CLEVELAND, Dec. 20, 2012 /PRNewswire/ -- American Greetings
Corporation (NYSE: AM) today announced its results for the third
fiscal quarter ended November 23,
2012.
Third Quarter Results
For the third quarter of fiscal 2013, the Company reported total
revenue of $506.8 million, a pre-tax
loss of $2.1 million, and a net loss
of $0.8 million or 3 cents per share (all per-share amounts assume
dilution).
The Company announced, on June 7,
2012, the acquisition of certain assets of United Kingdom-based Clinton Cards, including
approximately 400 stores and related overhead as well as the
Clinton Cards and related brands. As a result of the acquisition,
the Company recognized during the third quarter of fiscal 2013 a
revenue increase of approximately $67.6
million from the operations of the Clintons retail stores,
reflected in the Company's new Retail Operations segment. This
revenue increase was partially offset by the revenue reduction of
approximately $25.5 million from
inter-segment sales eliminations, reflected in the Company's
International Social Expressions segment, resulting in a net
increase in consolidated revenue of approximately $42.1 million in the quarter. The revenue being
eliminated would have been third party sales in the prior year
quarter.
The Company recognized a loss of $11.5
million (after-tax of approximately $7.0 million or 22
cents per share) from the operation of its Retail Operations
segment. The Company also recognized a reduction in pre-tax income
of approximately $4.1 million
(after-tax of approximately $2.5
million or 8 cents per share)
as a result of inter-segment items within the International Social
Expressions segment. The total consolidated net reduction in
pre-tax income associated with the operation of the Clintons retail
stores during the third fiscal quarter was approximately
$15.6 million (after-tax of
approximately $9.5 million or
30 cents per share).
During the quarter, consolidated revenue was also reduced by
$0.6 million as a result of
scan-based trading conversions that occurred during the current
year's third quarter while the impact of scan-based trading
conversions on pre-tax income was $0.6
million (after-tax of approximately $0.4 million or 1
cent per share).
Also impacting the consolidated results was a pre-tax
non-operating income benefit of $1.1
million (after-tax of approximately $0.7 million or 2
cents per share) from a gain on the sale of a portion of a
legacy minority investment. A separate but related gain from this
minority investment was previously recognized during our second
fiscal quarter of 2013.
In the prior year's third quarter, the Company reported total
revenue of $465.0 million, pre-tax
income of $29.7 million, and net
income of $20.2 million or
50 cents per share. Scan-based
trading conversions reduced revenue by approximately $1.2 million during the quarter and reduced
pre-tax income by approximately $1.1
million (after-tax of approximately $0.7 million or 2
cents per share).
Financing Activities
During the third quarter of fiscal 2013, under the Company's
$75 million share repurchase program
announced July 2012, the Company
purchased approximately 1.1 million shares of its common stock for
approximately $15.9 million.
Purchases under this share repurchase program were suspended as of
September 26, 2012.
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-packaging 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 creates and
licenses popular character brands through the American Greetings
Properties group. Headquartered in Cleveland, Ohio, American Greetings generates
annual revenue of approximately $1.7
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 amounts included in the 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 and the appropriate rates for international
jurisdictions. Management believes that after-tax information is
useful in analyzing the Company's results.
Factors That May Affect Future Results
Certain statements in this release 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 performance, include, but are
not limited to, the following:
- a weak retail environment and general economic conditions;
- 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;
- competitive terms of sale offered to customers, including costs
and other terms associated with new and expanded customer
relationships;
- the ability to successfully integrate Clinton Cards and achieve
the anticipated revenue and operating profits, together with the
outcome of negotiations with landlords and the ultimate number of
stores acquired;
- the ability of the administrators to generate sufficient
proceeds from the liquidation of the remaining Clinton Cards
business to repay the remaining secured debt owed to American
Greetings;
- the timing and impact of expenses incurred and investments made
to support new retail or product strategies, including increased
marketing expenses, 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 and cost
savings associated with, any information technology systems refresh
the Company may implement;
- the timing and amount of expenses incurred by the Company in
connection with the non-binding proposal dated September 25, 2012 from Zev Weiss, its Chief Executive Officer, and
Jeffrey Weiss, its President and
Chief Operating Officer, on behalf of themselves and certain other
members of the Weiss family and related parties to acquire all of
the outstanding Class A and Class B common shares of the Company
not currently owned by the them;
- 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 demand for social expression products generally,
shifts in consumer shopping behavior, and 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 Company's periodic filings with the
Securities and Exchange Commission, including without limitation
the risk factors described in the Company's most recent annual
report on Form 10-K and in each of its subsequent quarterly reports
on Form 10-Q.
|
|
|
|
AMERICAN
GREETINGS CORPORATION
|
|
THIRD
QUARTER CONSOLIDATED STATEMENT OF OPERATIONS
|
|
FISCAL YEAR
ENDING FEBRUARY 28, 2013
|
|
|
|
|
|
(In
thousands of dollars except share and per share amounts)
|
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
November 23,
2012
|
|
November 25,
2011
|
|
November 23,
2012
|
|
November 25,
2011
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 499,368
|
|
$ 458,535
|
|
$ 1,275,139
|
|
$ 1,217,800
|
|
Other revenue
|
7,446
|
|
6,472
|
|
18,617
|
|
21,097
|
|
Total revenue
|
506,814
|
|
465,007
|
|
1,293,756
|
|
1,238,897
|
|
|
|
|
|
|
|
|
|
|
Material, labor and other
production costs
|
244,071
|
|
230,572
|
|
584,667
|
|
546,699
|
|
Selling, distribution and
marketing expenses
|
190,041
|
|
141,501
|
|
466,199
|
|
392,630
|
|
Administrative and general
expenses
|
74,483
|
|
60,510
|
|
225,521
|
|
186,734
|
|
Other operating income -
net
|
(2,217)
|
|
(813)
|
|
(1,421)
|
|
(6,858)
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
436
|
|
33,237
|
|
18,790
|
|
119,692
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
4,504
|
|
5,821
|
|
13,314
|
|
17,708
|
|
Interest income
|
(65)
|
|
(207)
|
|
(297)
|
|
(838)
|
|
Other non-operating (income)
expense - net
|
(1,904)
|
|
(2,077)
|
|
3,523
|
|
(2,621)
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax
(benefit) expense
|
(2,099)
|
|
29,700
|
|
2,250
|
|
105,443
|
|
Income tax (benefit)
expense
|
(1,290)
|
|
9,454
|
|
63
|
|
38,128
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$
(809)
|
|
$
20,246
|
|
$
2,187
|
|
$
67,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share -
basic
|
$
(0.03)
|
|
$
0.51
|
|
$
0.06
|
|
$
1.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share -
assuming dilution
|
$
(0.03)
|
|
$
0.50
|
|
$
0.06
|
|
$
1.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding
|
31,877,088
|
|
39,480,798
|
|
33,712,073
|
|
40,226,039
|
|
|
|
|
|
|
|
|
|
|
Average number of common shares
outstanding -
|
|
|
|
|
|
|
|
|
assuming dilution
|
31,877,088
|
|
40,436,865
|
|
34,478,737
|
|
41,381,157
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.15
|
|
$
0.15
|
|
$
0.45
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
| |
AMERICAN
GREETINGS CORPORATION
|
|
THIRD
QUARTER CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
FISCAL YEAR
ENDING FEBRUARY 28, 2013
|
|
|
|
(In
thousands of dollars)
|
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
November 23,
2012
|
|
November 25,
2011
|
|
November 23,
2012
|
|
November 25,
2011
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$ (809)
|
|
$ 20,246
|
|
$ 2,187
|
|
$ 67,315
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss), net of tax:
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
2,680
|
|
(15,592)
|
|
(91)
|
|
(12,554)
|
|
Pension and
postretirement benefit adjustments
|
145
|
|
536
|
|
643
|
|
607
|
|
Unrealized
loss on securities
|
-
|
|
(1)
|
|
(1)
|
|
-
|
|
Other comprehensive income
(loss), net of tax:
|
2,825
|
|
(15,057)
|
|
551
|
|
(11,947)
|
|
Comprehensive
income
|
$ 2,016
|
|
$ 5,189
|
|
$ 2,738
|
|
$ 55,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
AMERICAN
GREETINGS CORPORATION
|
|
THIRD
QUARTER CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
FISCAL YEAR
ENDING FEBRUARY 28, 2013
|
|
|
|
(In
thousands of dollars)
|
|
|
(Unaudited)
|
|
|
November 23,
2012
|
|
November 25,
2011
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
63,291
|
|
$
85,661
|
|
|
Trade accounts receivable,
net
|
197,844
|
|
235,318
|
|
|
Inventories
|
264,330
|
|
214,412
|
|
|
Deferred and refundable income
taxes
|
80,502
|
|
57,400
|
|
|
Prepaid expenses and
other
|
155,543
|
|
123,481
|
|
|
|
Total current assets
|
761,510
|
|
716,272
|
|
|
|
|
|
|
GOODWILL
|
-
|
|
27,713
|
|
OTHER ASSETS
|
460,647
|
|
417,479
|
|
DEFERRED AND REFUNDABLE INCOME
TAXES
|
120,870
|
|
128,595
|
|
|
|
|
|
|
Property, plant and equipment -
at cost
|
1,004,686
|
|
904,555
|
|
Less accumulated
depreciation
|
642,994
|
|
637,334
|
|
PROPERTY, PLANT AND EQUIPMENT -
NET
|
361,692
|
|
267,221
|
|
|
$ 1,704,719
|
|
$ 1,557,280
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Accounts payable
|
$
194,945
|
|
$
108,254
|
|
|
Accrued liabilities
|
82,893
|
|
67,596
|
|
|
Accrued compensation and
benefits
|
60,702
|
|
58,411
|
|
|
Income taxes payable
|
14,641
|
|
26,626
|
|
|
Deferred revenue
|
26,404
|
|
29,477
|
|
|
Other current
liabilities
|
44,287
|
|
60,963
|
|
|
|
Total current
liabilities
|
423,872
|
|
351,327
|
|
|
|
|
|
|
LONG-TERM DEBT
|
356,832
|
|
234,642
|
|
OTHER LIABILITIES
|
259,787
|
|
182,565
|
|
DEFERRED INCOME TAXES
AND
|
|
|
|
|
NONCURRENT INCOME TAXES
PAYABLE
|
21,008
|
|
21,769
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Common shares - Class
A
|
28,849
|
|
35,562
|
|
|
Common shares - Class
B
|
2,860
|
|
2,778
|
|
|
Capital in excess of par
value
|
520,119
|
|
509,999
|
|
|
Treasury stock
|
(1,093,789)
|
|
(995,338)
|
|
|
Accumulated other comprehensive
loss
|
(11,279)
|
|
(14,293)
|
|
|
Retained earnings
|
1,196,460
|
|
1,228,269
|
|
|
|
Total shareholders'
equity
|
643,220
|
|
766,977
|
|
|
|
$ 1,704,719
|
|
$ 1,557,280
|
|
|
|
|
|
|
|
|
|
|
|
| |
AMERICAN
GREETINGS CORPORATION
|
|
THIRD
QUARTER CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
FISCAL YEAR
ENDING FEBRUARY 28, 2013
|
|
(In
thousands of dollars)
|
|
|
|
|
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
|
November 23,
2012
|
|
November 25,
2011
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
$
2,187
|
|
$
67,315
|
|
|
Adjustments to reconcile net
income to cash flows from operating activities:
|
|
|
|
|
|
|
Stock-based
compensation
|
7,806
|
|
8,038
|
|
|
|
Gain on dispositions
|
-
|
|
(4,500)
|
|
|
|
Net loss (gain) on disposal of
fixed assets
|
394
|
|
(807)
|
|
|
|
Depreciation and intangible
assets amortization
|
36,095
|
|
32,993
|
|
|
|
Provision for doubtful
accounts
|
17,771
|
|
4,879
|
|
|
|
Impairment of Clinton Cards
debt
|
10,043
|
|
-
|
|
|
|
Deferred income taxes
|
809
|
|
6,412
|
|
|
|
Gain on sale of Party City
investment
|
(4,293)
|
|
-
|
|
|
|
Other non-cash
charges
|
892
|
|
2,747
|
|
|
|
Changes in operating assets and
liabilities,
|
|
|
|
|
|
|
|
net of
acquisitions:
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
(101,363)
|
|
(122,298)
|
|
|
|
|
Inventories
|
(39,105)
|
|
(30,939)
|
|
|
|
|
Other current assets
|
(17,877)
|
|
6,470
|
|
|
|
|
Income taxes
|
(15,336)
|
|
3,362
|
|
|
|
|
Deferred costs - net
|
23,702
|
|
(3,838)
|
|
|
|
|
Accounts payable and other
liabilities
|
112,283
|
|
3,528
|
|
|
|
|
Other - net
|
(1,913)
|
|
98
|
|
|
|
Total Cash Flows From Operating
Activities
|
32,095
|
|
(26,540)
|
|
|
|
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
Property, plant and equipment
additions
|
(87,408)
|
|
(48,956)
|
|
|
Cash payments for business
acquisitions, net of cash acquired
|
621
|
|
(5,899)
|
|
|
Proceeds from sale of fixed
assets
|
559
|
|
9,046
|
|
|
Proceeds from sale of
intellectual properties
|
-
|
|
4,500
|
|
|
Proceeds from sale of Party City
investment
|
4,920
|
|
-
|
|
|
Purchase of Clinton Cards
debt
|
(56,560)
|
|
-
|
|
|
|
Total Cash Flows From Investing
Activities
|
(137,868)
|
|
(41,309)
|
|
|
|
|
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
Net increase in long-term
debt
|
131,651
|
|
-
|
|
|
Issuance or exercise of
share-based payment awards
|
(496)
|
|
12,293
|
|
|
Tax (deficiency) benefit from
share-based payment awards
|
(376)
|
|
2,380
|
|
|
Purchase of treasury
shares
|
(78,742)
|
|
(55,304)
|
|
|
Dividends to
shareholders
|
(15,182)
|
|
(18,146)
|
|
|
|
Total Cash Flows From Financing
Activities
|
36,855
|
|
(58,777)
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES
ON CASH
|
(229)
|
|
(3,551)
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH
EQUIVALENTS
|
(69,147)
|
|
(130,177)
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at
Beginning of Year
|
132,438
|
|
215,838
|
|
|
|
Cash and Cash Equivalents at End
of Period
|
$
63,291
|
|
$
85,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
AMERICAN
GREETINGS CORPORATION
|
|
THIRD
QUARTER CONSOLIDATED SEGMENT DISCLOSURES
|
|
FISCAL YEAR
ENDING FEBRUARY 28, 2013
|
|
(In
thousands of dollars)
|
|
|
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
November 23,
2012
|
|
November 25,
2011
|
|
November 23,
2012
|
|
November 25,
2011
|
|
Total Revenue:
|
|
|
|
|
|
|
|
|
North American Social Expression
Products
|
$
333,852
|
|
$
333,305
|
|
$
908,267
|
|
$
902,333
|
|
|
|
|
|
|
|
|
|
|
International Social Expression
Products
|
101,972
|
|
103,352
|
|
239,486
|
|
249,448
|
|
Intersegment items
|
(25,538)
|
|
-
|
|
(39,080)
|
|
-
|
|
Net
|
76,434
|
|
103,352
|
|
200,406
|
|
249,448
|
|
|
|
|
|
|
|
|
|
|
Retail Operations (1)
|
67,635
|
|
-
|
|
107,519
|
|
-
|
|
|
|
|
|
|
|
|
|
|
AG Interactive
|
15,982
|
|
16,878
|
|
47,255
|
|
49,664
|
|
|
|
|
|
|
|
|
|
|
Non-reportable
segments
|
12,911
|
|
11,472
|
|
30,309
|
|
37,452
|
|
|
|
|
|
|
|
|
|
|
|
$
506,814
|
|
$
465,007
|
|
$ 1,293,756
|
|
$ 1,238,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment (Loss)
Earnings:
|
|
|
|
|
|
|
|
|
North American Social Expression
Products
|
$
22,099
|
|
$
28,016
|
|
$
98,757
|
|
$
113,009
|
|
|
|
|
|
|
|
|
|
|
International Social Expression
Products
|
3,413
|
|
9,537
|
|
(18,855)
|
|
15,308
|
|
Intersegment items
|
(4,123)
|
|
-
|
|
(11,525)
|
|
-
|
|
Net
|
(710)
|
|
9,537
|
|
(30,380)
|
|
15,308
|
|
|
|
|
|
|
|
|
|
|
Retail Operations (1)
|
(11,473)
|
|
-
|
|
(16,579)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
AG Interactive
|
5,331
|
|
3,737
|
|
13,713
|
|
10,970
|
|
|
|
|
|
|
|
|
|
|
Non-reportable
segments
|
3,259
|
|
2,368
|
|
5,501
|
|
17,467
|
|
|
|
|
|
|
|
|
|
|
Unallocated
|
(20,605)
|
|
(13,958)
|
|
(68,762)
|
|
(51,311)
|
|
|
|
|
|
|
|
|
|
|
|
$
(2,099)
|
|
$
29,700
|
|
$
2,250
|
|
$
105,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Retail Operations segment
only includes five months of activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
AMERICAN
GREETINGS CORPORATION
|
|
|
SUPPLEMENTAL
EXHIBIT
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the nine months ended
November 23, 2012, the Corporation recorded certain charges
associated with activities and transactions related to Clinton
Cards PLC ("Clinton Cards") that do not have comparative amounts in
the prior year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
November 23,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
asset impairment
|
|
Bad debt
expense
|
|
Legal and
advisory fees
|
|
Impairment
of debt purchased
|
|
Total
|
|
|
Net sales
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ -
|
|
|
Administrative and general
expenses
|
-
|
|
-
|
|
0.3
|
|
-
|
|
0.3
|
|
|
Other non-operating
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
$
-
|
|
$
-
|
|
$
0.3
|
|
$
-
|
|
$ 0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
November 23,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
asset impairment
|
|
Bad debt
expense
|
|
Legal and
advisory fees
|
|
Impairment
of debt purchased
|
|
Total
|
|
|
Net sales
|
$ 4.0
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 4.0
|
|
|
Administrative and general
expenses
|
-
|
|
17.2
|
|
6.3
|
|
-
|
|
23.5
|
|
|
Other non-operating
expense
|
-
|
|
-
|
|
-
|
|
10.0
|
|
10.0
|
|
|
|
$ 4.0
|
|
$ 17.2
|
|
$
6.3
|
|
$ 10.0
|
|
$37.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |