CSS Industries (CSS) Tops Q4 EPS by 1c, Revenues Beat; Offers FY19 Revenue Outlook

CSS Industries (NYSE: CSS) reported Q4 EPS of ($0.55), $0.01 better than the analyst estimate of ($0.56). Revenue for the quarter came in at $81.5 million versus the consensus estimate of $77.6 million.

Outlook

“We expect a better year in fiscal 2019 with growth in sales and adjusted EBITDA, and another year of solid free cash flow,” said Mr. Munyan. “We are excited about the acquisitions of Simplicity and McCall as we see these as major strategic opportunities. The difficulties we have encountered in our base business with declining sales and profitability are likely to continue in fiscal 2019. Our strategy to counter this trend is to reposition our Company through targeted acquisitions in categories where we can grow. Additionally, we expect to achieve significant operating synergies as a result of these future acquisitions.”

The Company expects to generate net sales of $398 million to $412 million in its fiscal year ending March 31, 2019, resulting in year over year growth of 10% to 14%. The primary driver of growth will be the full year impact of the Simplicity acquisition, partially offset by a decline in the Company’s base business due to program losses in the Company’s gift business.

Net loss is expected to be in the range of $2 million to $4 million compared to a net loss of $36.5 million in fiscal 2018. Adjusted EBITDA for fiscal 2019 is expected to be in the range of $26 million to $29 million compared to $24.3 million in fiscal 2018. The expected growth in adjusted EBITDA primarily reflects the full year contribution of Simplicity and integration savings related to Simplicity, partially offset by a decline in the Company’s base business.

GUIDANCE:

CSS Industries sees FY2019 revenue of $398-412 million, versus the consensus of $407.9 million.

For earnings history and earnings-related data on CSS Industries (CSS) click here.

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