Champion’s Printing and Newspaper Segments Drag Revenues Down
HUNTINGTON, WV—March 11, 2011—Champion Industries announced first quarter 2011 net income of $73,000 on a basic and diluted basis. This compares to a net loss of $213,000 for the three months ended Jan. 31, 2010. Income from operations improved to $1.1 million in the first three months of 2011 from $0.9 million in 2010, resulting primarily from lower selling, general and administrative costs partially offset by lower gross margin dollars and percentage, as well as charges related to a restructuring and profitability enhancement plan.
On a core net income basis, the company reported net income of $0.2 million in the first quarter of 2011, compared with a core net loss of $0.4 million for the first quarter of 2010.
Marshall T. Reynolds, chairman and CEO, said, “Our first quarter represented a stabilization of overall revenues when compared to the first quarter of the prior year. We continue to benefit from our cost reduction initiatives, which continued into the first quarter of 2011. We incurred $250,000 in additional restructuring expenses, which would have otherwise improved our income from operations another 23 percent in the first quarter.
“We will continue to aggressively review our operations and maximize any additional cost initiatives we deem available that will not reduce long-term revenue prospects. In addition, we are working on new initiatives to expand our market share and drive additional volume through our plants.”
Revenues for the three months ended Jan. 31, 2011 were $31.9 million vs. $32.4 million in the same period in 2010. This change represented a decrease in revenues of $0.5 million or 1.5 percent.
The printing segment experienced a sales decrease of $0.2 million, or 1.0 percent, while the office products and office furniture segment experienced an increase of $0.1 million, or 0.9 percent. The newspaper revenues for the quarter were approximately $4.0 million vs. $4.4 million in the first quarter of 2010.