared with $62.5 million in 1999.  Net sales of 1999
 included $8.0 million from the Adrienne Vittadini division, which was sold
 September 1999.   Excluding sales of the Adrienne Vittadini division, sales
 grew by 6.5% as the result of a 14.0% increase in sales by the Marisa
 Christina division.
     Operating loss for 2000 was $5.5 million compared with $4.2 million in
 1999.  Included in the 2000 operating loss was a nonrecurring charge of $1.0
 million pertaining to Company closing twelve of its thirteen Flapdoodles
 outlet stores in the second quarter.
     On December 29, 2000, the Company sold substantially all the assets,
 properties and rights and assigned certain liabilities of Flapdoodles, Inc. to
 a newly formed Delaware corporation, owned by one of the Company's directors
 and a senior member of management on that date, for approximately $4.3 million
 in cash and 456,984 shares of the Company's common stock.   Proceeds to the
 Company of $4.2 million, net of transaction and related costs, were used to
 pay down borrowings under its credit facility.  The Company recognized a loss
 of approximately $7.9 million on the sale, of which $5.8 million was the
 write-off of goodwill, a non-cash item.
     Michael H. Lerner, Chairman of Marisa Christina, Inc. commented, "While
 the fourth quarter results were disappointing, the effect has left the Company
 debt-free at December 31, 2000.  The outlook for the new year is still first-
 rate and we are anticipating earnings per share to be $.50 to $.70 in 2001. We
 are totally focused here at Marisa Christina on devoting our resources and
 energy to our women's business, which has been steadily improving.  The
 increase to sales could amount to 15 to 20% over last year and we are working
 vigorously to ensure improved gross margins with competitive pricing that
 should result in better performance at the retail level."
     For the three months ended December 31, 2000 the Company reported a net
 loss of $11.1 million and diluted net loss per weighted average common share
 of ($1.43), and for the year ended December 31, 2000 the Company reported a
 net loss of $14.2 million and diluted net loss per weighted average common
 share of ($1.82).  For the three months ended December 31, 1999 the Company
 reported a net loss of $6.0 million and diluted net loss per weighted average
 common share of ($0.78), and for the year ended December 31, 1999 the Company
 reported a net loss of $8.3 million and diluted net loss per weighted average
 common share of ($1.07).
 
     Marisa Christina, Inc. designs, manufactures, sources and markets a broad
 line of high quality "better" clothing for women and children.  The Marisa
 Christina label includes sweaters characterized by classic, timeless styling
 and unique details.
 
     Except for historical information contained herein, the statements in this
 release are forward-looking statements that are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties
 which may cause the Company's actual results in future periods to differ
 materially from forecasted results.  Those risks include, among others, risks
 associated with the success of future advertising and marketing programs, the
 receipt and timing of future customer orders, price pressures and other
 competitive factors and a softening of retailer or consumer acceptance of the
 Company's products leading to a decrease in anticipated revenues and gross
 profit margins.  Those and other risks are described in the Company's filings
 with the Securities and Exchange Commission (SEC), copies of which are
 available from the SEC or may be obtained upon request from the Company.
 
 
                MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                      (In thousands, except share amounts)
 
                                             Three Months      Twelve Months
                                                Ended             Ended
                                             December 31,       December 31,
                                            2000     1999      2000     1999
 
 
     Net sales                             $12,250  $17,083   $57,985  $62,508
 
     Cost of goods sold                     11,363   12,087    45,792   46,720
 
        Gross profit                           887    4,996    12,193   15,788
 
     Selling, general and administrative
      expenses                               3,930    4,683    16,703   20,036
     Outlet store closing costs                 --       --     1,005       --
 
        Operating earnings (loss)           (3,043)     313    (5,515)  (4,248)
 
     Loss on the sale of the Flapdoodles
      division                              (7,881)            (7,881)
     Gain on the sale of the Adrienne
      Vittadini division                         0        --       --      646
     Interest expense, net                    (151)    (143)     (608)    (753)
     Other income, net                         161       88       279    1,227
 
        Earnings (loss) before income tax
         expense                           (10,914)     258   (13,725)  (3,128)
 
     Income tax expense                        211    6,285       437    5,151
 
            Net (loss)                    $(11,125) $(6,027) $(14,162) $(8,279)
 
 
     Basic & diluted net (loss)
        per weighted average common share   $(1.43)  $(0.78)   $(1.82)  $(1.07)
 
     Weighted average common shares
      outstanding                            7,761    7,766     7,761    7,766
 
 

SOURCE Marisa Christina, Incorporated
    NEW YORK, April 2 /PRNewswire/ --
 Marisa Christina, Incorporated (Nasdaq:   MRSA) today reported results for the
 fourth quarter and year ended December 31, 2000.
     Net sales for the fourth quarter of 2000 were $12.3 million compared with
 $17.1 million in the comparable quarter of 1999.  For the year 2000, sales
 were $58.0 million compared with $62.5 million in 1999.  Net sales of 1999
 included $8.0 million from the Adrienne Vittadini division, which was sold
 September 1999.   Excluding sales of the Adrienne Vittadini division, sales
 grew by 6.5% as the result of a 14.0% increase in sales by the Marisa
 Christina division.
     Operating loss for 2000 was $5.5 million compared with $4.2 million in
 1999.  Included in the 2000 operating loss was a nonrecurring charge of $1.0
 million pertaining to Company closing twelve of its thirteen Flapdoodles
 outlet stores in the second quarter.
     On December 29, 2000, the Company sold substantially all the assets,
 properties and rights and assigned certain liabilities of Flapdoodles, Inc. to
 a newly formed Delaware corporation, owned by one of the Company's directors
 and a senior member of management on that date, for approximately $4.3 million
 in cash and 456,984 shares of the Company's common stock.   Proceeds to the
 Company of $4.2 million, net of transaction and related costs, were used to
 pay down borrowings under its credit facility.  The Company recognized a loss
 of approximately $7.9 million on the sale, of which $5.8 million was the
 write-off of goodwill, a non-cash item.
     Michael H. Lerner, Chairman of Marisa Christina, Inc. commented, "While
 the fourth quarter results were disappointing, the effect has left the Company
 debt-free at December 31, 2000.  The outlook for the new year is still first-
 rate and we are anticipating earnings per share to be $.50 to $.70 in 2001. We
 are totally focused here at Marisa Christina on devoting our resources and
 energy to our women's business, which has been steadily improving.  The
 increase to sales could amount to 15 to 20% over last year and we are working
 vigorously to ensure improved gross margins with competitive pricing that
 should result in better performance at the retail level."
     For the three months ended December 31, 2000 the Company reported a net
 loss of $11.1 million and diluted net loss per weighted average common share
 of ($1.43), and for the year ended December 31, 2000 the Company reported a
 net loss of $14.2 million and diluted net loss per weighted average common
 share of ($1.82).  For the three months ended December 31, 1999 the Company
 reported a net loss of $6.0 million and diluted net loss per weighted average
 common share of ($0.78), and for the year ended December 31, 1999 the Company
 reported a net loss of $8.3 million and diluted net loss per weighted average
 common share of ($1.07).
 
     Marisa Christina, Inc. designs, manufactures, sources and markets a broad
 line of high quality "better" clothing for women and children.  The Marisa
 Christina label includes sweaters characterized by classic, timeless styling
 and unique details.
 
     Except for historical information contained herein, the statements in this
 release are forward-looking statements that are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties
 which may cause the Company's actual results in future periods to differ
 materially from forecasted results.  Those risks include, among others, risks
 associated with the success of future advertising and marketing programs, the
 receipt and timing of future customer orders, price pressures and other
 competitive factors and a softening of retailer or consumer acceptance of the
 Company's products leading to a decrease in anticipated revenues and gross
 profit margins.  Those and other risks are described in the Company's filings
 with the Securities and Exchange Commission (SEC), copies of which are
 available from the SEC or may be obtained upon request from the Company.
 
 
                MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                      (In thousands, except share amounts)
 
                                             Three Months      Twelve Months
                                                Ended             Ended
                                             December 31,       December 31,
                                            2000     1999      2000     1999
 
 
     Net sales                             $12,250  $17,083   $57,985  $62,508
 
     Cost of goods sold                     11,363   12,087    45,792   46,720
 
        Gross profit                           887    4,996    12,193   15,788
 
     Selling, general and administrative
      expenses                               3,930    4,683    16,703   20,036
     Outlet store closing costs                 --       --     1,005       --
 
        Operating earnings (loss)           (3,043)     313    (5,515)  (4,248)
 
     Loss on the sale of the Flapdoodles
      division                              (7,881)            (7,881)
     Gain on the sale of the Adrienne
      Vittadini division                         0        --       --      646
     Interest expense, net                    (151)    (143)     (608)    (753)
     Other income, net                         161       88       279    1,227
 
        Earnings (loss) before income tax
         expense                           (10,914)     258   (13,725)  (3,128)
 
     Income tax expense                        211    6,285       437    5,151
 
            Net (loss)                    $(11,125) $(6,027) $(14,162) $(8,279)
 
 
     Basic & diluted net (loss)
        per weighted average common share   $(1.43)  $(0.78)   $(1.82)  $(1.07)
 
     Weighted average common shares
      outstanding                            7,761    7,766     7,761    7,766
 
 SOURCE  Marisa Christina, Incorporated