EARNINGS
American Greetings reports third-quarter profit vs. year-ago loss
8:55 am, December 23, 2009
American Greetings Corp. (NYSE: AM) has reported improved bottom-line results for its fiscal third quarter, which ended Nov. 27, and has raised its cash flow estimate for the full year. The greeting card company said its net income in the quarter totaled $29.7 million, or 75 cents a share. In last year's third quarter, American Greetings posted a net loss of $193.3 million, or $4.25 a share, which included a writedown of nearly $243 million for the impairment of goodwill and other intangible assets. Sales slid 3%, to $440.2 million from $454.1 million. American Greetings said as a result of its strong cash flow performance during the first nine months of the fiscal year, the company has raised its fiscal 2010 cash flow estimate. At the beginning of the fiscal year, the company expected cash flow from operating activities of $105 million to $115 million and capital expenditures of $35 million to $45 million, resulting in cash flow from operating activities minus capital expenditures of approximately $70 million. In September, the company raised its expectation of cash flow from operating activities to at least $160 million and capital expenditures of approximately $35 million, resulting in cash flow from operating activities minus capital expenditures to be greater than $125 million. American Greetings now expects cash flow from operating activities of at least $195 million and capital expenditures of $35 million, resulting in cash flow from operating activities minus capital expenditures to be greater than $160 million.
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