SOURCE: SGK

SGK

March 05, 2014 17:00 ET

SGK Announces 2013 Fourth-Quarter and Full-Year Results

Full-Year 2013 Operating Income Grew $55.2 Million, Earnings per Diluted Share From Continuing Operations Improved $1.41 and Debt Reduced by 30.2 Percent

DES PLAINES, IL--(Marketwired - Mar 5, 2014) - Schawk, Inc. (NYSE: SGK), now marketed as SGK (the "Company"), a leading global brand development, activation and deployment company, reported fourth-quarter and full-year 2013 results. Income from continuing operations in the fourth quarter of 2013 was $5.8 million, or $0.22 per diluted share, versus a loss of $18.1 million, or a loss of $0.69 per diluted share, in the fourth quarter of 2012. For the 2013 full year, income from continuing operations was $13.2 million, or $0.50 per diluted share, compared to a loss of $23.6 million, or a loss of $0.91 per diluted share, for the comparable prior-year period. 

Improvement in income from continuing operations for the 2013 fourth-quarter and full-year periods included a decrease in multiemployer pension withdrawal expense of $31.7 million and $31.5 million for the fourth quarter and full year, respectively, related to the Company's decision in 2012 to completely withdraw from its remaining multiemployer pension plan within the United States. 

Operating income for the fourth quarter of 2013 was $10.8 million compared to an operating loss of $26.5 million for the same quarter of 2012. For the full year of 2013, operating income was $24.2 million compared to an operating loss of $31.0 million in 2012, representing an improvement of $55.2 million.

On a non-GAAP basis, adjusting for financial impacts relating to the 2012 multiemployer pension withdrawal expense and certain other items further detailed in this release, 2013 fourth-quarter adjusted operating income was $13.2 million compared to $8.6 million in the prior-year period for an improvement of 53.4 percent. For the full-year 2013, adjusted operating income was $35.2 million compared to $23.7 million in 2012 for an improvement of 48.6 percent.

Adjusted income from continuing operations was $7.3 million, or $0.28 per diluted share, for the fourth quarter of 2013 compared to $3.7 million, or $0.14 per diluted share, during the same period of 2012. For the 2013 full year, adjusted income from continuing operations was $20.2 million, or $0.77 per diluted share, compared to $10.8 million, or $0.41 per diluted share, during the comparable prior-year period. Please refer to the tables at the end of this press release for a reconciliation of these non-GAAP measures.

Chief Executive Officer David A. Schawk commented, "During 2013, our profitability rose significantly as we further leveraged our operations, continued to align with client strategies and market trends and expanded our technological capabilities. The year-over-year improvement in adjusted operating income was $11.5 million, or 48.6 percent. Moreover, we reduced our total debt by $25.1 million, or 30.2 percent, during the year, primarily reflecting the improved cash flow from increased profitability and capital spending reductions on technology initiatives.

"Meantime, revenue grew 2.7 percent globally within our largest client channel, consumer packaged goods. Despite the continued challenging economic environment, our CPG revenue has grown for two consecutive years reflecting the investments we have made and continue to make in expanding our opportunities for long-term profitable revenue growth. However, our CPG revenue growth for 2013 was offset by continued declines in promotional activity with retail and advertising clients, which occurred primarily within the Americas segment. Our Europe segment and, in particular, our Asia Pacific segment continued to expand in 2013, benefiting from improved penetration in emerging markets, investments in expanding global capabilities, and client actions to consolidate spending with fewer marketing partners."

Consolidated Results for the Year Ended December 31, 2013
Consolidated net revenues in 2013 were $442.6 million compared to $441.3 million in 2012, an increase of approximately $1.4 million, or 0.3 percent. Year-over-year revenues were negatively impacted by changes in foreign currency translation rates of approximately $2.6 million, as the U.S. dollar increased in value relative to the local currencies of certain of the company's non-U.S. subsidiaries. Excluding the negative impact of foreign currency translation changes, consolidated net revenues would have grown approximately $3.9 million, or 0.9 percent.

Consumer packaged goods (CPG) client revenue during 2013 was $384.1 million, or 86.8 percent of total net revenues, compared to $374.1 million in the same period of 2012, an increase of 2.7 percent, primarily due to greater product activity with brand development and deployment. Retail and advertising client revenue in 2013 was $58.5 million, or 13.2 percent of total revenues, a decrease of 12.9 percent, from $67.2 million during 2012, primarily driven by continued reductions in client promotional activity. 

Cost of services (excluding depreciation and amortization) was $270.6 million in 2013, a decrease of approximately $9.3 million from $279.9 million in 2012 mainly due to cost reduction actions taken during 2012 and throughout 2013. As a percentage of revenue, 2013 cost of services (excluding depreciation and amortization) improved 230 basis points to 61.1 percent from 63.4 percent in the prior year.

Selling, general and administrative expenses (excluding depreciation and amortization) decreased $1.3 million to $118.7 million in 2013 from $120.0 million in 2012. Reductions in expenses were driven by the Company's cost reduction efforts implemented during 2012 and throughout 2013 and more than offset investments that the Company made to improve its opportunities for long-term revenue growth. As a percentage of revenue, 2013 selling, general and administrative expenses (excluding depreciation and amortization) improved 40 basis points to 26.8 percent from 27.2 percent in 2012.

Business and systems integration expenses related to the Company's information technology and business process improvement initiative decreased $4.6 million to $7.5 million in 2013 from $12.1 million in 2012, as the Company's investment in the system build phase was substantially complete.

Acquisition integration and restructuring expenses related to employee terminations and other associated costs arising from the Company's continued focus on consolidating, reducing and re-aligning its work force and operations decreased from $5.3 million in 2012 to $1.8 million in 2013. The actions taken during 2013 are expected to result in annualized savings of approximately $6.4 million, with approximately $2.8 million realized during 2013.

Multiemployer pension withdrawal expense decreased $31.5 million during 2013 compared to the prior year, as expenses related to the Company's decision in 2012 to completely withdraw from its remaining multiemployer pension plan in the United States were not incurred in 2013.

Long-lived asset impairment expenses decreased by $3.8 million, to $0.5 million, in 2013 compared to the prior year, principally related to the write down in 2012 of customer relationship intangible assets at certain locations within the Americas and Europe segments, coupled with expenses associated with company-owned real estate that was written down to its estimated market value. 

Operating income improved to $24.2 million in 2013 compared to a loss of $31.0 million in 2012 driven primarily by the absence of multiemployer pension withdrawal expense in 2013 as well as the aforementioned reduction in other expenses. Non-GAAP adjusted operating income was $35.2 million for 2013 compared to $23.7 million in the prior-year comparable period.

Tax expense was $6.9 million in 2013 compared to a benefit of $10.9 million during 2012, due primarily to the Company's improvement in year-over-year income from continuing operations.

Income from continuing operations was $13.2 million in 2013, or $0.50 per diluted share, compared to a loss of $23.6 million, or a loss of $0.91 per diluted share, in 2012. Non-GAAP adjusted income from continuing operations was $20.2 million, or $0.77 per diluted share, for 2013 compared to $10.8 million, or $0.41 per diluted share, on a comparable basis for the prior-year period.

Management Adjusted EBITDA Performance
Management Adjusted EBITDA for 2013 was $55.3 million compared to $44.6 million in the prior-year period. Please refer to the "Reconciliation of Non-GAAP Management Adjusted EBITDA" table attached at the end of this press release for a reconciliation of these measures.

Conference Call
SGK invites you to join its fourth-quarter and full-year 2013 earnings conference call on Friday, March 7, 2014, at 9:00 a.m. Central time. To participate in the conference call, please dial 866-383-8009 or 617-597-5342 at least five minutes prior to the start time and ask for the Q4 2013 SGK conference call, or on the Internet, go to http://www.media-server.com/m/acs/68827cf07e9e9b99aa10fad35e85763e. If you are unavailable to participate on the live call, a replay will be available through March 14 at 11:59 p.m. Central time. To access the replay, dial 888-286-8010 or 617-801-6888, enter conference ID 16725435, and follow the prompts. The replay will also be available on the Internet for 30 days at the following http://www.media-server.com/m/acs/68827cf07e9e9b99aa10fad35e85763e.

About SGK
SGK is a leading global brand development, activation and deployment company that drives brand performance. By creating brands, helping sell brands, producing brand assets and protecting brand equities, we help our clients achieve higher brand performance. SGK's global footprint spans more than 20 countries. For more information visit: http://www.sgkinc.com.

Non-GAAP Financial Measures
In addition to the presentation of Management Adjusted EBITDA in this release, the Company has presented certain other non-GAAP measures in the attachment entitled "Reconciliation of Non-GAAP measures to GAAP." Management believes that the presentation of non-GAAP measures provides investors with greater transparency and supplemental data relating to the Company's financial condition and results of operations and provides more consistent insight into the performance of the Company's core operations from period to period by showing the effects of certain non-operating items. These non-GAAP measures are reconciled to the closest GAAP measures on the schedules attached to this earnings release. The non-GAAP measures should not be viewed as alternatives to GAAP and may not be consistent with similar measures provided by other companies. 

Safe Harbor Statement
Certain statements in this earnings release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements are made based upon current expectations and beliefs that are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements because of factors, such as, among other things, the strength of the United States economy in general and, specifically, market conditions for the consumer products industry in the U.S. and abroad; the level of demand for the Company's services; unfavorable foreign exchange fluctuations; changes in or weak consumer confidence and consumer spending; loss of key management and operational personnel; the ability of the Company to implement its business strategy and cost reduction plans and to realize anticipated cost savings; the ability of the Company to comply with the financial covenants contained in its debt agreements and obtain waivers or amendments in the event of non-compliance; the ability of the Company to maintain an effective system of disclosure and internal controls and the discovery of any future control deficiencies or weaknesses, which may require substantial costs and resources to rectify; the stability of state, federal and foreign tax laws; the ability of the Company to identify and capitalize on industry trends and technological advances in the imaging industry; higher than anticipated costs or lower than anticipated benefits associated with the Company's ongoing information technology and business process improvement initiative or unanticipated costs or difficulties associated with integrating acquired operations; higher than expected costs associated with compliance with legal and regulatory requirements; any impairment charges due to declines in the value of the Company's fixed and intangible assets, including goodwill; the stability of political conditions in foreign countries in which the Company has production capabilities; terrorist attacks and the U.S. response to such attacks; as well as other factors detailed in the Company's filings with the Securities and Exchange Commission. The Company can give no assurance that the assumptions upon which such forward-looking statements are based will prove to have been correct, and undue reliance should not be placed on such statements. The Company assumes no obligation to update publicly any of these statements in light of future events.

The discussion of the Company's financial results within this earnings release should be read and considered in context of the Company's most recent Form 10-K filed with the Securities and Exchange Commission.

For more information about SGK, visit its website at http://www.sgkinc.com.

Schawk, Inc. is now marketed as SGK

   
   
Schawk Inc.
Consolidated Statements of Comprehensive Income (Loss)
 
(Unaudited)  
(In thousands, except per share amounts)  
                         
    Three Months Ended              
    December 31,     Increase (Decrease)  
    2013     2012     Amount     Percent  
                               
Net revenues   $ 114,280     $ 117,126     $ (2,846 )   (2.4 )%
                               
Operating expenses:                              
Cost of services (excluding depreciation and amortization)     68,012       74,245       (6,233 )   (8.4 )%
Selling, general and administrative expenses (excluding depreciation and amortization)    
28,492
     
29,832
     
(1,340
)  
(4.5
)%
Depreciation and amortization     4,578       4,445       133     3.0 %
Business and systems integration expenses     1,155       1,627       (472 )   (29.0 )%
Acquisition integration and restructuring expenses    
546
     
560
     
(14
)  
(2.5
)%
Foreign exchange loss (gain)     662       1,275       (613 )   (48.1 )%
Multiemployer pension withdrawal expense     --       31,683       (31,683 )   nm  
Operating income (loss)     10,835       (26,541 )     37,376     nm  
                               
Other income (expense)                              
  Interest income     100       47       53     nm  
  Interest expense     (1,021 )     (976 )     (45 )   4.6 %
                               
Income (loss) from continuing operations before income taxes     9,914       (27,470 )     37,384     nm  
Income tax provision (benefit)     4,158       (9,357 )     13,515     nm  
                               
Income (loss) from continuing operations     5,756       (18,113 )     23,869     nm  
Income (loss) from discontinued operations, net of tax     (85 )     13       (98 )   nm  
                               
Net income (loss)   $ 5,671     $ (18,100 )   $ 23,771     nm  
                               
Diluted earnings (loss) per share:                              
  Income (loss) from continuing operations   $ 0.22     $ (0.69 )   $ 0.91        
  Income (loss) from discontinued operations     (0.01 )     --       (0.01 )      
  Net income (loss) per common share   $ 0.21     $ (0.69 )   $ 0.90        
                               
Weighted average number of common and common equivalent shares outstanding:                              
  Diluted     26,482       26,069                
                               
Comprehensive income (loss)   $ 5,713     $ (17,171 )              
                               
nm = not meaningful                              
                               
                               
                               
Schawk Inc.
Consolidated Statements of Comprehensive Income (Loss)
 
   
(In thousands, except per share amounts)  
                         
    Year Ended              
    December 31,     Increase (Decrease)  
    2013     2012     Amount     Percent  
                               
Net revenues   $ 442,640     $ 441,282     $ 1,358     0.3 %
                               
Operating expenses:                              
Cost of services (excluding depreciation and amortization)     270,559       279,901       (9,342 )   (3.3 )%
Selling, general and administrative expenses (excluding depreciation and amortization)     118,706       120,006       (1,300 )   (1.1 )%
Depreciation and amortization     18,136       17,416       720     4.1 %
Business and systems integration expenses     7,488       12,086       (4,598 )   (38.0 )%
Acquisition integration and restructuring expenses    
1,774
     
5,256
     
(3,482
)  
(66.2
)%
Foreign exchange loss     1,286       1,823       (537 )   (29.5 )%
Impairment of long-lived assets     502       4,281       (3,779 )   (88.3 )%
Multiemployer pension withdrawal expense     --       31,480       (31,480 )   nm  
Operating income (loss)     24,189       (30,967 )     55,156     nm  
                               
Other income (expense)                              
  Interest income     255       129       126     97.7 %
  Interest expense     (4,324 )     (3,652 )     (672 )   18.4 %
                               
Income (loss) from continuing operations before income taxes     20,120       (34,490 )     54,610     nm  
Income tax provision (benefit)     6,902       (10,872 )     17,774     nm  
                               
Income (loss) from continuing operations     13,218       (23,618 )     36,836     nm  
Income (loss) from discontinued operations, net of tax     (6,693 )     202       (6,895 )   nm  
                               
Net income (loss)   $ 6,525     $ (23,416 )   $ 29,941     nm  
                               
Diluted earnings (loss) per share:                              
  Income (loss) from continuing operations   $ 0.50     $ (0.91 )   $ 1.41        
  Income (loss) from discontinued operations     (0.25 )     0.01       (0.26 )      
  Net income loss per common share   $ 0.25     $ (0.90 )   $ 1.15        
                               
Weighted average number of common and common equivalent shares outstanding:                              
  Diluted     26,354       25,924                
                               
Comprehensive income (loss)   $ 5,271     $ (20,637 )              
                               
nm = not meaningful                              
                               
                               
Schawk, Inc.  
Consolidated Balance Sheets  
(In thousands, except share amounts)  
   
    December 31,     December 31,  
    2013     2012  
                 
Assets                
Current assets:                
  Cash and cash equivalents   $ 6,171     $ 9,651  
  Trade accounts receivable, less allowance for doubtful accounts of $2,040 at December 31, 2013 and $2,052 at December 31, 2012    
96,559
     
91,234
 
  Unbilled services     18,095       20,924  
  Prepaid expenses and other current assets     8,584       10,100  
  Income tax receivable     2,053       3,032  
  Deferred income taxes     1,227       235  
  Current assets of discontinued operations     --       3,854  
Total current assets     132,689       139,030  
                 
Property and equipment, net     59,003       60,583  
Goodwill, net     201,913       211,903  
Other intangible assets, net:                
  Customer relationships     24,035       28,781  
  Other     461       633  
Deferred income taxes     4,218       5,983  
Other assets     8,222       6,771  
Long term assets of discontinued operations     --       5,137  
                 
Total assets   $ 430,541     $ 458,821  
                 
Liabilities and stockholders' equity                
Current liabilities:                
  Trade accounts payable   $ 17,132     $ 17,833  
  Accrued expenses     51,137       55,218  
  Deferred income taxes     215       2,175  
  Income taxes payable     3,902       609  
  Current portion of long-term debt     1,266       4,262  
  Current liabilities of discontinued operations     --       1,134  
Total current liabilities     73,652       81,231  
                 
Long-term liabilities:                
  Long-term debt     56,636       78,724  
  Deferred income taxes     8,759       2,044  
  Other long-term liabilities     40,647       44,875  
  Long-term liabilities of discontinued operations     --       1,164  
Total long-term liabilities     106,042       126,807  
                 
Stockholders' equity:                
  Common stock, $0.008 par value, 40,000,000 shares authorized, 31,321,010 and 31,172,666 shares issued at December 31 2013 and December 31, 2012, respectively, 26,226,303 and 26,113,544 shares outstanding at December 31, 2013 and December 31, 2012, respectively    


229
     


227
 
  Additional paid-in capital     213,247       209,556  
  Retained earnings     92,000       93,897  
  Accumulated comprehensive income, net     10,605       11,859  
  Treasury stock, at cost, 5,094,707 and 5,059,122 shares of common stock at December 31, 2013 and December 31, 2012, respectively    
(65,234
)    
(64,756
)
Total stockholders' equity     250,847       250,783  
                 
Total liabilities and stockholders' equity   $ 430,541     $ 458,821  
   
   
   
Schawk Inc.
Segment Financial Data
 
(Unaudited)  
(In thousands)  
                         
    Three Months Ended              
    December 31,     Increase (Decrease)  
    2013     2012     Amount     Percent  
                               
Net revenues:                              
Americas   $ 84,015     $ 90,212     $ (6,197 )   (6.9 )%
Europe     24,270       20,984       3,286     15.7 %
Asia Pacific     9,847       10,036       (189 )   (1.9 )%
Intersegment revenue elimination     (3,852 )     (4,106 )     254     6.2 %
                               
Total (1)   $ 114,280     $ 117,126     $ (2,846 )   (2.4 )%
                               
Operating segment income (loss):                              
Americas   $ 16,987     $ (17,052 )   $ 34,039     nm  
Europe     3,044       731       2,313     nm  
Asia Pacific     223       515       (292 )   (56.7 )%
Corporate     (9,419 )     (10,735 )     1,316     12.3 %
                               
Operating income (loss)   $ 10,835     $ (26,541 )   $ 37,376     nm  
                               
(1) Quarter-over-quarter net revenues were negatively impacted by changes in foreign currency translation rates for the Americas and Asia Pacific segments by approximately $0.7 million and $0.6 million, respectively. Net revenues for the Europe segment benefited by $0.4 million for the quarter. Total consolidated net revenues were negatively impacted by changes in foreign currency translation rates by approximately $0.9 million in the fourth quarter of 2013 compared to the prior-year comparable quarter.  
   
   
                               
Schawk Inc.
Segment Financial Data
 
   
(In thousands)  
                         
    Year Ended              
    December 31,     Increase (Decrease)  
    2013     2012     Amount     Percent  
                               
Net revenues:                              
Americas   $ 331,380     $ 333,494     $ (2,114 )   (0.6 )%
Europe     87,176       85,763       1,413     1.6 %
Asia Pacific     42,454       38,923       3,531     9.1 %
Intersegment revenue elimination     (18,370 )     (16,898 )     (1,472 )   (8.7 )%
                               
Total (1)   $ 442,640     $ 441,282     $ 1,358     0.3 %
                               
Operating segment income (loss):                              
Americas   $ 57,566     $ 10,523     $ 47,043     nm  
Europe     5,488       979       4,509     nm  
Asia Pacific     3,196       2,124       1,072     50.5 %
Corporate     (42,061 )     (44,593 )     2,532     5.7 %
                               
Operating income (loss)   $ 24,189     $ (30,967 )   $ 55,156     nm  
                               
(1) Year-over-year net revenues were negatively impacted by changes in foreign currency translation rates for the Americas and Asia Pacific segments by approximately $0.9 million and $1.6 million, respectively. Total consolidated net revenues were negatively impacted by changes in foreign currency translation rates by approximately $2.6 million in the full year of 2013 compared to the prior-year.  
   
   
   
Schawk, Inc.  
Reconciliation of Non-GAAP Measures to GAAP  
(Unaudited)  
(In thousands, except per share amounts)  
                     
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2013   2012     2013   2012  
                             
Operating income (loss) - GAAP   $ 10,835   $ (26,541 )   $ 24,189   $ (30,967 )
Adjustments:                            
  Business and systems integration expenses     1,155     1,627       7,488     12,086  
  Foreign currency (gain) loss     662     1,275       1,286     1,823  
  Impairment of long-lived assets     --     --       502     4,281  
  Acquisition integration and restructuring expenses     546     560       1,774     5,256  
  Multiemployer pension withdrawal expense     --     31,683       --     31,480  
  Reduction of contingent consideration liability     --     --       --     (245 )
                             
Adjusted operating income - non GAAP   $ 13,198   $ 8,604     $ 35,239   $ 23,714  
                             
                             
Income (loss) from continuing operations - GAAP   $ 5,756   $ (18,113 )   $ 13,218   $ (23,618 )
Adjustments - net of tax effects (1):                            
  Business and systems integration expenses     713     1,005       4,624     7,463  
  Foreign currency (gain) loss     465     891       897     1,265  
  Impairment of long-lived assets     --     --       320     2,833  
  Acquisition integration and restructuring expenses     368     385       1,176     3,523  
  Multiemployer pension withdrawal income     --     19,564       --     19,439  
  Reduction of contingent consideration liability     --     --       --     (151 )
                             
Adjusted income from continuing operations - non GAAP   $ 7,302   $ 3,732     $ 20,235   $ 10,754  
                             
                             
Earnings (loss) from continuing operations per diluted share - GAAP   $ 0.22   $ (0.69 )   $ 0.50   $ (0.91 )
Adjustments - net of tax effects (1):                            
  Business and systems integration expenses     0.03     0.04       0.18     0.29  
  Foreign currency (gain) loss     0.02     0.03       0.03     0.05  
  Impairment of long-lived assets     --     --       0.01     0.11  
  Acquisition integration and restructuring expenses     0.01     0.01       0.05     0.13  
  Multiemployer pension withdrawal income     --     0.75       --     0.75  
  Reduction of contingent consideration liability     --     --       --     (0.01 )
                             
Adjusted earnings from continuing operations per diluted share - non GAAP   $ 0.28   $ 0.14     $ 0.77   $ 0.41  
                             
Weighted average common and common stock equivalents outstanding - GAAP (diluted)     26,482     26,069       26,354     25,924  
                             
(1) Adjustments have been tax-effected at the jurisdictions' statutory rates.                            
                             
                             
                             
Schawk, Inc.  
Reconciliation of Non-GAAP Management Adjusted EBITDA  
(Unaudited)  
(In thousands)  
                         
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2013     2012     2013     2012  
Income (loss) from continuing operations - GAAP   $ 5,756     $ (18,113 )   $ 13,218     $ (23,618 )
Interest expense     1,021       976       4,324       3,652  
Income tax expense (benefit)     4,158       (9,357 )     6,902       (10,872 )
Depreciation and amortization expense     4,578       4,445       18,136       17,416  
Impairment of long-lived assets     --       --       502       4,281  
Stock based compensation     193       464       1,644       3,129  
Adjusted EBITDA - non GAAP     15,706       (21,585 )     44,726       (6,012 )
Permitted add backs on debt covenants:                                
Proforma effect of acquisitions and asset sales     (12 )     452       792       1,650  
Acquisition integration and restructuring expenses     --       --       --       246  
Business and systems integration expenses     --       1,852       --       10,000  
Multiemployer pension withdrawal expense     --       31,683       --       31,683  
Adjusted EBITDA for covenant compliance - non GAAP    
15,694
     
12,402
     
45,518
     
37,567
 
Acquisition integration and restructuring expenses     546       560       1,774       5,010  
Business and systems integration expenses     1,155       --       7,488       2,086  
Proforma effect of acquisitions and asset sales     12       (452 )     (792 )     (1,650 )
Multiemployer pension plan withdrawal expense     --       --       --       (203 )
Foreign exchange loss     662       1,275       1,286       1,823  
Management Adjusted EBITDA - non GAAP   $ 18,069     $ 13,785     $ 55,274     $ 44,633  
                                 

Use of Non-GAAP Adjusted EBITDA, Adjusted EBITDA for covenant compliance, and Management adjusted EBITDA
Adjusted EBITDA, as presented within this release, is defined as earnings before interest, income taxes, depreciation and amortization, and other certain non-cash items. Adjusted EBITDA for covenant compliance, as defined in the Company's current debt agreements, is defined as Adjusted EBITDA excluding certain items, including items that are generally considered non-operating, as permitted under the Company's current revolving credit facility, and is used by management to gauge its ongoing compliance with the Company's principal debt covenants, as well as pricing on its revolving credit facility. Management adjusted EBITDA is used to evaluate the core operating activities of the Company from period to period. None of the measures presented above represent cash flows from operations as defined by generally accepted accounting principles, should not be considered as an alternative to net income or cash flow from operations as an indicator of our operating performance, and are not indicative of cash available to fund all cash flow needs. These measures also may be inconsistent with similar measures presented by other companies or EBITDA as defined under guidance from the Securities and Exchange Commission.

Contact Information

  • AT SGK:
    Timothy Allen
    Vice President, Finance
    Operations and Investor Relations
    847-827-9494
    Email Contact