Checkpoint Systems Inc. is a multinational manufacturer and marketer of retail asset tracking and protection products including integrated security automatic identification and retail merchandising solutions. The company is a leading provider of radio frequency and electromagnetic electronic article surveillance systems and tags security source tagging handheld labeling systems bar code labeling systems and retail merchandising systems. Checkpoint Systems Inc. has a market cap of $618.1 million; its shares were traded at around $14.4 with a P/E ratio of 23.6 and P/S ratio of 0.7. Checkpoint Systems Inc. had an annual average earning growth of 8.3% over the past 10 years.
Highlight of Business Operations:In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our ALS business and to support incremental improvements in our EAS systems and labels businesses. We anticipate this program to result in total restructuring charges of approximately $3 million to $4 million, or $0.06 to $0.08 per diluted share. We continue to expect implementation of this program to be complete in 2010 and to result in annualized cost savings of approximately $6 million.
Shrink Management Solutions revenues decreased by $38.4 million, or 21.4%, in the third quarter of 2009 as compared to the third quarter of 2008. Foreign currency translation had a negative impact of approximately $5.0 million. The remaining revenue decrease was due primarily to declines in EAS systems, CheckView™, Alpha, and our RFID business of $27.0 million, $9.4 million, $2.5 million, and $2.3 million, respectively. These declines were partially offset by an $8.3 million increase in our EAS consumables business.
The CheckView™ business declined by $9.4 million in 2009 primarily due to decreases in the U.S., Asia and International Americas of $7.4 million, $1.6 million and $0.4 million, respectively. The decline in our U.S. retail business was due primarily to an overall decline in capital expenditures as a result of the current weak economic conditions in the U.S. Our banking business declined $2.2 million due primarily to decreased customer spending as a result of the current economic condition in the financial services sector. We anticipate our U.S. CheckView™ business will continue to experience difficulties this year as constraints on capital spending by our customers and the slowing of new store openings will likely continue as a result of the current economic conditions. The decline in Asia was due primarily to large orders in Japan in 2008 without comparable installations in 2009. The decline in International Americas was due primarily to large orders in Canada in 2008 without comparable installations in 2009.
EAS consumables revenue increased by $8.3 million in the third quarter of 2009 as compared to the third quarter of 2008. The increase was due primarily to increases in revenues of $5.6 million in Europe and $3.0 million in the U.S., which were partially offset by a $0.4 million decrease in Asia. The increases in Europe and the U.S. were due primarily to the implementation of our new hard tag at source program. Our hard tag at source program growth is a result of our efforts to provide our customers with new innovative solutions that help retailers address shrink at lower costs. The growth in our hard tag at source program was partially offset by a decrease in our EAS label business. Our EAS label business decline was due to declines in Europe, International Americas, North America, and Asia. The decline in Europe, International Americas, and North America was due primarily to economic factors negatively affecting retail sales and increased competition. The decline in Asia was due primarily to the anticipated loss of customers associated with the acquisition of SIDEP/Asialco.
Apparel Labeling Solutions revenues increased by $3.5 million, or 11.0%, in the third quarter of 2009 as compared to the third quarter of 2008. The increase was partially offset by the negative impact of foreign currency translation of approximately $1.0 million. The increase was primarily due to the Brilliant acquisition, which increased revenues for the third quarter by $4.0 million. The remaining increase during the third quarter of 2009 of $0.5 million was due to a new customer in the U.S., which was partially offset by decreases in revenues due to the general overall global decline resulting from current economic conditions.
During the third quarter of 2009, gross profit decreased by $12.9 million, or 13.3%, from $97.6 million to $84.7 million. The negative impact of foreign currency translation on gross profit was approximately $2.6 million. Gross profit, as a percentage of net revenues, increased from 41.7% to 43.6%.
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