PRN: American Greetings Announces Third Quarter Earnings

22/dic/2011 13.30.57 PR Newswire Turismo Contatta l'autore

Questo comunicato è stato pubblicato più di 1 anno fa. Le informazioni su questa pagina potrebbero non essere attendibili.

American Greetings Announces Third Quarter Earnings

 
[22-December-2011]
 

CLEVELAND, December 22, 2011 /PRNewswire/ --

American Greetings Corporation (NYSE: AM) today announced its results for the third fiscal quarter ended November 25, 2011.

Third Quarter Results

For the third quarter of fiscal 2012, the Company reported total revenue of $463.6 million, pre-tax income of $29.7 million, and net income of $20.2 million or 50 cents per share (all per-share amounts assume dilution). Compared to the prior year, revenue increased approximately $33.5 million, or about eight percent.

Last year, for the third quarter of fiscal 2011, the Company reported total revenue of $430.1 million, pre-tax income of $51.5 million, and net income of $32.2 million or 78 cents per share.

Management Comments

Chief Executive Officer Zev Weiss said, "I am delighted with our revenue growth this quarter in both our domestic and international businesses. We believe that our commitment to our product leadership strategy continues to be successful, our investments are helping to drive revenue, and we feel good about our overall momentum in the marketplace. With our strong revenue growth this quarter, we feel more confident regarding our ability to hit or surpass the full year revenue growth target of three percent."

Outlook

Previously, for fiscal year 2012, the Company projected revenue to grow approximately 3 percent compared to fiscal year 2011. The Company projected cash flow from operating activities to fall within the range of $125 million to $145 million and capital expenditures between $45 million and $50 million, resulting in cash flow from operating activities minus capital expenditures of $80 million to $100 million.

As a result of the additional expenses and investments to support the Company's product leadership strategy and its expanded customer relationships, as well as the information systems refresh project, the Company now expects fiscal year 2012 cash flow from operating activities, less capital expenditures, to be lower than previously estimated. The Company estimates cash flow from operating activities to be around $90 million to $110 million and capital expenditures to be around $55 million to $70 million, resulting in cash flow from operating activities minus capital expenditures of roughly $35 million to $50 million. As part of that estimate, and in order to support revenue growth, the Company expects a meaningful use of cash for balance sheet items such as working capital.

Financing Activities

Under the Company's $75 million share repurchase program, during the third fiscal quarter the Company purchased approximately 2.0 million shares of its common stock for about $34.5 million. These repurchases complete the sixth share repurchase program announced in January, 2009. The share repurchases this third fiscal quarter are a continuation of a multi-year effort under which the Company has reduced its diluted share count by about 50 percent over the past seven years.

Conference Call on the Web

American Greetings will broadcast its conference call live on the Internet at 9:00 a.m. Eastern time today. The conference call will be accessible through the Investors section of the American Greetings Web site at http://investors.americangreetings.com. A replay of the call will also be available on the site.

About American Greetings Corporation

For more than 100 years, American Greetings Corporation (NYSE: AM) has been a creator and manufacturer of innovative social expression products that assist consumers in enhancing their relationships to create happiness, laughter and love. The Company's major greeting card lines are American Greetings, Carlton Cards, Gibson, Recycled Paper Greetings and Papyrus, and other paper product offerings include DesignWare party goods and American Greetings and Plus Mark gift-wrap and boxed cards. American Greetings also has one of the largest collections of greetings on the Web, including greeting cards available at Cardstore.com and electronic greeting cards available at AmericanGreetings.com. In addition to its product lines, American Greetings also creates and licenses popular character brands through the American Greetings Properties group. Headquartered in Cleveland, Ohio, American Greetings generates annual revenue of approximately $1.6 billion, and its products can be found in retail outlets worldwide. For more information on the Company, visit http://corporate.americangreetings.com.

Non-GAAP Measures

Certain liquidity amounts included in the earnings release may be considered non-GAAP measures under the Securities and Exchange Commission's Regulation G. Management believes that cash flow from operating activities minus capital expenditures provides a liquidity measure that is useful to investors in analyzing the cash generation of the Company.

Factors That May Affect Future Results

Certain statements in this release, including those under Management Comments and Outlook, may constitute forward-looking statements within the meaning of the Federal securities laws. These statements can be identified by the fact that they do not relate strictly to historic or current facts. They use such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. These forward-looking statements are based on currently available information, but are subject to a variety of uncertainties, unknown risks and other factors concerning the Company's operations and business environment, which are difficult to predict and may be beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Compan! y's future performance, include, but are not limited to, the following:

  • a weak retail environment and general economic conditions;
  • competitive terms of sale offered to customers, including costs and other terms associated with new and expanded customer relationships;
  • the loss of one or more retail customers and/or retail consolidations, acquisitions and bankruptcies, including the possibility of resulting adverse changes to retail contract terms;
  • the timing and impact of expenses incurred and investments made to support new retail or product strategies as well as new product introductions and achieving the desired benefits from those investments;
  • the timing of investments in, together with the ability to successfully implement or achieve the desired benefits associated with, any information systems refresh the Company may implement;
  • the timing and impact of converting customers to a scan-based trading model;
  • the ability to achieve the desired benefits associated with the Company's cost reduction efforts;
  • Schurman Fine Papers' ability to successfully operate its retail operations and satisfy its obligations to the Company;
  • consumer acceptance of products as priced and marketed including the success of new and expanded advertising and marketing efforts, such as the Company's on-line efforts through Cardstore.com;
  • the impact and availability of technology, including social media, on product sales;
  • escalation in the cost of providing employee health care;
  • the Company's ability to achieve the desired accretive effect from any share repurchase programs;
  • the Company's ability to comply with its debt covenants;
  • fluctuations in the value of currencies in major areas where the Company operates, including the U.S. Dollar, Euro, U.K. Pound Sterling, and Canadian Dollar; and
  • the outcome of any legal claims known or unknown.

Risks pertaining specifically to AG Interactive include the viability of online advertising, subscriptions as revenue generators, and the ability to adapt to rapidly changing social media and the digital photo sharing space.

In addition, this release contains time-sensitive information that reflects management's best analysis as of the date of this release; however the risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that the Company believes to be immaterial also may adversely affect American Greetings. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have a material adverse effect on our business, financial condition and results of operations. American Greetings does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect performance related to forward-looking statements can be found in the Com! pany's periodic filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's Fiscal 2011 Annual Report on Form 10-K.

                            AMERICAN GREETINGS CORPORATION                    THIRD QUARTER CONSOLIDATED STATEMENT OF INCOME                         FISCAL YEAR ENDING FEBRUARY 29, 2012              (In thousands of dollars except share and per share amounts)                                                     (Unaudited)                                  Three Months Ended            Nine Months Ended                              November 25,  November 26,    November 25,   November 26,                                 2011          2010            2011           2010      Net sales                $ 457,143     $ 421,990     $ 1,213,660    $ 1,147,434     Other revenue                6,472         8,148          21,097         21,831     Total revenue              463,615       430,138       1,234,757      1,169,265      Material, labor and      other production costs    230,572       199,177         546,699        502,903     Selling, distribution      and marketing expenses    140,110       117,314         388,491        347,183     Administrative and      general expenses           60,510        58,725         186,734        186,950     Other operating      income - net                (813)       (1,048)         (6,858)        (2,578)      Operating income            33,236        55,970         119,691        134,807      Interest expense             5,821         6,221          17,708         19,141     Interest income              (207)         (176)           (838)          (586)     Other non-operating      income - net              (2,078)       (1,618)         (2,622)        (3,321)      Income before income      tax expense                29,700        51,543         105,443        119,573     Income tax expense           9,454        19,380          38,128         48,039      Net income               $  20,246     $  32,163     $    67,315    $    71,534      Earnings per      share - basic           $    0.51     $    0.80     $      1.67    $      1.79      Earnings per share      - assuming dilution     $    0.50     $    0.78     $      1.63    $      1.75      Average number of      common shares      outstanding            39,480,798    40,071,916      40,226,039     39,912,378      Average number of      common shares      outstanding -      assuming dilution      40,436,865    40,985,909      41,381,157     40,911,964      Dividends declared      per share               $    0.15     $    0.14     $      0.45    $      0.42 


                          AMERICAN GREETINGS CORPORATION            THIRD QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION                       FISCAL YEAR ENDING FEBRUARY 29, 2012                              (In thousands of dollars)                                                              (Unaudited)                                                                         Restated                                                      November 25,      November 26,                                                         2011              2010      ASSETS     CURRENT ASSETS           Cash and cash equivalents                $    85,661      $    93,899           Trade accounts receivable, net               235,318          206,286           Inventories                                  214,412          181,511           Deferred and refundable            income taxes                                 57,400           85,694           Assets held for sale                               -           14,148           Prepaid expenses and other                   127,376          127,597                   Total current assets                 720,167          709,135      GOODWILL                                            27,713           31,686     OTHER ASSETS                                       422,765          403,815     DEFERRED AND REFUNDABLE INCOME TAXES               128,595          146,767      Property, plant and equipment - at cost            882,709          847,085     Less accumulated depreciation                      624,669          612,166     PROPERTY, PLANT AND EQUIPMENT - NET                258,040          234,919                                                           $ 1,557,280      $ 1,526,322       LIABILITIES AND SHAREHOLDERS' EQUITY     CURRENT LIABILITIES           Accounts payable                         $   108,254      $    97,899           Accrued liabilities                           67,596           66,797           Accrued compensation and benefits             58,411           59,128           Income taxes payable                          26,626           39,593           Other current liabilities                     90,440           85,156                   Total current liabilities            351,327          348,573      LONG-TERM DEBT                                     234,642          232,078     OTHER LIABILITIES                                  182,565          188,226     DEFERRED INCOME TAXES AND      NONCURRENT INCOME TAXES PAYABLE                    21,769           32,824      SHAREHOLDERS' EQUITY           Common shares - Class A                       35,562           37,199           Common shares - Class B                        2,778            2,905           Capital in excess of par value               509,999          486,399           Treasury stock                             (995,338)        (952,183)           Accumulated other           comprehensive loss                          (14,293)         (27,114)           Retained earnings                          1,228,269        1,177,415                   Total shareholders'                    equity                              766,977          724,621                                                                       $ 1,557,280      $ 1,526,322 


                           AMERICAN GREETINGS CORPORATION                 THIRD QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS                        FISCAL YEAR ENDING FEBRUARY 29, 2012                             (In thousands of dollars)                                                                 (Unaudited)                                                             Nine Months Ended                                                       November 25,        November 26,                                                           2011                 2010      OPERATING ACTIVITIES:         Net income                                     $ 67,315            $ 71,534         Adjustments to reconcile net          income to cash flows from          operating activities:               Stock-based compensation                    8,038               9,735               Net gain on dispositions                  (4,500)               (254)               Net gain on disposal of fixed assets        (807)             (1,599)               Depreciation and intangible                assets amortization                       29,719              30,336               Deferred income taxes                       6,412               3,957               Other non-cash charges                      2,747               2,616               Changes in operating assets                and liabilities, net of acquisitions:                     Trade accounts receivable         (117,419)            (71,336)                     Inventories                        (30,939)            (16,461)                     Other current assets                  5,993               (694)                     Income taxes                          3,362              36,187                     Deferred costs - net                (3,838)              19,365                     Accounts payable and                      other liabilities                    3,528            (31,541)                     Other - net                         (1,576)               5,896               Total Cash Flows From                Operating Activities                    (31,965)              57,741      INVESTING ACTIVITIES:         Property, plant and equipment additions        (43,531)            (19,660)         Cash payments for business          acquisitions, net of cash acquired             (5,899)                   -         Proceeds from sale of fixed assets                9,046               3,835         Proceeds from escrow related to party          goods transaction                                    -              25,151         Proceeds from sale of intellectual          properties                                       4,500                   -               Total Cash Flows From Investing                Activities                              (35,884)               9,326      FINANCING ACTIVITIES:         Net decrease in long-term debt                        -            (98,250)         Net decrease in short-term debt                       -             (1,000)         Sale of stock under benefit plans                12,293              17,173         Excess tax benefits from share-based          payment awards                                   2,380               2,658         Purchase of treasury shares                    (55,304)            (13,439)         Dividends to shareholders                      (18,146)            (16,737)         Debt issuance costs                                   -             (3,178)               Total Cash Flows From                Financing Activities                    (58,777)           (112,773)      EFFECT OF EXCHANGE RATE CHANGES ON CASH             (3,551)               1,656      DECREASE IN CASH AND CASH EQUIVALENTS             (130,177)            (44,050)                Cash and Cash Equivalents at                Beginning of Year                        215,838             137,949               Cash and Cash Equivalents at                End of Period                           $ 85,661            $ 93,899 


                           AMERICAN GREETINGS CORPORATION                   THIRD QUARTER CONSOLIDATED SEGMENT DISCLOSURES                        FISCAL YEAR ENDING FEBRUARY 29, 2012                             (In thousands of dollars)                                                       (Unaudited)                                    Three Months Ended            Nine Months Ended                                November 25,  November 26,    November 25,   November  26,                                    2011          2010            2011           2010     Total Revenue:     North American Social      Expression Products      $  331,913   $  317,521      $   898,193    $   877,988     International Social      Expression Products         103,352       80,103          249,448        192,412     AG Interactive                16,878       19,233           49,664         55,954     Non-reportable segments       11,472       13,281           37,452         42,911                               $  463,615   $  430,138      $ 1,234,757    $ 1,169,265      Segment Earnings (Loss):     North American Social      Expression Products      $   28,016   $   51,098      $   113,009    $   143,788     International Social      Expression Products           9,537        9,982           15,308         14,141     AG Interactive                 3,737        5,135           10,970         10,393     Non-reportable segments        2,368        1,438           17,467          6,907     Unallocated                 (13,958)     (16,110)         (51,311)       (55,656)                               $   29,700   $   51,543      $   105,443    $   119,573 



Company Codes: NYSE:AM, Bloomberg:AM@US, RICS:AM.N
blog comments powered by Disqus
Comunicati.net è un servizio offerto da Factotum Srl