Champion Reports Earnings Increase on Lower Revenues
HUNTINGTON, WV—June 13, 2011—Champion Industries reported earnings for the second quarter of 2011 of $493,000 compared to $333,000 for the same period in 2010. The improved results were reflective of lower interest expense for the quarter.
Its net income for the six months ended April 30, 2011, totaled $566,000 vs. $121,000 for the same period in 2010.
Marshall T. Reynolds, chairman and CEO, said, “Our year-to-date net income reflected a strong improvement from the prior year resulting from the reduction of debt levels and interest expense. It is encouraging that our company was able to pay down over $29 million dollars of debt during the worst economic cycle since the Great Depression.
“We are focused now more than ever on rebuilding and expanding our core customer base to maximize throughput in our plants. We are targeting numerous areas to grow or stabilize sales and will continue to refine our operations to maximize efficiencies,” Reynolds added.
Revenues for the three months ended April 30, 2011, were $31.1 million compared to $33.7 million in the same period in 2010. This change represented a decrease in revenues of $2.6 million, or 7.9 percent. Revenues for the six months ended April 30, 2011 decreased to $63.0 million from $66.1 million in 2010. This change represented a decrease in revenues of $3.1 million, or 4.7 percent.
The printing segment experienced a sales decrease of $2.2 million, or 5.4 percent, while the office products and office furniture segment experienced a decrease of $0.3 million, or 1.9 percent, and the newspaper segment recorded a decrease of $0.6 million, or 7.1 percent on a year-to-date basis. On a segment basis, printing sales were down $2.1 million, or 9.5 percent, office products and office furniture sales were down $392,000, or 4.7 percent and the newspaper sales were down $201,000 or 5.5 percent for the second quarter of 2011.
Toney K. Adkins, president and chief operating officer, noted, “Our second quarter continued to see pressure on our top line in all of our three business segments. As Mr. Reynolds mentioned we are aggressively pursuing top line strategies with a continued focus on improving operating efficiencies.”
Reynolds concluded, “Our company is positioned to capitalize on any improvement in current economic conditions. While we wait for this to occur we are diligently working to improve results in all facets of our business.”
About Champion Industries
Champion is a commercial printer, business forms manufacturer and office products and office furniture supplier in regional markets east of the Mississippi. Champion also publishes The Herald-Dispatch daily newspaper in Huntington, WV with a total daily and Sunday circulation of approximately 23,000 and 29,000, respectively. Champion serves its customers through the following companies/divisions: Chapman Printing (West Virginia and Kentucky); Stationers, Champion Clarksburg, Capitol Business Interiors, Garrison Brewer, Carolina Cut Sheets, U.S. Tag and Champion Morgantown (West Virginia); Champion Output Solutions (West Virginia); The Merten Company (Ohio); Smith & Butterfield (Indiana and Kentucky); Champion Graphic Communications (Louisiana); Interform Solutions and Consolidated Graphic Communications (Pennsylvania, New York and New Jersey); Donihe Graphics (Tennessee); Blue Ridge Printing (North Carolina) and Champion Publishing (West Virginia, Kentucky and Ohio).
Source: Champion Industries.