Exhibit 99.1
CSS Industries, Inc. Reports Sales and Earnings
for the Quarter Ended June 30, 2004
PHILADELPHIA--(BUSINESS WIRE)--July 27, 2004--CSS Industries, Inc.
(NYSE:CSS) announced today the results of operations for the first
quarter ended June 30, 2004. Sales decreased by 15% to $49,555,000
from $58,290,000 in 2003. The net loss increased to $4,407,000, or
$.37 per diluted share, compared to a prior year loss of $4,039,000,
or $.35 per diluted 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 decrease in sales was primarily the result of the absence of
sales related to the retail packaging product line of a recently
acquired business which was sold in July of 2003 and lower sales of
Halloween products and ribbons and bows which is substantially due to
timing of shipments compared to a year ago. This sales decline was the
primary reason for the increased net loss for the quarter. Partially
offsetting the effects of the sales decline was improved margins,
integration savings related to recent acquisitions and lower interest
expense compared to the prior year.
"The first quarter results are in line with our expectations.
Although it is early in the year, these results support our previous
guidance of EPS growth for fiscal year 2005 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, 2004.
CSS' consolidated results of operations for the quarters ended
June 30, 2004 and 2003 and consolidated condensed balance sheets as of
June 30, 2004, March 31, 2004 and June 30, 2003 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share data)
Three Months Ended
June 30,
-------------------
2004 2003
--------- ---------
SALES $49,555 $58,290
--------- ---------
COSTS AND EXPENSES
Cost of sales 36,061 43,161
Selling, general and administrative expenses 20,175 21,078
Interest expense, net 417 705
Rental and other income, net (235) (304)
--------- ---------
56,418 64,640
--------- ---------
LOSS BEFORE INCOME TAXES (6,863) (6,350)
INCOME TAX BENEFIT (2,456) (2,311)
--------- ---------
NET LOSS $(4,407) $(4,039)
========= =========
BASIC AND DILUTED NET LOSS PER COMMON SHARE $(.37) $(.35)
========= =========
WEIGHTED AVERAGE BASIC AND DILUTED SHARES
OUTSTANDING 11,894 11,632
========= =========
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31, June 30,
2004 2004 2003
----------- --------- -----------
(Unaudited) (Audited) (Unaudited)
ASSETS
--------
CURRENT ASSETS
Cash and cash equivalents $41,718 $93,191 $5,426
Accounts receivable, net 37,617 40,460 45,739
Inventories 146,271 94,459 163,033
Current income taxes - - 5,112
Deferred income taxes 7,681 7,937 6,194
Other current assets 14,784 12,987 14,475
----------- --------- -----------
Total current assets 248,071 249,034 239,979
----------- --------- -----------
PROPERTY, PLANT AND EQUIPMENT, NET 79,696 81,193 81,618
----------- --------- -----------
OTHER ASSETS
Intangible assets, net 35,582 35,619 36,017
Other 4,797 4,551 4,247
----------- --------- -----------
Total other assets 40,379 40,170 40,264
----------- --------- -----------
Total assets $368,146 $370,397 $361,861
=========== ========= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- -------------------------------------
CURRENT LIABILITIES
Accrued customer programs $10,988 $12,385 $12,963
Other current liabilities 52,604 48,836 69,230
----------- --------- -----------
Total current liabilities 63,592 61,221 82,193
----------- --------- -----------
LONG-TERM DEBT, NET OF CURRENT
PORTION 50,139 50,251 50,000
----------- --------- -----------
LONG-TERM OBLIGATIONS 3,631 3,631 3,785
----------- --------- -----------
DEFERRED INCOME TAXES 6,138 6,142 7,939
----------- --------- -----------
SHAREHOLDERS' EQUITY 244,646 249,152 217,944
----------- --------- -----------
Total liabilities and
shareholders' equity $368,146 $370,397 $361,861
=========== ========= ===========
CONTACT: CSS Industries, Inc.
Clifford E. Pietrafitta, 215-569-9900