Exhibit 99.1
CSS Industries, Inc. Reports Sales and
Operating Results for the Quarter Ended June 30, 2005
PHILADELPHIA--(BUSINESS WIRE)--July 22, 2005--CSS Industries, Inc.
(NYSE:CSS) announced today the results of operations for the first
quarter ended June 30, 2005. Sales increased 16% to $57,494,000 from
$49,555,000 in 2004. The net loss decreased to $3,655,000, or $.35 per
diluted share, compared to a prior year loss of $4,407,000, or $.37
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 increase in sales for the first quarter was due to the earlier
timing of shipments of ribbons and bows and Halloween products
compared to a year ago. The reduced loss in the first quarter was
primarily attributable to increased sales volume.
The Company also announced that its Cleo subsidiary has entered
into a new collective bargaining agreement with the labor union
representing Cleo's production and maintenance employees at the Cleo
gift wrap plant and warehouses in Memphis, TN. The new labor agreement
will remain in effect until December 31, 2007.
"The first quarter results are in line with our overall
expectations. Although it is early in the year, these results support
our previous guidance of EPS growth for fiscal year 2006 of
approximately 20% - 25%," 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, 2005.
CSS' consolidated results of operations for the quarters ended
June 30, 2005 and 2004 and consolidated condensed balance sheets as of
June 30, 2005, March 31, 2005 and June 30, 2004 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except
per share data)
Three Months Ended
June 30,
-------------------
2005 2004
--------- ---------
SALES $ 57,494 $ 49,555
--------- ---------
COSTS AND EXPENSES
Cost of sales 42,765 36,061
Selling, general and administrative expenses 19,985 20,175
Interest expense, net 442 417
Rental and other income, net (5) (235)
--------- ---------
63,187 56,418
--------- ---------
LOSS BEFORE INCOME TAXES (5,693) (6,863)
INCOME TAX BENEFIT (2,038) (2,456)
--------- ---------
NET LOSS $ (3,655) $ (4,407)
========= =========
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (.35) $ (.37)
========= =========
WEIGHTED AVERAGE BASIC AND DILUTED SHARES
OUTSTANDING 10,415 11,894
========= =========
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, March 31, June 30,
2005 2005 2004
----------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $ 4,916 $ 57,333 $ 41,718
Accounts receivable, net 45,404 37,273 37,617
Inventories 147,932 101,867 146,271
Deferred income taxes 7,834 8,199 7,681
Other current assets 15,540 13,945 14,784
----------- ----------- -----------
Total current assets 221,626 218,617 248,071
----------- ----------- -----------
PROPERTY, PLANT AND EQUIPMENT, NET 74,704 75,402 79,696
----------- ----------- -----------
OTHER ASSETS
Intangible assets, net 35,445 35,468 35,582
Other 4,203 4,419 4,797
----------- ----------- -----------
Total other assets 39,648 39,887 40,379
----------- ----------- -----------
Total assets $ 335,978 $ 333,906 $ 368,146
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Note payable $ 4,400 $ - $ -
Current portion of long-term
debt 10,187 10,442 335
Accrued customer programs 11,695 13,628 10,988
Other current liabilities 47,797 42,669 52,269
----------- ----------- -----------
Total current liabilities 74,079 66,739 63,592
----------- ----------- -----------
LONG-TERM DEBT, NET OF CURRENT
PORTION 40,000 40,000 50,139
----------- ----------- -----------
OTHER LONG-TERM OBLIGATIONS 3,648 3,607 3,631
----------- ----------- -----------
DEFERRED INCOME TAXES 7,141 7,071 6,138
----------- ----------- -----------
STOCKHOLDERS' EQUITY 211,110 216,489 244,646
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 335,978 $ 333,906 $ 368,146
=========== =========== ===========
CONTACT: CSS Industries, Inc.
Clifford E. Pietrafitta, 215-569-9900