Schawk, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
(Restated) (Restated)
Net sales $ 133,436 $ 142,740 $ 259,843 $ 272,364
Cost of sales 86,650 91,337 170,090 175,939
--------- --------- --------- ---------
Gross profit 46,786 51,403 89,753 96,425
Selling, general and
administrative expenses 36,104 32,909 72,375 65,772
Acquisition integration and
restructuring expenses 3,174 -- 3,174 --
Impairment of long-lived assets 2,184 -- 2,184 --
--------- --------- --------- ---------
Operating income 5,324 18,494 12,020 30,653
Other income (expense):
Interest income 64 -- 138 90
Interest expense (1,696) (2,382) (3,474) (4,780)
--------- --------- --------- ---------
(1,632) (2,382) (3,336) (4,690)
--------- --------- --------- ---------
Income before income taxes 3,692 16,112 8,684 25,963
Income tax provision 2,916 6,170 3,648 10,009
--------- --------- --------- ---------
Net income $ 776 $ 9,942 $ 5,036 $ 15,954
========= ========= ========= =========
Earnings per share:
Basic $ 0.03 $ 0.37 $ 0.19 $ 0.60
Diluted $ 0.03 $ 0.36 $ 0.18 $ 0.58
Weighted average number of
common and common equivalent
shares outstanding:
Basic 27,134 26,793 27,093 26,700
Diluted 27,705 27,656 27,645 27,544
Dividends per common share $ 0.0325 $ 0.0325 $ 0.065 $ 0.065
Schawk, Inc.
Consolidated Balance Sheets
(Unaudited)
(In Thousands, Except Share Amounts)
June 30, December 31,
2008 2007
------------ ------------
(Restated)
Assets
Current assets:
Cash and cash equivalents $ 11,956 $ 11,754
Trade accounts receivable, less allowance
for doubtful accounts of $1,894 at June
30, 2008 and $2,063 at December 31, 2007 104,487 113,215
Inventories 25,814 21,902
Prepaid expenses and other current assets 12,379 13,524
Income tax receivable 2,229 --
Deferred income taxes 4,723 4,755
------------ ------------
Total current assets 161,588 165,150
Property and equipment, less accumulated
depreciation of $98,109 at June 30, 2008 and
$89,715 at December 31, 2007 71,242 77,083
Goodwill 246,684 246,368
Intangible assets, net 39,533 41,528
Other assets 5,503 4,858
------------ ------------
Total assets $ 524,550 $ 534,987
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable $ 21,480 $ 26,308
Accrued expenses 52,339 52,420
Income taxes payable -- 4,754
Current portion of long-term debt and capital
lease obligations 3,575 4,433
------------ ------------
Total current liabilities 77,394 87,915
Long-term debt 104,224 105,942
Other liabilities 20,667 24,547
Deferred income taxes 17,221 15,814
Stockholders' equity:
Common stock, $0.008 par value, 40,000,000
shares authorized, 29,352,581 and 29,213,166
shares issued at June 30, 2008 and December 31,
2007, respectively; 27,153,808 and 27,013,482
shares outstanding at June 30, 2008 and
December 31, 2007, respectively 217 216
Additional paid-in capital 185,537 184,110
Retained earnings 134,725 131,457
Accumulated comprehensive income 13,728 14,162
------------ ------------
334,207 329,945
Treasury stock, at cost, 2,198,773 and
2,199,684 shares of common stock at June 30,
2008 and December 31, 2007, respectively (29,163) (29,176)
------------ ------------
Total stockholders' equity 305,044 300,769
------------ ------------
Total liabilities and stockholders' equity $ 524,550 $ 534,987
============ ============
Schawk, Inc.
Reconciliation of Non-GAAP measures to GAAP
(In thousands, except share amounts)
Three Months Three Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
Operating income per GAAP $ 5,324 $ 18,494
Plus: Acquisition integration and restructuring
expenses 3,174 --
Plus: Impairment of long-lived assets 2,184 --
Less: Gain on sale of Orlando facility -- (1,110)
------------- -------------
Adjusted operating income (Non-GAAP) $ 10,682 $ 17,384
============= =============
Income before income taxes per GAAP $ 3,692 $ 16,112
Plus: Acquisition integration and restructuring
expenses 3,174 --
Plus: Impairment of long-lived assets 2,184 --
Less: Gain on sale of Orlando facility -- (1,110)
------------- -------------
Adjusted income before income taxes (Non-GAAP) 9,050 15,002
Adjusted income tax provision (Non-GAAP) 3,535 5,745
------------- -------------
Adjusted net income (Non-GAAP) $ 5,515 $ 9,257
============= =============
Weighted average number of common and common
stock equivalent shares outstanding (GAAP) 27,705 27,656
============= =============
Earnings per share fully diluted per GAAP $ 0.03 $ 0.36
Plus: Acquisition integration and restructuring
expenses 0.07 --
Plus: Impairment of long-lived assets 0.05 --
Plus: UK net operating loss tax adjustment 0.05
Less: Gain on sale of Orlando facility -- (0.03)
------------- -------------
Adjusted earnings per share fully diluted
(Non-GAAP) $ 0.20 $ 0.33
============= =============
Income tax provision per GAAP $ 2,916 $ 6,170
Plus: Tax effect of Acquisition integration
and restructuring expenses 1,238 --
Plus: Tax effect of Impairment of long-lived
assets 852 --
Less: UK net operating loss tax adjustment (1,471)
Less: Tax effect of Gain on sale of Orlando
facility -- (425)
------------- -------------
Adjusted income tax provision (Non-GAAP) $ 3,535 $ 5,745
============= =============
Schawk, Inc.
Reconciliation of Non-GAAP measures to GAAP
(In thousands, except share amounts)
Six Months Six Months
Ended Ended
June 30, 2008 June 30, 2007
------------- -------------
Operating income per GAAP $ 12,020 $ 30,653
Plus: Acquisition integration and restructuring
expenses 3,174 --
Plus: Impairment of long-lived assets 2,184 --
Less: Gain on sale of Orlando facility -- (1,110)
------------- -------------
Adjusted operating income (Non-GAAP) $ 17,378 $ 29,543
============= =============
Income before income taxes per GAAP $ 8,684 $ 25,963
Plus: Acquisition integration and restructuring
expenses 3,174 --
Plus: Impairment of long-lived assets 2,184 --
Less: Gain on sale of Orlando facility -- (1,110)
------------- -------------
Adjusted income before income taxes (Non-GAAP) 14,042 24,853
Adjusted income tax provision (Non-GAAP) 5,763 9,581
------------- -------------
Adjusted net income (Non-GAAP) $ 8,279 $ 15,272
------------- -------------
Weighted average number of common and common
stock equivalent shares outstanding (GAAP) 27,645 27,544
============= =============
Earnings per share fully diluted per GAAP $ 0.18 $ 0.58
Plus: Acquisition integration and restructuring
expenses 0.07 --
Plus: Impairment of long-lived assets 0.05 --
Plus: UK net operating loss tax adjustment 0.05
Less: UK tax reserve release adjustment (0.05)
Less: Gain on sale of Orlando facility -- (0.03)
------------- -------------
Adjusted earnings per share fully diluted
(Non-GAAP) $ 0.30 $ 0.55
============= =============
Income tax provision per GAAP $ 3,648 $ 10,009
Plus: Tax effect of Acquisition integration
and restructuring expenses 1,301 --
Plus: Tax effect of Impairment of long-lived
assets 895 --
Less: UK net operating loss tax adjustment (1,471)
Plus: UK tax reserve release adjustment 1,390
Less: Tax effect of Gain on sale of Orlando
facility -- (428)
------------- -------------
Adjusted income tax provision (Non-GAAP) $ 5,763 $ 9,581
============= =============
Contact Information: AT SCHAWK, INC.: Timothy J. Cunningham Interim Chief Financial Officer 847-827-9494 tim.cunningham@schawk.com AT DRESNER CORPORATE SERVICES: Investors: Philip Kranz 312-780-7240 pkranz@dresnerco.com