2007 per earnings release 4th Quarter Full Year
------------ ------------
Income from continuing operations before
income taxes $ 14,054 $ 51,253
Income tax provision 7,273 21,672
Income from continuing operations 6,781 29,581
Earnings per share from continuing operations,
fully diluted $ 0.24 $ 1.07
2007 corrected 4th Quarter Full Year
------------ ------------
Income from continuing operations before
income taxes $ 14,057 $ 51,256
Income tax provision 6,259 20,658
Income from continuing operations 7,798 30,598
Earnings per share from continuing operations,
fully diluted $ 0.28 $ 1.10
2006 restated per earnings release 4th Quarter Full Year
------------ ------------
Income from continuing operations before
income taxes $ 11,889 $ 44,762
Income tax provision 5,440 17,813
Income from continuing operations 6,449 26,949
Earnings per share from continuing operations,
fully diluted $ 0.24 $ 0.98
2006 restated corrected 4th Quarter Full Year
------------ ------------
Income from continuing operations before
income taxes $ 11,889 $ 44,762
Income tax provision 6,440 18,813
Income from continuing operations 5,449 25,949
Earnings per share from continuing operations,
fully diluted $ 0.20 $ 0.95
The corrected effective tax rate for the fourth quarter and full year of
2007 was 44.5 percent and 40.3 percent, respectively. The corrected
effective tax rate for the fourth quarter and full year of 2006 was 54.2
percent and 42.0 percent, respectively.
Enclosed with this press release are the final statements of operations for
the years ended December 31, 2007 and 2006 as included in the Company's
Form 10-K. Also enclosed are the final unaudited quarterly results for the
fourth quarters ended December 31, 2007 and 2006.
As part of the Company's program to remediate internal control weaknesses
that were reported in connection with its 2007 audit, the Company has hired
consultants to oversee the remediation effort. The Company has also
initiated the process to hire a new chief financial officer. The Company
intends to provide updates quarterly as to its progress on improving its
system of internal controls.
First quarter 2008 reporting to be delayed
Due to the delays in the reporting of the Company's fiscal 2007 financial
results and the preparation of the fiscal 2007 Form 10-K, the Company
expects that its first quarter 2008 results will be delayed beyond its
normal expected due date, as the Company will require additional time to
complete its preparation and internal review of the first quarter's
financial statements, Form 10-Q and earnings release, as well as the
quarterly review by the company's external audit firm. At this time, the
Company cannot suggest a certain date for reporting its first quarter 2008
results.
About Schawk, Inc.
Schawk, Inc. is the leading provider of brand management services, enabling
companies of all sizes to connect their brands with consumers to create
deeper brand affinity. With a global footprint of more than 60 offices,
Schawk helps companies create consistent and compelling brand experiences
by providing integrated strategic, creative and implementation services
across brand touch points. Founded in 1953, Schawk is trusted by many of
the world's leading organizations to help them achieve global brand
consistency. For more information about Schawk, visit http://www.schawk.com
Safe Harbor Statement
Certain statements in this press release are forward-looking statements
within the meaning of Section 21E of the Securities and 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 might differ materially
from those contained in the forward-looking statements because of factors,
such as, among other things, unanticipated difficulties associated with
additional accounting issues, if any, which may cause our investors to lose
confidence in our reported financial information and may have a negative
impact on the trading price of our stock; our ability to remedy known
internal control deficiencies and weaknesses and the discovery of future
control deficiencies or weaknesses, which may require substantial costs and
resources to rectify; higher than expected costs, or unanticipated
difficulties associated with, integrating the acquired operations; higher
than expected costs associated with compliance with legal and regulatory
requirements; the strength of the United States economy in general and
specifically market conditions for the consumer products industry; the
level of demand for Schawk's services; loss of key management and
operational personnel; our ability to implement our growth strategy; the
stability of state, federal and foreign tax laws; our continued ability to
identify and exploit industry trends and exploit technological advances in
the imaging industry; our ability to implement restructuring plans; the
stability of political conditions in Asia and other foreign countries in
which we have production capabilities; terrorist attacks and the U.S.
response to such attacks; as well as other factors detailed in Schawk,
Inc.'s filings with the Securities and Exchange Commission.
Schawk, Inc.
Consolidated Statements of Operations
Three Months Ended December 31, 2007 and 2006
(Unaudited)
(In Thousands, Except Share Amounts)
2007 2006
----------- -----------
(Restated)
Net sales $ 141,256 $ 139,970
Cost of sales 91,682 92,001
Selling, general, and administrative expenses 33,483 35,190
Acquisition integration and restructuring
expenses -- 3,175
Reserve reversal from litigation settlement -- (4,751)
----------- -----------
Operating income 16,091 14,355
Other income (expense):
Interest income 122 187
Interest expense (2,156) (2,653)
----------- -----------
(2,034) (2,466)
----------- -----------
Income from continuing operations before income
taxes 14,057 11,889
Income tax provision 6,259 6,440
----------- -----------
Income from continuing operations 7,798 5,449
Loss from discontinued operations, net of tax
benefit of $479 -- (689)
----------- -----------
Net income $ 7,798 $ 4,760
=========== ===========
Earnings per share:
Basic:
Income from continuing operations $ 0.29 $ 0.21
Loss from discontinued operations -- ($ 0.03)
----------- -----------
Net income per common share $ 0.29 $ 0.18
=========== ===========
Diluted:
Income from continuing operations $ 0.28 $ 0.20
Loss from discontinued operations -- ($ 0.03)
----------- -----------
Net income per common share $ 0.28 $ 0.17
=========== ===========
Weighted average number of common and common
equivalent shares outstanding:
- Basic 26,987 26,504
- Diluted 27,745 27,421
Dividends per common share $ 0.0325 $ 0.0325
Schawk, Inc.
Consolidated Statements of Operations
Year Ended December 31, 2007 and 2006
(In Thousands, Except Share Amounts)
2007 2006
----------- -----------
(Restated)
Net sales $ 544,409 $ 546,118
Cost of sales 352,015 356,149
Selling, general, and administrative expenses 132,221 137,995
Acquisition integration and restructuring
expenses -- 3,933
Reserve reversal from litigation settlements -- (6,871)
----------- -----------
Operating income 60,173 54,912
Other income (expense):
Interest income 297 467
Interest expense (9,214) (10,617)
----------- -----------
(8,917) (10,150)
----------- -----------
Income from continuing operations before income
taxes 51,256 44,762
Income tax provision 20,658 18,813
----------- -----------
Income from continuing operations 30,598 25,949
Loss from discontinued operations, net of tax
Benefit of $851 -- (1,332)
----------- -----------
Net income $ 30,598 $ 24,617
=========== ===========
Earnings per share:
Basic:
Income from continuing operations $ 1.14 $ 0.98
Loss from discontinued operations -- (0.05)
----------- -----------
Net income per common share $ 1.14 $ 0.93
=========== ===========
Diluted:
Income from continuing operations $ 1.10 $ 0.95
Loss from discontinued operations -- (0.05)
----------- -----------
Net income per common share $ 1.10 $ 0.90
=========== ===========
Weighted average number of common and Common
equivalent shares outstanding:
- Basic 26,869 26,393
- Diluted 27,701 27,395
Dividends per common share $ 0.13 $ 0.13
Contact Information: AT SCHAWK, INC.: James J. Patterson Sr. VP and CFO (847) 827-9494 jpatterson@schawk.com AT DRESNER CORPORATE SERVICES: Philip Kranz 312-780-7240 pkranz@dresnerco.com