American Greetings ends quarter with $408 million, available credit of $485 million

By Lisa Kerner

Charlotte, N.C., Jan. 15 – American Greetings Corp. ended its fiscal first quarter on May 27 with cash and cash equivalents of about $40.29 million and long-term debt of about $408 million.

This compares with $42.81 million and about $460 million, respectively, at the end of the prior-year period, according to a 10-Q filed with the Securities and Exchange Commission.

Long-term debt included a $185 million term loan due 2019, $225 million of 7 3/8% senior notes due 2021 and $4.1 million outstanding under the revolving credit facility due 2018.

The company had outstanding letters of credit totaling $25.9 million.

Sources of available credit at quarter’s end totaled $485 million and included $185 million outstanding on the term loan, a $250 million revolver and a $50 million accounts receivable securitization facility, of which $270 million in total was unused as of May 27, the filing stated.

American Greetings had no borrowings outstanding under the accounts receivable securitization facility.

Financial highlights

The Cleveland-based greeting card company’s first-quarter total revenue was down 7.2% year-over-year at $439.3 million. The decrease was attributed in part to lower greeting card and other ancillary product sales, and the unfavorable impact of foreign-currency translation.

Operating income was down 62.2% year over year at 44.8 million. The prior year included a gain of $61.7 million related to the sale of Strawberry Shortcake.

Net income was $26.5 million in the first quarter compared to $72.8 million in the year-ago period.

American Greetings used $25.7 million of cash for investing activities during the quarter, while financing activities provided $4.1 million of cash.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.