Champion Announces Q3 Results, Net Income of $253,000
Monday, August 26, 2002
HUNTINGTON, W.Va., Aug. 26 -- Champion Industries, announced on Friday net income of $253,000 or $0.03 per share for the three months ended July 31, 2002 compared to a loss of ($4,246,000) or ($0.44) per share for the same period in 2001. Net income for the nine months ended July 31, 2002 was $1,261,000 or $0.13 per share compared to a loss of ($3,030,000) or ($0.31) per share for the same period in 2001. The loss in the prior year was a result of a restructuring and profitability enhancement plan initiated by the Company. The Company recorded restructuring, asset impairment and other special charges in the third quarter of 2001 of $4.3 million net of tax or $0.44 per share on a fully diluted basis. The Company's balance sheet reflected interest-bearing debt to equity at approximately 14.0 percent, book value per share of $4.37 and total shareholders equity of $42.4 million at July 31, 2002. The Board of Directors announced the declaration of the Company's quarterly dividend of five cents per share. The cash dividend will be paid on September 23, 2002, to shareholders of record on September 6, 2002. Marshall T. Reynolds, Chairman of the Board and Chief Executive Officer of Champion, said, "The third quarter of fiscal 2002 continued to be similar to the previous quarters of the year with the Company operating in the midst of an overall weakened economy in many of our geographic regions. We continue to work on fine-tuning our initiatives to capitalize on sales opportunities as they are identified with a never-ending focus on controlling the cost side of the business. The Company's balance sheet is in outstanding condition with a strong working capital position and debt to equity ratio. The proper management of our balance sheet has been a large contributor to an interest expense reduction of $368,000 in 2002. The overall strength of our balance sheet should afford Champion unique opportunities in the coming years." Revenues for the three months ended July 31, 2002 were $30.8 million compared to $30.2 million in the same period in 2001. This change represented an increase in revenues of $600,000 or 2.0%. Revenues for the nine months ended July 31, 2002 decreased to $91.3 million from $92.9 million in 2001. This change represented a decrease in revenues of $1.6 million or 1.8%. The printing segment experienced a sales decrease of $1.9 million or 2.6% while the office products and office furniture segment experienced an increase of $237,000 or 1.2%. Kirby J. Taylor, president and chief operating officer, noted, "Our top line decreases occurred primarily in the first quarter of 2002 with revenues being down only slightly in the second quarter of 2002 and up approximately 2% in the third quarter of 2002. Our SG&A expenses have been lower than each comparable quarter in the prior year for a total year to date reduction of $878,000 or 3.6%." Mr. Reynolds concluded, "I am encouraged by the sales growth in our office products and office furniture segment specifically related to our office furniture sales in the third quarter of 2002. This is an indication that we continue to seek and obtain opportunities for sales growth in this difficult economic environment." Champion is a commercial printer, business forms manufacturer and office products and office furniture supplier in regional markets east of the Mississippi. Champion serves its customers through the following companies/divisions: Chapman Printing (West Virginia and Kentucky), Stationers, Champion Clarksburg, Capitol Business Interiors, Carolina Cut Sheets and Champion Morgantown (West Virginia), The Merten Company and Garrison Brewer (Ohio), Smith & Butterfield (Indiana and Kentucky), Bourque Printing, Upton Printing, Transdata Systems and Diez Business Machines (Louisiana), Dallas Printing (Mississippi), U.S. Tag (Maryland), Interform Solutions and Consolidated Graphic Communications (Pennsylvania, New York and New Jersey), Donihe Graphics (Tennessee) and Blue Ridge Printing (North Carolina and Tennessee).