FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest
Event Reported): July 19, 1999
GIBSON GREETINGS, INC.
________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 0-11902 52-1242761
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
2100 Section Road, Cincinnati, Ohio 45237
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(Address of principal executive offices)
Registrant's telephone number, including area code:(513)841-6600
________________________________________________________________
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Items 1, 2, 3, 4, 6 and 8 are not applicable and are omitted from
this report.
Item 5. Other Events
____________
The press release of Gibson Greetings, Inc. (the
"Company"), dated July 19, 1999, announcing that the Company
expects a loss for the 1999 second quarter and the full year
1999, is filed as an exhibit to and incorporated by reference in
this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits
_________________________________
(a) Financial Statements of Business Acquired.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable.
(c) Exhibits
Number Description
______ ___________
99 Press Release dated July 19, 1999
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SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Date: July 20, 1999 GIBSON GREETINGS, INC.
By /s/ James T. Wilson
_________________________________
James T. Wilson
Executive Vice President -
Finance & Operations and
Chief Financial Officer
<PAGE>
Exhibit 99
NEWS RELEASE
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Gibson Greetings Expects Loss for Second Quarter of 1999
CINCINNATI, July 19 /PRNewswire/ -- Gibson Greetings, Inc.
(Nasdaq: GIBG) today said that based on preliminary analysis of
its results for the second quarter ended June 30, 1999, the
Company expects to report a loss ranging from $1.54 to $1.64 per
diluted share. Gibson also said that it expects to report a loss
for the full year as compared to net income of $0.13 per diluted
share reported in 1998.
The loss in the second quarter of 1999 is attributable to
several factors, including the impact of accounts that were lost
in the second half of 1998, continuing costs associated with the
setting up of new accounts that were signed in the fourth quarter
of 1998 and the first quarter of 1999 which are treated as period
costs, higher product returns, increased business acquisition
costs, and higher operational costs. The quarter also included
pretax charges of approximately $1.1 million of severance and
other costs related to staff reductions and a $21.2 million write
down of Silly Slammer inventory.
In April 1999, the Company stated that it had become clear
that certain components of its strategy were not working and that
it had embarked on a thorough review of its entire organization,
including each of its core businesses and product lines, to
identify opportunities to create a leaner business. Although
this review is ongoing, the Company has made the decision to seek
a buyer for its Silly Slammer business. With the Company's focus
on its core card line, alternative card business and its
expanding role as a provider of creative content to the Internet,
the Company believes the Silly Slammer brand can best be marketed
outside of Gibson. Until a transaction is completed, the Company
will continue its commitment to its retailers and to the Silly
Slammer brand. However, certain Silly Slammer product lines
introduced in 1997 and 1998 will not be supported and the write
down noted above is recorded in the second quarter. The primary
focus going forward will be on licensed products, including
NASCAR, other sports and entertainment products.
For the second quarter of 1998, Gibson reported net income
of $5.6 million, or $0.33 per diluted share on revenues on $105.0
million. Gibson expects to release its actual financial results
for the second quarter the second week of August.
"Despite extensive reductions in our fixed costs over the
last year, our costs remain too high for existing sales levels.
We are aggressively attacking this problem on a number of fronts
including our $35.0 million investment in new, more efficient
information technology systems," said Frank O'Connell, Gibson
chairman, president and chief executive officer.
<PAGE>
"We are in a continuing process of delineating a new
strategy for the Company which focuses on the core card business
and we are shedding unprofitable product lines. Our intent is to
restructure the business so that it is more responsive to the
marketplace and able to adapt to changing consumer tastes
quickly," O'Connell added.
Gibson Greetings, Inc.,an industry innovator in the greeting
card business, is pursuing a strategy of marketing
relationship-fostering products that provide strong entertainment
value. Gibson distributes more than 24,000 individual
relationship communication products (over 5,000 new products last
year), including greeting cards, gift wrap, party goods, licensed
products and Silly Slammers(R), America's favorite "beanbags with
an attitude." E-mail greetings featuring Gibson content are
available through the privately held Egreetings Network
(www.egreetings.com), in which Gibson holds a minority equity
interest. Gibson cards are also available through the Internet
from Sparks.com (www.sparks.com), a leading online provider of
greeting cards.
For more information on Gibson Greetings, please visit our
web site at www.gibsongreetings.com or the Silly Slammers site at
www.sillyslammers.com.
(Except for historical information contained herein, this
press release contains forward-looking statements that involve
risks and uncertainties that could cause results to differ
materially from those projected. These include economic,
competitive, governmental and technological factors affecting the
Company's operations, markets, products, services and prices as
described in the Company's SEC reports. The Company assumes no
obligation to update the information in this release.)
