MOSS Mossimo

Mossimo, Inc. (NASDAQ: MOSS) today announced financial results for the fourth quarter and fiscal year ended December 31, 2005. Mossimo, Inc. reported fourth quarter 2005 total net revenues increased to $6.5 million compared to $3.2 million for the same period last year. The Company reported fourth quarter net earnings of $15,000 compared to net earnings of $629,000 for the same period last year, and diluted earnings per share of $0.00 compared to diluted earnings per share of $0.04 for the same period last year. Total revenues for the fiscal year ended December 31, 2005 were $31.0 million compared to $20.5 million in the same period last year. The company reported net earnings for fiscal 2005 of $4.7 million compared to net earnings of $2.7 million in the corresponding period a year ago, and diluted earnings per share of $0.30 compared to diluted earnings per share of $0.17 for the same period last year. Edwin Lewis, President and Co-Chief Executive Officer stated, "We are pleased with our fiscal 2005 results, which were driven primarily by increased sales at Target and improvements at Modern Amusement." To listen to the Mossimo prerecorded fourth quarter and fiscal 2005 year-end earnings call, please dial (719) 457-0820 or (888) 203-1112, followed by the conference identification number #9456068. This call will be available beginning today, March 30, 2006 at 4:00 pm ET and run through April 6, 2006 at 11:59 pm ET. Founded in 1987, Mossimo, Inc. is a designer, licensor and distributor of men's, women's, boy's and girl's apparel, footwear, and other fashion accessories such as jewelry, watches, handbags, and belts. The matters discussed in this news release with respect to operations and future results, and the benefits thereof, are forward looking statements that involve risks and uncertainties, including the demand for the Company's products in Target stores which have not traditionally sold the Company's products, changes in consumer demands and preferences, shifting trends in the overall retail and apparel market, competition from other lines, changes in consumer spending patterns and general economic conditions, and uncertainties generally associated with product introductions and apparel retailing. Forward looking statements are not guarantees and involve known and unknown risks and uncertainties, any of which could cause actual results to vary materially from anticipated results. Operating results stated herein are not necessarily indicative of results that may be expected in future periods. More information on risk factors, which could affect the Company's financial results, is included in the Company's Forms 10-K and 10Q, periodically filed with the S.E.C. -0- *T MOSSIMO, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) (Unaudited) For the Three For the Years Months Ended Ended December 31, December 31, --------------- ----------------- 2005 2004 2005 2004 ------- ------- -------- -------- Revenue from license royalties and design service fees $4,593 $2,533 $24,298 $18,714 Product sales 1,955 624 6,730 1,821 ------- ------- -------- -------- Total revenues 6,548 3,157 31,028 20,535 Operating expenses: Cost of product sales 1,056 352 3,993 1,241 Selling, general and administrative expenses 5,431 1,897 20,294 14,843 Goodwill impairment loss 212 - 212 - ------- ------- -------- -------- Total operating expenses 6,699 2,249 24,499 16,084 ------- ------- -------- -------- Operating earnings (loss) (151) 908 6,529 4,451 Other expenses, net - - - (71) Interest income 188 27 420 104 ------- ------- -------- -------- Earnings before income taxes 37 935 6,949 4,484 Income taxes 22 306 2,248 1,783 ------- ------- -------- -------- Net earnings $ 15 $ 629 $ 4,701 $ 2,701 ======= ======= ======== ======== Earnings per common share: Basic $ 0.00 $ 0.04 $ 0.30 $ 0.17 ======= ======= ======== ======== Diluted $ 0.00 $ 0.04 $ 0.30 $ 0.17 ======= ======= ======== ======== Weighted average common shares outstanding: Basic 15,751 15,738 15,751 15,738 ======= ======= ======== ======== Diluted 15,784 15,759 15,784 15,759 ======= ======= ======== ======== *T -0- *T MOSSIMO, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) December 31, ----------------- 2005 2004 -------- -------- ASSETS CURRENT ASSETS: Cash and cash equivalents $19,658 $ 4,903 Restricted cash 726 413 Investments - 4,800 Accounts receivable 4,372 2,908 Merchandise inventory 101 539 Deferred income taxes 4,004 1,869 Prepaid expenses and other current assets 388 436 -------- -------- Total current assets 29,249 15,868 PROPERTY AND EQUIPMENT, at cost, net of accumulated depreciation and amortization 893 1,117 DEFERRED INCOME TAXES 1,923 6,068 GOODWILL - 212 TRADENAME 90 112 OTHER ASSETS 79 96 -------- -------- $32,234 $23,473 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 884 $ 352 Accrued liabilities 503 809 Accrued commissions 388 258 Accrued bonuses 3,458 206 -------- -------- Total current liabilities 5,233 1,625 DEFERRED RENT 128 135 -------- -------- Total liabilities 5,361 1,760 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 15,828,754 at December 31, 2005 and 15,738,442 at December 31, 2004 15 15 Additional paid-in capital 40,222 39,763 Accumulated deficit (13,364) (18,065) -------- -------- Net stockholders' equity 26,873 21,713 -------- -------- $32,234 $23,473 ======== ======== *T