Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SCHAWK INC | f8k_120809.htm |
EXHIBIT
99.1
INVESTOR
PRESENTATION
DECEMBER 8, 2009
DECEMBER 8, 2009
©
2009 Schawk, Inc. All Rights Reserved
2
FORWARD LOOKING STATEMENTS
CERTAIN
STATEMENTS IN THIS PRESENTATION ARE FORWARD-LOOKING STATEMENTS WITHIN THE
MEANING OF
SECTION 21E OF THE SECURITIES 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 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; CHANGES IN OR WEAK CONSUMER CONFIDENCE AND CONSUMER SPENDING; UNFAVORABLE
FOREIGN EXCHANGE RATE FLUCTUATIONS; LOSS OF KEY MANAGEMENT AND OPERATIONAL PERSONNEL; OUR ABILITY
TO IMPLEMENT OUR GROWTH STRATEGY, REBRANDING INITIATIVES AND COST REDUCTION PLANS AND TO REALIZE
ANTICIPATED COST SAVINGS; THE ABILITY OF THE COMPANY TO COMPLY WITH THE FINANCIAL COVENANTS CONTAINED
IN ITS DEBT AGREEMENTS AND OBTAIN WAIVERS OR AMENDMENTS IN THE EVENT OF NON-COMPLIANCE WITH SUCH
COVENANTS; THE ABILITY OF THE COMPANY TO RENEW OR REPLACE ITS REVOLVING CREDIT FACILITY WHEN IT
TERMINATES IN JANUARY 2010; 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 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.
SECTION 21E OF THE SECURITIES 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 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; CHANGES IN OR WEAK CONSUMER CONFIDENCE AND CONSUMER SPENDING; UNFAVORABLE
FOREIGN EXCHANGE RATE FLUCTUATIONS; LOSS OF KEY MANAGEMENT AND OPERATIONAL PERSONNEL; OUR ABILITY
TO IMPLEMENT OUR GROWTH STRATEGY, REBRANDING INITIATIVES AND COST REDUCTION PLANS AND TO REALIZE
ANTICIPATED COST SAVINGS; THE ABILITY OF THE COMPANY TO COMPLY WITH THE FINANCIAL COVENANTS CONTAINED
IN ITS DEBT AGREEMENTS AND OBTAIN WAIVERS OR AMENDMENTS IN THE EVENT OF NON-COMPLIANCE WITH SUCH
COVENANTS; THE ABILITY OF THE COMPANY TO RENEW OR REPLACE ITS REVOLVING CREDIT FACILITY WHEN IT
TERMINATES IN JANUARY 2010; 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 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. ASSUMES NO OBLIGATION TO UPDATE THE INFORMATION CONTAINED IN THIS
PRESENTATION, WHICH
SPEAKS ONLY AS OF ITS DATE.
SPEAKS ONLY AS OF ITS DATE.
©
2009 Schawk, Inc. All Rights Reserved
3
NON-GAAP & OTHER FINANCIAL INFORMATION
ALL
HISTORICAL FINANCIAL INFORMATION PRESENTED HEREIN SHOULD BE READ IN CONJUNCTION
WITH THE MORE
DETAILED INFORMATION INCLUDED IN OUR ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER
31, 2008 AND OUR QUARTERLY REPORTS ON FORM 10-Q FOR THE QUARTERLY PERIODS ENDED MARCH 31, JUNE 30 AND
SEPTEMBER 30, 2009 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
DETAILED INFORMATION INCLUDED IN OUR ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER
31, 2008 AND OUR QUARTERLY REPORTS ON FORM 10-Q FOR THE QUARTERLY PERIODS ENDED MARCH 31, JUNE 30 AND
SEPTEMBER 30, 2009 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
THIS
PRESENTATION CONTAINS CERTAIN NON-GAAP FINANCIAL MEASURES INCLUDED UNDER THE
SLIDES ENTITLED
“ADJUSTED EBITDA (UNAUDITED)” AND “RECONCILIATION OF NON-GAAP TO GAAP (UNAUDITED)” WHICH ARE RECONCILED
TO THE CLOSEST GAAP MEASURES.
“ADJUSTED EBITDA (UNAUDITED)” AND “RECONCILIATION OF NON-GAAP TO GAAP (UNAUDITED)” WHICH ARE RECONCILED
TO THE CLOSEST GAAP MEASURES.
IN
ADDITION, EBITDA, AS SHOWN IN THIS PRESENTATION, IS DEFINED AS EARNINGS BEFORE
INTEREST, INCOME TAXES,
DEPRECIATION AND AMORTIZATION, AND OTHER CERTAIN NON-CASH ITEMS. ADJUSTED EBITDA, AS DEFINED IN THE
COVENANTS UNDER THE COMPANY’S CURRENT DEBT AGREEMENTS, IS EBITDA AS ADJUSTED TO EXCLUDE CERTAIN
ITEMS, INCLUDING ITEMS THAT ARE GENERALLY CONSIDERED NON-OPERATING. BOTH MEASURES ARE IMPORTANT
INDICATORS OF PERFORMANCE UNDER THE COMPANY’S CURRENT DEBT AGREEMENTS AND PROVIDE MANAGEMENT
WITH A CONSISTENT MEASUREMENT TOOL FOR EVALUATING THE OPERATING ACTIVITIES OF THE COMPANY FROM
PERIOD TO PERIOD. MANAGEMENT ALSO BELIEVES THAT THE PRESENTATION OF THESE MEASURES PROVIDES
INVESTORS WITH GREATER TRANSPARENCY AND SUPPLEMENTAL DATA RELATING TO THE COMPANY’S FINANCIAL
CONDITION AND RESULTS OF OPERATIONS AND PROVIDES MORE CONSISTENT INSIGHT INTO THE PERFORMANCE OF
THE COMPANY’S CORE OPERATIONS FROM PERIOD TO PERIOD. THESE MEASURES DO NOT REPRESENT CASH FLOWS
FROM OPERATIONS AS DEFINED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, SHOULD NOT BE CONSIDERED AS
AN ALTERNATIVE TO NET INCOME OR CASH FLOW FROM OPERATIONS AS AN INDICATOR OF OUR OPERATING
PERFORMANCE, AND ARE NOT INDICATIVE OF CASH AVAILABLE TO FUND ALL CASH FLOW NEEDS. THESE MEASURES
ALSO MAY BE INCONSISTENT WITH SIMILAR MEASURES PRESENTED BY OTHER COMPANIES.
DEPRECIATION AND AMORTIZATION, AND OTHER CERTAIN NON-CASH ITEMS. ADJUSTED EBITDA, AS DEFINED IN THE
COVENANTS UNDER THE COMPANY’S CURRENT DEBT AGREEMENTS, IS EBITDA AS ADJUSTED TO EXCLUDE CERTAIN
ITEMS, INCLUDING ITEMS THAT ARE GENERALLY CONSIDERED NON-OPERATING. BOTH MEASURES ARE IMPORTANT
INDICATORS OF PERFORMANCE UNDER THE COMPANY’S CURRENT DEBT AGREEMENTS AND PROVIDE MANAGEMENT
WITH A CONSISTENT MEASUREMENT TOOL FOR EVALUATING THE OPERATING ACTIVITIES OF THE COMPANY FROM
PERIOD TO PERIOD. MANAGEMENT ALSO BELIEVES THAT THE PRESENTATION OF THESE MEASURES PROVIDES
INVESTORS WITH GREATER TRANSPARENCY AND SUPPLEMENTAL DATA RELATING TO THE COMPANY’S FINANCIAL
CONDITION AND RESULTS OF OPERATIONS AND PROVIDES MORE CONSISTENT INSIGHT INTO THE PERFORMANCE OF
THE COMPANY’S CORE OPERATIONS FROM PERIOD TO PERIOD. THESE MEASURES DO NOT REPRESENT CASH FLOWS
FROM OPERATIONS AS DEFINED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, SHOULD NOT BE CONSIDERED AS
AN ALTERNATIVE TO NET INCOME OR CASH FLOW FROM OPERATIONS AS AN INDICATOR OF OUR OPERATING
PERFORMANCE, AND ARE NOT INDICATIVE OF CASH AVAILABLE TO FUND ALL CASH FLOW NEEDS. THESE MEASURES
ALSO MAY BE INCONSISTENT WITH SIMILAR MEASURES PRESENTED BY OTHER COMPANIES.
©
2009 Schawk, Inc. All Rights Reserved
4
q ONE OF THE WORLD’S
LARGEST INDEPENDENT SUPPLIERS OF
BRAND POINT MANAGEMENT SOLUTIONS
BRAND POINT MANAGEMENT SOLUTIONS
q FOUNDED IN 1953 -
PUBLIC SINCE 1995 (NYSE:SGK)
q $494.2 MILLION IN
REVENUE FOR 2008
q GLOBAL PRESENCE WITH
OVER 3,000 EMPLOYEES IN 14
COUNTRIES ACROSS 4 CONTINENTS
COUNTRIES ACROSS 4 CONTINENTS
q 154 LOCATIONS,
INCLUDING 106 ON-SITE CUSTOMER
LOCATIONS (WE ARE THE ONLY COMPANY IN OUR INDUSTRY
WITH A SIGNIFICANT PRESENCE IN ASIA)
LOCATIONS (WE ARE THE ONLY COMPANY IN OUR INDUSTRY
WITH A SIGNIFICANT PRESENCE IN ASIA)
q 23 OF THE FORTUNE
100 COMPANIES AND 63 OF THE FORTUNE
500 ARE SCHAWK CLIENT-PARTNERS
500 ARE SCHAWK CLIENT-PARTNERS
WHO
WE ARE
©
2009 Schawk, Inc. All Rights Reserved
5
q SCHAWK IS A LEADER
IN THE BRAND POINT MANAGEMENT
CATEGORY, ENABLING COMPANIES OF ALL SIZES TO CONNECT
THEIR BRANDS WITH CONSUMERS TO CREATE DEEPER BRAND
AFFINITY
CATEGORY, ENABLING COMPANIES OF ALL SIZES TO CONNECT
THEIR BRANDS WITH CONSUMERS TO CREATE DEEPER BRAND
AFFINITY
q WITH A GLOBAL
FOOTPRINT OF 48 OFFICES, SCHAWK HELPS
COMPANIES CREATE COMPELLING AND CONSISTENT BRAND
EXPERIENCES BY PROVIDING INTEGRATED STRATEGIC,
CREATIVE AND IMPLEMENTATION SERVICES ACROSS BRAND
TOUCH POINTS
COMPANIES CREATE COMPELLING AND CONSISTENT BRAND
EXPERIENCES BY PROVIDING INTEGRATED STRATEGIC,
CREATIVE AND IMPLEMENTATION SERVICES ACROSS BRAND
TOUCH POINTS
WHO
WE ARE
©
2009 Schawk, Inc. All Rights Reserved
6
ON THE SHELF
IN THE STORE
ON THE
GO
GO
AT HOME
WHAT
WE DO
©
2009 Schawk, Inc. All Rights Reserved
7
RETAIL
CPG
PHARMA
ADVERTISING
PRIMARY
INDUSTRIES SERVED
©
2009 Schawk, Inc. All Rights Reserved
8
ENTERTAINMENT
TECHNOLOGY
FASHION/COSMETICS
PRIMARY
INDUSTRIES SERVED
©
2009 Schawk, Inc. All Rights Reserved
9
OPERATING
FACILITIES
©
2009 Schawk, Inc. All Rights Reserved
10
NORTH
AMERICA
EUROPE
ASIA
PACIFIC
CLIENT
ON-SITES
(74)* (25)
(7)
(7)
USA
(26)
CANADA
(4)
MEXICO
(1)
UK
(6)
BELGIUM
(1)
SPAIN
(1)
NETHERLANDS
(1)
(1)
AUSTRALIA
(2)
CHINA
(2)
SINGAPORE
(1)
JAPAN
(1)
INDIA
(1)
MALAYSIA
(1)
OFFICES
UNIQUE
GLOBAL REACH
*SOME
COMPANIES HAVE MULTIPLE ON-SITE LOCATIONS
©
2009 Schawk, Inc. All Rights Reserved
11
MARKET
DYNAMICS:
§ MAJORITY OF MARKET
PARTICIPANTS
ARE SINGLE LOCATION, NICHE FIRMS
WITH REVENUES OF LESS THAN $20M
ARE SINGLE LOCATION, NICHE FIRMS
WITH REVENUES OF LESS THAN $20M
§ INCREASING FOCUS ON
POS MARKETING
STRATEGIES
STRATEGIES
§ IMAGE CHANGES AND AD
SPENDING
DRIVE GROWTH
DRIVE GROWTH
§ INCREASINGLY
TECHNOLOGY INTENSIVE
§ CLIENTS REDUCING
MARKETING STAFF
AND OUTSOURCING FUNCTION
AND OUTSOURCING FUNCTION
§ CLIENTS INCREASINGLY
SEEKING
GLOBAL SOLUTIONS WITH LOCAL
KNOWLEDGE AND DELIVERY
CAPABILITIES
GLOBAL SOLUTIONS WITH LOCAL
KNOWLEDGE AND DELIVERY
CAPABILITIES
SERVING
A $30
BILLION
BILLION
GLOBAL
MARKET
SCHAWK'S
FOCUS
PUBLISHING
&
OTHER
OTHER
$15.0
PACKAGING
$6.0
$6.0
ADVERTISING
$9.0
SOURCE:
COMPANY ESTIMATE
LEADER IN FRAGMENTED MARKET
©
2009 Schawk, Inc. All Rights Reserved
12
q CLIENTS REMAIN
CAUTIOUS DUE TO THE ECONOMIC
ENVIRONMENT. SCHAWK WORKS TO DEVELOP REVENUE
GROWTH AND APPROPRIATE COST ACTIONS TO IMPROVE
EFFECTIVENESS AND WORLD CLASS SERVICE DELIVERY
CAPABILITIES
ENVIRONMENT. SCHAWK WORKS TO DEVELOP REVENUE
GROWTH AND APPROPRIATE COST ACTIONS TO IMPROVE
EFFECTIVENESS AND WORLD CLASS SERVICE DELIVERY
CAPABILITIES
q STRONG, MOTIVATED
MANAGEMENT FOCUSED ON
CAPITALIZING ON OPPORTUNITIES WITH NEW AND EXISTING
CLIENTS
CAPITALIZING ON OPPORTUNITIES WITH NEW AND EXISTING
CLIENTS
q CONFIDENCE IN THE
ABILITY TO ACHIEVE REAL COST &
OPERATING SYNERGIES
OPERATING SYNERGIES
q STRONGER
INFRASTRUCTURE SHOULD HELP DRIVE TOP AND
BOTTOM LINE GROWTH
BOTTOM LINE GROWTH
q FOCUS ON
BEST-PRACTICE SOLUTIONS THAT DELIVER
AGAINST
CLIENT NEEDS
CLIENT NEEDS
q FOCUS ON INFORMATION
TECHNOLOGY AND INFRASTRUCTURE
IMPROVEMENTS
IMPROVEMENTS
2010
FOCUS
©
2009 Schawk, Inc. All Rights Reserved
13
PACKAGE-GOOD
PLAYERS PLAN NEW-PRODUCT SURGE FOR 2010
AFTER
HUNKERING DOWN IN '09, COMPANIES SHOW SIGNS OF GOING ON OFFENSE
BY
JACK NEFF
PUBLISHED:
DECEMBER 07, 2009
q “PACKAGE-GOODS
MARKETERS ARE PROMISING BIGGER, BETTER AND MORE PLENTIFUL
INNOVATION AND NEW PRODUCTS IN 2010 THAN 2009…”
INNOVATION AND NEW PRODUCTS IN 2010 THAN 2009…”
q “TITANS PROCTER
& GAMBLE CO., RECKITT BENCKISER, KIMBERLY-CLARK CORP., ENERGIZER
HOLDINGS AND UNILEVER HAVE ALL SAID OR SIGNALED THAT THEY EXPECT TO STEP UP NEW-
PRODUCT ACTIVITY AND BY EXTENSION MARKETING SUPPORT IN 2010.”
HOLDINGS AND UNILEVER HAVE ALL SAID OR SIGNALED THAT THEY EXPECT TO STEP UP NEW-
PRODUCT ACTIVITY AND BY EXTENSION MARKETING SUPPORT IN 2010.”
q “SIGNS OF A 2010
NEW-PRODUCT SURGE INCLUDE A REBOUND IN CONCEPT TESTING AND A
PICKUP IN NEW PACKAGING ORDERS.”
PICKUP IN NEW PACKAGING ORDERS.”
q “P&G HAS BEEN
PERHAPS THE MOST FORTHRIGHT IN PROMISING MORE INNOVATION FOR 2010,
…SAYING THE FISCAL YEAR STARTED JULY 1 COULD BE ITS BIGGEST IN A DECADE.”
…SAYING THE FISCAL YEAR STARTED JULY 1 COULD BE ITS BIGGEST IN A DECADE.”
q “U.S. -BASED
CONSUMER-PACKAGE GOODS MARKETERS GENERALLY ARE RELATIVELY FLUSH WITH
CASH, FACING LOWER COMMODITY COSTS AND INCREASED MARGIN FLEXIBILITY THANKS TO THE
EFFECTS OF A WEAKER DOLLAR.”
CASH, FACING LOWER COMMODITY COSTS AND INCREASED MARGIN FLEXIBILITY THANKS TO THE
EFFECTS OF A WEAKER DOLLAR.”
q “…P&G CEO BOB
MCDONALD STAKING HIS REPUTATION ON A VOW TO TAKE BACK MARKET SHARE,
SHOULD MAKE FOR MORE VIGOROUS INDUSTRY NEW-PRODUCT COMPETITION THIS YEAR...”
SHOULD MAKE FOR MORE VIGOROUS INDUSTRY NEW-PRODUCT COMPETITION THIS YEAR...”
ADVERTISING AGE INDICATES CPG COMPANIES
WILL RETURN TO INNOVATION IN 2010
©
2009 Schawk, Inc. All Rights Reserved
14
LEADER
IN
FRAGMENTED
MARKET
UNIQUE
CLIENT
RELATIONSHIPS
COMPRE-
HENSIVE
HENSIVE
SERVICE
OFFERING
OFFERING
PLATFORM
POSITIONED
FOR GROWTH
FOR GROWTH
STRONG
CASH
FLOW
GENERATOR
UNMATCHED
GLOBAL
CAPABILITIES
HIGHLIGHTS
©
2009 Schawk, Inc. All Rights Reserved
15
SCHAWK!
THIRD QUARTER 2009
FINANCIAL REVIEW
THIRD QUARTER 2009
FINANCIAL REVIEW
©
2009 Schawk, Inc. All Rights Reserved
16
q CONTINUED COST
REDUCTIONS ($35+ MILLION
ANNUALIZED
SAVINGS FOR SIX QUARTERS ENDED SEPT 2009) AND Q3 2009
AND Q2 2009 SEQUENTIAL INCREASES IN REVENUE,
CONTRIBUTED TO BEST QUARTERLY RESULTS (EPS AND
“ADJUSTED EBITDA” FOR Q2 2009 AND Q3 2009), SINCE FY 2007
SAVINGS FOR SIX QUARTERS ENDED SEPT 2009) AND Q3 2009
AND Q2 2009 SEQUENTIAL INCREASES IN REVENUE,
CONTRIBUTED TO BEST QUARTERLY RESULTS (EPS AND
“ADJUSTED EBITDA” FOR Q2 2009 AND Q3 2009), SINCE FY 2007
q BELIEF IS THAT Q4
2008 AND Q1 2009 WERE THE “LOW REVENUE
POINTS” IN THE RECESSION CYCLE FROM A REVENUE
PERSPECTIVE
POINTS” IN THE RECESSION CYCLE FROM A REVENUE
PERSPECTIVE
q CLIENT SPENDING DOWN
IN 2009 AND 2008, VERSUS 2007 LEVELS
AS PRODUCT INNOVATION IS DOWN DRAMATICALLY AT
PACKAGING CLIENTS
AS PRODUCT INNOVATION IS DOWN DRAMATICALLY AT
PACKAGING CLIENTS
q Q3 2009 IS 6TH STRAIGHT QUARTER OF
SIGNIFICANT COST
REDUCTIONS
REDUCTIONS
2009
SUMMARY TO DATE
©
2009 Schawk, Inc. All Rights Reserved
17
Q3
2009 HIGHLIGHTS
q $22.3 MILLION 3RD
QUARTER DEBT PAYDOWN
§ $9.2 MILLION CASH
FROM INDEMNITY SETTLEMENT
($5 MILLION OPERATING INCOME)
($5 MILLION OPERATING INCOME)
q $55.5 MILLION NET
DEBT REDUCTION IN SIX
MONTHS ENDED SEPTEMBER 30, 2009
MONTHS ENDED SEPTEMBER 30, 2009
§ $45.1 MILLION NET
DEBT REDUCTION SINCE
DECEMBER 2008
DECEMBER 2008
q LEVERAGE RATIO OF
1.99X AT SEPTEMBER 30,
2009
2009
q BEST EPS QUARTER
SINCE Q2 2007, EXCLUDING
INCOME FROM THE Q3 2009 INDEMNITY
SETTLEMENT
INCOME FROM THE Q3 2009 INDEMNITY
SETTLEMENT
q 2ND STRAIGHT QUARTER OF
SEQUENTIAL
REVENUE INCREASES
REVENUE INCREASES
©
2009 Schawk, Inc. All Rights Reserved
18
Q3
2009 INCOME STATEMENT
(UNAUDITED)
(UNAUDITED)
©
2009 Schawk, Inc. All Rights Reserved
19
SEPT
YTD 2009 INCOME STATEMENT
(UNAUDITED)
(UNAUDITED)
©
2009 Schawk, Inc. All Rights Reserved
20
QUARTERLY SALES TREND 2007-2009
($000’s
USD, Unaudited)
©
2009 Schawk, Inc. All Rights Reserved
21
ADJUSTED
EBITDA (UNAUDITED)
($000’s
USD)
©
2009 Schawk, Inc. All Rights Reserved
22
RECONCILIATION
OF NON-GAAP TO GAAP (UNAUDITED)
($000’s
USD, Except for Per Share Amounts)
* Please
see the Company’s 2009 third-quarter earnings release for a full reconciliation
of this measure.
©
2009 Schawk, Inc. All Rights Reserved
23
* THE LEVERAGE RATIOS ARE
CALCULATED CONSISTENT WITH THE TERMS OF THE COMPANY’S DEBT AGREEMENTS IN PLACE
FOR THE RESPECTIVE TIME PERIOD SHOWN.
©
2009 Schawk, Inc. All Rights Reserved
24
(1) Q4
2008 DILUTED EPS INCLUDES CHARGES OF $1.98 FOR NON-CASH ASSET IMPAIRMENTS, AS
WELL
AS A PENSION WITHDRAWAL LIABILITY
AS A PENSION WITHDRAWAL LIABILITY
(2) Q3
2009 DILUTED EPS IS $0.33 PER SHARE, EXCLUDING INDEMNITY SETTLEMENT GAIN OF
$0.20
(1)
(2)
DILUTED QUARTERLY EPS
(UNAUDITED)
PREVIOUS 11 QTRS
(UNAUDITED)
PREVIOUS 11 QTRS
INVESTOR
PRESENTATION
DECEMBER 8, 2009
DECEMBER 8, 2009