EX-99.2 3 dex992.htm INCOME STATEMENT AND OPERATING SEGMENT INFORMATION Income statement and operating segment information

Exhibit 99.2

Income Statement Information

(Unaudited)

The following table reflects the reclassification of fiscal 2007 quarterly amounts for the discontinued operations presentation of our educational products and entertainment development and production business units.

 

    Fiscal 2007        

(In thousands of dollars)

  

First

Quarter

     Second
Quarter		    

Third

Quarter

     Fourth
Quarter		     Year Ended
February 28,
2007		  

Net sales

   $ 404,170     $ 357,483     $ 510,102     $ 472,848     $ 1,744,603  

Material, labor and other production costs

     175,237       172,808       245,187       233,559       826,791  

Selling, distribution and marketing

     142,580       151,475       157,364       176,487       627,906  

Administrative and general

     61,348       56,881       65,287       67,573       251,089  

Goodwill impairment

     —         —         —         —         —    

Interest expense

     12,464       7,609       6,951       7,962       34,986  

Other income—net

     (6,860 )     (17,407 )     (32,760 )     (8,503 )     (65,530 )
                                       
    384,769       371,366       442,029       477,078       1,675,242  

Income (loss) from continuing operations before income tax expense (benefit)

     19,401       (13,883 )     68,073       (4,230 )     69,361  

Income tax expense (benefit)

     2,851       (1,326 )     21,058       3,513       26,096  
                                       

Income (loss) from continuing operations

     16,550       (12,557 )     47,015       (7,743 )     43,265  

(Loss) income from discontinued operations, net of tax

     (1,158 )     2,059       2,692       (4,480 )     (887 )
                                       

Net income (loss)

   $ 15,392     $ (10,498 )   $ 49,707     $ (12,223 )   $ 42,378  
                                       

Earnings per share—basic:

          

Income (loss) from continuing operations

   $ 0.28     $ (0.22 )   $ 0.79     $ (0.14 )   $ 0.75  

(Loss) income from discontinued operations

     (0.02 )     0.04       0.05       (0.08 )     (0.02 )
                                       

Net income (loss)

   $ 0.26     $ (0.18 )   $ 0.84     $ (0.22 )   $ 0.73  
                                       

Earnings per share—assuming dilution:

          

Income (loss) from continuing operations

   $ 0.26     $ (0.22 )   $ 0.79     $ (0.14 )   $ 0.72  

(Loss) income from discontinued operations

     (0.02 )     0.04       0.04       (0.08 )     (0.01 )
                                       

Net income (loss)

   $ 0.24     $ (0.18 )   $ 0.83     $ (0.22 )   $ 0.71  
                                       

Average number of common shares outstanding

     58,137,230       58,133,066       59,502,276       56,035,238       57,951,952  

Average number of common shares outstanding - assuming dilution

     71,077,312       58,133,066       59,902,127       56,035,238       62,362,794  

Dividends declared per share

   $ 0.08     $ 0.08     $ 0.08     $ 0.08     $ 0.32  
                                       

Quarterly earnings per share amounts do not add to the full year primarily due to share repurchases during the periods, the conversion of certain debt securities during the period, as well as the anti-dilutive impact of potentially dilutive secutities in periods in which we recorded a net loss.

Income Statement Information

(Unaudited)

The following table reflects the reclassification of fiscal 2006 quarterly amounts for the discontinued operations presentation of our educational products and entertainment development and production business units.

 

     Fiscal 2006        

(In thousands of dollars)

   

First

Quarter

     Second
Quarter		    

Third

Quarter

     Fourth
Quarter		     Year Ended
February 28,
2006		  

Net sales

    $ 436,034     $ 381,183     $ 550,474     $ 507,413     $ 1,875,104  

Material, labor and other production costs

      177,256       173,366       273,787       222,549       846,958  

Selling, distribution and marketing

      152,785       144,414       163,448       171,296       631,943  

Administrative and general

      61,814       57,677       56,796       66,440       242,727  

Goodwill impairment

      —         —         43,153       —         43,153  

Interest expense

      9,677       8,586       8,401       8,460       35,124  

Other income - net

      (8,457 )     (11,549 )     (19,774 )     (24,896 )     (64,676 )
                                        
     393,075       372,494       525,811       443,849       1,735,229  

Income from continuing operations before income tax expense

      42,959       8,689       24,663       63,564       139,875  

Income tax expense

      16,675       5,054       14,652       12,498       48,879  
                                        

Income from continuing operations

      26,284       3,635       10,011       51,066       90,996  

Income (loss) from discontinued operations, net of tax

      130       (394 )     2,916       (9,272 )     (6,620 )
                                        

Net income

    $ 26,414     $ 3,241     $ 12,927     $ 41,794     $ 84,376  
                                        

Earnings per share - basic:

           

Income from continuing operations

    $ 0.39     $ 0.06     $ 0.16     $ 0.82     $ 1.38  

Income (loss) from discontinued operations

      —         (0.01 )     0.04       (0.15 )     (0.10 )
                                        

Net income

    $ 0.39     $ 0.05     $ 0.20     $ 0.67     $ 1.28  
                                        

Earnings per share - assuming dilution:

           

Income from continuing operations

    $ 0.35     $ 0.06     $ 0.15     $ 0.70     $ 1.24  

Income (loss) from discontinued operations

      —         (0.01 )     0.04       (0.12 )     (0.08 )
                                        

Net income

    $ 0.35     $ 0.05     $ 0.19     $ 0.58     $ 1.16  
                                        

Average number of common shares outstanding

      68,595,786       67,101,944       65,425,537       62,736,831       65,965,024  

Average number of common shares outstanding - assuming dilution

      81,952,895       67,913,912       78,695,259       75,681,656       79,226,384  

Dividends declared per share

    $ 0.08     $ 0.08     $ 0.08     $ 0.08     $ 0.32  
                                        

Quarterly earnings per share amounts do not add to the full year primarily due to share repurchases during the periods as well as the anti-dilutive impact of potentially dilutive secutities in periods in which we recorded minimal net income.

Operating Segment Information

(Unaudited)

The following table reflects the reclassification of fiscal 2007 quarterly amounts for the discontinued operations presentation of our educational products and entertainment development and production business units.

 

     Fiscal 2007        

(In thousands of dollars)

    First
Quarter		     Second
Quarter		     Third
Quarter		     Fourth
Quarter		     Year Ended
February 28,
2007		  

Net Sales:

           

North American Social Expression Products

    $ 288,573     $ 240,574     $ 366,392     $ 292,269     $ 1,187,808  

Intersegment items

      (16,377 )     (14,084 )     (13,836 )     (11,042 )     (55,339 )

Exchange rate adjustment

      3,143       2,533       4,379       3,177       13,232  
                                        

Net

      275,339       229,023       356,935       284,404       1,145,701  

International Social Expression Products

      57,323       55,679       73,763       63,035       249,800  

Exchange rate adjustment

      4,291       6,250       9,173       10,554       30,268  
                                        

Net

      61,614       61,929       82,936       73,589       280,068  

Retail Operations

      40,678       36,547       39,205       76,960       193,390  

Exchange rate adjustment

      2,761       3,089       3,225       4,720       13,795  
                                        

Net

      43,439       39,636       42,430       81,680       207,185  

AG Interactive

      19,960       20,446       21,663       23,196       85,265  

Exchange rate adjustment

      5       40       31       26       102  
                                        

Net

      19,965       20,486       21,694       23,222       85,367  

Non-reportable segments

      3,813       6,407       6,108       9,953       26,281  

Unallocated

      —         2       (1 )     —         1  

Exchange rate adjustment

      —         —         —         —         —    
                                        

Net

      —         2       (1 )     —         1  
                                        
   $ 404,170     $ 357,483     $ 510,102     $ 472,848     $ 1,744,603  
                                        

Segment Earnings (Loss):

           

North American Social Expression Products

    $ 65,828     $ 13,820     $ 96,180     $ 20,098     $ 195,926  

Intersegment items

      (12,028 )     (10,040 )     (9,527 )     (7,910 )     (39,505 )

Exchange rate adjustment

      1,418       800       1,664       972       4,854  
                                        

Net

      55,218       4,580       88,317       13,160       161,275  

International Social Expression Products

      481       535       5,394       2,034       8,444  

Exchange rate adjustment

      62       42       668       477       1,249  
                                        

Net

      543       577       6,062       2,511       9,693  

Retail Operations

      (7,178 )     (9,021 )     (5,265 )     3,833       (17,631 )

Exchange rate adjustment

      (121 )     (55 )     213       1,157       1,194  
                                        

Net

      (7,299 )     (9,076 )     (5,052 )     4,990       (16,437 )

AG Interactive

      2,041       1,208       2,249       315       5,813  

Exchange rate adjustment

      (1 )     2       (18 )     (22 )     (39 )
                                        

Net

      2,040       1,210       2,231       293       5,774  

Non-reportable segments

      (2,095 )     6,735       3,668       7,369       15,677  

Unallocated

      (29,058 )     (17,957 )     (27,306 )     (32,017 )     (106,338 )

Exchange rate adjustment

      52       48       153       (536 )     (283 )
                                        

Net

      (29,006 )     (17,909 )     (27,153 )     (32,553 )     (106,621 )
                                        
   $ 19,401     $ (13,883 )   $ 68,073     $ (4,230 )   $ 69,361  
                                        

Operating Segment Information

(Unaudited)

The following table reflects the reclassification of fiscal 2006 quarterly amounts for the discontinued operations presentation of our educational products and entertainment development and production business units.

 

     Fiscal 2006        

(In thousands of dollars)

    First
Quarter		     Second
Quarter		     Third
Quarter		     Fourth
Quarter		     Year Ended
February 28,
2006		  

Net Sales:

           

North American Social Expression Products

    $ 304,976     $ 267,703     $ 417,786     $ 328,754     $ 1,319,219  

Intersegment items

      (11,675 )     (13,879 )     (19,395 )     (11,670 )     (56,619 )

Exchange rate adjustment

      1,566       1,407       3,004       3,084       9,061  
                                        

Net

      294,867       255,231       401,395       320,168       1,271,661  

International Social Expression Products

      55,339       57,136       75,621       66,193       254,289  

Exchange rate adjustment

      7,506       4,467       5,815       3,755       21,543  
                                        

Net

      62,845       61,603       81,436       69,948       275,832  

Retail Operations

      42,860       39,085       41,556       83,264       206,765  

Exchange rate adjustment

      1,382       1,557       2,336       4,276       9,551  
                                        

Net

      44,242       40,642       43,892       87,540       216,316  

AG Interactive

      28,047       19,583       20,271       21,715       89,616  

Exchange rate adjustment

      214       (98 )     (79 )     (84 )     (47 )
                                        

Net

      28,261       19,485       20,192       21,631       89,569  

Non-reportable segments

      4,770       3,156       2,779       7,575       18,280  

Unallocated

      1,049       1,066       780       551       3,446  

Exchange rate adjustment

      —         —         —         —         —    
                                        

Net

      1,049       1,066       780       551       3,446  
                                        
   $ 436,034     $ 381,183     $ 550,474     $ 507,413     $ 1,875,104  
                                        

Segment Earnings (Loss):

           

North American Social Expression Products

    $ 79,475     $ 44,648     $ 96,718     $ 73,579     $ 294,420  

Intersegment items

      (8,535 )     (10,162 )     (13,617 )     (8,415 )     (40,729 )

Exchange rate adjustment

      682       581       1,261       1,156       3,680  
                                        

Net

      71,622       35,067       84,362       66,320       257,371  

International Social Expression Products

      2,070       2,514       (16,859 )     (428 )     (12,703 )

Exchange rate adjustment

      292       319       (1,995 )     648       (736 )
                                        

Net

      2,362       2,833       (18,854 )     220       (13,439 )

Retail Operations

      (6,238 )     (11,049 )     (25,068 )     9,135       (33,220 )

Exchange rate adjustment

      (42 )     (133 )     95       778       698  
                                        

Net

      (6,280 )     (11,182 )     (24,973 )     9,913       (32,522 )

AG Interactive

      330       485       1,456       1,966       4,237  

Exchange rate adjustment

      (95 )     41       33       48       27  
                                        

Net

      235       526       1,489       2,014       4,264  

Non-reportable segments

      3,544       3,676       5,288       12,664       25,172  

Unallocated

      (28,590 )     (22,440 )     (22,733 )     (26,874 )     (100,637 )

Exchange rate adjustment

      66       209       84       (693 )     (334 )
                                        

Net

      (28,524 )     (22,231 )     (22,649 )     (27,567 )     (100,971 )
                                        
   $ 42,959     $ 8,689     $ 24,663     $ 63,564     $ 139,875