For javascript minification scripts can dramatically shorten the code by globally substituting short variable names for long ones, but that's not really an option for stylesheets where most everything is either externally defined (the styling rules) or just linked to something external (tag, id and class names). So there's not much that they can do other than the whitepsace, shortening of color codes and dropping unneeded final semi-colons. So javascript can do more, and because of code layout typically introduces a lot more whitespace - which is why it's more popular for javascript.
In the absence of any other information about where your template came from, this does sound like the most likely explanation. Another possibility might be an editor, transfer or encoding problem resulting in the line feed characters being lost from the file or ineffective on your server.
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