New
York, New York (November 3, 2003)—Movie Star, Inc. (AMEX: MSI), today announced
financial results for the fiscal 2004 first quarter ended September 30, 2003.
Net
income for the fiscal 2004 first quarter increased 27.3% on a 6.6% improvement
in net sales. Net income was $853,000,
or $0.05 per diluted share, compared with last year’s net income of $670,000,
or $0.04 per diluted share. Net sales,
compared with the same period last year, increased to $16.8 million at
September 30, 2003 from $15.8 million as gross margins increased 170 basis
points to 31.4% from last year’s 29.7%.
Mel
Knigin, President and Chief Executive Officer, stated: “Fiscal 2004 is off to a
good start as we are entering the holiday season with an exciting product line
at attractive price points. We believe
the demand and orders for the first half of fiscal 2004 will be similar to that
of the first half of 2003. Looking
beyond the first half of the fiscal year, it appears that some of our larger
customers are placing their spring business orders later this year than they
did last year as they closely monitor the timing of their purchases and
inventory levels. As a result, if those
orders are received, we will be faced with shorter lead times for
delivery. Fortunately, we have
established excellent working relationships with many of our overseas
manufacturers and we are confident we will be able to meet the challenge of
delivering quality products on time. We
are hopeful that our customers’ delays in placing orders is a temporary
adjustment for them and will not result in a significant reduction of our
overall business for the current fiscal year.
Our strong balance sheet and well-controlled and streamlined operation
will also enable the Company to consider alternatives to expanding our
business.”
MOVIE
STAR, INC. produces and sells ladies apparel, including sleepwear, robes,
leisurewear, and daywear. Current
collections include the Cinema Etoile
premium line of intimate apparel and the Movie
Star line of apparel sold as private label programs.
Certain
of the matters set forth in this press release are forward-looking and involve
a number of risks and uncertainties. Among the factors that could cause actual
results to differ materially are the following: business conditions and growth
in the industry; general economic conditions; addition or loss of significant
customers; the loss of key personnel; product development; competition; risks
of doing business abroad; foreign government regulations; fluctuations in
foreign rates; rising costs for raw materials and the unavailability of sources
of supply; the timing of orders booked; and the risk factors listed from time
to time in the Company’s SEC reports.
CONTACT: INVESTOR RELATIONS:
Movie
Star, Inc. -or- SM Berger & Company, Inc.
Thomas
Rende, CFO Stanley Berger
(212)
798-4700 (216) 464-6400
[Tables
follow]
Page 2
November 3, 2003
MOVIE STAR, INC.
STATEMENTS
OF INCOME
(Unaudited)
(In Thousands, Except Per Share
Amounts)
|
Three Months Ended |
|
September
30, |
|
2003 2002 |
|
Net sales |
$16,826 |
$15,780
|
|
Cost of sales |
11,544 |
11,094 |
|
Gross profit |
5,282 |
4,686 |
|
|
|
|
|
Selling, general and administrative expenses |
3,819 |
3,469 |
|
|
|
|
|
Income from
operations |
1,463 |
1,217 |
|
|
|
|
|
Interest income |
- |
(1) |
|
Interest expense |
42 |
102 |
|
|
|
|
|
Income
before income taxes |
1,421 |
1,116 |
|
Income taxes |
568 |
446 |
|
|
|
|
|
Net income |
$ 853 |
$ 670 |
|
|
|
|
|
BASIC NET
INCOME PER SHARE |
$.06 |
$.04 |
|
|
|
|
|
DILUTED NET
INCOME PER SHARE |
$.05 |
$.04 |
|
|
|
|
|
Basic weighted average number of shares outstanding |
15,502 |
15,085 |
|
Diluted weighted average number of shares outstanding |
16,211 |
15,085 |
|
|
|
|
Page 3
November 3, 2003
MOVIE STAR, INC.
CONDENSED BALANCE SHEETS
(In Thousands, Except Number of Shares)
|
September
30, |
June 30, |
September
30, |
|
2003 (Unaudited) |
2003*
|
2002 (Unaudited) |
Assets
|
Current Assets |
|
|
|
|
Cash |
$ 228 |
$ 219 |
$ 194 |
|
Receivables, net |
12,068 |
8,992 |
11,964 |
|
Inventory |
9,505 |
10,392 |
9,020 |
|
Deferred income taxes |
2,028 |
2,511 |
1,463 |
|
Prepaid expenses and other current assets |
426 |
365 |
300 |
|
Total current assets |
24,255 |
22,479 |
22,941 |
|
|
|
|
|
|
Property, plant
and equipment, net |
1,094 |
1,153 |
1,335 |
|
Deferred income
taxes |
50 |
50 |
2,662 |
|
Other assets |
403 |
407 |
370 |
|
|
|
|
|
|
Total assets |
$25,802 |
$24,089 |
$27,308 |
Liabilities and Shareholders’ Equity
|
Current Liabilities |
|
|
|
|
Notes payable |
$ 4,020 |
$ 2,277 |
$ 8,681 |
|
Current maturities of capital lease
obligations |
17 |
27 |
41 |
|
Accounts payable and other current
liabilities |
3,194 |
4,196 |
4,026 |
|
Total current liabilities |
7,231 |
6,500 |
12,748 |
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities |
337 |
325 |
266 |
|
|
|
|
|
|
Commitments and
Contingencies |
- |
- |
- |
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
Common stock, $.01 par value – authorized
30,000,000 shares; |
|
|
|
|
issued
17,592,000 shares in September 2003, 17,412,000 in June 2003 and 17,102,000 in September 2002 |
176 |
174 |
171 |
|
Additional paid-in capital |
4,468 |
4,353 |
4,147 |
|
Retained earnings |
17,208 |
16,355 |
13,594 |
|
|
21,852 |
20,882 |
17,912 |
|
|
|
|
|
|
Less: Treasury stock, at cost – 2,017,000
shares |
3,618 |
3,618 |
3,618 |
|
|
|
|
|
|
Total shareholders’ equity |
18,234 |
17,264 |
14,294 |
|
|
|
|
|
|
Total liabilities
and shareholders’ equity |
$25,802 |
$24,089 |
$27,308 |
*
Derived from audited financial statements.