CSS Industries, Inc. Reports Sales and Earnings for the Quarter Ended June 30, 2002.Business Editors PHILADELPHIA--(BUSINESS WIRE)--Aug. 5, 2002 CSS (1) See Cascading Style Sheets. (2) (Content Scrambling System) The copy protection system applied to DVDs, which uses a 40-bit key to encrypt the movie. Industries, Inc. (NYSE NYSE See: New York Stock Exchange :CSS) announced today the results of operations for the first quarter ended June June: see month. 30, 2002. Sales increased by 75% to $50,557,000 from $28,817,000 in 2001. The loss before cumulative effect of change in accounting principle increased slightly to $4,340,000, or $.52 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a prior year net loss of $4,324,000, or $.49 per diluted share. The Company adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " ("FAS #142"), effective with the beginning of its fiscal year, April 1, 2002, which resulted in a non-cash write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill and negative goodwill in the amount of $8,813,000, net of taxes, or $1.06 per share. The Company's highly seasonal orientation orientation, in architecture, the disposition of the parts of a building with reference to the points of the compass. From remote antiquity the traditional belief in the efficacy of religious ceremonials performed at dawn toward the rising sun has influenced the results in operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the first and fourth quarters of the fiscal year and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in the second and third quarters. The increase in sales was a result of the inclusion of C.M. Offray & Son, Inc. ("Offray"), acquired on March 15, 2002. Excluding Offray, sales decreased $1,284,000, or 5%, due to Halloween Halloween (hăl'əwēn`, häl'–), Oct. 31, the eve of All Saints' Day, observed with traditional games and customs. The word comes from medieval England's All Hallows' eve (Old Eng. hallow="saint"). and Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). shipments shifting from the first quarter into the second quarter of fiscal 2003. Despite this sales decline and a modest loss at Offray, improved gross margins and lower selling, general and administrative expenses in the base business resulted in a comparable loss before the cumulative effect of the change in accounting principle versus the same quarter in the prior year. "We are pleased with the integration of Offray and continue to anticipate that the acquisition will be modestly accretive to results in fiscal 2003," noted David Erskine Erskine (Arasgain in Scottish Gaelic) is a commuter town in Renfrewshire, Scotland, located on the southern bank of the River Clyde at the western extent of the Greater Glasgow conurbation. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Although it is early in the year, results to date support guidance of $3.05 to $3.25 per share before the cumulative effect of the accounting change for fiscal 2003. The increase is from a 2002 base of $2.40 and includes $.11 as a result of the adoption of FAS #142 as well as $.20 per share resulting from the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 1,100,000 shares in June," he continued. All statements other than statements of historical fact included in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. 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 conditions, increased competition, and other factors described in the Company's Annual Report on Form 10-K/A for the fiscal year ended March 31, 2002. CSS' consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results of operations for the quarters ended June 30, 2002 and 2001 and consolidated condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. balance sheets as of June 30, 2002, March 31, 2002 and June 30, 2001 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share amounts)
Three Months Ended
June 30,
-------------------
2002 2001
-------- --------
SALES $50,557 $28,817
------- -------
COSTS AND EXPENSES
Cost of sales 36,205 20,664
Selling, general and
administrative expenses 20,998 14,973
Interest expense (income), net 275 (12)
Rental and other income, net (141) (52)
------ -----
57,337 35,573
------- -------
LOSS BEFORE INCOME TAXES (6,780) (6,756)
INCOME TAX BENEFIT (2,440) (2,432)
-------- --------
LOSS BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE (4,340) (4,324)
--------- --------
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE (NET OF TAX) (8,813) -
--------- ----
NET LOSS $(13,153) $(4,324)
========= ========
BASIC AND DILUTED LOSS PER COMMON SHARE
Before cumulative effect of
accounting change $ (.52) $(.49)
Cumulative effect of accounting
change (1.06) -
------- ----
Basic and diluted loss per
common share $(1.58) $(.49)
======= ======
WEIGHTED AVERAGE BASIC AND DILUTED
SHARES OUTSTANDING 8,348 8,847
===== =====
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, March 31, June 30,
2002 2002 2001
----------- ---------- -----------
(Unaudited) (Audited) (Unaudited)
ASSETS
CURRENT ASSETS
Cash and temporary
investments $ 1,769 $ 20,006 $ 609
Accounts receivable, net 28,403 30,021 20,143
Inventories 151,675 98,541 132,376
Income tax receivable 2,715 2,222 5,855
Deferred income taxes 6,408 6,408 5,715
Other current assets 10,256 19,471 8,988
----------- ---------- -----------
Total current assets 201,226 176,669 173,686
----------- ---------- -----------
PROPERTY, PLANT AND
EQUIPMENT, NET 78,172 80,426 64,028
----------- ---------- -----------
OTHER ASSETS
Intangible assets 25,983 37,656 38,217
Other 3,965 3,744 4,668
----------- ---------- -----------
Total other assets 29,948 41,400 42,885
----------- ---------- -----------
Total assets $309,346 $298,495 $280,599
=========== ========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Notes payable $ 50,520 $ - $ 9,020
Other current
liabilities 63,902 51,271 45,689
----------- ---------- -----------
Total current
liabilities 114,422 51,271 54,709
----------- ---------- -----------
LONG-TERM OBLIGATIONS 2,358 3,138 2,724
----------- ---------- -----------
DEFERRED INCOME TAXES 5,660 9,241 6,250
----------- ---------- -----------
SHAREHOLDERS' EQUITY 186,906 234,845 216,916
----------- ---------- -----------
Total liabilities and
shareholders' equity $309,346 $298,495 $280,599
=========== ========== ===========
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