• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • Sponsored Placement
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

American Greetings Announces Fourth Quarter Earnings

-- Earnings improvement over prior year

-- Cash flow exceeds expectations


News provided by

American Greetings Corporation

Apr 28, 2011, 07:30 ET

Share this article

Share this article


CLEVELAND, April 28, 2011 /PRNewswire-FirstCall/ -- American Greetings Corporation (NYSE: AM) today announced its financial results for both the fiscal fourth quarter and year ended February 28, 2011.

Management Comments and Outlook

Chief Executive Officer Zev Weiss said, “I am quite pleased with our overall performance this year.  Our business is running well, our financial results exceeded our expectations, and the team had a great performance in an otherwise challenging year.  We successfully completed the integrations of Papyrus and Recycled Paper Greetings and have established what we believe to be the industry-leading portfolio of products.  Our earnings increased compared to the previous year, enabled by our refined portfolio, good expense management, and changed capital structure.  Our cash flow from operating activities minus capital expenditures was $143 million and exceeded our original guidance by 14%.  I want to thank our associates around the world for their continued commitment and teamwork.”  

For fiscal 2012, the Company expects revenue to grow approximately 5% compared to fiscal 2011, driven equally by organic revenue growth and the acquisition of Watermark Publishing in the United Kingdom.  The Company expects 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.

Fourth Quarter Results

For the fourth quarter of fiscal 2011, the Company reported total revenue of $423.3 million, pre-tax income of $36.4 million, and net income of $15.5 million or 37 cents per share (all per-share amounts assume dilution).  Several items impacted revenue and income during the quarter.  Compared to the prior year, quarterly revenue was $5.0 million lower as a result of the party goods transaction that occurred in the fourth quarter of fiscal 2010.  Revenue was $7.1 million lower as a result of scan-based trading conversions that occurred during the quarter.  The pre-tax income impact of the scan-based trading conversions was $5.5 million (after-tax $3.4 million, reducing earnings per share by about 8 cents).  The Company also recorded severance costs of $4.0 million (after-tax $2.4 million, reducing earnings per share by about 6 cents) and costs associated with the integrations of Papyrus and Recycled Paper Greetings of $0.7 million (after-tax $0.4 million, reducing earnings per share by about 1 cent).  These costs were partially offset by a $2.8 million gain associated with a building sale (after-tax $1.7 million, increasing earnings per share by about 4 cents) and $1.3 million of dividend income (after-tax $0.8 million, increasing earnings per share by about 2 cents).  Both the building sale and the dividend were reported as other non-operating income.  The Company also effectively settled ten years of domestic tax audits which increased income tax expense by $6.9 million (reducing earnings per share by about 17 cents).

For the fourth quarter of fiscal 2010, the Company reported total revenue of $426.4 million, pre-tax income of $31.8 million, and net income of $18.8 million or 46 cents per share.  The Company recorded costs of $12.3 million (after-tax $8.6 million, reducing earnings per share by about 21 cents) related to the wind down of its operations in Mexico. Other costs included $19.0 million for the settlement of a lawsuit (after-tax $11.6 million, reducing earnings per share by about 29 cents) and $5.9 million for severance (after-tax $3.6 million, reducing earnings per share by about 9 cents).  These costs were partially offset by a $21.2 million net benefit from the party goods transaction (after-tax $12.9 million, increasing earnings per share by about 33 cents).  The Company also recognized a $3.3 million gain related to the liquidation of a business in France (the after-tax amount was also about $3.3 million, increasing earnings per share by about 8 cents).

Full Year Results

For the full year fiscal 2011, the Company reported total revenue of $1,592.6 million, pre-tax income of $156.0 million, and net income of $87.0 million or $2.11 per share.  Compared to the prior year, revenues were $11.7 million lower as a result of the sale of the retail store operations in the first quarter of fiscal 2010 and $31.2 million lower as a result of the party goods transaction that occurred in the fourth quarter of fiscal 2010.  Scan-based trading conversions during the year further reduced revenue by $7.2 million.  The pre-tax income impact of the scan-based trading conversions was $5.7 million (after-tax $3.5 million, reducing earnings per share by about 9 cents).  The Company also recorded $10.3 million of costs associated with the integrations of Papyrus and Recycled Paper Greetings (after-tax $6.3 million, reducing earnings per share by about 15 cents) and severance costs of $6.9 million (after-tax $4.2 million, reducing earnings per share by about 10 cents).  These costs were partially offset by a $3.8 million gain associated with the sales of two buildings (after-tax $2.3 million, increasing earnings per share by about 5 cents) and $1.3 million of dividend income (after-tax $0.8 million, increasing earnings per share by about 2 cents).  Both the buildings sales and the dividend were reported as other non-operating income.  During fiscal 2011, the Company also effectively settled ten years of domestic tax audits which increased income tax expense by $6.9 million (reducing earnings per share by about 17 cents).

For fiscal 2010, the Company reported total revenue of $1,635.9 million, pre-tax income of $121.0 million, and net income of $81.6 million or $2.03 per share.  The Company recorded costs of approximately $18.2 million (after-tax $6.5 million, reducing earnings per share by about 16 cents) related to the wind down of its operations in Mexico.  The Company also incurred a $24.0 million charge for the settlement of a lawsuit (after-tax $14.7 million, reducing earnings per share by about 37 cents), severance expense of $9.4 million (after-tax $5.8 million, reducing earnings per share by about 14 cents) and a $28.3 million charge related to the divestiture of our retail business early in the year (after-tax $17.3 million, reducing earnings per share by about 43 cents).  These costs were partially offset by a $21.2 million net benefit related to the party goods transaction (after-tax $12.9 million, increasing earnings per share by about 33 cents), a $3.3 million gain related to the liquidation of a business in France (the after-tax amount was also about $3.3 million, increasing earnings per share by about 8 cents) and a $7.9 million benefit associated with a legacy insurance program (after-tax $7.6 million, increasing earnings per share by about 19 cents).

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 Investor Relations section of the American Greetings Web site at http://investors.americangreetings.com.  A replay of the call will 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.  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 electronic greetings on the Web, including cards available at AmericanGreetings.com through AG Interactive, Inc. (the Company's online division).  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 after-tax and liquidity amounts included in this earnings release may be considered non-GAAP measures under the Securities and Exchange Commission’s Regulation G.  The after-tax amounts were calculated based on the Company's statutory tax rate of approximately 38.9% for U.S. based items (other than cumulative currency translation adjustments, for which a 0% tax rate is applied) and the appropriate rates for international jurisdictions.  Management believes that after-tax information is useful in analyzing the Company's results and that cash flow from operating activities minus capital expenditures provides a liquidity measure 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 Company's future financial performance, include, but are not limited to, the following:

  • a weak retail environment and general economic conditions;
  • competitive terms of sale offered to customers;
  • retail consolidations, acquisitions and bankruptcies, including the possibility of resulting adverse changes to retail contract terms;
  • the timing and impact of investments in new retail or product strategies as well as new product introductions and achieving the desired benefits from those investments;
  • 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;
  • the ability to successfully implement, or achieve the desired benefits associated with, any information systems refresh the Company may implement;
  • 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;
  • the impact of technology, including social media, on core 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.  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 financial performance related to forward-looking statements can be found in the Company's periodic filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company's Annual Report on Form 10-K.

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF INCOME

FISCAL YEAR ENDED FEBRUARY 28, 2011



(In thousands of dollars except share and per share amounts)












(Unaudited)



Quarter Ended


Year Ended



February 28, 2011


February 28, 2010


February 28, 2011


February 28, 2010










Net sales

$          412,779


$          408,864


$       1,560,213


$       1,598,292

Other revenue

10,524


17,556


32,355


37,566

Total revenue

423,303


426,420


1,592,568


1,635,858










Material, labor and other production costs

179,465


187,661


682,368


713,075

Selling, distribution and marketing expenses

131,044


134,045


478,227


507,960

Administrative and general expenses

73,526


95,164


260,476


276,031

Other operating income - net

(627)


(26,111)


(3,205)


(310)










Operating income

39,895


35,661


174,702


139,102










Interest expense

6,248


6,322


25,389


26,311

Interest income

(267)


(112)


(853)


(1,676)

Other non-operating income - net

(2,520)


(2,327)


(5,841)


(6,487)










Income before income tax expense

36,434


31,778


156,007


120,954

Income tax expense

20,950


12,982


68,989


39,380










Net income

$            15,484


$            18,796


$            87,018


$            81,574



















Earnings per share - basic

$                0.39


$                0.48


$                2.18


$                2.07



















Earnings per share - assuming dilution

$                0.37


$                0.46


$                2.11


$                2.03



















Average number of common shares outstanding

40,194,003


39,463,368


39,982,784


39,467,811










Average number of common shares outstanding -









assuming dilution

41,479,079


40,445,332


41,244,903


40,159,651










Dividends declared per share                        

$                0.14


$                0.12


$                0.56


$                0.36

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FISCAL YEAR ENDED FEBRUARY 28, 2011







(In thousands of dollars)




(Unaudited)




February 28, 2011


February 28, 2010







ASSETS




CURRENT ASSETS





Cash and cash equivalents

$               215,838


$               137,949


Trade accounts receivable, net

119,779


135,758


Inventories

179,730


163,956


Deferred and refundable income taxes

50,051


78,433


Assets held for sale

7,154


15,147


Prepaid expenses and other

128,372


148,048



Total current assets

700,924


679,291







GOODWILL

28,903


31,106

OTHER ASSETS

436,137


428,161

DEFERRED AND REFUNDABLE INCOME TAXES

124,789


148,210







Property, plant and equipment - at cost

849,552


836,245

Less accumulated depreciation

607,903


593,362

PROPERTY, PLANT AND EQUIPMENT - NET

241,649


242,883




$            1,532,402


$            1,529,651













LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES





Debt due within one year

$                           -


$                   1,000


Accounts payable

87,105


95,434


Accrued liabilities

69,824


78,245


Accrued compensation and benefits

72,379


85,092


Income taxes payable

10,951


13,901


Other current liabilities

102,286


94,915



Total current liabilities

342,545


368,587







LONG-TERM DEBT

232,688


328,723

OTHER LIABILITIES

176,522


168,098

DEFERRED INCOME TAXES AND




 NONCURRENT INCOME TAXES PAYABLE

31,736


28,179







SHAREHOLDERS' EQUITY





Common shares - Class A

37,470


36,257


Common shares - Class B

2,937


3,223


Capital in excess of par value

492,048


461,076


Treasury stock

(952,206)


(946,724)


Accumulated other comprehensive loss

(2,346)


(29,815)


Retained earnings

1,171,008


1,112,047



Total shareholders' equity

748,911


636,064




$            1,532,402


$            1,529,651

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS

FISCAL YEAR ENDED FEBRUARY 28, 2011

(In thousands of dollars)






(Unaudited)





Year Ended





February 28, 2011


February 28, 2010








OPERATING ACTIVITIES:





Net income

$                 87,018


$                 81,574


Adjustments to reconcile net income







to cash flows from operating activities:






Stock-based compensation

13,017


5,870



Net gain on dispositions

(254)


(6,507)



Net (gain) loss on disposal of fixed assets

(3,463)


59



Depreciation and intangible assets amortization

41,048


45,165



Deferred income taxes

28,642


25,268



Fixed asset impairments

119


13,005



Other non-cash charges

3,663


12,419



Changes in operating assets and liabilities,







   net of acquisitions and dispositions:







Trade accounts receivable

15,296


(56,105)




Inventories

(13,097)


14,923




Other current assets

(1,922)


16,936




Income taxes

19,947


18,863




Deferred costs - net

14,262


18,405




Accounts payable and other liabilities

(31,015)


(633)




Other - net

6,538


8,248



Total Cash Flows From Operating Activities

179,799


197,490








INVESTING ACTIVITIES:





Property, plant and equipment additions

(36,346)


(26,550)


Cash payments for business acquisitions, net of cash acquired

(500)


(19,300)


Proceeds from sale of fixed assets

14,242


1,124


Proceeds from escrow related to party goods transaction

25,151


-


Other - net

5,663


4,713



Total Cash Flows From Investing Activities

8,210


(40,013)








FINANCING ACTIVITIES:





Net decrease in long-term debt

(98,250)


(62,350)


Net decrease in short-term debt

(1,000)


-


Sale of stock under benefit plans

16,620


6,557


Excess tax benefit from share-based payment awards

4,512


148


Purchase of treasury shares

(13,521)


(11,848)


Dividends to shareholders

(22,354)


(19,049)


Debt issuance costs

(3,199)


-



Total Cash Flows From Financing Activities

(117,192)


(86,542)








EFFECT OF EXCHANGE RATE CHANGES ON CASH

7,072


6,798








INCREASE IN CASH AND CASH EQUIVALENTS

77,889


77,733










Cash and Cash Equivalents at Beginning of Year

137,949


60,216



Cash and Cash Equivalents at End of Year

$               215,838


$               137,949

AMERICAN GREETINGS CORPORATION

FOURTH QUARTER CONSOLIDATED SEGMENT DISCLOSURES

FISCAL YEAR ENDED FEBRUARY 28, 2011

(In thousands of dollars)








(Unaudited)



Quarter Ended


Year Ended



February 28, 2011


February 28, 2010


February 28, 2011


February 28, 2010

Total Revenue:








North American Social









Expression Products

$               307,935


$               311,056


$            1,173,599


$            1,231,624

Intersegment items

-


-


-


(5,104)

Exchange rate adjustment

5,560


3,485


17,884


8,659

Net

313,495


314,541


1,191,483


1,235,179










International Social









Expression Products

66,143


65,413


256,507


250,026

Exchange rate adjustment

3,157


2,409


5,205


4,006

Net

69,300


67,822


261,712


254,032










Retail Operations

-


-


-


11,727

Exchange rate adjustment

-


-


-


112

Net

-


-


-


11,839










AG Interactive

22,247


23,577


78,407


80,320

Exchange rate adjustment

5


50


(201)


126

Net

22,252


23,627


78,206


80,446










Non-reportable segments

18,256


20,429


61,167


53,975










Unallocated

-


1


-


387












$               423,303


$               426,420


$            1,592,568


$            1,635,858



















Segment Earnings (Loss):








North American Social









Expression Products

$                 54,157


$                 68,684


$               210,154


$               236,125

Intersegment items

-


-


-


(3,511)

Exchange rate adjustment

2,509


1,482


8,170


3,800

Net

56,666


70,166


218,324


236,414










International Social









Expression Products

5,340


4,466


19,536


16,693

Exchange rate adjustment

91


168


36


153

Net

5,431


4,634


19,572


16,846










Retail Operations

-


-


-


(34,830)

Exchange rate adjustment

-


-


-


(285)

Net

-


-


-


(35,115)










AG Interactive

3,550


6,110


14,103


11,319

Exchange rate adjustment

48


93


(112)


100

Net

3,598


6,203


13,991


11,419










Non-reportable segments

2,570


5,762


9,477


7,634










Unallocated

(32,335)


(54,926)


(106,259)


(116,476)

Exchange rate adjustment

504


(61)


902


232

Net

(31,831)


(54,987)


(105,357)


(116,244)












$                 36,434


$                 31,778


$               156,007


$               120,954

SOURCE American Greetings Corporation

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2022 Cision US Inc.