Exhibit 99.1
CSS Industries, Inc. Reports Sales and
Earnings for the Quarter Ended June 30, 2003
PHILADELPHIA--(BUSINESS WIRE)--July 24, 2003--CSS Industries, Inc.
(NYSE:CSS) announced today the results of operations for the first
quarter ended June 30, 2003. Sales increased by 15% to $58,290,000
from $50,557,000 in 2002. The loss before cumulative effect of change
in accounting principle decreased to $4,039,000, or $.35 per diluted
share, compared to a prior year result of $4,340,000, or $.35 per
diluted share. The prior year results have been restated to reflect a
three for two stock split and also include the adoption of SFAS No.
142, "Goodwill and Other Intangible Assets" ("SFAS No.142"). Upon
adoption of SFAS No. 142 and effective with the beginning of its prior
fiscal year, April 1, 2002, the Company recorded a non-cash write-off
of goodwill and negative goodwill in the amount of $8,813,000, net of
taxes, or $.70 per share. The Company's highly seasonal orientation
results in operating losses in the first and fourth quarters of the
fiscal year and operating profits in the second and third quarters.
The increase in sales was primarily the result of the inclusion of
Crystal Creative Products, Inc. ("Crystal"), acquired on October 18,
2002. Excluding Crystal, sales increased $446,000, or 1%, due to
increased sales of educational and other everyday products, partially
offset by the shift of Christmas shipments from the first quarter into
the second quarter of fiscal 2004. Despite Crystal's seasonal net loss
for the quarter of $840,000, which approximated budget, higher margins
and lower selling, general and administrative expenses of the other
businesses resulted in a decreased loss before the cumulative effect
of the change in accounting principle versus the same quarter in the
prior year.
"We are pleased with the first quarter results of the Company.
Although it is early in the year, these results support our previous
guidance of EPS growth for fiscal year 2004 of approximately 10%,"
noted David Erskine, President and CEO.
All statements other than statements of historical fact included
in this press release are "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. 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 for the fiscal year ended
March 31, 2003.
CSS' consolidated results of operations for the quarters ended
June 30, 2003 and 2002 and consolidated condensed balance sheets as of
June 30, 2003, March 31, 2003 and June 30, 2002 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share amounts)
Three Months Ended
June 30,
--------------------
2003 2002
--------- ----------
SALES $58,290 $50,557
--------- ----------
COSTS AND EXPENSES
Cost of sales 42,686 36,205
Selling, general and administrative expenses 21,553 20,998
Interest expense, net 705 275
Rental and other income, net (304) (141)
--------- ----------
64,640 57,337
--------- ----------
LOSS BEFORE INCOME TAXES (6,350) (6,780)
INCOME TAX BENEFIT (2,311) (2,440)
--------- ----------
LOSS BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING PRINCIPLE (4,039) (4,340)
--------- ----------
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE (NET OF TAX) - (8,813)
--------- ----------
NET LOSS $(4,039) $(13,153)
========= ==========
BASIC AND DILUTED LOSS PER COMMON SHARE
Before cumulative effect of accounting change $ (.35) $ (.35)
Cumulative effect of accounting change - (.70)
--------- ----------
Basic and diluted loss per common share $ (.35) $ (1.05)
========= ==========
WEIGHTED AVERAGE BASIC AND DILUTED
SHARES OUTSTANDING 11,632 12,522
========= ==========
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31, June 30,
2003 2003 2002
--------- --------- ----------
(Unaudited) (Audited) (Unaudited)
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 5,426 $ 51,981 $ 1,769
Accounts receivable, net 45,739 47,583 37,816
Inventories 163,033 106,648 151,675
Income tax receivable 5,112 2,398 2,715
Deferred income taxes 6,194 6,226 6,408
Other current assets 14,475 13,771 10,256
--------- --------- ----------
Total current assets 239,779 228,607 210,639
--------- --------- ----------
PROPERTY, PLANT AND EQUIPMENT, NET 81,618 82,731 78,172
--------- --------- ----------
OTHER ASSETS
Intangible assets, net 36,017 36,045 25,983
Other 4,247 4,578 3,965
--------- --------- ----------
Total other assets 40,264 40,623 29,948
--------- --------- ----------
Total assets $361,861 $351,961 $318,759
========= ========= ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Notes payable $ - $ - $ 50,520
Accrued customer programs 12,963 13,334 9,413
Other current liabilities 69,230 56,311 63,902
--------- --------- ----------
Total current
liabilities 82,193 69,645 123,835
--------- --------- ----------
LONG-TERM DEBT, NET OF CURRENT
PORTION 50,000 50,063 141
--------- --------- ----------
LONG-TERM OBLIGATIONS 3,785 3,684 2,217
--------- --------- ----------
DEFERRED INCOME TAXES 7,939 7,706 5,660
--------- --------- ----------
SHAREHOLDERS' EQUITY 217,944 220,863 186,906
--------- --------- ----------
Total liabilities and
shareholders' equity $361,861 $351,961 $318,759
========= ========= ==========
CONTACT: CSS Industries, Inc.
Clifford E. Pietrafitta, 215-569-9900