CSS Industries, Inc (CSS) saw its loss widen to $5.17 million, or $0.57 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.59 million, or $0.06 a share. On an adjusted basis, loss per share was at $0.21 for the quarter compared with a profit of $0.01a share in the same period last year. Revenue during the quarter grew 3.39 percent to $58.67 million from $56.74 million in the previous year period. Gross margin for the quarter contracted 888 basis points over the previous year period to 20.82 percent. Operating margin for the quarter stood at negative 17.33 percent as compared to a negative 3.23 percent for the previous year period.
Operating loss for the quarter was $10.17 million, compared with an operating loss of $1.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $3.05 million compared with $1.46 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 5.20 percent for the quarter compared to 2.57 percent in the last year period.
“Our fourth quarter sales and adjusted EBITDA excluding the McCall and Blumenthal acquisitions were below last year as our customers continued to adjust inventory levels, which pressured sales volumes and resulted in unabsorbed costs,” said Christopher J. Munyan, Chief Executive Officer and President. “We also incurred $1 million of inventory costs related to the issues associated with our warehouse consolidation earlier in the year. I am confident that these issues are behind us now.”
For fiscal year 2018, CSS Industries, Inc expects revenue to be in the range of $345 million to $355 million and its net income to be in the range of $1 million to $4 million.
Operating cash flow falls marginally
CSS Industries, Inc has generated cash of $14.87 million from operating activities during the year, down 1.67 percent or $0.25 million, when compared with the last year. Cash flow from investing activities was $20.29 million from investing activities during the year as against cash outgo of $14.06 million in the last year. It has incurred net capital expenditure of $4.75 million on net basis during the year, down 2.77 percent or $0.13 million from year ago.
The company has spent $7.46 million cash to carry out financing activities during the year as against cash outgo of $17.57 million in the last year period.
Cash and cash equivalents stood at $47.69 million as on Mar. 31, 2017, up 139.34 percent or $27.77 million from $19.93 million on Mar. 31, 2016.
Working capital increases
CSS Industries, Inc has recorded an increase in the working capital over the last year. It stood at $196.11 million as at Mar. 31, 2017, up 10.87 percent or $19.22 million from $176.89 million on Mar. 31, 2016. Current ratio was at 6.39 as on Mar. 31, 2017, up from 6.23 on Mar. 31, 2016.
Days sales outstanding went up to 37 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has increased to 102 days for the quarter compared with 83 days for the previous year period.
Debt comes down significantly
CSS Industries, Inc has recorded a decline in total debt over the last one year. It stood at $0.68 million as on Mar. 31, 2017, down 85.40 percent or $3.96 million from $4.63 million on Mar. 31, 2016. Short-term debt stood at $0.22 million as on Mar. 31, 2017. Total debt was 0.20 percent of total assets as on Mar. 31, 2017, compared with 1.49 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
