Adjusted EBITDA for full year 2010 was $69.8 million compared to $58.4 million for the comparable period of 2009.  Management adjusted EBITDA for full year 2010 was $75.4 million compared to $65.4 million for the prior-year period.  Please refer to the “Reconciliation of Non-GAAP Adjusted EBITDA and Management Adjusted EBITDA” table attached at the end of this press release for a reconciliation of these measures.

 

Conference Call

Schawk invites you to join its fourth-quarter and full-year 2010 earnings conference call on Thursday, March 10, 2011, at 9:00 a.m. Central time.  To participate in the conference call, please dial 800-299-7635 or 617-786-2901 at least five minutes prior to the start time and ask for the Schawk, Inc. conference call, or on the Internet, go to http://phx.corporate-ir.net/playerlink.zhtml?c=82169&s=wm&e=3792464.   If you are unavailable to participate on the live call, a replay will be available through March 17 at 5:00 p.m. Central time. To access the replay, dial 888-286-8010 or 617-801-6888, enter conference ID 73463854, and follow the prompts.  The replay will also be available on the Internet for 30 days at the following address

http://phx.corporate-ir.net/playerlink.zhtml?c=82169&s=wm&e=3792464.

 

		Three Months Ended
		December 31,								Increase (Decrease)
		2010				2009				Amount				Percent
Net sales		$	118,516			$	121,906			$	(3,390	)			(2.8	)%
Cost of sales			72,453				72,366				87				0.1	%
Gross profit			46,063				49,540				(3,477	)			(7.0	)%
Selling, general and administrative expenses			31,954				32,805				(851	)			(2.6	)%
Acquisition integration and restructuring expenses			1,237				2,813				(1,576	)			(56.0	)%
Foreign exchange loss (gain)			62				547				(485	)			(88.7	)%
Impairment of long-lived assets			8				1,305				(1,297	)			(99.4	)%
Multiemployer pension withdrawal (income) expense			(700	)			1,800				(2,500	)		nm
Operating income			13,502				10,270				3,232				31.5	%
Other income (expense)
Interest income			8				311				(303	)			(97.4	)%
Interest expense			(1,800	)			(2,428	)			628				(25.9	)%
Income before income taxes			11,710				8,153				3,557				43.6	%
Income tax provision			5,388				4,434				954				21.5	%
Net income		$	6,322			$	3,719			$	2,603				70.0	%
Earnings per share:
Basic		$	0.25			$	0.15			$	0.10
Diluted		$	0.24			$	0.15			$	0.09
Weighted average number of common and common equivalent shares outstanding:
Basic			25,701				25,053
Diluted			26,156				25,308

 

		Twelve Months Ended
		December 31,								Increase (Decrease)
		2010				2009				Amount				Percent
Net sales		$	460,626			$	452,446			$	8,180				1.8	%
Cost of sales			282,070				281,372				698				0.2	%
Gross profit			178,556				171,074				7,482				4.4	%
Selling, general and administrative expenses			124,222				131,118				(6,896	)			(5.3	)%
Acquisition integration and restructuring expenses			1,974				6,459				(4,485	)			(69.4	)%
Foreign exchange loss (gain)			2,306				(542	)			2,848			nm
Impairment of long-lived assets			688				1,441				(753	)			(52.3	)%
Multiemployer pension withdrawal (income) expense			(200	)			1,800				(2,000	)		nm
Indemnity settlement income			--				(4,986	)			4,986			nm
Operating income			49,566				35,784				13,782				38.5	%
Other income (expense)
Interest income			39				535				(496	)			(92.7	)%
Interest expense			(7,201	)			(9,225	)			2,024				(21.9	)%
Income before income taxes			42,404				27,094				15,310				56.5	%
Income tax provision			9,984				7,597				2,387				31.4	%
Net income		$	32,420			$	19,497			$	12,923				66.3	%
Earnings per share:
Basic		$	1.27			$	0.78			$	0.49
Diluted		$	1.25			$	0.78			$	0.47
Weighted average number of common and common equivalent shares outstanding:
Basic			25,465				24,966
Diluted			25,883				25,001

		December 31, 2010				December 31, 2009
Assets
Current assets:
Cash and cash equivalents		$	36,889			$	12,167
Trade accounts receivable, less allowance for doubtful accounts of $1,525 in 2010 and $1,619 in 2009			95,207				88,822
Inventories			18,250				20,536
Prepaid expenses and other current assets			9,356				8,192
Income tax receivable			2,943				2,565
Deferred income taxes			347				992
Total current assets			162,992				133,274
Property and equipment, net			48,684				50,247
Goodwill, net			193,626				187,664
Other intangible assets, net:
Customer relationships			36,461				36,321
Other			817				1,284
Deferred income taxes			868				1,424
Other assets			6,411				6,005
Total assets		$	449,859			$	416,219
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable		$	21,930			$	16,957
Accrued expenses			64,007				64,079
Deferred income taxes			3,260				205
Income taxes			1,038				14,600
Current portion of long-term debt			29,587				12,858
Total current liabilities			119,822				108,699
Long-term liabilities:
Long-term debt Deferred income taxes			37,080  9,135				64,707  2,059
Other long-term liabilities			19,696				15,920
Total long-term liabilities			65,911				82,686
Stockholders’ equity:
Common stock, $0.008 par value, 40,000,000 shares authorized, 30,506,252 and 29,855,796 shares issued at December 31, 2010 and 2009, respectively; 25,761,334  and 25,108,894 shares outstanding at December 31, 2010 and 2009, respectively			224				220
Additional paid-in capital			200,205				191,701
Retained earnings			113,258				85,953
Accumulated comprehensive income, net			11,247				7,804
Treasury stock, at cost, 4,744,918 and 4,746,902 shares of common stock at December 31, 2010 and 2009, respectively			(60,808	)			(60,844	)
Total stockholders’ equity			264,126				224,834
Total liabilities and stockholders’ equity		$	449,859			$	416,219

(In Thousands)

 

(1)   Capped at $3.0 million for 2009 per the Company’s new debt agreements. Amounts in excess of $3.0 million are included as an adjustment for Management adjusted EBITDA.