SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
20549
20549
FORM 10-Q
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For the Quarter Ended
December 31, 2004 |
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Commission file number 1-2661
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CSS INDUSTRIES, INC.
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(Exact name of registrant as specified in its Charter)
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Delaware
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13-1920657
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(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification number) |
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1845 Walnut Street, Philadelphia, PA
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19103
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(Address of principal executive offices)
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(Zip Code)
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(215) 569-9900
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(Registrant’s telephone number, including area code)
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes 
No 
No Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes No
No As of January 25, 2005, there were 11,977,799 shares of common stock outstanding which excludes shares which may still be issued upon exercise of stock options.
INDEX
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PAGE NO.
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PART I - FINANCIAL INFORMATION
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Item 1. Financial Statements
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Page 2 of 24
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
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Three Months Ended
December 31, |
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Nine Months Ended
December 31, |
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(In thousands, except
per share data) |
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2004
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2003
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2004
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2003
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SALES
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$
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247,169
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$
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247,394
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$
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478,435
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$
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484,846
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COSTS AND EXPENSES
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Cost of sales
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184,656
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176,443
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353,270
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350,718
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Selling, general and administrative expenses
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24,221
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27,048
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68,984
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73,036
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Interest expense, net
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906
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1,185
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2,032
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2,874
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Other expense (income), net
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49
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192
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(643
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)
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(310
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209,832
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204,868
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423,643
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426,318
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INCOME BEFORE INCOME TAXES
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37,337
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42,526
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54,792
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58,528
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INCOME TAX EXPENSE
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13,366
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15,129
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19,615
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20,954
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NET INCOME
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$
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23,971
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$
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27,397
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$
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35,177
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$
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37,574
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NET INCOME PER COMMON SHARE
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Basic
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$
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2.01
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$
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2.31
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$
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2.95
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$
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3.20
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Diluted
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$
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1.91
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$
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2.18
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$
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2.79
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$
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3.05
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WEIGHTED AVERAGE SHARES OUTSTANDING
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Basic
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11,952
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11,841
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11,929
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11,730
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Diluted
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12,523
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12,592
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12,607
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12,335
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CASH DIVIDENDS PER SHARE OF COMMON STOCK
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$
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.10
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$
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.08
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$
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.30
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$
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.227
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COMPREHENSIVE INCOME
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Net income
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$
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23,971
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$
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27,397
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$
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35,177
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$
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37,574
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Change in fair value of interest rate swap agreements, net
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—
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149
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—
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269
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Foreign currency translation adjustment
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(8
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—
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(3
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17
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Comprehensive income
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$
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23,963
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$
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27,546
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$
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35,174
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$
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37,860
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See notes to consolidated financial statements.
Page 3 of 24
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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(In thousands)
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December 31,
2004 |
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March 31,
2004 |
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ASSETS
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CURRENT ASSETS
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Cash and cash equivalents
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$
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18,845
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$
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93,191
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Accounts receivable, net
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214,715
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40,460
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Inventories
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81,652
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94,459
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Deferred income taxes
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7,491
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7,937
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Other current assets
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13,719
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12,987
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Total current assets
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336,422
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249,034
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PROPERTY, PLANT AND EQUIPMENT, NET
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77,681
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81,193
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OTHER ASSETS
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Intangible assets, net
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35,506
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35,619
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Other
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4,852
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4,551
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Total other assets
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40,358
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40,170
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Total assets
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$
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454,461
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$
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370,397
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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CURRENT LIABILITIES
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Notes payable
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$
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19,000
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$
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—
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Current portion of long-term debt
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10,000
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—
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Other current liabilities
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95,609
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61,221
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Total current liabilities
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124,609
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61,221
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LONG-TERM DEBT, NET OF CURRENT PORTION
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40,000
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50,251
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LONG-TERM OBLIGATIONS
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3,602
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3,631
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DEFERRED INCOME TAXES
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6,451
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6,142
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STOCKHOLDERS’ EQUITY
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279,799
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249,152
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Total liabilities and stockholders’ equity
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$
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454,461
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$
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370,397
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See notes to consolidated financial statements.
Page 4 of 24
CSS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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Nine Months Ended December 31,
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||||
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(In thousands)
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2004
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2003
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Cash flows from operating activities:
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Net income
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$
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35,177
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$
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37,574
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