Prepared By R.R. Donnelley Financial -- Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 05/09/2008

SGS International, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 333-133825

Delaware		20-3939981
(State or other jurisdiction of		(IRS Employer
incorporation)		Identification No.)

626 West Main Street

Suite 500

Louisville, Kentucky 40202

(Address of principal executive offices, including zip code)

(502) 637-5443

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On May 9, 2008, SGS International, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2008 and which included information regarding an earnings conference call being held by the Company to discuss those financial results. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

The following is furnished as an exhibit to this report:

Exhibit Number Description

99.1 Press release issued by the Company dated May 9, 2008.

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		SGS International, Inc.


Date: May 09, 2008	By:	/s/ Benjamin F. Harmon, IV
		Benjamin F. Harmon, IV
		Vice President, General Counsel and Secretary

Exhibit Index

Exhibit No.		Description
EX-99.1		Press release

EX-99.1 2 rrd206006_24333.htm PRESS RELEASE DRAFT PRESS RELEASE

EXHIBIT 99.1

SGS REPORTS RECORD Q1 2008 REVENUE OF $83.3 MILLION, UP 10.8% VERSUS Q1 2007

SGS International, Inc., a provider of design-to-print graphic services to the consumer products packaging market, announces that sales in the first quarter of 2008 increased by 10.8% versus the same period in 2007. Sales for the first quarter increased by $8.1 million from $75.2 million in the prior year's quarter to $83.3 million in the first quarter of 2008.

The increase in sales was due to acquisitions which added $9.7M revenue in the first quarter of 2008 versus the first quarter of 2007. Excluding acquisitions, sales quarter-to-quarter declined by $1.6M, primarily due to the timing of orders received.

Net income for the first quarter decreased from $2.0 million last year to break-even in the current quarter. The decrease was primarily due to a gain on the sale of discontinued operations in the first quarter of 2007, and the revenue decline discussed in the prior paragraph.

EBITDA increased by 2.6% in the first quarter of 2008 from $15.9 million in 2007 to $16.4 million in the current year. Included in the first quarter EBITDA figures are integration and consolidation costs, acquisition expenses and management fees totaling $1.6 million in 2008 and $1.2 million in 2007. The reconciliation of this non-GAAP measure to a GAAP measure is as follows:

	2008	2007

Net income	$ 0.0	$ 2.0

Subtract:
Income from Discontinued Operations	0.0	0.7

Add:
Depreciation and amortization	6.5	5.1
Interest/Other expense	9.9	8.7
Income tax expense	0.0	0.8
EBITDA	$ 16.4	$ 15.9

Hank Baughman, CEO of SGS, said "Southern Graphic Systems delivered record first quarter sales in 2008. Our plan to grow through strategic and tactical acquisitions continues to be on target. During the first quarter of 2008 we added the Triad companies to SGS. We also completed the acquisition of the Backwell Company in early May of 2008. Both of these acquisitions fit well with the rest of SGS, and will be part of our success going forward. During the remainder of 2008 we expect to concentrate more on organic growth, consolidate operations and integrate recently completed acquisitions."

SGS International, Inc. is the parent company of Southern Graphic Systems, Inc., a global leader in the digital imaging and communications industry offering design-to-print graphic services to the international consumer products packaging market.

Conference Call Notification

SGS International, Inc. will hold a teleconference at 10:00 AM EDT on Friday, May 9, 2008. Please dial 1-800-374-0624 in the USA or 1-7066347233 internationally to access the call. The conference ID number is 46309880.

Please contact Jim Dahmus, CFO of SGS, at 502-634-5295 if you have any questions about this release.

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