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GIBSON GREETINGS, INC. REPORTS SECOND QUARTER AND FIRST HALF 1993 RESULTS

 CINCINNATI, Aug. 2 /PRNewswire/ -- Gibson Greetings, Inc. (NASDAQ: GIBG) today announced results for the second quarter and first half of 1993. 1992 results have been restated to reflect the adoption of SFAS 106, accounting for post retirement benefits other than pensions and SFAS 109, accounting for income taxes.
 Revenues for the second quarter ended June 30, 1993, were $84.0 million, up 6.6 percent from the comparable period in 1992. Income before income taxes was $2.5 million, up 26.0 percent from the second quarter of 1992. Net income of $1.2 million was comparable to the like period of 1992, with net income per share of $.08 versus $.07, up 14.3 percent. The effective tax rate was 50.8 percent, compared to 38.7 percent, in the second quarter of 1992.
 For the six months ended June 30, 1993, revenues were $168.9 million, up 6.8 percent, while income before income taxes was $5.5 million, down 9.2 percent from the first half of 1992. Net income was $3.0 million versus $3.6 million in 1992, before restatement of the cumulative effect of accounting changes, net of taxes, down 16.9 percent, while net income per share was $.19 versus $.22, down 13.6 percent.
 After restating last year's first quarter for the cumulative effect of accounting changes, net of taxes, net income for the first half of 1993 was up 38.4 percent compared to the like period of last year, while net income per share was $.19 versus $.13, up 46.2 percent. The cumulative effect of accounting change for the first quarter of last year was $1.4 million, net of taxes, or $.09 per share. The effective income tax rate for the first half of 1993 was 45.1 percent compared to 40.0 percent for the like period of 1992.
 Benjamin J. Sottile, chairman, president and chief executive officer, stated that the increase in revenues in the second quarter and first half was attributable to domestic and international greeting card sales, combined with the sales of The Paper Factory of Wisconsin, Inc. (The Paper Factory), which was acquired June 1, 1993, partially offset by a decline in certain gift wrap product sales. A combination of growth with existing customers plus the addition of new accounts contributed to the gains in greeting card revenues.
 For both the second quarter and first half, impact of the increase in revenues and a lower operating expense ratio was partially offset by a higher cost of product sold ratio. Although the operating expense ratio decreased, start-up costs associated with the new Mexican subsidiary and expenses related to The Paper Factory adversely affected this ratio. Also, in anticipation of increased sales of Christmas gift wrap products in the fourth quarter of 1993, related expenses were incurred which exceeded similar expenses in the first half of 1992. A higher effective tax rate also adversely affected the net income comparisons.
 Sottile commented that he was particularly pleased with the first half performance in view of the substantial reduction in Phar-Mor outlets. At present, Phar-Mor operates 168 stores versus 297 last year. In 1991, Phar-Mor was the company's largest customer and in 1992, WalMart Stores, Inc., became the largest.
 Sottile added that the company's balance sheet remained strong at June 30, 1993. There were no short-term borrowings while cash, accounts receivable and inventories all remained near last year's level. Long- term debt decreased by $1.1 million to $68.8 million, while stockholders' equity increased $2.0 million to $303.5 million or $18.93 per share.
 For the balance of the year, the company expects to maintain its historical highly seasonal quarterly patterns with the fourth quarter generating the largest percent of annual revenues and net income.
 GIBSON GREETINGS, INC.
 SUMMARY CONSOLIDATED INCOME STATEMENT DATA
 (in thousands except per share amounts - unaudited)
 Three Months (A)
 Ended June 30,
 1993 1992
 Revenues $ 83,964 $ 78,736
 Income Before Income Taxes
 and Cumulative Effect of
 Accounting Changes $ 2,472 $ 1,962
 Income Before Cumulative
 Effect of
 Accounting Changes $ 1,215 $ 1,202
 Cumulative Effect of
 Accounting Changes,
 net of income taxes --- ---
 Net Income $ 1,215 $ 1,202
 Income Per Share Before
 Cumulative Effect of
 Accounting Changes $ .08 $ .07
 Cumulative Effect of
 Accounting Changes --- ---
 Net Income Per Share $ .08 $ .07
 Average Common Shares and
 Equivalents Outstanding 16,078 16,132
 Six Months (A)
 Ended June 30,
 1993 1992
 Revenues $168,871 $158,164
 Income Before Income Taxes
 and Cumulative Effect of
 Accounting Changes $ 5,495 $ 6,052
 Income before Cumulative
 Effect of
 Accounting Changes $ 3,017 $ 3,629
 Cumulative Effect of
 Accounting Changes,
 net of income taxes --- (1,449)
 Net Income $ 3,017 $ 2,180
 Income Per Share Before
 Cumulative Effect of
 Accounting Changes $ .19 $ .22
 Cumulative Effect of
 Accounting Changes --- (.09)
 Net Income Per Share $ .19 $ .13
 Average Common Shares and
 Equivalents Outstanding 16,076 16,148
 (A) -- Because the company's business is seasonal in nature, the results of interim periods are not necessarily indicative of yearly results.
 -0- 8/2/93
 /CONTACT: Ward A. Cavanaugh, vice president-finance of Gibson Greetings, Inc., 513-841-6675/
 (GIBG)


CO: Gibson Greetings, Inc. ST: Ohio IN: HOU SU: ERN

AR -- CL004 -- 8251 08/02/93 09:59 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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