Attached files
| file | filename |
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| 8-K - 8-K - CSS INDUSTRIES INC | a2015q3earningsrelease8-k.htm |
Exhibit 99.1
FOR FURTHER INFORMATION CONTACT: | Vincent A. Paccapaniccia |
Chief Financial Officer | |
(215) 569-9900 | |
FOR IMMEDIATE RELEASE
January 26, 2015
CSS INDUSTRIES, INC. REPORTS RESULTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2014
CSS Industries, Inc. (NYSE:CSS) announced today its results of operations for the three- and nine months ended December 31, 2014, which is the third quarter and first nine months of its fiscal year ending March 31, 2015. Sales for the third quarter of fiscal 2015 decreased 1.2% to $104,993,000 from $106,295,000 in the third quarter of fiscal 2014, primarily due to lower sales of Christmas and all occasion cards and all occasion stationery products, partially offset by higher sales of craft ribbon and sales attributable to the acquisition by the Company's Berwick Offray LLC company of substantially all of the assets and business of Carson & Gebel Ribbon Co., LLC ("C&G"), as announced on May 19, 2014. Income from continuing operations before income taxes for the third quarter of fiscal 2015 was $15,142,000 compared to $16,316,000 in the third quarter of fiscal 2014. Net income for the third quarter of fiscal 2015 was $9,768,000, or $1.04 per diluted share, versus $11,007,000, or $1.18 per diluted share, in the third quarter of fiscal 2014.
Sales for the first nine months of fiscal 2015 decreased 2.5% to $259,342,000 from $265,899,000 in the first nine months of fiscal 2014, primarily due to lower sales of Christmas bows, ribbons and cards and all occasion cards and all occasion stationery products, partially offset by higher sales of gift card holders, craft ribbon and sales attributable to the acquisition of substantially all of the assets and business of C&G, as announced on May 19, 2014. The business acquired from C&G has been fully integrated into Berwick Offray. Income from continuing operations before income taxes for the first nine months of fiscal 2015 was $28,569,000 compared to $29,785,000 in the first nine months of fiscal 2014. Net income for the first nine months of fiscal 2015 was $18,290,000, or $1.95 per diluted share, versus $20,298,000, or $2.14 per diluted share, in the first nine months of fiscal 2014.
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of all occasion and seasonal social expression products, principally to mass market retailers. These all occasion and seasonal products include decorative ribbons and bows, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange Valentines, floral accessories, Easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, note cards, infant and wedding photo albums, scrapbooks, and other gift items that commemorate life’s celebrations.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to the Company’s management as to future events and financial performance with respect to the Company’s operations. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they were made. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including without limitation, general market and economic conditions; increased competition (including competition from foreign products which may be imported at less than fair value and from foreign products which may benefit from foreign governmental subsidies); increased operating costs, including labor-related and energy costs and costs relating to the imposition or retrospective application of duties on imported products; currency risks and other risks associated with international markets; risks associated with acquisitions, including acquisition integration costs and the risk that the Company may not be able to integrate and derive the expected benefits from such acquisitions; the risk that customers may become insolvent, may delay payments or may impose deductions or penalties on amounts owed to the Company; costs of compliance with governmental regulations and government investigations; liability associated with non-compliance with governmental regulations, including regulations pertaining to the environment, Federal and state employment laws, and import and export controls and customs laws; and other factors described more fully in the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2014 and elsewhere in the Company’s filings with the Securities and Exchange Commission. As a result of these factors, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
CSS’ consolidated results of operations for the three and nine months ended December 31, 2014 and 2013 and condensed consolidated balance sheets as of December 31, 2014, March 31, 2014 and December 31, 2013 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Sales | $ | 104,993 | $ | 106,295 | $ | 259,342 | $ | 265,899 | |||||||
Costs and expenses | |||||||||||||||
Cost of sales | 68,670 | 70,029 | 173,023 | 178,447 | |||||||||||
Selling, general and administrative expenses | 21,102 | 19,865 | 57,754 | 57,544 | |||||||||||
Interest expense, net | 43 | 82 | 39 | 152 | |||||||||||
Other income (expense), net | 36 | 3 | (43 | ) | (29 | ) | |||||||||
89,851 | 89,979 | 230,773 | 236,114 | ||||||||||||
Income from continuing operations before income taxes | 15,142 | 16,316 | 28,569 | 29,785 | |||||||||||
Income tax expense | 5,374 | 5,328 | 10,279 | 9,618 | |||||||||||
Income from continuing operations | 9,768 | 10,988 | 18,290 | 20,167 | |||||||||||
Discontinued operations, net of tax | — | 19 | — | 131 | |||||||||||
Net income | $ | 9,768 | $ | 11,007 | $ | 18,290 | $ | 20,298 | |||||||
Net income per common share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 1.05 | $ | 1.18 | $ | 1.96 | $ | 2.14 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Total | $ | 1.05 | $ | 1.18 | $ | 1.96 | $ | 2.15 | |||||||
Net income per common share: | |||||||||||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 1.04 | $ | 1.18 | $ | 1.95 | $ | 2.13 | |||||||
Discontinued operations | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Total | $ | 1.04 | $ | 1.18 | $ | 1.95 | $ | 2.14 | |||||||
Weighted average basic and diluted shares outstanding: | |||||||||||||||
Basic | 9,331 | 9,296 | 9,321 | 9,420 | |||||||||||
Diluted | 9,420 | 9,341 | 9,403 | 9,467 | |||||||||||
Cash dividends per share of common stock | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.45 | |||||||
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, 2014 | March 31, 2014 | December 31, 2013 | |||||||||
(Unaudited) | (Audited) | (Unaudited) | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 48,163 | $ | 68,200 | $ | 68,551 | |||||
Short-term investments | 39,802 | 29,862 | — | ||||||||
Accounts receivable, net | 84,713 | 44,243 | 88,934 | ||||||||
Inventories | 62,536 | 59,252 | 65,156 | ||||||||
Deferred income taxes | 3,783 | 4,414 | 3,873 | ||||||||
Other current assets | 11,807 | 13,473 | 12,410 | ||||||||
Total current assets | 250,804 | 219,444 | 238,924 | ||||||||
Property, plant and equipment, net | 25,775 | 27,063 | 27,553 | ||||||||
Deferred income taxes | 1,776 | 1,965 | 3,314 | ||||||||
Other assets | |||||||||||
Goodwill | 15,075 | 14,522 | 14,522 | ||||||||
Intangible assets, net | 26,594 | 26,309 | 26,763 | ||||||||
Other | 4,247 | 4,232 | 4,156 | ||||||||
Total other assets | 45,916 | 45,063 | 45,441 | ||||||||
Total assets | $ | 324,271 | $ | 293,535 | $ | 315,232 | |||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 18,233 | $ | 10,664 | $ | 21,733 | |||||
Accrued payroll and other compensation | 8,075 | 8,754 | 8,227 | ||||||||
Accrued customer programs | 5,593 | 4,820 | 6,188 | ||||||||
Other current liabilities | 14,857 | 7,397 | 14,717 | ||||||||
Total current liabilities | 46,758 | 31,635 | 50,865 | ||||||||
Long-term obligations | 4,772 | 4,684 | 4,814 | ||||||||
Stockholders’ equity | 272,741 | 257,216 | 259,553 | ||||||||
Total liabilities and stockholders’ equity | $ | 324,271 | $ | 293,535 | $ | 315,232 | |||||