CSS INDUSTRIES INC

CIK:0000020629|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net sales	$ 112,932	$ 133,231	$ 266,443	$ 310,259
Cost of sales	82,945	99,768	199,631	240,468
Gross profit	29,987	33,463	66,812	69,791
Selling, general and administrative expenses	21,654	28,718	65,140	85,995
Restructuring expenses	604	1,050	3,399	3,177
Impairment of goodwill	0	0	0	1,390
Operating income (loss)	7,729	3,695	(1,727)	(20,771)
Interest expense (income), net	798	784	2,447	1,480
Other expense (income), net	(649)	(154)	(1,725)	(437)
Income (loss) before income taxes	7,580	3,065	(2,449)	(21,814)
Income tax expense	339	9,835	1,076	8,342
Net income (loss)	$ 7,241	$ (6,770)	$ (3,525)	$ (30,156)
Net income (loss) per common share, basic (in dollars per share)	$ 0.82	$ (0.77)	$ (0.40)	$ (3.35)
Net income (loss) per common share, diluted (in dollars per share)	$ 0.81	$ (0.77)	$ (0.40)	$ (3.35)
Weighted average basic shares outstanding (in shares)	8,880	8,845	8,865	9,007
Weighted average diluted shares outstanding (in shares)	8,902	8,845	8,865	9,007
Net income (loss)	$ 7,241	$ (6,770)	$ (3,525)	$ (30,156)
Currency translation adjustments:
Currency translation adjustments	449	(183)	(70)	(1,149)
Total currency translation gain (loss)	449	(183)	(70)	(1,149)
Pension and postretirement benefits:
Net income arising from pension and postretirement benefits, net of tax $9 for the three- and nine months ended December 31, 2019	28	0	28	0
Interest rate swap agreement:
Fair value adjustment, net of tax $(185) for the three months, and $(87) for the nine months ended December 31, 2018	0	(585)	0	(109)
Other comprehensive income (loss), net:	477	(768)	(42)	(1,258)
Comprehensive income (loss)	$ 7,718	$ (7,538)	$ (3,567)	$ (31,414)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (3,525)	$ (30,156)
Adjustments to reconcile net income (loss) to net cash used for operating activities:
Depreciation and amortization	9,863	10,264
Amortization of operating lease right-of-use assets	7,518	0
Amortization of inventory step-up	284	9,830
Amortization of financing transaction costs	421	85
Write-off of deferred financing transaction costs	344	0
Accretion of asset retirement obligation	97	95
Accretion of contingent earn-out consideration	26	44
Change in valuation of contingent earn-out consideration	(1,392)	0
Impairment of property, plant and equipment	0	1,398
Impairment of goodwill	0	1,390
Provision for accounts receivable allowances	2,470	4,386
Deferred tax (benefit) provision	(11)	10,050
Share-based compensation expense	669	1,694
Loss (gain) on sale or disposal of assets	(553)	4
Changes in assets and liabilities, net of effects of purchase of a business:
Accounts receivable	(33,768)	(60,718)
Inventories	8,984	(2,222)
Prepaid expenses and other assets	2,929	(615)
Accounts payable	2,216	15,865
Lease liabilities	(6,013)	0
Accrued expenses and long-term obligations	855	4,093
Net cash used for operating activities	(8,586)	(34,513)
Cash flows from investing activities:
Final payment of purchase price for a business previously acquired	0	(2,500)
Purchase of a business	0	(2,500)
Purchase of property, plant and equipment	(6,966)	(7,757)
Purchase of company owned life insurance policy	0	(750)
Proceeds from sale of fixed assets	1,025	0
Net cash used for investing activities	(5,941)	(13,507)
Cash flows from financing activities:
Borrowings on credit facility	172,919	33,695
Payments on credit facility	(160,253)	(15,000)
Payments on long-term debt	(314)	(136)
Dividends paid	0	(5,401)
Purchase of treasury stock	0	(4,372)
Payment of financing transaction costs	(2,425)	(425)
Tax effect on stock awards	(46)	0
Net cash provided by financing activities	9,881	8,361
Effect of exchange rate changes on cash	(108)	16
Net decrease in cash and cash equivalents	(4,754)	(39,643)
Cash and cash equivalents at beginning of period	17,100	58,560
Cash and cash equivalents at end of period	$ 12,346	$ 18,917

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 12,346,000	$ 17,100,000	$ 18,917,000
Accounts receivable, net of allowances of $231, $2,198 and $1,757	85,111,000	53,835,000	119,600,000
Inventories	86,990,000	96,231,000	94,902,000
Asset held for sale	0	131,000	2,514,000
Prepaid expenses and other current assets	9,905,000	12,568,000	12,445,000
Total current assets	194,352,000	179,865,000	248,378,000
Property, plant and equipment, net	48,771,000	50,920,000	49,407,000
Operating lease right-of-use assets	44,702,000	0	0
Intangible assets, net	35,025,000	40,285,000	55,200,000
Other assets	15,571,000	14,525,000	10,288,000
Total assets	338,421,000	285,595,000	363,273,000
Current liabilities:
Short-term borrowings	38,805,000	26,139,000	58,695,000
Current portion of long-term debt	11,000	316,000	305,000
Accounts payable	28,509,000	27,916,000	36,658,000
Accrued payroll and other compensation	5,518,000	6,962,000	8,513,000
Accrued customer programs	12,809,000	12,101,000	16,501,000
Accrued income taxes	620,000	0	0
Accrued other expenses	14,333,000	14,468,000	19,404,000
Current portion of operating lease liabilities	7,207,000	0	0
Total current liabilities	107,812,000	87,902,000	140,076,000
Long-term debt, net of current portion	4,000	13,000	16,000
Deferred income taxes	610,000	619,000	1,189,000
Operating lease liabilities	37,692,000	0	0
Other long-term obligations	5,316,000	7,130,000	7,800,000
Total liabilities	151,434,000	95,664,000	149,081,000
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, Class 2, $0.01 par, 1,000,000 shares authorized, no shares issued	0	0	0
Common stock, $0.10 par, 25,000,000 shares authorized, 14,703,084 shares issued at December 31, 2019, March 31, 2019 and December 31, 2018	1,470,000	1,470,000	1,470,000
Additional paid-in capital	61,590,000	60,921,000	60,571,000
Retained earnings	272,318,000	277,613,000	302,845,000
Accumulated other comprehensive income (loss), net of tax	423,000	465,000	(95,000)
Common stock in treasury, 5,822,790 shares at December 31, 2019, 5,865,846 shares at March 31, 2019 and 5,867,184 shares at December 31, 2018, at cost	(148,814,000)	(150,538,000)	(150,599,000)
Total stockholders' equity	186,987,000	189,931,000	214,192,000
Total liabilities and stockholders' equity	$ 338,421,000	$ 285,595,000	$ 363,273,000