Company profile

Ticker
CSS
Exchange
CEO
Christopher J. Munyan
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
SEC CIK
IRS number
131920657

CSS stock data

(
)

Calendar

2 Aug 19
22 Sep 19
31 Mar 20

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 57.54M 72M 133.23M 112.9M
Net income -14.25M -23.39M -6.77M -4.91M
Diluted EPS -2.62 -0.77 -0.54
Net profit margin -24.76% -32.48% -5.08% -4.35%
Operating income -13M -21.7M 3.7M -5.79M
Net change in cash -4.85M -1.82M 3.81M -17.99M
Cash on hand 12.25M 17.1M 18.92M 15.11M
Cost of revenue 45.43M 52.51M 99.77M 88.22M
Annual (USD) Mar 19 Mar 18 Mar 17 Mar 16
Revenue 382.26M 361.9M 322.43M
Net income -53.55M -36.52M 28.5M 17.24M
Diluted EPS -5.97 -4.01 3.13 1.87
Net profit margin -14.01% -10.09% 8.84%
Operating income* -42.47M -45.73M 9.71M 26.22M
Net change in cash -41.46M 10.87M 27.77M -16.5M
Cash on hand 17.1M 58.56M 47.69M 19.93M
Cost of revenue 292.97M 269.07M 229.34M 214.75M

Financial data from company earnings reports. *Asterisk values are approximate.

Financial report summary

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Risks
  • We rely on a few mass market retailers, warehouse clubs and national drug store chains for a significant portion of our sales. The loss of sales, or a significant reduction of sales, to one or more of our large customers may adversely affect our business, results of operations and financial condition. Past and future consolidation within the retail sector also may lead to reduced profit margins, which may adversely affect our business, results of operations and financial condition.
  • A portion of our products, primarily sewing patterns, are sold on a consignment basis by third party consignment sellers, including certain mass market retailers. Because of the nature of the consignment arrangement, we may be adversely affected if third party consignment sellers, including mass market retailers, experience difficulties in recording sales of the products to end consumers, or in accounting for, or paying us for, the sales of such products. Additionally, while the consigned products are physically stored with third parties, including third party consignment sellers, we do not have custody or control of such products, and the consigned products are subject to damage or loss, including, but not limited to, theft. Any failure or inability by third parties, including third party consignment sellers, to appropriately manage the consignment arrangement may adversely affect our business, results of operations and financial condition.
  • Increases in raw material and energy costs, resulting from general economic conditions, acts of nature, such as hurricanes, earthquakes or pandemics, acts of war, threats of war, terrorism, civil unrest, or other factors, may raise our cost of goods sold and adversely affect our business, results of operations and financial condition.
  • Increased overseas sourcing by our competitors and our customers may reduce our market share and profit margins, adversely affecting our business, results of operations and financial condition.
  • Difficulties encountered by our key customers may cause them to reduce their purchases from us and/or increase our exposure to losses from bad debts, and adversely affect our business, results of operations and financial condition.
  • Our inability to effectively develop, manufacture, procure, distribute and sell our products with an omni-channel approach may adversely affect our business, results of operations and financial condition.
  • Our business, results of operations and financial condition may be adversely affected by volatility in the demand for our products.
  • Our business, results of operations and financial condition may be adversely affected if we are unable to compete successfully against our competitors.
  • Our business, results of operations and financial condition may be adversely affected if we are unable to hire and retain sufficient qualified personnel.
  • Employee benefit costs may adversely affect our business, results of operations and financial condition.
  • Our acquisition strategy involves risks, and difficulties in integrating potential acquisitions may adversely affect our business, results of operations and financial condition.
  • Our strategy to continuously review the efficiency, productivity and competitiveness of our business may result in our decision to divest or close selected operations. Any divesture or closure involves risks, and decisions to divest or close selected operations may adversely affect our business, results of operations and financial condition.
  • Our inability to protect our intellectual property rights, or infringement claims asserted against us by others, may adversely affect our business, results of operations and financial condition.
  • We are subject to cyber security risks and may incur increasing costs in efforts to minimize those risks and to comply with regulatory standards.
  • Various laws and governmental regulations applicable to a manufacturer or distributor of consumer products may adversely affect our business, results of operations and financial condition.
  • Unanticipated changes to our income tax liabilities may adversely affect our business, results of operations and financial condition.
  • Our business, results of operations and financial condition may be adversely affected by national or global changes in economic or political conditions.
  • We are subject to a number of restrictive covenants under our borrowing arrangement, including customary operating restrictions and customary financial covenants. Our business, results of operations and financial condition may be adversely affected if we are unable to maintain compliance with such covenants.
  • The replacement of LIBOR with an alternative reference rate may adversely affect interest expense related to outstanding debt.
  • Significant developments stemming from the U.K.’s referendum on membership in the EU could have a material adverse effect on us.
  • We may experience economic harm as a result of the effects of climate change.
  • Engaging in proxy contests can be costly and time-consuming and may thus have an adverse effect on our business, results of operations and financial condition.
  • If our business, results of operations or financial condition is adversely affected as a result of any of the risk factors described above or elsewhere in this annual report on Form 10-K or our other SEC filings, we may be required to incur financial statement charges, such as asset or goodwill impairment charges, which may, in turn, have a further adverse effect on our results of operations and financial condition.
Management Discussion
  • The seasonal nature of CSS’ business has historically resulted in lower sales levels and operating losses in the first and fourth quarters and comparatively higher sales levels and operating profits in the second and third quarters of the Company’s fiscal year, thereby causing significant fluctuations in the quarterly results of operations of the Company.
  • Net sales for the three months ended June 30, 2019 decreased to $57,537,000 from $64,127,000 in the three months ended June 30, 2018. This decrease was driven by a $4,211,000 decrease in gift sales and a $2,750,000 decrease in seasonal sales, partially offset by an increase of $371,000 in craft sales that was driven by higher replenishment of ribbons and buttons. The decrease in gift sales was primarily due to lower replenishment orders of social stationery products, packaging and wholesale products and everyday trim-a-package products. The decrease in seasonal sales was primarily due to the previously announced exit of the Company’s sports-licensed back-to-school product line.
  • Gross profit for the three months ended June 30, 2019 increased to $12,106,000 from $11,647,000 in the three months ended June 30, 2018. The increase in gross profit was primarily driven by $4,708,000 of lower inventory step-up amortization and $1,227,000 of lower integration costs, which was partially offset by lower sales volume and customer mix of $4,316,000, and higher supply chain costs of $1,185,000.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Bad
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