Schawk Sees Growth Overseas, but Reduced Activity in the Americas
Consolidated net sales in 2011 were $455.3 million, compared to $460.6 million in 2010, a decline of approximately $5.3 million or 1.2 percent.
Consumer packaged goods (CPG) accounts sales during 2011 were $347.7 million, or 76.4 percent of total net sales, compared to $343.1 million in the same period of 2010, an increase of 1.3 percent, primarily due to the positive impact of foreign currency translation rates.
Advertising and retail accounts sales in 2011 totaled $79.7 million, or 17.5 percent of overall sales, a decrease of 9.8 percent, from $88.4 million during 2010, primarily driven by reduced client promotional activity coupled with the loss of a non-core retail client during the third quarter of 2010.
Entertainment accounts sales of $27.9 million, or 6.1 percent of total sales, decreased 4.1 percent, from $29.1 million in 2010, driven by continued declines in print-related promotional activity.
The company’s gross profit was $163 million during 2011, a decline of $15.5 million from 2010. The full-year decline in gross profit percent was largely driven by the reduced operating leverage resulting from lower year-over-year revenue coupled with an increase in cost of sales resulting from the company’s acquisitions.
Schawk reported operating income of $27.3 million in 2011 compared to $49.6 million in 2010. The decline year over year was driven primarily by the decline in gross profit and increased business and systems integration expenses coupled with the increased multiemployer pension withdrawal expense.
Net income in 2011 was $20.6 million, compared to $32.4 million in 2010. Non-GAAP adjusted net income was $20.6 million for 2011, compared to $31.1 million on a comparable basis for the prior-year period. Please refer to the tables at the end of this press release for a reconciliation of these non-GAAP measures.
Management Adjusted EBITDA Performance Management adjusted EBITDA for full year 2011 was $60.6 million compared to $75.4 million for the prior-year period.