HUNTINGTON, W.Va., Sept. 9, 2011 /PRNewswire/ -- Champion
Industries, Inc. (NASDAQ: CHMP) today announced its first
comparable quarterly increase in revenues since the start of the
worldwide economic meltdown in 2008. The Company reported
earnings for the third quarter of 2011 of $876,000, or
$0.09 per share, compared to a loss
of $(571,000), or $(0.06) per share, for the same period in 2010.
Net income for the nine months ended July
31, 2011 was $1.4 million, or
$0.14 per share, on a basic and
diluted basis. This compares to a loss of $(450,000), or $(0.05) per share, on a basic and diluted basis
in the nine months ended 2010.
Marshall T. Reynolds, Chairman of
the Board and Chief Executive Officer of Champion, said, "Our third
quarter saw slight growth in our overall revenue, which is the
first time we have seen a quarter to quarter increase in revenue in
several years. We believe we have a handle on the reasons for our
margin compression during the quarter and intend to work through
these issues as we conclude 2011 and enter into 2012. We were able
to control our SG&A costs in the quarter when compared to the
previous year which is indicative of our focus on improving
operating efficiencies."
Revenues for the three months ended July
31, 2011 were $32.0 million,
compared to $31.9 million in the same
period in 2010. This change represented an increase in revenues of
$0.1 million, or 0.4%. Revenues for
the nine months ended July 31, 2011
decreased to $95.0 million from
$98.0 million in 2010. This change
represented a decrease in revenues of $3.0
million or 3.1%. The printing segment experienced a sales
decrease of $2.3 million, or 3.8%,
while the office products and office furniture segment experienced
a decrease of $0.1 million, or 0.3%,
and the newspaper segment recorded a decrease of $0.6 million, or 5.1%, on a year to date basis.
On a segment basis printing sales were down $86,000, or 0.4%, office products and office
furniture sales were up $249,000, or
2.9%, and the newspaper sales were down $25,000, or 0.7%, for the third quarter of 2011.
Toney K. Adkins, President and Chief
Operating Officer, noted, "Our third quarter saw a stabilization of
our top line. We need to continue aggressively to increase market
share and then monetize these sales through productivity
improvements. We continue to address areas in which additional
savings can be attained to improve our bottom line."
In the third quarter of 2011, the results were reflective of a
gain on early extinguishment of debt to a related party of
$1.3 million, or $0.8 million after tax, or $0.08 per share on a basic and diluted basis. The
third quarter of 2010 results were reflective of restructuring
related charges of approximately $1.6
million, or $1.0 million after
tax, or $0.10 per share on a basic
and diluted basis.
Mr. Reynolds concluded, "We remain very cautious regarding the
fragile state of the economy and are planning accordingly. We
believe our plants are in a state of readiness and prepared to
capitalize on any improvement in the economic conditions we
currently face."
Champion is a commercial printer, business forms manufacturer
and office products and office furniture supplier in regional
markets east of the Mississippi. Champion also publishes The
Herald-Dispatch daily newspaper in Huntington, WV with a total daily and Sunday
circulation of approximately 23,000 and 29,000, respectively.
Champion serves its customers through the following
companies/divisions: Chapman Printing (West Virginia and Kentucky); Stationers, Champion Clarksburg,
Capitol Business Interiors, Garrison
Brewer, Carolina Cut Sheets, U.S. Tag and Champion
Morgantown (West Virginia);
Champion Output Solutions (West
Virginia); The Merten Company (Ohio); Smith & Butterfield (Indiana and Kentucky); Champion Graphic Communications
(Louisiana); Interform Solutions
and Consolidated Graphic Communications (Pennsylvania, New
York and New Jersey);
Donihe Graphics (Tennessee); Blue
Ridge Printing (North Carolina)
and Champion Publishing (West
Virginia, Kentucky and
Ohio).
Certain Statements contained in the release, including without
limitation statements including the word "believes", "anticipates,"
"intends," "expects" or words of similar import, constitute
"forward-looking statements" within the meaning of section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements of the Company expressed or implied by such
forward-looking statements. Such factors include, among others,
general economic and business conditions, changes in business
strategy or development plans and other factors referenced in this
release. Given these uncertainties, prospective investors are
cautioned not to place undue reliance on such forward-looking
statements. The Company disclaims any obligation to update any such
factors or to publicly announce the results of any revisions to any
of the forward-looking statements contained herein to reflect
future events or developments.
Champion
Industries, Inc. and Subsidiaries
|
|
Summary
Financial Information (Unaudited)
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
July 31,
2011
|
July 31,
2010
|
July 31,
2011
|
July 31,
2010
|
|
Total revenues
|
$32,027,000
|
$31,889,000
|
$95,023,000
|
$98,016,000
|
|
|
|
|
|
|
|
Net income (loss)
|
$876,000
|
$(571,000)
|
$1,442,000
|
$(450,000)
|
|
Per share data:
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
Basic
|
$0.09
|
$(0.06)
|
$0.14
|
$(0.05)
|
|
Diluted
|
$0.09
|
$(0.06)
|
$0.14
|
$(0.05)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
Basic
|
10,173,000
|
9,988,000
|
10,050,000
|
9,988,000
|
|
Diluted
|
10,173,000
|
9,988,000
|
10,050,000
|
9,988,000
|
|
|
|
|
|
|
|
|
The following table is a reconciliation of net income (loss) as
reported to core net income, which is defined as GAAP net income
(loss) adjusted for restructuring and other charges, income
associated with ineffectiveness related to an interest rate swap
and gain on early extinguishment of debt to a related party. The
Company believes that these items require additional disclosure and
therefore, the Company has disclosed additional non-GAAP financial
measures in an effort to make the three and nine months ended
July 31, 2011 and 2010 financial
statements more useful to investors.
|
|
|
Three
Months
|
Ended July
31,
|
Nine
Months
|
Ended July
31,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net income (loss)
|
$876,000
|
$(571,000)
|
$1,442,000
|
$(450,000)
|
|
Interest rate swap, net of
tax
|
-
|
-
|
-
|
(170,000)
|
|
Restructuring Charge, net of
tax
|
-
|
973,000
|
150,000
|
1,059,000
|
|
Gain on early extinguishment of
debt to related party, net of tax
|
(795,000)
|
-
|
(795,000)
|
-
|
|
|
|
|
|
|
|
Core net income
|
$81,000
|
$402,000
|
$797,000
|
$439,000
|
|
|
|
|
|
|
|
|
SOURCE Champion Industries, Inc.