Champion Industries Inc. (CHMP, Financial) filed Quarterly Report for the period ended 2010-06-10.
Champion Industries Inc. has a market cap of $17.5 million; its shares were traded at around $1.75 with and P/S ratio of 0.1.
In the second quarter of 2010, selling, general and administrative expenses decreased on a gross dollar basis to $8.5 million from $ 8.8 million in 2009, a decrease of $347,000 or 3.9%. As a percentage of total sales, the selling, general and administrative expenses increased on a quarter to quarter basis in 2010 to 25.1% from 24.4% in 2009. The decrease in selling, general and administrative expenses is primarily the result of personnel cost related reductions associated in part with cost reduction initiatives, lower bad debt expense and lower amortization expense. The decrease in SG&A was partially offset by various costs associated with the Company's successful defense of a legal action approximating $270,000.
Income from operations increased in the second quarter of 2010, to $1.9 million from $1.6 million in the second quarter of 2009. This increase is the result of lower selling, general, and administrative expenses and relatively flat gross margin dollar contributions. The improvement in income from operations was offset in part by the expenses associated with the successful defense of a legal action approximating $270,000 in the second quarter of 2010 and restructuring related costs, primarily associated with equipment relocation related costs to effectuate and streamline plant productivity, severance and operational realignment costs approximating $139,000 in the second quarter of 2010. Other expense (net), increased approximately $196,000 from 2009 to 2010, primarily due to increases in interest expense resulting from higher rates associated with the Administrative Agent instituting the default rate and eliminating the LIBOR borrowing expense option for most of the second quarter of 2010 and various deferred financing interest related expenses associated with this debt.
Total revenues decreased 9.5% in the first six months of 2010 compared to the same period in 2009, to $66.1 million from $73.0 million. Printing revenue decreased 10.5% in the six month period ended April 30, 2010 to $41.5 million from $46.3 million in the same period in 2009. Office products and office furniture revenue decreased 9.4% in the six month period ended April 30, 2010, to $16.6 million from $18.3 million in the same period in 2009. The decrease in printing sales was primarily associated with the continued impact of the global economic crisis. The decrease in office products and office furniture sales was primarily due to lower office product and office furniture sales. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $8.0 million consisting of advertising revenues of approximately $6.1 million and $1.9 million in circulation revenues for the six months ended April 30, 2010. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $8.4 million consisting of advertising revenues of approximately $6.4 million and $2.0 million in circulation revenues for the six months ended April 30, 2009. The on-line revenues for the six months ended April 30, 2010 and 2009 approximated $0.6 and $0.5 million and are recorded as a component of advertising revenue. The reduction in newspaper revenues is primarily associated with a decrease in advertising revenues associated, in part, with decreased advertising demand due to the global economic crisis.
Total cost of sales decreased 12.7% in the six months ended April 30, 2010 to $46.1 million from $52.8 million in the six months ended April 30, 2009. Printing cost of sales decreased 14.0% in the six months ended April 30, 2010 to $30.2 million from $35.1 million in the six months ended April 30, 2009. The decrease in printing cost of sales was primarily due to the decrease in printing sales coupled with improved gross margin percent. Office products and office furniture cost of sales decreased 10.5% in the six months ended April 30, 2010 to $11.7 million from $13.1 million for the six months ended April 30, 2009. Newspaper cost of sales and operating costs as a percent of newspaper sales were 51.6% and 54.6% for the six months ended April 30, 2010 and 2009.
Income from operations increased 73.8% in the six month period ended April 30, 2010 to $2.8 million from $1.6 million in the same period of 2009. This increase is the result of lower selling, general and administrative expenses partially offset by revenue reductions and lower gross margin contribution at the Company's office products and office furniture segment. The improvement in income from operations was further offset, in part, by expenses associated with the successful defense of a legal action approximating $330,000 for the six months ended April 30, 2010 and restructuring related costs primarily associated with equipment relocation related costs to effectuate and streamline plant productivity, severance and operational realignment costs approximating $161,000 in the six months ended April 30, 2010. Other expense (net), increased approximately $389,000 from 2009 to 2010 primarily due to increases in interest expense, resulting from higher rates associated with the Administrative Agent instituting, the default rate and eliminating the LIBOR borrowing expense option for most of the first six months of 2010 and various deferred financing interest related expenses associated with this debt. This increase was partially offset by an increase in other income resulting from a hedging arrangement recorded in the first quarter of 2010.
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Champion Industries Inc. has a market cap of $17.5 million; its shares were traded at around $1.75 with and P/S ratio of 0.1.
Highlight of Business Operations:
Total revenues decreased 6.6% in the second quarter of 2010 compared to the same period in 2009, to $33.7 million from $36.1 million. Printing revenue decreased 6.3% in the second quarter of 2010, to $21.7 million from $23.2 million in the second quarter of 2009. Office products and office furniture revenue decreased 8.3% in the second quarter of 2010, to $8.4 million from $9.1 million in the second quarter of 2009. The decrease in printing sales was primarily associated with the continued impact of the global economic crisis. Office products and office furniture sales were weaker in the second quarter of 2010 when compared to the second quarter of 2009. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $3.7 million, consisting of advertising revenue of approximately $2.8 million and $0.9 million in circulation revenues, for the three months ended April 30, 2010. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $3.9 million, consisting of advertising revenue of approximately $2.9 million and $1.0 million in circulation revenues, for the three months ended April 30, 2009. The on-line revenues for the three months ended April 30, 2010 and April 30, 2009 approximated $299,000 and $230,000 and are recorded as a component of advertising revenue. The reduction in newspaper revenues is primarily associated with a decrease in advertising revenues attributable to decreased advertising demand due, in part, to the global economic crisis.In the second quarter of 2010, selling, general and administrative expenses decreased on a gross dollar basis to $8.5 million from $ 8.8 million in 2009, a decrease of $347,000 or 3.9%. As a percentage of total sales, the selling, general and administrative expenses increased on a quarter to quarter basis in 2010 to 25.1% from 24.4% in 2009. The decrease in selling, general and administrative expenses is primarily the result of personnel cost related reductions associated in part with cost reduction initiatives, lower bad debt expense and lower amortization expense. The decrease in SG&A was partially offset by various costs associated with the Company's successful defense of a legal action approximating $270,000.
Income from operations increased in the second quarter of 2010, to $1.9 million from $1.6 million in the second quarter of 2009. This increase is the result of lower selling, general, and administrative expenses and relatively flat gross margin dollar contributions. The improvement in income from operations was offset in part by the expenses associated with the successful defense of a legal action approximating $270,000 in the second quarter of 2010 and restructuring related costs, primarily associated with equipment relocation related costs to effectuate and streamline plant productivity, severance and operational realignment costs approximating $139,000 in the second quarter of 2010. Other expense (net), increased approximately $196,000 from 2009 to 2010, primarily due to increases in interest expense resulting from higher rates associated with the Administrative Agent instituting the default rate and eliminating the LIBOR borrowing expense option for most of the second quarter of 2010 and various deferred financing interest related expenses associated with this debt.
Total revenues decreased 9.5% in the first six months of 2010 compared to the same period in 2009, to $66.1 million from $73.0 million. Printing revenue decreased 10.5% in the six month period ended April 30, 2010 to $41.5 million from $46.3 million in the same period in 2009. Office products and office furniture revenue decreased 9.4% in the six month period ended April 30, 2010, to $16.6 million from $18.3 million in the same period in 2009. The decrease in printing sales was primarily associated with the continued impact of the global economic crisis. The decrease in office products and office furniture sales was primarily due to lower office product and office furniture sales. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $8.0 million consisting of advertising revenues of approximately $6.1 million and $1.9 million in circulation revenues for the six months ended April 30, 2010. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $8.4 million consisting of advertising revenues of approximately $6.4 million and $2.0 million in circulation revenues for the six months ended April 30, 2009. The on-line revenues for the six months ended April 30, 2010 and 2009 approximated $0.6 and $0.5 million and are recorded as a component of advertising revenue. The reduction in newspaper revenues is primarily associated with a decrease in advertising revenues associated, in part, with decreased advertising demand due to the global economic crisis.
Total cost of sales decreased 12.7% in the six months ended April 30, 2010 to $46.1 million from $52.8 million in the six months ended April 30, 2009. Printing cost of sales decreased 14.0% in the six months ended April 30, 2010 to $30.2 million from $35.1 million in the six months ended April 30, 2009. The decrease in printing cost of sales was primarily due to the decrease in printing sales coupled with improved gross margin percent. Office products and office furniture cost of sales decreased 10.5% in the six months ended April 30, 2010 to $11.7 million from $13.1 million for the six months ended April 30, 2009. Newspaper cost of sales and operating costs as a percent of newspaper sales were 51.6% and 54.6% for the six months ended April 30, 2010 and 2009.
Income from operations increased 73.8% in the six month period ended April 30, 2010 to $2.8 million from $1.6 million in the same period of 2009. This increase is the result of lower selling, general and administrative expenses partially offset by revenue reductions and lower gross margin contribution at the Company's office products and office furniture segment. The improvement in income from operations was further offset, in part, by expenses associated with the successful defense of a legal action approximating $330,000 for the six months ended April 30, 2010 and restructuring related costs primarily associated with equipment relocation related costs to effectuate and streamline plant productivity, severance and operational realignment costs approximating $161,000 in the six months ended April 30, 2010. Other expense (net), increased approximately $389,000 from 2009 to 2010 primarily due to increases in interest expense, resulting from higher rates associated with the Administrative Agent instituting, the default rate and eliminating the LIBOR borrowing expense option for most of the first six months of 2010 and various deferred financing interest related expenses associated with this debt. This increase was partially offset by an increase in other income resulting from a hedging arrangement recorded in the first quarter of 2010.
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