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
Schawk, Inc. Announces That It Has Not Filed Its Quarterly Report or Form 10-Q for the Three Months Ended June 30, 2007 by the Required Filing Date
| Source: Schawk, Inc.
DES PLAINES, IL--(Marketwire - August 14, 2007) - Schawk, Inc. (NYSE : SGK ), one of the
world's leading providers of digital imaging graphic services to the
consumer products and brand imaging markets, announced that it has not
filed its Quarterly Report or Form 10-Q for the three months ended June 30,
2007 by the required filing date because the Statement of Auditing
Standards No. 100 ("SAS 100") interim financial statement review by Ernst &
Young, LLP, the Company's independent public accountants, has not been
completed. The Company has determined that it needs to do further analysis
to determine if it is necessary to correct its historical method of
capitalizing certain costs in work in process inventory.
The Company's preliminary analysis indicates that it may need to restate
its December 31, 2006 balance sheet to reduce inventory by approximately $4
million (from $23.6 million), reduce income taxes payable by approximately
$1 million (from $10.2 million), and reduce retained earnings by
approximately $3 million (from $113.4 million). The total assets of the
Company at December 31, 2006 were $538.2 million. Based on our preliminary
analysis, the restatement of work in process inventory is not expected to
have a material impact on the Company's income or earnings per share for
the quarter and six-month periods ended June 30, 2007 and 2006, the
quarterly periods ended March 31, 2007 and 2006, and the year ended
December 31, 2006.
Part of the Company's analysis will include assessing whether or not it may
have to restate its 2005 and prior year financial statements. However,
because the Company has not yet completed its review of the impact of any
required adjustments on prior periods, it is unable to file its Quarterly
Report on Form 10-Q for the three months ended June 30, 2007. The Company
plans to file its Form 10-Q for the quarter ended June 30, 2007 as soon as
possible, following the completion of its review.
About Schawk, Inc.
Schawk, Inc., headquartered in suburban Chicago, is one of the world's
largest independent brand image solutions companies. Schawk delivers a
broad range of digital pre-media graphic services through 151 locations in
12 countries across North America, Europe, Asia and Australia. Schawk
designs, creates and manages images and text for reproduction to exact
specifications for a variety of media, including packaging for consumer
products, point-of-sale displays and other promotional and advertising
materials. Schawk provides its services to the food, beverage, health &
beauty, pharmaceutical, home care and consumer products industries. For
more information, visit 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, 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.