Schawk Reports Losses for Q4, Full Year 2012
March 7, 2013
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DES PLAINES, IL—March 7, 2013—Schawk Inc., a leading provider of brand development and deployment services, enabling companies of all sizes to connect their brands with consumers, reported fourth-quarter and full-year 2012 results. Net loss in the fourth quarter of 2012 was $18.1 million, or a loss of $0.69 per diluted share, versus net income of $5.8 million, or $0.22 per diluted share, in the fourth quarter of 2011. Net loss for the full year of 2012 was $23.4 million, or a loss of $0.90 per diluted share, compared to net income of $20.6 million, or $0.79 per diluted share, for the comparable prior-year period.
Included in the operating and net loss for the fourth quarter and full year of 2012 was an increase in multiemployer pension withdrawal expense of $31.7 million and $29.6 million for the fourth quarter and full year, respectively, related to the company's decision to completely withdraw from its remaining multiemployer pension plan within the United States in part to mitigate potentially greater financial exposure to the company in the future under the significantly underfunded plan. The company presently expects to pay approximately $41.2 million to satisfy its withdrawal liability, which will consist of annual cash payments of approximately $2.1 million over a 20-year period, with the annual cash payments expected to commence on or about May 1, 2014.
Operating loss for the fourth quarter of 2012 was $26.5 million as compared to operating income of $6.5 million for the same quarter last year. For the full year of 2012, operating loss was $30.7 million compared to operating income of $27.3 million in 2011.
On a non-GAAP basis, adjusting for financial impacts relating to the multiemployer pension withdrawal expense and certain other items further detailed in this release, 2012 fourth-quarter adjusted operating income was $8.7 million compared to $6.5 million in the prior-year period. For the full year 2012, adjusted operating income was $24.2 million compared to $36.9 million in 2011.
Adjusted net income was $3.8 million, or $0.15 per diluted share, for the fourth quarter of 2012, which was essentially equal to the prior-year comparable period. For the full year of 2012, adjusted net income was $11.1 million, or $0.43 per diluted share, compared to $20.6 million, or $0.79 per diluted share, during the comparable prior-year period.
"During 2012, our revenue grew nearly six percent globally within our largest client channel, consumer packaged goods," commented CEO David A. Schawk. "That growth was partially offset by declines in promotional activity with our retail and advertising and entertainment account clients, primarily within the Americas segment. Our Europe and Asia Pacific segments continued to expand in 2012. Those two regions benefited from our improved penetration in emerging markets, our investments in expanding our global capabilities, and our clients' actions to consolidate spending with fewer vendors. The performance of the Americas segment in 2012 primarily reflected declines in our retail and advertising and entertainment account clients, which offset the growth we saw with our consumer packaged goods clients."
Included in the operating and net loss for the fourth quarter and full year of 2012 was an increase in multiemployer pension withdrawal expense of $31.7 million and $29.6 million for the fourth quarter and full year, respectively, related to the company's decision to completely withdraw from its remaining multiemployer pension plan within the United States in part to mitigate potentially greater financial exposure to the company in the future under the significantly underfunded plan. The company presently expects to pay approximately $41.2 million to satisfy its withdrawal liability, which will consist of annual cash payments of approximately $2.1 million over a 20-year period, with the annual cash payments expected to commence on or about May 1, 2014.
Operating loss for the fourth quarter of 2012 was $26.5 million as compared to operating income of $6.5 million for the same quarter last year. For the full year of 2012, operating loss was $30.7 million compared to operating income of $27.3 million in 2011.
On a non-GAAP basis, adjusting for financial impacts relating to the multiemployer pension withdrawal expense and certain other items further detailed in this release, 2012 fourth-quarter adjusted operating income was $8.7 million compared to $6.5 million in the prior-year period. For the full year 2012, adjusted operating income was $24.2 million compared to $36.9 million in 2011.
Adjusted net income was $3.8 million, or $0.15 per diluted share, for the fourth quarter of 2012, which was essentially equal to the prior-year comparable period. For the full year of 2012, adjusted net income was $11.1 million, or $0.43 per diluted share, compared to $20.6 million, or $0.79 per diluted share, during the comparable prior-year period.
"During 2012, our revenue grew nearly six percent globally within our largest client channel, consumer packaged goods," commented CEO David A. Schawk. "That growth was partially offset by declines in promotional activity with our retail and advertising and entertainment account clients, primarily within the Americas segment. Our Europe and Asia Pacific segments continued to expand in 2012. Those two regions benefited from our improved penetration in emerging markets, our investments in expanding our global capabilities, and our clients' actions to consolidate spending with fewer vendors. The performance of the Americas segment in 2012 primarily reflected declines in our retail and advertising and entertainment account clients, which offset the growth we saw with our consumer packaged goods clients."
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