Exhibit 99.1
CSS Industries, Inc. Reports Sales and Operating
Results for the Quarter Ended June 30, 2007
PHILADELPHIA--(BUSINESS WIRE)--July 26, 2007--CSS Industries, Inc.
(NYSE:CSS) announced today the results of operations for the first
quarter ended June 30, 2007. Sales decreased 2% to $46,802,000 from
$47,533,000 in 2006. The net loss decreased to $4,427,000, or $.41 per
diluted share, compared to a prior year net loss of $5,507,000, or
$.52 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 is primarily due to lower sales of
educational products and all occasion cards, partially offset by
higher sales of Halloween products, Christmas boxed greeting cards and
gift wrap. The decreased loss in the first quarter was primarily the
result of lower selling, general and administrative expenses,
primarily due to lower severance costs, professional fees and savings
from the restructuring program announced in November 2006, as well as
favorable interest income resulting from the Company's improved cash
position.
"As previously announced, the Company continues to be focused on
the integration of the Berwick Offray and Cleo operations, and I am
pleased to report that we are achieving the fiscal 2008 savings, as
expected," commented Christopher J. Munyan, CSS President and CEO.
"Although it is early in the year, we continue to believe that
estimated earnings for fiscal 2008 will be in the range of $2.45 to
$2.60 per diluted share," continued Mr. Munyan.
CSS is a consumer products company primarily engaged in the
manufacture and sale to mass market retailers of seasonal and all
occasion, social expression products, including gift wrap, gift bags,
gift boxes, boxed greeting cards, gift tags, tissue paper,
decorations, classroom exchange Valentines, decorative ribbons and
bows, Halloween masks, costumes, make-ups and novelties, Easter egg
dyes and novelties, and craft and educational products.
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, statements relating to expected future
earnings and financial performance. 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 as to future events and financial performance
with respect to the Company's operations. Forward-looking statements
speak only as of the date made. The Company undertakes no obligation
to update any forward-looking statements to reflect the events or
circumstances arising after the date as of which they were made.
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,
increased operating costs, including labor-related and energy costs
and costs relating to the imposition of retrospective application of
duties on imported products, currency risks and other risks associated
with international markets, risks associated with the combination of
the operations of the Company's Cleo and Berwick Offray subsidiaries,
including the risk that the restructuring related savings may not meet
the expected amounts previously reported, the risk that customers may
become insolvent, costs of compliance with governmental regulations
and government investigations, liability associated with
non-compliance with governmental regulations, including regulations
pertaining to the environment, Federal and state employment laws, and
import and export controls and customs laws, and other factors
described in the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 2007 and elsewhere in the Company's SEC filings.
As a result of these factors, readers are cautioned not to place undue
reliance on any forward-looking statements included herein or that may
be made elsewhere from time to time by, or on behalf of, the Company.
CSS' consolidated results of operations for the quarters ended
June 30, 2007 and 2006 and consolidated condensed balance sheets as of
June 30, 2007, March 31, 2007 and June 30, 2006 follow:
CSS INDUSTRIES, INC. AND SUBSIDIARIES
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CONSOLIDATED RESULTS OF OPERATIONS
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(Unaudited)
(In thousands, except per share data) Three Months Ended
June 30,
------------------
2007 2006
--------- --------
SALES $46,802 $47,533
--------- --------
COSTS AND EXPENSES
Cost of sales 33,519 34,063
Selling, general and administrative expenses 20,683 22,204
Interest (income) expense, net (374) 134
Other income, net (242) (162)
--------- --------
53,586 56,239
--------- --------
LOSS BEFORE INCOME TAXES (6,784) (8,706)
INCOME TAX BENEFIT (2,357) (3,199)
--------- --------
NET LOSS $(4,427) $(5,507)
========= ========
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (.41) $ (.52)
========= ========
WEIGHTED AVERAGE BASIC AND DILUTED SHARES
OUTSTANDING 10,882 10,496
========= ========
CSS INDUSTRIES, INC. AND SUBSIDIARIES
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CONSOLIDATED CONDENSED BALANCE SHEETS
- ----------------------------------------------------------------------
(In thousands) June 30, March 31, June 30,
2007 2007 2006
----------- --------- -----------
(Unaudited) (Audited) (Unaudited)
ASSETS
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CURRENT ASSETS
Cash and cash equivalents $ 53,303 $100,091 $ 4,794
Accounts receivable, net 37,891 37,169 36,457
Inventories 125,012 82,138 149,165
Deferred income taxes 7,973 8,645 7,043
Asset held for sale 2,564 2,564 1,425
Other current assets 15,466 13,665 18,583
----------- --------- -----------
Total current assets 242,209 244,272 217,467
----------- --------- -----------
PROPERTY, PLANT AND EQUIPMENT, NET 56,759 58,897 67,747
----------- --------- -----------
OTHER ASSETS
Goodwill 30,952 30,952 30,952
Intangible assets, net 4,313 4,328 4,399
Other 3,678 4,621 3,964
----------- --------- -----------
Total other assets 38,943 39,901 39,315
----------- --------- -----------
Total assets $337,911 $343,070 $324,529
=========== ========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Notes payable $ - $ - $ -
Current portion of long-term debt 10,207 10,195 10,195
Accrued customer programs 7,929 10,290 9,264
Other current liabilities 34,234 35,478 38,519
----------- --------- -----------
Total current liabilities 52,370 55,963 57,978
----------- --------- -----------
LONG-TERM DEBT, NET OF CURRENT
PORTION 20,330 20,392 30,551
----------- --------- -----------
LONG-TERM OBLIGATIONS 6,146 3,221 3,505
----------- --------- -----------
DEFERRED INCOME TAXES 1,238 2,384 5,198
----------- --------- -----------
STOCKHOLDERS' EQUITY 257,827 261,110 227,297
----------- --------- -----------
Total liabilities and
stockholders' equity $337,911 $343,070 $324,529
=========== ========= ===========
CONTACT: CSS Industries, Inc.
Clifford E. Pietrafitta, Chief Financial Officer
215-569-9900