This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Champion Announces Improved First Quarter Results For 2010 And Restatement

HUNTINGTON, W.Va., March 5 /PRNewswire-FirstCall/ -- Champion Industries, Inc. (Nasdaq: CHMP) today announced a net loss of $(213,000) or $(0.02) per share on a basic and diluted basis. This compares to a net loss of $(634,000) or $(0.06) per share for the three months ended January 31, 2009.  Income from operations improved to $890,000 in the first three months of 2010 from $2,000 in 2009 resulting in part from improved gross margin percent which partially offset a sales decline and lower selling, general and administrative costs.

Marshall T. Reynolds, Chairman of the Board and Chief Executive Officer of Champion, said, "Our first quarter represented a strong increase in income from operations over the previous year. This is indicative of the results of our cost reduction initiatives. We are continuing to implement our cost reduction and process improvement strategies and are aware that the first quarter 2010 sales compression is another strong indicator that our efforts to reduce costs and streamline operations are critical to future success.  It appears that the operating environment will remain volatile for at least the next several quarters so we will drive forward on our internal profit enhancement plans to achieve targeted operating profit improvement. We are also cognizant of the changing print landscape and have made critical investments over the last several years in digital, postal optimization and output solution related assets."

Revenues for the three months ended January 31, 2010 were $32.4 million compared to $36.9 million in the same period in 2009. This change represented a decrease in revenues of $4.5 million or 12.2%. The printing segment experienced a sales decrease of $3.4 million or 14.7% while the office products and office furniture segment experienced a decrease of $1.0 million or 10.6%. The newspaper revenues for the quarter were approximately $4.4 million compared to $4.5 million in the first quarter of 2009. Toney K. Adkins, President and Chief Operating Officer, noted, "Our operating segments continue to see top line revenue constraints but even with these limitations we are beginning to move the Company back towards profitability. Our newspaper operations essentially reported only a slight decrease in revenue of less than $150,000; therefore on relatively flat revenue, our cost reductions are enhancing profitability."

The 2009 results are reflective of a restatement of earnings associated with approximately $0.3 million of non-cash related adjustments reflected as deferred tax expense associated with deferred tax liability attributes related to goodwill, trade name and masthead of The Herald-Dispatch. This was recorded in the fourth quarter of 2009 and therefore the interim periods for 2009 have been restated accordingly to reflect such adjustment. In the three months ended January 31, 2010, the Company recorded as a component of other income a hedging arrangement of approximately $0.3 million or $0.2 million net of tax.

Mr. Reynolds concluded, "I believe the first quarter is evidence that the Company has made strides to improve operations and reduce costs. We have improved operating profitability in what continues to be a very difficult environment for top line increases. We believe if we are able to achieve a modest level of sales growth that our operations should rebound quickly.  We will continue to manage our Company through this global economic crisis in anticipation of the recovery to come."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHMP $0.29 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs