american greetings (ag) - final

7/30/2019 American Greetings (AG) - Final

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ObjectiveAccess strengths and weaknesses.

Annual report 2012 and their affect on investment

potentials.


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About American Greetings Corp.

Greetings Cards

Party Products

E-greetings Digital service and products

American Greetings Corp is worlds largest publicly owned creator,

manufacturer and distributor of social expression products.

The company was founded in 1906 and is based on Cleveland, OH.

AG sells their products in USA, Canada, UK, Australia, New Zealand

and rest of the world through different channels.


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AG Business Segments

North American Social Expression Products

International Social Expression Products

AG Interactive

Non-reportable Operating Segments


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Greeting Cards

American Greetings

Carlton

Gibson

Papyrus

Just for you

Neutral

Tender thoughts

Today and always

Recycled Paper Greetings

La Rosa

Enter Nous

Forget-Me-Not

Pleasant Thoughts

American Greetings creates, manufactures and distributes their cards

on following brands:


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Party Products

Gift packaging

Party goods

Stationery

Gift ware

American Greeting Corp. manufacture and sell their party related

products to domestic and international market.


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E-greetings

www.americangreetings.com

www.bluemountain.com

www.egreetings.com

www.cardstore.com

AG Interactive Inc. is distributing electronic greetings and broad

range of graphics and digital services and products through web

sites, internet portals , instant messaging service and electronic

mobile devices.
http://www.americangreetings.com/http://www.bluemountain.com/http://www.egreetings.com/http://www.cardstore.com/http://www.cardstore.com/http://www.egreetings.com/http://www.bluemountain.com/http://www.americangreetings.com/


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Digital Service & Products

Care Bears

Strawberry Shortcake

AG Interactive creates and license their intellectual properties and

characters. They are providing them under their digital service and

products.


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Net Sales of largest customer

Sales Customer 2012 (% of net sales) 2011 (% of net sales)

Card & Gift shop 42% 39%

Wal-Mart 14% 15%

Target 14% 13%

Others 30% 23%


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Competitors

Hallmark Cards Inc.

More than 3000 greeting card publisher publishes their electronic

cards.

There are two major supplier offering a full range of greeting card

products.

1. American Greetings Corp

2. Hallmark Cards Inc

Based on retail paper cards and electronic cards following are the

competitors of AG:


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Other Factors

Existence globally helps to improve sales of AG.

Product leadership, compelling and superior product offering

requires to invest in ongoing product offerings.

Business can be affected by the fluctuation of US dollar.

Economic fluctuations causes reduces in sales and advertisementrevenue will decrease.

Acquiring other companies may result in profit or loss.

E.g. Schurman is acquired by AG and due to that they are

responsible for all the debt. Schurman is not able to pay rent and

other amounts due with respect to retail store leases and

subleases. AG is responsible for it.


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Financial Data


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AG Financial Position


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Financial Data


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AG Assets


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AG Liability & Equity


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Geographical Revenue & Fixed Assets


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Capital Structure of 2012-2011

2012 2011

Net Income $57.2 million $87 million

Earnings per share $1.42 $2.11

Equity $727.46 million $763.75 million

Debt $225.18 million $232.68 million


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Facts. AG is expected to have some decline in 2013.

AG net sales were $1.66 billion, up from $1.57 billion in year 2012 compare to last

year.

AG Interactive sales has been decreased by $10 million.

Watermark acquisition in International Social Expression Products business

segment has increased net sales of $93 million

AG Total Returns to an investor from price appreciation and dividends has

been increased to 15.39% compare to last year S&P 500.

Increase EPS through increasing net sales.


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Strength Diversified business portfolio.

Solid performance within industry.

Exceptional culture and management regarding people, technology andsystems.

Exceptional creative work culture.


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Factors That May Affect Future

Results Foreign currency translation and transaction risks that may materially and

adversely affect AG operating results.

Bankruptcy of key customers could give rise to an inability to pay and increase

AG exposure to losses from bad debts. Rely on foreign sources of production and face a variety of risks associated with

doing business in foreign markets.

Pending litigation could have a material, adverse effect on our business,financial condition, liquidity, results of operations and cash f lows.


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Summary American Greetings Corp needs to improve their plan and strategy to do

business in rest of the world. They needs to analyze how to improve their sales.

American Greetings Corp needs to be careful until their financial situation isunder control.

Increase in net sales will increase the gross profit, which will eventually


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Appendix

Web-site:

1. http://investors.americangreetings.com/annual_reports

2. http://www.americangreetings.com

3. http://ycharts.com/companies/AM
http://investors.americangreetings.com/annual_reportshttp://www.americangreetings.com/http://ycharts.com/companies/AMhttp://ycharts.com/companies/AMhttp://www.americangreetings.com/http://investors.americangreetings.com/annual_reports

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