Von Hoffmann Reports Q2: $112 Million in Sales, $2.3 Million Net Income
Press release from the issuing company
ST. LOUIS, Aug. 13 -- Von Hoffmann Corporation, a leading North American educational and commercial printer, today announced results for the quarter ended June 30, 2002.
Sales for the quarter ended June 30, 2002 were $112.0 million as compared to $113.9 million for the comparable period in 2001. Sales for the six months ended June 30, 2002 were $194.7 million which represented a 14 percent reduction from the $226.7 million in sales for the same period last year. The decrease from the year ago periods was principally attributable to the weakness in the instructional materials market resulting from lower state and local tax revenues directed at textbook purchases and a reduction in the production of new textbooks based on a lighter state adoption program than has been characteristic of the last three years.
Net income for the Company increased to $2.3 million for the quarter ended June 30, 2002 compared to $1.2 million for the same quarter in 2001. For the six month period ended June 30, 2002, the Company's loss before extraordinary item matched the loss of $1.6 million for the prior year's period. An extraordinary expense item of approximately $2.0 million was recorded in the first quarter of 2002 related to the write-off of certain deferred financing costs that resulted from the re-financing that the Company completed on March 26, 2002. The Company also recorded a gain on disposal of non-core depreciable assets in the 2002 period of $3.5 million which positively impacted the 2002 results.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $23.0 million for the quarter ended June 30, 2002 matching the $23.0 million for the same period in 2001. On a year-to-date basis, EBITDA for the June 30, 2002 period was $34.4 million as compared to $42.3 million for the same period in 2001. The recent EBITDA levels reflect the impact of the lower sales level in 2002, particularly in the first quarter of 2002, which were partially offset by several significant cost initiatives undertaken over the past year. The Company's improved performance in the second quarter demonstrates the impact of these cost initiatives as well as a seasonal upturn in production volume.
Robert Mathews, President and Chief Executive Officer commented, "While the downturn in the instructional materials market has had some impact on our results, I am pleased with the initial results of our cost initiatives and our improving cash flow generation in the second quarter. I am extremely optimistic about our continued ability to grow our business in the commercial market which augments our strength in the instructional materials market. This growth will allow us to better leverage our assets across the entire year and throughout the business cycle. We are committed to allocating capital to support this growth and thereby realizing our goal of building Von Hoffmann for the future."
Von Hoffmann Corporation is a leading North American manufacturer of printed products for the educational and commercial markets. From design and prepress through manufacturing and distribution and fulfillment Von Hoffmann is committed to offering its core customers in the instructional materials markets and in the commercial market sector a full range of products and services. Von Hoffmann is headquartered in St. Louis, Missouri.
WhatTheyThink is the global printing industry's leading independent media organization with both print and digital offerings, including WhatTheyThink.com, PrintingNews.com and WhatTheyThink magazine versioned with a Printing News and Wide-Format & Signage edition. Our mission is to provide cogent news and analysis about trends, technologies, operations, and events in all the markets that comprise today’s printing and sign industries including commercial, in-plant, mailing, finishing, sign, display, textile, industrial, finishing, labels, packaging, marketing technology, software and workflow.