Morrow Net Sales Up 65 Percent
Morrow Snowboards reports second quarter 1998 results.
Edited Sean O'Brien
(7-13-98)

(Press Release, August 12, 1998)-Morrow Snowboards, Inc. (NASDAQ:MRRW) has announced financial results for its 1998 second quarter.

For the three months ended June 27, 1998, net sales were 3,545,000 dollars, an increase of 65 percent from second quarter 1997 revenues of 2,149,000 dollars. The net loss for the 1998 second quarter was 1,552,000 dollars or $0.25 per share, compared with a net loss of 830,000 dollars or $0.15 per share in the prior year's second quarter. The 1997 second quarter included a tax benefit of 543,000 dollars, while no tax benefit was recorded in the latest quarter.

"The results announced today meet our expectations and reflect the seasonal nature of our business, which has the majority of its revenue in the third and fourth quarters," commented Blair Mullin, president of Morrow Snowboards. "The increase in sales during the quarter came mainly from spring apparel and retail store revenues from Westbeach Snowboard Canada, plus increased international shipments of Morrow-brand snowboards. We are in our peak shipping season now, and expect that we will see an increase in total revenues for the year compared with last year's results, which only included Westbeach revenues after the acquisition was completed in November.

"This quarter also reflects our lower expense base as a result of changes made earlier in the year," continues Mullin. "With our costs down and seasonal financing in place, we have focused in the last few months on meeting and exceeding current expectations while renewing our vision for the company and establishing our business plan for the next three years. The excess supply of snowboards at the retail level of the market appears to have diminished, and Morrow and Westbeach continue to be premier brands in a dynamic industry. We look forward to building on that base for improved performance later this year and in 1999."

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