CSS Industries Inc. (NYSE:CSS) filed Quarterly Report for the period ended 2010-06-30.
Css Industries Inc. has a market cap of $162.4 million; its shares were traded at around $16.76 with a P/E ratio of 21.2 and P/S ratio of 0.4. The dividend yield of Css Industries Inc. stocks is 3.6%.CSS is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:Sales for the three months ended June 30, 2010 decreased 1% to $53,288,000 from $53,677,000 in the three months ended June 30, 2009 primarily due to lower sales of C.R. Gibson branded infant products, partially offset by the earlier timing of Halloween shipments during the quarter compared to the same quarter in the prior year.
Interest expense, net of $209,000 in 2010 decreased over interest expense, net of $368,000 in 2009 due to lower borrowing levels during the three months ended June 30, 2010 compared to the same period in the prior year.
The net loss for the three months ended June 30, 2010 was $5,737,000, or $.59 per diluted share compared to $4,490,000, or $.47 per diluted share in 2009. The increased net loss for the quarter ended June 30, 2010 was primarily due to lower margins and higher selling and payroll expenses.
At June 30, 2010, the Company had working capital of $126,075,000 and stockholders equity of $226,621,000. The increase in inventories and other current liabilities from March 31, 2010 was primarily a result of the normal seasonal inventory build necessary for the fiscal 2011 shipping season. Inventory levels decreased compared to the same period in the prior year as a result of improved inventory management. The decrease in stockholders equity from March 31, 2010 was primarily attributable to the first quarter net loss and payments of cash dividends.
The Company relies primarily on cash generated from its operations and seasonal borrowings to meet its liquidity requirements. Historically, a significant portion of the Companys revenues have been seasonal with approximately 80% of sales recognized in the second and third quarters. As payment for sales of Christmas related products is usually not received until just before or just after the holiday selling season in accordance with general industry practice, short-term borrowing needs increase throughout the second and third quarters, peaking prior to Christmas and dropping thereafter. Seasonal financing requirements are met under a $110,000,000 revolving credit facility with four banks and an accounts receivable securitization facility with an issuer of receivables-backed commercial paper. This facility has a funding limit of $60,000,000 during peak seasonal periods and $15,000,000 during off-peak seasonal periods. These financing facilities are available to fund the Companys seasonal borrowing needs and to provide the Company with sources of capital for general corporate purposes, including acquisitions as permitted under the revolving credit facility. At June 30, 2010, the Companys borrowings consisted of $13,000,000 outstanding under the Companys short-term credit facilities and the Company has approximately $384,000 of capital leases outstanding. Based on its current operating plan, the Company believes its sources of available capital are adequate to meet its future cash needs for at least the next 12 months.
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