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CSS INDUSTRIES, INC. REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2015

CSS INDUSTRIES, INC. REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2015


FOR FURTHER INFORMATION CONTACT:

Vincent A. Paccapaniccia

 

Chief Financial Officer

 

(215) 569-9900

 

FOR IMMEDIATE RELEASE

January 25, 2016

CSS INDUSTRIES, INC. REPORTS RESULTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2015

CSS Industries, Inc. (NYSE:CSS) announced today its results of operations for the three and nine months ended December 31, 2015.  Sales for the third quarter of fiscal 2016 decreased 0.4% to $104,568,000 from $104,993,000 in the third quarter of fiscal 2015, as lower sales of craft ribbon, Christmas cards and tags more than offset higher shipments of Christmas bows and ribbon, largely due to the previously announced acquisition of Hollywood Ribbon Industries, Inc., and earlier shipping of Easter products.  Income before income taxes for the third quarter of fiscal 2016 was $15,191,000 compared to $15,142,000 in the third quarter of fiscal 2015.  Net income for the third quarter of fiscal 2016 was $9,664,000, or $1.06 per diluted share, versus $9,768,000, or $1.04 per diluted share, in the third quarter of fiscal 2015.

 

Sales for the first nine months of fiscal 2016 increased 0.4% to $260,273,000 from $259,342,000 in the first nine months of fiscal 2015, primarily due to higher sales of Christmas bows and ribbon, largely due to the previously announced acquisition of Hollywood Ribbon Industries, Inc., and earlier shipping of Easter products, largely offset by lower sales of Christmas cards and tags and craft ribbon. Income before income taxes for the first nine months of fiscal 2016 was $28,106,000 compared to $28,569,000 in the first nine months of fiscal 2015.  Net income for the first nine months of fiscal 2016 was $17,825,000, or $1.92 per diluted share, versus $18,290,000, or $1.95 per diluted share, in the first nine months of fiscal 2015.

 

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, journals, boxed greeting cards, classroom exchange Valentines, gift tags, gift bags, gift card holders, gift wrap, decorations,  floral accessories, craft and educational products, Easter egg dyes and novelties, memory books, scrapbooks, stickers, infant and wedding photo albums, stationery, 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 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, 2015 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, 2015 and 2014 and condensed consolidated balance sheets as of December 31, 2015, March 31, 2015 and December 31, 2014 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,

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

Sales

$

104,568

 

 

$

104,993

 

 

$

260,273

 

 

$

259,342

 

Costs and expenses

 

 

 

 

 

 

 

Cost of sales

69,380

 

 

68,670

 

 

174,852

 

 

173,023

 

Selling, general and administrative expenses

19,967

 

 

21,102

 

 

57,367

 

 

57,754

 

Interest expense (income), net

39

 

 

43

 

 

(43

)

 

39

 

Other (income) expense, net

(9

)

 

36

 

 

(9

)

 

(43

)

 

 

 

 

 

 

 

 

 

89,377

 

 

89,851

 

 

232,167

 

 

230,773

 

 

 

 

 

 

 

 

 

Income before income taxes

15,191

 

 

15,142

 

 

28,106

 

 

28,569

 

 

 

 

 

 

 

 

 

Income tax expense

5,527

 

 

5,374

 

 

10,281

 

 

10,279

 

 

 

 

 

 

 

 

 

Net income

$

9,664

 

 

$

9,768

 

 

$

17,825

 

 

$

18,290

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.07

 

 

$

1.05

 

 

$

1.94

 

 

$

1.96

 

Diluted

$

1.06

 

 

$

1.04

 

 

$

1.92

 

 

$

1.95

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

9,037

 

 

9,331

 

 

9,175

 

 

9,321

 

Diluted

9,126

 

 

9,420

 

 

9,271

 

 

9,403

 

 

 

 

 

 

 

 

 

Cash dividends per share of common stock

$

0.18

 

 

$

0.15

 

 

$

0.54

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

CSS INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

December 31,
 2015

 

March 31,
 2015

 

December 31,
 2014

 

(Unaudited)

 

(Audited)

 

(Unaudited)

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

25,248

 

 

$

36,429

 

 

$

48,163

 

Short-term investments

59,735

 

 

69,845

 

 

39,802

 

Accounts receivable, net

78,978

 

 

42,052

 

 

84,713

 

Inventories

67,079

 

 

65,491

 

 

62,536

 

Deferred income taxes

4,321

 

 

4,375

 

 

3,783

 

Other current assets

9,834

 

 

11,235

 

 

11,807

 

Total current assets

245,195

 

 

229,427

 

 

250,804

 

Property, plant and equipment, net

26,592

 

 

25,493

 

 

25,775

 

Deferred income taxes

 

 

582

 

 

1,776

 

Other assets

 

 

 

 

 

Goodwill

15,820

 

 

15,820

 

 

15,075

 

Intangible assets, net

31,132

 

 

33,048

 

 

26,594

 

Other

5,611

 

 

5,103

 

 

4,247

 

Total other assets

52,563

 

 

53,971

 

 

45,916

 

Total assets

$

324,350

 

 

$

309,473

 

 

$

324,271

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

17,707

 

 

$

12,917

 

 

$

18,233

 

Accrued payroll and other compensation

8,301

 

 

9,054

 

 

8,075

 

Accrued customer programs

4,422

 

 

4,042

 

 

5,593

 

Accrued income taxes

4,755

 

 

745

 

 

4,097

 

Other current liabilities

9,927

 

 

8,247

 

 

10,760

 

Total current liabilities

45,112

 

 

35,005

 

 

46,758

 

Deferred income taxes

631

 

 

 

 

 

Long-term obligations

4,494

 

 

4,213

 

 

4,772

 

Stockholders’ equity

274,113

 

 

270,255

 

 

272,741

 

Total liabilities and stockholders’ equity

$

324,350

 

 

$

309,473

 

 

$

324,271

 

 

 

 

 

 


FOR FURTHER INFORMATION CONTACT:
Vincent A. Paccapaniccia
Chief Financial Officer
(215) 569-9900