Champion Industries, a Huntington-based printing, office
supply and newspaper publishing company, on Jan. 29 announced a net loss from
continuing operations of $23.5 million for the fiscal year that ended Oct. 31.
That was down from the net loss from continuing operations
of $4.2 million for fiscal 2011.
For the fourth quarter, the loss was $1.4 million, an
improvement from the net loss of $5.5 million in the fourth quarter of 2011.
The company attributed the 2012 loss primarily to pre-tax
non-cash impairment related charges associated with goodwill of $9.5 million
and trade name and masthead in the amount of $1.6 million and an increase in
the deferred tax asset valuation allowance of approximately $15.6 million
primarily related to taxes associated with continuing operations.
The impairments are associated with the acquisition of The
Herald-Dispatch daily newspaper in 2007. The 2012 results were also unfavorably
impacted by various costs associated with legal fees and costs and professional
fees, resulting in part from provisions related to the various forbearance and
credit agreements with Champion's secured lenders, according to the quarterly
earnings report.
"If we examine our gross profit, which is a key starting
point for profitability, our gross profit dollars were $30.9 million in 2012
and $31.2 million in 2011, which is essentially flat. In other words, in spite
of the numerous hurdles, challenges and actions we have taken in 2012, in the
final analysis we were able to essentially hold our core business stable,"
Marshall T. Reynolds, Champion's chairman and CEO said in the earnings release.
"In 2013 we are continuing to review operations and will
adjust where necessary. In addition, we intend to work with our secured
creditors and advisors to address our debt maturities and liquidity to the best
of our ability."
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