CSS Industries, Inc. (NYSE:CSS) announced today its results of operations for the quarter ended June 30, 2013. As previously announced, the Company divested the Halloween portion of its Paper Magic Group, Inc. (“PMG”) business during the second quarter of fiscal 2013. Halloween sales in the first quarter of fiscal 2013 totaled approximately $8,841,000 and contributed approximately $0.04 of earnings per diluted share (“EPS”). Due to the divestiture, this level of sales and earnings did not recur.
Sales for the first quarter of fiscal 2014 decreased 22.8% to $47,117,000 from $61,067,000 in the first quarter of fiscal 2013. Approximately $8,324,000 of the lower sales level is due to the divestiture of the Halloween business as discussed above, with the balance of the lower sales level primarily due to the timing of certain recurring product shipments to two customers that shipped in the first quarter of fiscal 2013 that are expected to ship again later this fiscal year. Loss from continuing operations before income taxes for the first quarter of fiscal 2014 was ($2,571,000) compared to ($1,333,000) in the first quarter of fiscal 2013. Loss from continuing operations for the first quarter of fiscal 2014 was ($1,667,000), or ($0.18) per diluted share, versus ($867,000), or ($0.09) per diluted share, in the first quarter of the prior fiscal year. Net loss for the first quarter of fiscal 2014, including discontinued operations, was ($1,667,000), or ($0.18) per diluted share, versus ($904,000), or ($0.09) per diluted share, in the first quarter of fiscal 2013. As discussed above, the sale of the Halloween business contributed approximately $0.04 of EPS in the first quarter of the prior fiscal year that did not recur in the first quarter of fiscal 2014 due to the divestiture. The Company’s seasonal orientation has historically resulted in operating losses in the first and fourth quarters of the fiscal year and operating profits in the second and third quarters.
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