American Greetings Announces First Quarter Earnings

American Greetings Announces First Quarter Earnings PR Newswire CLEVELAND, June 28, 2012 - Core product lines performing well - Results include acquisition of senior secured debt of Clinton Cards - justWink application and Cardstore.com well received by consumers CLEVELAND, June 28, 2012 /PRNewswire/ -- American Greetings Corporation (NYSE: AM) today announced its results for the first fiscal quarter ended May 25, 2012. First Quarter Results For the first quarter of fiscal 2013, the Company reported total revenue of $393.1 million, pre-tax income of $10.4 million and net income of $7.3 million or 20 cents per share (all per-share amounts assume dilution). Revenue was reduced by $1.4 million as a result of scan-based trading conversions that occurred during the quarter. The pre-tax income impact of the scan-based trading conversions was $1.0 million (after-tax $0.6 million, reducing earnings per share by about 2 cents). The Company also incurred pre-tax costs of $2.1 million (after-tax $1.3 million, reducing earnings per share by about 4 cents) associated with the termination of a contract within the Company's intellectual property licensing group. Also during the first quarter, on May 9, 2012, the Company announced the acquisition for approximately $56.6 million of the senior secured debt of Clinton Cards PLC ("Clinton Cards"), one of the largest specialty retailers of greeting cards in the United Kingdom ("U.K.").