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GIBSON GREETINGS INC. FIRST QUARTER 1993 RESULTS

 CINCINNATI, April 30 /PRNewswire/ -- Gibson Greetings, Inc. (NASDAQ: GIBG) today announced first quarter results for the three months ended March 31, 1993. 1992 results have been restated to reflect the adoption of SFAS No. 106, accounting for post retirement benefits other than pensions and SFAS No. 109, accounting for income taxes.
 Revenues for the quarter were $84.9 million, up 6.9 percent from the comparable period in 1992. Income before income taxes was $3.0 million, down 26.1 percent compared to the same period of the prior year. Net income was $1.8 million versus $2.4 million in 1992, before restatement of the cumulative effect of accounting changes, net of taxes, down 25.8 percent, while net income per share was $.11 versus $.15, down 26.7 percent. After restating last year's first quarter for the cumulative effect of accounting changes, net of taxes, net income for the first quarter of 1993 was up 84.3 percent, compared to the same period last year, while net income per share was $.11 versus $.06, up 83.3 percent. The cumulative effect of the accounting change, for the first quarter of 1992, net of taxes, was $1.4 million or $.09 per share. The effective income tax rate was 40.4 percent versus 40.7 percent in 1992.
 Benjamin J. Sottile, chairman, president and chief executive officer, stated that the increase in revenues was attributable primarily to gains in greeting card sales both domestically and in the United Kingdom.
 The impact of the increase in revenues was offset by a higher cost of product sold ratio although the operating expense ratio and interest expense, net, declined. Operating expenses increased reflecting increased shipments of greeting cards and related products; expenses incurred in anticipation of increased sales of Christmas gift wrap in the fourth quarter of 1993 and start-up costs associated with recently established international subsidiaries.
 Sottile emphasized that the company's balance sheet remained strong at March 31, 1993, with cash and equivalents of $63.0 million, up from $32.4 million in the like quarter of last year. Inventories and trade receivables, net, were below 1992 levels by 2.8 percent and 15.7 percent, respectively, reflecting improved collections and inventory management.
 Stockholders' equity at March 31, 1993 increased $2.2 million to $303.9 million. The ratio of long-term debt to total capitalization was a conservative 18.5 percent.
 Sottile commented that the recently announced closing of approximately 66 Phar-Mor stores had been anticipated in earlier planning for 1993 and that he remained optimistic regarding the outlook for the year as a whole.
 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.
 On April 21, 1993, the company announced an agreement to acquire The Paper Factory of Wisconsin, Inc. (The Paper Factory) which operates 106 paper party goods stores located primarily in factory outlet malls. Management of The Paper Factory will be retained and further store openings are anticipated. Sottile stated that this proposed acquisition would enable the company to expand in a new channel of distribution that would not be competitive with existing accounts while enhancing market research capabilities.
 The board of directors declared a regular quarterly cash dividend of $.10 per share, payable June 14, 1993 to shareholders of record on May 31, 1993.
 At the annual stockholders' meeting on April 29, 1993, stockholders elected four Class I Directors, with terms expiring in 1996, to the 13 member board. The directors are: Charles D. Lindberg, managing partner of Taft, Stettinius & Hollister; Albert R. Pezzillo, retired senior vice president of American Home Products Corporation and currently a business consultant; Burton B. Staniar, president of Westinghouse Electric Corporation and chairman, chief executive officer of Westinghouse Broadcasting Company, Inc. and C. Anthony Wainwright, vice-chairman of Campbell-Mithun-Esty.
 GIBSON GREETINGS, INC.
 SUMMARY CONSOLIDATED INCOME STATEMENT DATA
 (In thousands except per share amounts - unaudited)
 Three Months(A)
 Ended March 31,
 1993 1992
 Revenues $84,907 $79,428
 Income Before Income Taxes
 and Cumulative Effect of
 Accounting Changes $ 3,023 $ 4,090
 Income Before Cumulative
 Effect of Accounting Changes $ 1,802 $ 2,427
 Cumulative Effect of Accounting
 Changes, net of income
 taxes of $1,609 --- (1,449)
 Net Income $ 1,802 $ 978
 Income Per Share Before
 Cumulative Effect of
 Accounting Changes $.11 $.15
 Cumulative Effect of
 Accounting Changes --- (.09)
 Net Income Per Share $.11 $.06
 Average Common Shares and
 Equivalents Outstanding 16,074 16,165
 (A) -- Because the company's business is seasonal in nature, the results of interim periods are not necessarily indicative of yearly results.
 -0- 4/30/93
 /CONTACT: Ward A. Cavanaugh, vice president-finance of Gibson Greetings, Inc., 513-841-6675/
 (GIBG)


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

KL -- CL009 -- 3164 04/30/93 11:31 EDT
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Date:Apr 30, 1993
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