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Champion reports quarterly, annual results

Jan. 30, 2013 @ 12:00 AM

HUNTINGTON -- Champion Industries Inc. on Tuesday announced a net loss from continuing operations of $23.5 million, or $2.09 per share, for the year ended Oct. 31, 2012.

That result compared with a net loss from continuing operations of $4.2 million, or 41 cents per share, for the previous fiscal year.

For the quarter that ended Oct. 31, the company reported a net loss of $1.4 million, compared with a net loss of $5.5 million for the same period in 2011.

Champion is a commercial printer, business forms manufacturer and office products and office furniture supplier in regional markets east of the Mississippi. It also publishes The Herald-Dispatch.

In a press release, Champion said 2012 results were affected by pre-tax, non-cash impairment-related charges of $9.5 million associated with goodwill and $1.6 million associated with trade name and masthead, as well as an increase in the deferred tax asset valuation allowance of about $15.6 million primarily related to taxes associated with continuing operations. The impairments were associated with the acquisition of The Herald-Dispatch in 2007, Champion said.

The 2012 results also were hurt by various costs associated with legal fees and costs and professional fees resulting in part from provisions related to the various forbearance and credit agreements with the company's secured lenders.

"Our results continue to be impacted by various cash and non-cash events in both 2012 and 2011," said Marshall T. Reynolds, chairman of the board and chief executive officer of Champion, in the press release. "If we examine our gross profit, which is a key starting point for profitability, our gross profit dollars were $30.9 million in 2012 and $31.2 million in 2011, which is essentially flat.

"In other words, in spite of the numerous hurdles, challenges and actions we have taken in 2012, in the final analysis we were able to essentially hold our core business stable. In 2013 we are continuing to review operations and will adjust where necessary. In addition, we intend to work with our secured creditors and advisors to address our debt maturities and liquidity to the best of our ability."

The company cited a continuation of the most difficult operating environment it has ever faced, primarily within the printing segment and secondarily in the newspaper segment. But it was still able to essentially hold sales and gross profit stable, Champion said.

The company's sales during the 2012 fiscal year were $104.4 million, down .1 of a percent from the year before.

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