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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Checkpoint Systems, Inc. Announces Fourth Quarter And Full-Year 2012 Results

Checkpoint Systems, Inc.

Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon more than 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net ® data management platform. As a result, Checkpoint customers enjoy increased sales and profits by improving supply-chain efficiencies, by facilitating on-demand label printing and by providing a secure open-merchandising environment enhancing the consumer's shopping experience. For more information, visit www.checkpointsystems.com.

Caution Regarding Forward-Looking Statements

This press release includes information that constitutes forward-looking statements. Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or “will.” By their nature, forward-looking statements address matters that are subject to risks and uncertainties. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include: the impact upon operations of legal compliance matters or internal controls review, improvement and remediation, including the detection of wrongdoing, improper activities, or circumvention of internal controls; our ability to integrate acquisitions and to achieve our financial and operational goals for our acquisitions; changes in international business conditions; foreign currency exchange rate and interest rate fluctuations; lower than anticipated demand by retailers and other customers for our products; slower commitments of retail customers to chain-wide installations and/or source tagging adoption or expansion; possible increases in per unit product manufacturing costs due to less than full utilization of manufacturing capacity as a result of slowing economic conditions or other factors; our ability to provide and market innovative and cost-effective products; the development of new competitive technologies; our ability to maintain our intellectual property; competitive pricing pressures causing profit erosion; the availability and pricing of component parts and raw materials; possible increases in the payment time for receivables as a result of economic conditions or other market factors; changes in regulations or standards applicable to our products; the ability to successfully implement global cost reductions in operating expenses including, field service, sales, and general and administrative expense, and our manufacturing and supply chain operations without significantly impacting revenue and profits; our ability to maintain effective internal control over financial reporting; and additional matters disclosed in our Securities and Exchange Commission filings. In addition, we have announced an intention to sell our U.S. and Canadian CheckView business. There can be no assurance, however, that we will be able to sell this business on terms and at a time we believe to be acceptable, or at all. We do not undertake to update our forward-looking statements, except as required by applicable securities laws.

 
Checkpoint Systems, Inc.
Consolidated Balance Sheets
(amounts in thousands)
(unaudited)
         
      December 30, 2012       December 25, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 118,829 $ 93,481
Restricted cash 291
Accounts receivable, net of allowance of $13,242 and $12,627 177,173 208,889
Inventories 82,154 130,987
Other current assets 36,147 44,548
Deferred income taxes 8,930 7,720
Assets of discontinued operations held for sale     29,864         6,320  
Total Current Assets     453,097         492,236  
REVENUE EQUIPMENT ON OPERATING LEASE, net 1,748 1,920
PROPERTY, PLANT, AND EQUIPMENT, net 107,184 132,161
GOODWILL 182,741 286,103
OTHER INTANGIBLES, net 74,950 84,557
DEFERRED INCOME TAXES 26,843 27,241
OTHER ASSETS     13,246         20,263  
TOTAL ASSETS     $ 859,809         $ 1,044,481  
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt $ 4,367 $ 21,778
Accounts payable 68,929 68,886
Accrued compensation and related taxes 28,258 27,620
Other accrued expenses 54,425 58,242
Income taxes 2,560 4,080
Unearned revenues 17,035 22,142
Restructuring reserve 9,579 17,612
Accrued pensions — current 4,687 4,453
Other current liabilities 25,855 32,867
Liabilities of discontinued operations held for sale     9,688         1,440  
Total Current Liabilities     225,383         259,120  
LONG-TERM DEBT, LESS CURRENT MATURITIES 108,921 128,684
ACCRUED PENSIONS 95,839 78,815
OTHER LONG-TERM LIABILITIES 36,540 29,894
DEFERRED INCOME TAXES 15,580 18,628
COMMITMENTS AND CONTINGENCIES
CHECKPOINT SYSTEMS, INC. STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, 500,000 shares authorized, none issued
Common stock, par value $.10 per share, 100,000,000 shares authorized, issued 44,763,404 and 44,241,105 shares 4,476 4,424
Additional capital 424,715 418,211
Retained earnings 18,392 164,268
Common stock in treasury, at cost, 4,035,912 and 4,035,912 shares (71,520 ) (71,520 )
Accumulated other comprehensive income, net of tax     795         12,741  
TOTAL CHECKPOINT SYSTEMS, INC. STOCKHOLDERS’ EQUITY 376,858 528,124
NON-CONTROLLING INTERESTS     688         1,216  
TOTAL EQUITY     377,546         529,340  
TOTAL LIABILITIES AND EQUITY     $ 859,809         $ 1,044,481  
 
         
Checkpoint Systems, Inc.
Consolidated Statements of Operations
(amounts in thousands, except per share data)
(unaudited)
 
Quarter Ended   Twelve Months Ended
      December 30, 2012       December 25, 2011       December 30, 2012       December 25, 2011
Net revenues $ 200,178       $ 225,054 $ 690,789       $ 763,749
Cost of revenues     121,541         132,457         419,947         451,459  
Gross profit 78,637 92,597 270,842 312,290
Selling, general, and administrative expenses 61,385 71,068 249,089 279,791
Research and development 3,591 4,078 16,400 19,269
Restructuring expenses 1,326 8,269 28,422 28,640
Asset impairment 592 592
Goodwill impairment 38,278 102,715
Litigation settlement 295 943 295 943
Acquisition costs 205 114 332 2,319
Other (income) expense (4,652 ) (766 ) (3,907 ) (179 )
Other operating income     2,043                 2,043         19,262  
Operating (loss) income (19,748 ) 8,299 (120,461 ) 177
Interest income 466 704 1,757 3,381
Interest expense 2,105 2,142 10,647 7,923
Other loss, net     (1,760 )       (474 )       (1,731 )       (1,523 )
(Loss) earnings from continuing operations before income taxes (23,147 ) 6,387 (131,082 ) (5,888 )
Income taxes expense     8,288         20,796         7,364         59,573  
Net loss from continuing operations (31,435 ) (14,409 ) (138,446 ) (65,461 )
Loss from discontinued operations, net of tax expense (benefit) of $146, ($402), $268 and ($364)     (4,129 )       (4,752 )       (7,959 )       (1,165 )
Net loss (35,564 ) (19,161 ) (146,405 ) (66,626 )
Less: loss attributable to non-controlling interests     (174 )       (107 )       (529 )       (57 )
Net loss attributable to Checkpoint Systems, Inc.     $ (35,390 )       $ (19,054 )       $ (145,876 )       $ (66,569 )
 
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations $ (0.76 ) $ (0.35 ) $ (3.36 ) $ (1.61 )
Loss from discontinued operations, net of tax     (0.10 )       (0.12 )       (0.20 )       (0.03 )
Basic loss attributable to Checkpoint Systems, Inc. per share     $ (0.86 )       $ (0.47 )       $ (3.56 )       $ (1.64 )
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations $ (0.76 ) $ (0.35 ) $ (3.36 ) $ (1.61 )
Loss from discontinued operations, net of tax     (0.10 )       (0.12 )       (0.20 )       (0.03 )
Diluted loss attributable to Checkpoint Systems, Inc. per share     $ (0.86 )       $ (0.47 )       $ (3.56 )       $ (1.64 )
 

Reconciliation of Non-GAAP Financial Measures in Accordance with SEC Regulation G

Checkpoint Systems, Inc. reports financial results in accordance with U.S. GAAP and herein provides some Non-GAAP measures. These Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These Non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the Non-GAAP measures presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis that is consistent with financial models developed by research analysts who follow the Company.

Stock quotes in this article: CKP 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs