News Column

CSS Industries Releases 3rd Quarter FY 2014 Financial Results

January 30, 2014

CSS Industries, Inc. announced its results of operations for the three and nine months ended Dec. 31, 2013 . As previously announced, the Company said it divested the Halloween portion of its Paper Magic Group, Inc. business during fiscal 2013. In a release on Jan. 27 , CSS Industries said Halloween sales in the three and nine months ended Dec. 31, 2012 , totaled approximately $1,415,000 and $29,345,000 , respectively. Due to the divestiture, this level of sales did not recur in fiscal 2014. The Company's fiscal year ends on March 31 . References to a particular fiscal year refer to the fiscal year ending in March of that year. For example, "fiscal 2014" refers to the fiscal year ending March 31 . Sales for the third quarter of fiscal 2014 decreased to $106,295,000 from $116,020,000 in the third quarter of fiscal 2013. Approximately $1,299,000 of the lower sales level is due to the divestiture of the Halloween business as discussed above, with the balance of the lower sales level primarily due to lower sales of Christmas products and narrow woven ribbon. Income from continuing operations before income taxes for the third quarter of fiscal 2014 was $16,316,000 compared to $17,019,000 in the third quarter of fiscal 2013. Income from continuing operations for the third quarter of fiscal 2014 was $10,988,000 , or $1.18 per diluted share, versus $11,600,000 , or $1.21 per diluted share, in the third quarter of the prior fiscal year. Net income for the third quarter of fiscal 2014, including discontinued operations, was $11,007,000 , or $1.18 per diluted share, versus $11,611,000 , or $1.22 per diluted share, in the third quarter of fiscal 2013. Results for the third quarter of fiscal 2014 and 2013 include income from Halloween operations and charges incurred as a result of the divestiture. Sales for the first nine months of fiscal 2014 decreased to $265,899,000 from $310,572,000 in the first nine months of fiscal 2013. Approximately $28,063,000 of the lower sales level is due to the divestiture of the Halloween business in the second quarter of fiscal 2013, with the balance primarily due to lower sales of All Occasion stationery products, Christmas products and narrow woven ribbon. Income from continuing operations before income taxes for the first nine months of fiscal 2014 was $29,785,000 compared to $27,945,000 in the first nine months of fiscal 2013. Results for the first nine months of fiscal 2013 include a pretax loss of $4,352,000 relating to the Halloween business. This loss was comprised of $2,412,000 of income from Halloween operations offset by $6,764,000 of charges incurred as a result of the divestiture. Income from continuing operations for the first nine months of fiscal 2014 was $20,167,000 , or $2.13 per diluted share, versus $17,573,000 , or $1.83 per diluted share, in the first nine months of the prior fiscal year. Results in the first nine months of fiscal 2013 include a net loss of $3,651,000 , or $0.39 per diluted share, relating to the Halloween business. Net income for the first nine months of fiscal 2014, including discontinued operations, was $20,298,000 , or $2.14 per diluted share, versus $17,628,000 , or $1.84 per diluted share, in the first nine months of fiscal 2013. Results for the first nine months of fiscal 2014 and 2013 include income from Halloween operations and charges incurred as a result of the divestiture. 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. ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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Source: Manufacturing Close - Up


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