Champion Industries Inc. (CHMP, Financial) filed Quarterly Report for the period ended 2010-09-10.
Champion Industries Inc. has a market cap of $14 million; its shares were traded at around $1.4 with and P/S ratio of 0.1.
Net loss for the third quarter of 2010 was ($571,000) compared to a loss of ($307,000) in the third quarter of 2009. Basic and diluted loss per share for the three months ended July 31, 2010 and 2009 were $(0.06) and $(0.03).
Total revenues decreased 8.7% in the first nine months of 2010 compared to the same period in 2009 to $98.0 million from $107.4 million. Printing revenue decreased 9.8% in the nine month period ended July 31, 2010 to $61.1 million from $67.7 million in the same period in 2009. Office products and office furniture revenue decreased 7.7% in the nine month period ended July 31, 2010 to $25.3 million from $27.4 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 the office products and office furniture segment was primarily due to lower office product and furniture sales resulting from the global economic crisis. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $11.6 million consisting of advertising revenues of approximately $8.8 million and circulation revenues of approximately $2.9 million for the nine months ended July 31, 2010. The Company recorded newspaper revenues associated with The Herald Dispatch of approximately $12.3 million consisting of advertising revenue of $9.3 million and $3.0 million in circulation revenues for the nine months ended July 31, 2009. The on-line revenues for the nine months ended July 31, 2010 and 2009 approximated $0.8 million for both periods and are recorded as a component of advertising revenue. The reduction in newspaper revenue is primarily associated with a decrease in advertising revenues associated with decreased advertising demand due, in part, to the global economic crisis.
Total cost of sales decreased 11.0% in the nine months ended July 31, 2010 to $69.0 million from $77.5 million in the nine months ended July 31, 2009. Printing cost of sales decreased 13.1% in the nine months ended July 31, 2010 to $44.8 million from $51.5 million in the nine months ended July 31, 2009. The decrease in printing cost of sales was primarily due to the decrease in printing sales partially coupled with an improvement in gross margin percent, resulting from improved material and labor absorption. Office products and office furniture cost of sales decreased 7.1% in the nine months ended July 31, 2010 to $18.0 million from $19.4 million in the nine months ended July 31, 2009 and increased as a percent of sales from 70.8% in 2009 to 71.3% in 2010. The decrease in office products and office furniture cost of sales is attributable to a decrease in office products and office furniture sales partially offset by an increase in office products and office furniture cost of sales as a percent of office products and office furniture sales. Newspaper cost of sales and operating costs as a percentage of newspaper sales were 53.4% and 54.2% for the nine months ended July 31, 2010 and 2009.
Income from operations increased 23.9% in the nine month period ended July 31, 2010 to $3.1 million from $2.5 million in the same period of 2009. This increase is primarily the result of cost reduction initiatives implemented by the Company partially offset by restructuring related charges of $1.7 million. Other expense (net) increased $175,000 to $3.8 million in 2010 from $3.7 million in 2009. This is primarily due to increases in interest expense, resulting from higher interest rates associated with the Administrative Agent of the Company's credit facility 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. Concurrent with the Second Amendment the Company was permitted to reinstate the LIBOR borrowing option and the new applicable margin was set below the default rate in effect prior to the Second Amendment.
Net loss for the first nine months of 2010 decreased 30.3% to ($450,000) from ($646,000) in the same period of 2009 due to the reasons discussed above. Basic and diluted loss per share for the nine months ended July 31, 2010 were ($0.05) and ($0.06) for the nine months ended July 31, 2009.
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Champion Industries Inc. has a market cap of $14 million; its shares were traded at around $1.4 with and P/S ratio of 0.1.
Highlight of Business Operations:
Total revenues decreased 7.2% in the third quarter of 2010 compared to the same period in 2009 from $34.4 million to $31.9 million. Printing revenue decreased 8.3% in the third quarter of 2010 to $19.7 million from $21.4 million in the third quarter of 2009. Office products and office furniture revenue decreased 4.2% in the third quarter of 2010 to $8.6 million from $9.0 million in the third 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 lower in the third quarter of 2010 when compared to the third quarter of 2009. This was due to lower sales in both office products and office furniture, reflective of the effects of the economic recession. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $3.6 million consisting of advertising revenue of approximately $2.7 million and $0.9 million in circulation revenues for the three months ended July 31, 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 July 31, 2009. The on-line revenues for the three months ended July 31, 2010 and 2009 approximated $270,000 and $271,000 and are recorded as a component of advertising revenue. The reduction in newspaper revenues is primarily associated with a decrease in advertising revenues associated with decreased advertising demand due, in part, to the global economic crisis.Net loss for the third quarter of 2010 was ($571,000) compared to a loss of ($307,000) in the third quarter of 2009. Basic and diluted loss per share for the three months ended July 31, 2010 and 2009 were $(0.06) and $(0.03).
Total revenues decreased 8.7% in the first nine months of 2010 compared to the same period in 2009 to $98.0 million from $107.4 million. Printing revenue decreased 9.8% in the nine month period ended July 31, 2010 to $61.1 million from $67.7 million in the same period in 2009. Office products and office furniture revenue decreased 7.7% in the nine month period ended July 31, 2010 to $25.3 million from $27.4 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 the office products and office furniture segment was primarily due to lower office product and furniture sales resulting from the global economic crisis. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $11.6 million consisting of advertising revenues of approximately $8.8 million and circulation revenues of approximately $2.9 million for the nine months ended July 31, 2010. The Company recorded newspaper revenues associated with The Herald Dispatch of approximately $12.3 million consisting of advertising revenue of $9.3 million and $3.0 million in circulation revenues for the nine months ended July 31, 2009. The on-line revenues for the nine months ended July 31, 2010 and 2009 approximated $0.8 million for both periods and are recorded as a component of advertising revenue. The reduction in newspaper revenue is primarily associated with a decrease in advertising revenues associated with decreased advertising demand due, in part, to the global economic crisis.
Total cost of sales decreased 11.0% in the nine months ended July 31, 2010 to $69.0 million from $77.5 million in the nine months ended July 31, 2009. Printing cost of sales decreased 13.1% in the nine months ended July 31, 2010 to $44.8 million from $51.5 million in the nine months ended July 31, 2009. The decrease in printing cost of sales was primarily due to the decrease in printing sales partially coupled with an improvement in gross margin percent, resulting from improved material and labor absorption. Office products and office furniture cost of sales decreased 7.1% in the nine months ended July 31, 2010 to $18.0 million from $19.4 million in the nine months ended July 31, 2009 and increased as a percent of sales from 70.8% in 2009 to 71.3% in 2010. The decrease in office products and office furniture cost of sales is attributable to a decrease in office products and office furniture sales partially offset by an increase in office products and office furniture cost of sales as a percent of office products and office furniture sales. Newspaper cost of sales and operating costs as a percentage of newspaper sales were 53.4% and 54.2% for the nine months ended July 31, 2010 and 2009.
Income from operations increased 23.9% in the nine month period ended July 31, 2010 to $3.1 million from $2.5 million in the same period of 2009. This increase is primarily the result of cost reduction initiatives implemented by the Company partially offset by restructuring related charges of $1.7 million. Other expense (net) increased $175,000 to $3.8 million in 2010 from $3.7 million in 2009. This is primarily due to increases in interest expense, resulting from higher interest rates associated with the Administrative Agent of the Company's credit facility 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. Concurrent with the Second Amendment the Company was permitted to reinstate the LIBOR borrowing option and the new applicable margin was set below the default rate in effect prior to the Second Amendment.
Net loss for the first nine months of 2010 decreased 30.3% to ($450,000) from ($646,000) in the same period of 2009 due to the reasons discussed above. Basic and diluted loss per share for the nine months ended July 31, 2010 were ($0.05) and ($0.06) for the nine months ended July 31, 2009.
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