Champion Reports Bigger Loss on Lower Revenues in Third Quarter
The printing segment experienced a sales decrease of $6.6 million, or 9.8%, while the office products and office furniture segment experienced a decrease of $2.1 million, or 7.7%, and the newspaper segment recorded a decrease of $0.6 million, or 5.2%, on a year to date basis.
On a segment basis, printing sales were down $1.8 million, or 8.3%, office products and office furniture sales were down $383,000, or 4.2%, and the newspaper sales were down $314,000, or 8.0%, for the third quarter of 2010.
Toney K. Adkins, President and COO noted, "Our third quarter continued to see pressure on our top line which reflected the continued fragile state of the economy in relation to our core businesses. Even with the revenue constraints we were able to record an improvement in operating income for the third quarter of 2010 over the prior year after adjusting for the restructuring charge. We continue to review alternatives to stabilize sales while planning for cost rationalization actions in light of the fragile economy."
The 2009 results are reflective of a restatement of earnings associated with
approximately $0.3 million per quarter of non-cash related adjustments reflected as deferred tax expense associated with deferred tax liability attributes related to goodwill, trade name and masthead of The Herald-Dispatch. This was recorded in the fourth quarter of 2009 and therefore the interim periods for 2009 have been restated accordingly to reflect such adjustment.
In the three months ended January 31, 2010, the company recorded as a component of other income a hedging arrangement of approximately $0.3 million or $0.2 million net of tax. The Company also recorded charges related to restructuring primarily associated with occupancy related costs and costs incurred to streamline production, personnel and other related costs as well as a charge for inventory related to these actions. The Company believes that additional costs will be incurred in the future to address the impact of the global economic crisis.