Schawk Reports Losses for Q4, Full Year 2012
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."
Schawk added: "We continued to align with our clients' strategies and market trends and invested in the expansion of our technological capabilities. Additionally, we took several steps to further leverage our operations, including our decision to withdraw from our remaining multiemployer pension plan in the United States. Without the expenses for this action and other charges related to further leveraging our operations, the decline in adjusted operating income on a full-year basis is primarily due to our investments to expand into emerging regions and further expand our brand development and deployment capabilities. We are encouraged, however, by the improvement in adjusted operating income during the fourth quarter of 2012, as compared to last year, and believe that it is partly attributable to our improved cost structure. In addition, total debt was reduced by $12.2 million during 2012 and our balance sheet remains strong."
Consolidated Results for the Year Ended December 31, 2012
Consolidated net sales in 2012 were $460.7 million compared to $455.3 million in 2011, an increase of approximately $5.4 million, or 1.2 percent. Year-over-year sales were negatively impacted by changes in foreign currency translation rates of approximately $3.1 million, as the U.S. dollar increased in value relative to the local currencies of certain of the company's non-U.S. subsidiaries.