XML 39 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Quarterly Financial Data (Unaudited)
 12 Months Ended
Mar. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY FINANCIAL DATA (UNAUDITED)
QUARTERLY FINANCIAL DATA (UNAUDITED)
 
2017
Quarters
 
First
 
Second
 
Third
 
Fourth
 
(in thousands, except per share amounts)
Net sales
$
45,318

 
$
101,291

 
$
117,153

 
$
58,669

Gross profit
$
12,297

 
$
31,600

 
$
36,978

 
$
12,214

Net (loss) income
$
(3,286
)
 
$
6,992

 
$
29,969

 
$
(5,171
)
Net (loss) income per common share:
 
 
 
 
 
 
 
Basic
$
(0.36
)
 
$
0.77

 
$
3.30

 
$
(0.57
)
Diluted
$
(0.36
)
 
$
0.77

 
$
3.29

 
$
(0.57
)
 
2016
Quarters
 
First
 
Second
 
Third
 
Fourth
 
(in thousands, except per share amounts)
Net sales
$
44,228

 
$
111,477

 
$
104,568

 
$
56,744

Gross profit
$
12,442

 
$
37,791

 
$
35,188

 
$
16,850

Net (loss) income
$
(3,068
)
 
$
11,229

 
$
9,664

 
$
(589
)
Net (loss) income per common share:
 
 
 
 
 
 
 
Basic (1)
$
(0.33
)
 
$
1.23

 
$
1.07

 
$
(0.06
)
Diluted (1) 
$
(0.33
)
 
$
1.22

 
$
1.06

 
$
(0.06
)
 
(1) 
Net (loss) income per common share amounts for each quarter are required to be computed independently and, when aggregated, may not equal the amount computed for the total year.

The second and third quarters of fiscal 2017 net income included a non-taxable bargain purchase gain of $376,000 and $19,711,000, respectively, related to the purchase of the assets of Schiff in the second quarter and the purchase of the net assets and business of McCall in the third quarter. There was a reduction in the McCall bargain purchase gain of $97,000 recorded in the fourth quarter of fiscal 2017. Gross profit in the third and fourth quarters of fiscal 2017 included $452,000 and $3,125,000, respectively, related to the recognition of the McCall inventory step-up through cost of sales for the portion of acquired inventory that was sold during the period. See Note 1 and Note 2 to the consolidated financial statements for further discussion of the McCall and Schiff transactions. Additionally, the third and fourth quarter of fiscal 2017 included favorable income tax rate adjustments primarily attributable to the permanent reinvestment of current year foreign earnings and benefits of a state income tax nexus study as further described in Note 7 to the consolidated financial statements. The fourth quarter of fiscal 2017 net income included $2,473,000 of pre-tax transaction and transition costs related to the acquisition of McCall and the fourth quarter of fiscal 2016 net income included $1,109,000 of pre-tax transaction and transition costs related to the acquisition of Blumenthal.
The seasonal nature of CSS’ business has historically resulted in comparatively lower sales and operating losses in the first and fourth quarters and comparatively higher sales levels and operating profits in the second and third quarters of the Company’s fiscal year, thereby causing significant fluctuations in the quarterly results of operations of the Company.