Good day, everyone, and welcome to the American Greetings Corporation fourth quarter fiscal 2010 earnings conference call. Today's call is being recorded. At this time I would like to turn the conference over to Mr. Greg Steinberg. Please go ahead, sir. Thank you. Good morning, everyone, and welcome to our fourth quarter conference call. I am Greg Steinberg, the company's treasurer; and I help manage our investor relations. Joining me today on the call are Zev Weiss, our CEO; Jeff Weiss, our COO; and Steve Smith, our CFO. We released our earnings for the fourth quarter fiscal 2010 this morning. If you do not yet have our fourth quarter press release, you can find a copy within the investors section of the American Greetings website at investors.americangreetings.com. As you may expect, some of our comments today include statements about projections for the future. Those projections involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. We cannot guarantee the accuracy of any forecasts or estimates, and we do not plan to update any forward-looking statements. If you would like more information on our risks involved in forward-looking statements, please see our annual report or our SEC filings. Previous earnings releases, as well as our 10-Qs, 10-Ks, and annual report, are available on the investors section of the American Greetings website. We will now proceed with comments from both our CEO and CFO followed by a question-and-answer session. Zev.

Thank you, Greg, and good morning everyone. Today I will cover three different topics. First, I will share a few thoughts on our fiscal 2010 performance. Second, I will provide a brief update on the status of the integration with and benefits from Recycled Paper Greetings and Papyrus. Finally, I will offer a few comments on our outlook for fiscal year 2011. Steve will then present more details behind our financial results. I am delighted with our fourth quarter performance as it was the culmination of a successful year, a year in which we realized revenue growth of everyday greeting cards; and we made both operational and strategic changes which have already improved and which we expect will continue to improve our business model. Better yield management, aggressive cost cutting, and portfolio changes were the three largest elements that were adjusted during the year to improve the business model. As we stated in previous quarters, operationally we continued to better match our production and shipment levels to consumer demand, which removed significant costs from our supply chain and resulted in better yield. We developed and enhanced processes and controls in an effort to sustain these improvements and potentially increase our yield in future years. A year ago, as the economy faltered, we were extremely aggressive on cost cutting and kept a lid on those costs throughout this fiscal year. We redesigned business processes in order to allow us to operate at a leaner level going forward. Secondly and importantly, the changes we made to our portfolio of businesses and product lines have allowed us to be more focused on our core business. This improved business model contributed to significant margin and cash flow improvements compared to the prior fiscal year. I am pleased to report that while our full year…

Thanks, Zev. I have three components to my prepared remarks today. I will start with comments on a few larger items that impacted our consolidated results this quarter and also the full year. Then I will share a review of our reported segments. Finally, a quick walk through a few key components of our financials. We will then open the line for questions. As Zev mentioned, we had a good fourth quarter. Similar to the last few quarters, there were two primary reasons driving this improved performance. First, the benefits of achieving better yield including lower supply chain and scrap costs; and second, reduced overhead costs due to the actions we took at the end of the last fiscal year. Our consolidated revenue of $426 million was up almost $4 million or 1% from last year's fourth quarter revenue of $423 million. Included in our reported revenue this quarter was a benefit from foreign exchange of almost $11 million versus the prior year's fourth quarter. Our revenue was adversely affected due to the net effect of divestitures and acquisitions. We divested the retail business during the year, and that revenue loss was only partially offset by the revenue picked up from the RPG and Papyrus acquisitions. The net revenue lost due to these portfolio changes was about $24 million versus the prior year's fourth quarter. So, holding aside both the impact of foreign change as well as the net impact of the transactions I just mentioned, revenue increased approximately $16 million or about 4% for the fourth fiscal quarter versus the prior year's fourth quarter, primarily driven by improvements in North America. Our operating income of $36 million was about $93 million better than the operating loss of $58 million in the prior year's fourth quarter. There are a handful…

Thank you, Mr. Smith. (Operator Instructions) Your first question comes from Jeff Stein – Soleil Securities.

Morning, guys, congratulations. Great quarter. Couple things. First of all, wondering if you could quantify for us the impact of the sales of the party goods business in terms of what it contributed to revenues for the year and how much of that revenue may have crept into the fourth quarter so we can use that going forward?

Sure, Jeff, we would like to give you just kind of a general sense of that rather than very specific figures. We haven't typically broken out the segment information that we share. In the fourth quarter, we had a revenue of a few million dollars. Let me start with the year, first. For the year, revenues were in the $40 millionish range for the year. I don't know if we can go into the profitability of the segment, Jeff, given the constraints of the agreement we have with the party to whom we sold the business.

That's quite all right. You are talking though revenues about $2 million in the fourth quarter and $40 million?

No, a few million dollars. I have to turn to my colleagues and see if they have an exact figure. I don't have it with me, Jeff.

Okay. So even if you back that out, I am kind of curious. It would seem excluding that would you expect revenue growth to be positive for the new fiscal year? Because it sounds like you are being fairly cautious. I am wondering does it have anything to do with either account changes, consolidations in the retail marketplace, or just generally caution on your part?

I think what we're saying is barring the party goods revenue, our expectations are relatively flat. I think right now when we look at the revenue side and really the whole financial side, probably the only thing that is causing us to be somewhat cautious is given the degree of execution we have ahead of us with all the integration work that is happening as we speak.

What inning are you in? I know companies love that question. What inning are you in on the integration? And what would you see as the biggest hurdles in completing the integration?

I don't know what inning we're in. I can tell you that our expectation is to be very far along by the end of this year. A lot of the execution work is happening really right now as we speak.

And what would you say are some of the challenges you're facing, if any, in the compression?

I think the biggest challenges that you're talking about two different companies at the exact, when the integration effort is involving two different companies at the exact same time. And we're still just sort of done with the exiting of retail. And there was a lot of work on our part also helping with the integration efforts there with the company that bought that. The combination of really of those three was and still is quite a bit of activity for the group.

Got it. Can you talk a little bit about technology cards in terms of the impact that has had on your business? I know historically you have stated it's been under 5% of your business. But I have noticed recently that at least in some of the new designs your price points are much higher than they were a year ago. It seems like a year ago you were mainly at $4.99. Now I am seeing cards out there $5.99 to $7.99. Is the mix, I presume the mix is favorable to you and is it now becoming more a material percentage of your total business?

I think when you look at some of the episodes of some of the cards, it is correct what you are saying. That as you move away from just music cards, which were predominantly priced in that $4.99 range, we now have others that are above that. When you take a step back and you look at in general what's going on with our music and technology, there's really just a shift happening where there are fewer music cards being sold. Those are being made up with the cards that you are referring to and some of the ones that we refer to in the call that you are seeing out in the marketplace. I think overall from a revenue perspective and from a unit perspective, it's relatively flat. It's just a mix shift underneath that.

You are saying that revenues in technology cards year on year were about flat?

They are relatively flat.

How about profitability of technology cards? On a per unit basis if you're getting a higher price, does that improve the economics of selling these products?

It's all on a case-by-case basis. It all depends on the underlying cost associated with those cards that you see with the higher price points. With the LCD cards that we came out with at Christmas, the price point was higher; but obviously putting an LCD screen in a card has a significant amount of cost associated with it. You can't take a general statement there. You have to look at every one of the cards. I think, overall, though where the initial roll out of music were quite challenging for us from a cost perspective, a lot of the negative factors that were contributing to that are now much more under control.

One last question. This gets back to my initial question. RPG and Papyrus are still relatively small in the grand scheme of things, relative to your larger everyday greeting card business. If you're looking at kind of flattish revenues for 2010, excluding the sale of the party goods business, what are factors that would cause you to take such a conservative outlook given the fact that retail foot traffic is up sharply?

I think for us the thing that, again, I think is causing us just to be the most, the single biggest thing that's causing us to be cautious is the degree of execution that we're embarking on. Again, what we're doing with RPG and Papyrus at the same time, and just getting off the retail execution. There's a lot of complex execution that needs to happen. Again, it's happening as we speak. I think we'll feel a lot more comfortable when we get on the other end of that.

(Operator Instructions) Your next question comes from Mimi Noel – Sidoti and Company.

Good morning. Most of my questions have been answered, but I do have one, two part. First, Zev, can you comment on the seams you saw among your consumers in 2010? As the year ended any sort of shifting you might have seen from your consumers on a channel basis primarily?

You're asking about the, what was sort of the consumers' mind set as the year was ending relative to the economy? Is that like maybe where it was versus the beginning of the year?

More so not just their psychology, but their behavior.

It's interesting. I think what we saw this past year was much more normal behavior from our consumers than perhaps what we were expecting as we were heading into the beginning of the year last year. Part of that has to do with, I think, how things looked when the economic trouble started, maybe back in September about a year and a half ago. There were things that were causing us to be much more concerned, and it definitely leveled off and became much more normal as we were starting into the beginning of last fiscal year. I think from a consumer perspective, a lot of what we saw was more typical than I think we were expecting. I think you continue to see some of the channel shift happening that has been going on for the last 5 or so years, particularly with some of the reduction perhaps in some of the specialty channels. And then some of the share being picked up in mass retail. That's a trend that's been going on for a long time. I think we saw that last year as well.

Then, the other thing I wanted to ask you about, and I haven't seen this with my own eyes, but I heard of sort of the store within a store concept with major department store retailers. Is that something that you are in fact doing?

We have been doing that. If it's what I believe you're referring to is sort of almost like a boutique store within a store in department stores. That is something that's going on. But it's something that we've been working on for the past couple of years.

Is it in a broad scale roll out now and I just haven't noticed it? From store to store or?

I don't think it's any more unique than what we've been doing for the past couple of years.

That's all the questions I had for now, thank you.

(Operator Instructions) We will take a follow up question from Jeff Stein – Soleil Securities.

Question on yield. You guys made a tremendous improvement this past year in your gross margins because of the improved execution in yield. Is there still room for additional improvement?

We think there is opportunity to continue to improve. I think with yield, as with a lot of cost savings efforts, the first steps are always easier than the next steps. We don't by any means think that we're done; but we do think that as we take future steps, it's going to be a bit more challenging.

In terms of kind of getting to the next level, do you see that as a progression that will continue into the current fiscal year or are there some investments you need to make to take it to the next level?

I don't think like you put from a technology perspective, if that's what you are referring to in terms of investments, I think it's a question of staying disciplined and every year getting better and better. Again, it doesn't mean that it will happen uniformly. Especially as, I think, we go forward it will be more challenging. But we are not at a resting place by any means.

Steve, you mentioned in your presentation that you had a $13 million [LIFO] liquidation for the year. Can you kind of parse that out for us on a quarter-by-quarter basis?

It's roughly spread evenly across the four quarters, Jeff. Around $3 millionish per quarter of the four quarters.

We will take a follow up question from Mimi Noel – Sidoti and Company.

Thanks. I missed it on the call. You reaffirmed your outlook for cash charges associated with the integration during fiscal 2011, would you repeat that for me?

What we were saying in the script was that the total amount of charges over the program was to be around $20 million.

Okay. And you said you spent a few million in fiscal 2010?

Correct.

But can you get any more specific than that?

No. Just a few million dollars of the costs were incurred last fiscal, Mimi. That's all we're sharing.

Okay. I think I am all set. Thank you.

Your next question comes from Robert Haley – Gabelli and Company.

Good morning. Thanks for the question. You mentioned in some of your comments impacts to free cash flow outlook for the year being taxes, working capital, and deferred costs. I am wondering if you could just give some more details around those, which are puts and takes and maybe quantify?

Hi, Rob, it's Greg Steinberg. We generally don't quantify at that level of detail the differences between deferred costs, taxes, and working capital. We saw quite a nice benefit from most of those this fiscal year, and you have seen that over a number of years historically. We are expecting some of that to continue, although perhaps at a lesser amount than you've seen this past year. We prefer not to get into the level of detail as to each of the line items.

It appears we have no further questions at this time. I would like to turn the conference back over to Mr. Steinberg for any additional closing remarks.

Thank you. That concludes the question-and-answer portion of today's conference call. We look forward to speaking with you again at our first quarter conference call fiscal year 2011, which is expected to occur in late June. We thank you for joining us this morning. That ends today's call.

Thank you. As a reminder, that does conclude today's conference. We want to thank you for your participation today.