Mossimo, Inc. reported first quarter 2003 revenue increased to 6.3% to $6.2 million compared to $5.9 million for the same period last year. The Company reported first quarter net earnings of $1.2 million compared to net earnings of $1.4 million for the same period last year, and diluted earnings per share of 8 cents compared to diluted earnings per share of 9 cents for the same period last year. Pre-tax net earnings were $2.0 million, or 13 cents per diluted share in the first quarter of 2004, compared to pre-tax net earnings of $2.3 million, or 15 cents per diluted share in the first quarter of 2003.
Mossimo Giannulli, Chairman and Chief Executive Officer stated, “We are pleased with our performance during the quarter and current momentum of our business. We continue to make positive strides at Target and Zellers and the recent launch of Mossimo in Mexico was very well-received. In addition, the initial feedback from retailers regarding Modern Amusement has been very encouraging and we are excited about the brand's potential for growth.”
Edwin Lewis, Vice Chairman and President concluded, “These results represent a solid start to the new year and underscore the positive trends in our business. We are enthusiastic about our prospects and remain focused on further capitalizing on the many opportunities we have created in the marketplace.”
MOSSIMO, INC.
CONDENSED / CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Unaudited
March 31, December 31,
2004 2003
----------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,628 $ 9,707
Restricted cash -- 4,585
Accounts receivable 5,464 2,007
Deferred income taxes 2,307 3,071
Prepaid expenses and other current assets 602 282
----------- ------------
Total current assets 15,001 19,652
PROPERTY AND EQUIPMENT, net 998 480
DEFERRED INCOME TAXES 5,973 6,037
GOODWILL 324 --
OTHER ASSETS 46 244
----------- ------------
$ 22,342 $ 26,413
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 211 $ 525
Accrued liabilities 532 1,513
Accrued commissions 745 5,251
Accrued bonuses 652 112
----------- ------------
Total current liabilities 2,140 7,401
----------- ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.001;
authorized shares 3,000,000; no shares
issued or outstanding -- --
Common stock, par value $.001; authorized
shares 30,000,000; issued and outstanding
15,738,442 at March 31, 2004 and at
December 31, 2003 15 15
Additional paid-in capital 39,763 39,763
Accumulated deficit (19,576) (20,766)
----------- ------------
Stockholders' equity 20,202 19,012
----------- ------------
$ 22,342 $ 26,413
=========== ============
MOSSIMO, INC.
CONDENSED / CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Unaudited
For The Three Months
Ended March 31,
2004 2003
--------- ---------
REVENUE FROM LICENSE ROYALTIES AND
DESIGN SERVICE FEES $ 6,210 $ 5,868
RETAIL REVENUES 26 -
--------- ---------
Total Revenues 6,236 5,868
COST OF RETAIL REVENUES 13 -
--------- ---------
6,223 5,868
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OPERATING EXPENSES:
Selling, general and administrative 4,213 3,526
--------- ---------
Operating earnings 2,010 2,342
INTEREST INCOME (EXPENSE), net 27 (14)
--------- ---------
Earnings before income taxes 2,037 2,328
Provision for income taxes 847 930
--------- ---------
Net earnings $ 1,190 $ 1,398
========= =========
Net earnings per common share:
Basic $ 0.08 $ 0.09
========= =========
Diluted $ 0.08 $ 0.09
========= =========
Weighted average common shares outstanding:
Basic 15,738 15,491
========= =========
Diluted 15,771 15,657
========= =========
