CLEVELAND, Dec. 20, 2012 /PRNewswire-FirstCall/ -- 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
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE American Greetings Corporation