Champion Announces $4 Million 3Q Loss, Says They Have Taken Their Medicine
Monday, August 27, 2001
HUNTINGTON, W.Va., Aug. 24 Champion Industries, Inc. today announced a net loss of ($4,246,000) or ($0.44) per share for the three months ended July 31, 2001 compared to net income of $452,000 or $0.05 per share for the same period in 2000. Net loss for the nine months ended July 31, 2001 was ($3,030,000) or ($0.31) per share compared with net income of $1,644,000 or $0.17 per share for the same period in 2000. The loss for the quarter and year-to-date was a result of a previously announced restructuring and profitability enhancement plan initiated by the Company. The Company recorded restructuring, asset impairment and other special charges in the third quarter of $4.3 million net of tax or $0.44 per share on a fully diluted basis. The Company's balance sheet reflected a continued strong position with total interest bearing debt to equity at 24.0 percent, book value per share of $4.30 and shareholders equity of $41.8 million. The Board of Directors previously announced the declaration of the Company's quarterly dividend of five cents per share on July 31, 2001. The cash dividend will be paid on September 24, 2001 to shareholders of record on September 7, 2001. Marshall T. Reynolds, Chairman of the Board and Chief Executive Officer of Champion, remarked, "The third quarter of FY 2001 represented a rationalization of our current operating methods and Company infrastructure. The quarter culminated with special charges being taken to consolidate plants, reflect asset impairments and to generally respond to a slowing national and regional economy. We have taken our medicine and are ready to move on to focus on growing our business lines. Our team understands the mission and is focused on expanding our role as one of the premier printing and office supply and furniture companies in the nation.'' Revenues for the three months ended July 31, 2001 were $30.2 million compared to $30.4 million in the same period in 2000. The change represents a decrease in revenues of $178,000 or approximately 1%. Revenues for the nine months ended July 31, 2001 decreased to $92.9 million from $94.1 million in 2000. This change represented a decrease in revenues of $1.2 million or 1.2%. Kirby J. Taylor, President and Chief Operating Officer, stated, "We are committed to implementing our restructuring plan in as expeditious a manner as possible and are encouraged by the cost savings and synergies to be achieved. The profitability enhancement plan savings coupled with an increased focus on core operating methods should enable Champion to continue to effectively compete in the slowing economic environment.''