Champion Industries Inc. (CHMP, Financial) filed Quarterly Report for the period ended 2009-09-11.
Champion Industries Inc. is a major commercial printer business forms manufacturer and office products and office furniture supplier in regional markets east of the Mississippi River. The company's sales force sells a full range of printing services business forms office products and office furniture. The company's printing services range from the simplest to the most complex jobs including business cards books tags brochures posters 4- to 6-color process printing and multi-part continuous and snap-out business forms. Champion Industries Inc. has a market cap of $20.9 million; its shares were traded at around $2.09 with a P/E ratio of 5.6 and P/S ratio of 0.2. Champion Industries Inc. had an annual average earning growth of 53.7% over the past 5 years.
Income from operations decreased in the third quarter of 2009 to $900,000 from $2.4 million in the third quarter of 2008. This decrease is the result of reduced contributions primarily due to revenue reductions at the Company's printing and newspaper operating segments. The Company was also impacted by certain restructuring related costs primarily associated with payroll related expenses due to reductions in force of approximately $194,000. Other expenses (net), increased approximately $190,000 from 2008 to 2009 primarily due to an increase in interest expense, resulting from higher rates associated with the financing to purchase The Herald-Dispatch, due to higher applicable margin rates being instituted by the Administrative Agent of the Company's credit facility as a result of certain covenant violations pursuant to the terms of the Credit Agreement.
Total revenues decreased 11.6% in the first nine months of 2009 compared to the same period in 2008 to $105.5 million from $119.3 million. Printing revenue decreased 14.3% in the nine month period ended July 31, 2009 to $65.8 million from $76.8 million in the same period in 2008. Office products and office furniture revenue decreased 3.3% in the nine month period ended July 31, 2009 to $27.4 million from $28.3 million in the same period in 2008. 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 sales partially offset by higher furniture sales. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $12.3 million consisting of advertising revenues of approximately $9.3 million and circulation revenues of approximately $3.0 million for the nine months ended July 31, 2009. The Company recorded newspaper revenues associated with The Herald Dispatch of approximately $14.2 million consisting of advertising revenue of $11.0 million and $3.2 million in circulation revenues for the nine months ended July 31, 2008. The on-line revenues for the nine months ended July 31, 2009 and 2008 approximated $800,000 and $1.2 million 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 to the global economic crisis.
Total cost of sales decreased 7.1% in the nine months ended July 31, 2009 to $75.6 million from $81.3 million in the nine months ended July 31, 2008. Printing cost of sales decreased 9.1% in the nine months ended July 31, 2009 to $49.5 million from $54.5 million in the nine months ended July 31, 2008. The decrease in printing cost of sales was primarily due to the decrease in printing sales partially offset by a reduction in gross margin percent. Office products and office furniture cost of sales decreased 2.3% in the nine months ended July 31, 2009 to $19.4 million from $19.8 million in the nine months ended July 31, 2008 and increased as a percent of sales from 70.0% in 2008 to 70.8% in 2009. 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 54.2% and 49.6% for the nine months ended July 31, 2009 and 2008.
Income from operations decreased 70.9% in the nine month period ended July 31, 2009 to $2.5 million from $8.7 million in the same period of 2008. This decrease is primarily the result of revenue reductions and associated gross margin compaction at the Company's printing and newspaper operating segments. Other expense (net) decreased $600,000 to $3.7 million in 2009 from $4.3 million in 2008. This is primarily due to decreases in interest expense, resulting from lower borrowings and lower interest rates associated with the financing to purchase The Herald-Dispatch prior to the Administrative Agent of the Company's credit facility instituting higher applicable margin rates pursuant to the terms of the Credit Agreement as a result of certain covenant violations.
Net income for the first nine months of 2009 decreased 89.9% to $377,000 from $3.7 million in the same period of 2008 due to the reasons discussed above. Basic and diluted earnings per share for the nine months ended July 31, 2009 were $0.04 and $0.37 for the nine months ended July 31, 2008.
Read the The complete Report
Champion Industries Inc. is a major commercial printer business forms manufacturer and office products and office furniture supplier in regional markets east of the Mississippi River. The company's sales force sells a full range of printing services business forms office products and office furniture. The company's printing services range from the simplest to the most complex jobs including business cards books tags brochures posters 4- to 6-color process printing and multi-part continuous and snap-out business forms. Champion Industries Inc. has a market cap of $20.9 million; its shares were traded at around $2.09 with a P/E ratio of 5.6 and P/S ratio of 0.2. Champion Industries Inc. had an annual average earning growth of 53.7% over the past 5 years.
Highlight of Business Operations:
Total revenues decreased 14.7% in the third quarter of 2009 compared to the same period in 2008 from $39.7 million to $33.9 million. Printing revenue decreased 17.3% in the third quarter of 2009 to $20.9 million from $25.3 million in the third quarter of 2008. Office products and office furniture revenue decreased 7.9% in the third quarter of 2009 to $9.0 million from $9.8 million in the third quarter of 2008. 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 2009 when compared to the third quarter of 2008. 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 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 Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $4.6 million consisting of advertising revenue of approximately $3.6 million and $1.0 million in circulation revenues for the three months ended July 31, 2008. The on-line revenues for the three months ended July 31, 2009 and 2008 approximated $271,000 and $444,000 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 to the global economic crisis.Income from operations decreased in the third quarter of 2009 to $900,000 from $2.4 million in the third quarter of 2008. This decrease is the result of reduced contributions primarily due to revenue reductions at the Company's printing and newspaper operating segments. The Company was also impacted by certain restructuring related costs primarily associated with payroll related expenses due to reductions in force of approximately $194,000. Other expenses (net), increased approximately $190,000 from 2008 to 2009 primarily due to an increase in interest expense, resulting from higher rates associated with the financing to purchase The Herald-Dispatch, due to higher applicable margin rates being instituted by the Administrative Agent of the Company's credit facility as a result of certain covenant violations pursuant to the terms of the Credit Agreement.
Total revenues decreased 11.6% in the first nine months of 2009 compared to the same period in 2008 to $105.5 million from $119.3 million. Printing revenue decreased 14.3% in the nine month period ended July 31, 2009 to $65.8 million from $76.8 million in the same period in 2008. Office products and office furniture revenue decreased 3.3% in the nine month period ended July 31, 2009 to $27.4 million from $28.3 million in the same period in 2008. 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 sales partially offset by higher furniture sales. The Company recorded newspaper revenues associated with The Herald-Dispatch of approximately $12.3 million consisting of advertising revenues of approximately $9.3 million and circulation revenues of approximately $3.0 million for the nine months ended July 31, 2009. The Company recorded newspaper revenues associated with The Herald Dispatch of approximately $14.2 million consisting of advertising revenue of $11.0 million and $3.2 million in circulation revenues for the nine months ended July 31, 2008. The on-line revenues for the nine months ended July 31, 2009 and 2008 approximated $800,000 and $1.2 million 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 to the global economic crisis.
Total cost of sales decreased 7.1% in the nine months ended July 31, 2009 to $75.6 million from $81.3 million in the nine months ended July 31, 2008. Printing cost of sales decreased 9.1% in the nine months ended July 31, 2009 to $49.5 million from $54.5 million in the nine months ended July 31, 2008. The decrease in printing cost of sales was primarily due to the decrease in printing sales partially offset by a reduction in gross margin percent. Office products and office furniture cost of sales decreased 2.3% in the nine months ended July 31, 2009 to $19.4 million from $19.8 million in the nine months ended July 31, 2008 and increased as a percent of sales from 70.0% in 2008 to 70.8% in 2009. 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 54.2% and 49.6% for the nine months ended July 31, 2009 and 2008.
Income from operations decreased 70.9% in the nine month period ended July 31, 2009 to $2.5 million from $8.7 million in the same period of 2008. This decrease is primarily the result of revenue reductions and associated gross margin compaction at the Company's printing and newspaper operating segments. Other expense (net) decreased $600,000 to $3.7 million in 2009 from $4.3 million in 2008. This is primarily due to decreases in interest expense, resulting from lower borrowings and lower interest rates associated with the financing to purchase The Herald-Dispatch prior to the Administrative Agent of the Company's credit facility instituting higher applicable margin rates pursuant to the terms of the Credit Agreement as a result of certain covenant violations.
Net income for the first nine months of 2009 decreased 89.9% to $377,000 from $3.7 million in the same period of 2008 due to the reasons discussed above. Basic and diluted earnings per share for the nine months ended July 31, 2009 were $0.04 and $0.37 for the nine months ended July 31, 2008.
Read the The complete Report
