SOCIAL EXPRESSION
|
AMERICAN GREETINGS*
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended February 28, 2009, February 29, 2008, and February 28, 2007
(Thousands of dollars except share and per share amounts)
|
| |
2009
|
2008
|
2007
|
|
Net sales
|
$1,646,399
|
$1,730,784
|
$1,744,798
|
|
Other revenue
|
44,339
|
45,667
|
49,492
|
|
Total revenue
|
1,690,738
|
1,776,451
|
1,794,290
|
|
Material, labor, and other production costs
|
809,956
|
780,771
|
826,791
|
|
Selling, distribution, and marketing expenses
|
618,899
|
621,478
|
627,940
|
|
Administrative and general expenses
|
226,317
|
246,722
|
253,035
|
|
Goodwill and other intangible assets
impairment
|
290,166
|
-
|
2,196
|
|
Other operating income -net
|
1,396
|
1,325
|
5,252
|
|
Operating (loss) income
|
253,204
|
128,805
|
89,580
|
|
Interest expense
|
22,854
|
20,006
|
34,986
|
|
Interest income
|
3,282
|
7,758
|
8,135
|
|
Other nonoperating expense (income) -net
|
2,157
|
7,411
|
2,682
|
|
(Loss) income from continuing operations
before income tax (benefit) expense
|
274,933
|
123,968
|
65,411
|
|
Income tax (benefit) expense
|
47,174
|
40,648
|
25,473
|
|
(Loss) income from continuing operations
|
227,759
|
83,320
|
39,938
|
|
(Loss) income from discontinued operations,
net of tax
|
-
|
317
|
2,440
|
|
Net (loss) income
|
($227,759)
|
$83,003
|
$42,378
|
|
(Loss) earnings per share- basic:
|
|
|
|
|
(Loss) income from continuing operations
|
($4.89)
|
1.54
|
0.69
|
|
(Loss) income from discontinued operations
|
-
|
0.01
|
0.04
|
|
Net (loss) income
|
($4.89)
|
1.53
|
0.73
|
|
(Loss) earnings per share- assuming dilution:
|
|
|
|
|
(Loss) income from continuing operations
|
($4.89)
|
$1.53
|
$0.67
|
|
(Loss) income from discontinued operations
|
-
|
0.01
|
0.04
|
|
Net (loss) income
|
($4.89)
|
$1.52
|
$0.71
|
|
Average number of shares outstanding
|
46,543,780
|
54,236,961
|
57,951,952
|
|
Average number of shares outstanding - assuming dilution
|
46,543,780
|
54,506,048
|
62,362,794
|
|
Dividends declared per share
|
$0.60
|
$0.40
|
$0.32
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
February 28, 2009 and February 29, 2008
(Thousands of dollars except share and per share amounts)
|
| |
2009
|
2008
|
|
ASSETS
|
|
|
|
CURRENT ASSETS
|
|
|
|
Cash and cash equivalents
|
$60,216
|
$123,500
|
|
Trade accounts receivable, net
|
63,281
|
61,902
|
|
Inventories
|
203,873
|
216,671
|
|
Deferred and refundable income taxes
|
71,850
|
72,280
|
|
Prepaid expenses and other
|
162,175
|
195,017
|
|
Total current assets
|
561,395
|
669,370
|
|
GOODWILL
|
26,871
|
285,072
|
|
OTHER ASSETS
|
368,958
|
420,219
|
|
DEFERRED AND REFUNDABLE
|
|
|
|
INCOME TAXES
|
178,785
|
133,762
|
|
PROPERTY, PLANT AND
|
|
|
|
EQUIPMENT NET
|
297,779
|
296,005
|
| |
$1,433,788
|
$1,804,428
|
|
LIABILITIES AND SHARHOLDERS' EQUITY
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Debt due within one year
|
$750
|
$22,690
|
|
Accounts payable
|
117,504
|
123,713
|
|
Accrued liabilities
|
75,673
|
79,345
|
|
Accrued compensation and benefits
|
32,198
|
68,669
|
|
Income taxes payable
|
11,743
|
29,037
|
|
Other current liabilities
|
105,537
|
108,867
|
|
Total current liabilities
|
343,405
|
432,321
|
|
LONG-TERM DEBT
|
389,473
|
220,618
|
|
OTHER LIABILITIES
|
149,820
|
171,720
|
|
DEFERRED INCOME TAXES AND NONCURRENT
INCOME TAXES PAYABLE
|
21,910
|
26,358
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
Common shares-par value $1 per share:
|
|
|
|
Class A- 80,548,353 shares issued less 43,505,203
treasury shares in 2009 and 80,522,153 shares issued
less 35,198,300 treasury shares in 2008
|
37,043
|
45,324
|
|
Class B-6,066,092 shares issued less 2,566,875
treasury shares in 2009 and 6,066,092 shares issues
less 2,632,087 treasury shares in 2008
|
3,499
|
3,434
|
|
Capital in excess of par value
|
449,085
|
445,696
|
|
Treasury stock
|
938,086
|
872,949
|
|
Accumulated other comprehensive (loss) income
|
67,278
|
21,244
|
|
Retained earnings
|
1,044,926
|
1,300,662
|
|
Total shareholders' equity
|
529,189
|
943,411
|
| |
$1,433,788
|
$1,804,428
|
Required
a. Based on these data, calculate the following for 2009 and 2008:
1. Days' sales in receivables
2. Accounts receivable turnover (gross receivables at year-end)
3. Days' sales in inventory
4. Inventory turnover (use inventory at year-end)
5. Working capital
6. Current ratio
7. Acid-test ratio
b. Comment on each ratio individually
c. 1. Describe the individual allowance consideration
2. Are some of these allowance considerations normal for most companies?
d. What would be the inventory balance at February 28, 2009, if the LIFO reserve were removed?
e. Were there material LIFO liquidations in 2009, 2008, or 2007?
f. Comment on the apparent total liquidity