Schawk, Inc.
Consolidated Statements of Operations
Three Months Ended March 31, 2007 and 2006
(Unaudited)
(In Thousands, Except Share Amounts)
2007 2006
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Net sales $ 130,884 $ 133,754
Cost of sales 83,526 88,038
Selling, general, and administrative expenses 33,240 34,316
Acquisition integration expenses -- 530
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Operating income 14,118 10,870
Other income (expense):
Interest income 90 119
Interest expense (2,423) (2,581)
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(2,333) (2,462)
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Income from continuing operations before income
taxes 11,785 8,408
Income tax provision 4,598 3,193
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Income from continuing operations 7,187 5,215
Loss from discontinued operations, net of tax
benefit of $266 -- (433)
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Net income $ 7,187 $ 4,782
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Earnings per share:
Basic:
Income from continuing operations $ 0.27 $ 0.20
Loss from discontinued operations -- (0.02)
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Net income per common share $ 0.27 $ 0.18
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Diluted:
Income from continuing operations $ 0.26 $ 0.19
Loss from discontinued operations -- (0.02)
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Net income per common share $ 0.26 $ 0.17
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Weighted average number of common and common
equivalent shares outstanding:
Basic 26,607 26,183
Diluted 27,444 27,763
Dividends per common share $ 0.0325 $ 0.0325
Schawk, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share Amounts)
March 31,
2007 December 31,
(Unaudited) 2006
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Assets
Current assets:
Cash and cash equivalents $ 7,078 $ 10,177
Trade accounts receivable, less allowance for
doubtful accounts of $2,045 at March 31, 2007
and $4,621 at December 31, 2006 115,777 127,627
Inventories 26,883 23,575
Prepaid expenses and other 8,986 10,171
Deferred income taxes 8,584 8,580
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Total current assets 167,308 180,130
Property and equipment, less accumulated
depreciation of $84,538 at March 31, 2007 and
$82,256 at December 31, 2006 82,517 82,227
Goodwill 236,607 235,501
Intangible assets, net 35,487 35,755
Other assets 4,810 4,633
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Total assets $ 526,729 $ 538,246
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Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable $ 22,065 $ 26,522
Accrued expenses 39,607 51,489
Income taxes payable 16,335 10,249
Current portion of long-term debt and capital
lease obligations 2,174 2,177
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Total current liabilities 80,181 90,437
Long-term debt 132,931 140,751
Capital lease obligations 7 12
Other liabilities 23,424 23,461
Deferred income taxes 14,617 14,657
Stockholders’ equity:
Common stock, $0.008 par value, 40,000,000
shares authorized, 29,135,658 and 28,989,013
shares issued at March 31, 2007 and December
31, 2006, respectively; 26,702,126 and
26,555,119 shares outstanding at March 31,
2007 and December 31, 2006, respectively 231 229
Additional paid-in capital 179,773 178,415
Retained earnings 117,994 113,365
Accumulated comprehensive income 6,724 6,079
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304,722 298,088
Treasury stock, at cost, 2,433,532 and
2,433,894 shares of common stock at March 31,
2007 and December 31, 2006, respectively (29,153) (29,160)
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Total stockholders’ equity 275,569 268,928
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Total liabilities and stockholders’ equity $ 526,729 $ 538,246
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Contact Information: AT SCHAWK, INC.: James J. Patterson Sr. VP and CFO 847-827-9494 jpatterson@schawk.com AT DRESNER CORPORATE SERVICES: Investors: Philip Kranz 312-780-7240 pkranz@dresnerco.com