HUNTINGTON, W.Va., March 11, 2011 /PRNewswire/ -- Champion
Industries, Inc. (Nasdaq: CHMP) today announced first quarter 2011
net income of $73,000 or $0.01 per share on a basic and diluted basis.
This compares to a net loss of $(213,000) or $(0.02) per share for the three months ended
January 31, 2010. Income from
operations improved to $1.1 million
in the first three months of 2011 from $0.9
million in 2010, resulting primarily from lower selling,
general and administrative costs partially offset by lower gross
margin dollars and percentage, as well as charges related to a
restructuring and profitability enhancement plan.
On a core net income (loss) basis the Company reported net
income of $0.2 million in the first
quarter of 2011, or $0.02 per share
on a basic and diluted basis, compared with a core net loss of
$(0.4) million or $(0.04) per share on a basic and diluted basis
for the first quarter of 2010. Core net income (loss) is defined as
net income (loss) as reported, adjusted for restructuring and other
charges and interest rate swap.
Marshall T. Reynolds, Chairman of
the Board and Chief Executive Officer of Champion, said, "Our first
quarter represented a stabilization of overall revenues when
compared to the first quarter of the prior year. We continue to
benefit from our cost reduction initiatives, which continued into
the first quarter of 2011. We incurred $250,000 in additional restructuring expenses,
which would have otherwise improved our income from operations
another 23% in the first quarter. We will continue to aggressively
review our operations and maximize any additional cost initiatives
we deem available that will not reduce long-term revenue prospects.
In addition, we are working on new initiatives to expand our market
share and drive additional volume through our plants."
Revenues for the three months ended January 31, 2011 were $31.9 million compared to $32.4 million in the same period in 2010. This
change represented a decrease in revenues of $0.5 million or 1.5%. The printing segment
experienced a sales decrease of $0.2
million or 1.0% while the office products and office
furniture segment experienced an increase of $0.1 million or 0.9%. The newspaper revenues for
the quarter were approximately $4.0
million compared to $4.4
million in the first quarter of 2010. Toney K. Adkins, President and Chief Operating
Officer, noted, "Our operating segments saw revenue stabilize for
both printing and office products and furniture during 2011
compared with 2010. The newspaper revenues declined from the prior
year primarily from decreases in national accounts. In general, the
first quarter of 2011 was a solid improvement over the comparable
quarter of 2010 and with an overall stabilization of revenues our
goal will be to build from these levels."
Mr. Reynolds concluded, "Our sales stabilization in two of our
three revenue segments was a positive sign for the quarter. We must
build from this level as well as continue to focus on cost controls
and operational efficiencies. We have the horsepower to expand the
business and we will focus additional energies in this direction in
2011."
At January 31, 2011, the Company
had approximately $57.2 million of
interest bearing debt. Our interest bearing debt has been reduced
by approximately $27.2 million since
October 31, 2007 through utilization
of our earnings, cash flow and working capital management. The
Company is subject to various restrictive financial covenants
requiring the Company to maintain certain financial ratios. The
Company was in compliance with these covenants as of January 31, 2011.
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 January 31,
|
|
|
2011
|
2010
|
|
Total Revenues
|
$31,905,000
|
$32,387,000
|
|
Net income (loss)
|
$73,000
|
$(213,000)
|
|
Per share data:
|
|
|
|
Net income (loss):
|
|
|
|
Basic and diluted
|
$0.01
|
$(0.02)
|
|
Weighted Average Shares
outstanding:
|
|
|
|
Basic
|
9,988,000
|
9,988,000
|
|
Diluted
|
9,988,000
|
9,988,000
|
|
|
|
|
|
|
The following table is a reconciliation of net income (loss) as
reported to core net income (loss), which is defined as GAAP net
income (loss) adjusted for restructuring and other charges and
income associated with ineffectiveness related to an interest rate
swap. 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 quarterly
financial statements more useful to investors.
|
|
Three Months
ended January 31,
|
|
|
2011
|
2010
|
|
Net income (loss)
|
$73,000
|
$(213,000)
|
|
Interest rate swap, net of
tax
|
-
|
(170,000)
|
|
Restructuring and other, net of
tax
|
150,000
|
-
|
|
Core net income
(loss)
|
$223,000
|
$(383,000)
|
|
|
|
|
|
|
SOURCE Champion Industries, Inc.