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American Greetings ends quarter with $485 million of available credit
By Lisa Kerner
Charlotte, N.C., Jan. 15 – American Greetings Corp. ended its third fiscal quarter on Nov. 27 with cash and cash equivalents of about $20.41 million and long-term debt of $501.8 million.
This compares with $31.43 million and about $570 million, respectively, at the end of the prior-year period, according to a 10-Q filed with the Securities and Exchange Commission.
Long-term debt includes a $185 million term loan due 2019, $225 million of 7 3/8% senior notes due 2021 and $91.8 million outstanding under the revolving credit facility due 2018. Long-term debt less unamortized financing fees came to $497.84 million.
The company had outstanding letters of credit totaling $26.5 million.
Sources of available credit at quarter’s end totaled $485 million and included $185 million outstanding on the term loan, a $250 million revolver and a $50 million accounts receivable securitization facility, of which $181.7 million in total was unused as of Nov. 27, the filing stated.
American Greetings had no borrowings outstanding under the accounts receivable securitization facility.
The Cleveland-based greeting card company’s third-quarter total revenue was down 5.8% year over year at $484 million. The decrease was attributed in part to lower greeting card and other ancillary product sales of $16 million and the unfavorable impact of foreign-currency translation.
Operating income decreased $7.8 million to $17.6 million, while consolidated net sales declined 5.4% to about $481 million.
Net income was $6.6 million in the third quarter, compared with $11.3 million in the prior-year period.
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