0001181431-12-029280.txt : 20120511 0001181431-12-029280.hdr.sgml : 20120511 20120511090253 ACCESSION NUMBER: 0001181431-12-029280 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120511 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120511 DATE AS OF CHANGE: 20120511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SGS International, Inc. CENTRAL INDEX KEY: 0001359527 STANDARD INDUSTRIAL CLASSIFICATION: SERVICE INDUSTRIES FOR THE PRINTING TRADE [2790] IRS NUMBER: 203939981 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-133825 FILM NUMBER: 12832275 BUSINESS ADDRESS: STREET 1: 626 WEST MAIN STREET, SUITE 500 CITY: LOUISVILLE STATE: KY ZIP: 40202 BUSINESS PHONE: (502) 637-5443 MAIL ADDRESS: STREET 1: 626 WEST MAIN STREET, SUITE 500 CITY: LOUISVILLE STATE: KY ZIP: 40202 8-K 1 rrd344701.htm EARNINGS RELEASE 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):  05/11/2012
 
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 11, 2012, SGS International, Inc. (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2012 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 dated May 11, 2012.
 

 

SIGNATURES
 
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 11, 2012
     
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 dated May 11, 2012
EX-99 2 rrd344701_37760.htm PRESS RELEASE DATED MAY 11, 2012 DRAFT PRESS RELEASE

EXHIBIT 99.1

SGS REPORTS RECORD HIGH FIRST QUARTER SALES OF $99.1 MILLION, WITH NET INCOME OF $5.4 MILLION

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 2012 were $99.1 million, an all-time first quarter record. First quarter 2012 sales were up 8.1%, or $7.4 million, from the $91.7 million reported in the first quarter of 2011.

The increase in sales was primarily due to volume growth with large consumer packaged goods companies in the United States and Europe, but was also helped by acquisitions made during 2011. Organic growth increased first quarter 2012 revenue by $4.9 million versus first quarter 2011. Acquisitions made during 2011 helped first quarter 2012 revenue increase by $3.0 million versus 2011. The strengthening of the US Dollar versus the Canadian Dollar and the British Pound decreased first quarter 2012 sales as compared to first quarter 2011 sales by $0.5 million. Gross margin percentage (exclusive of depreciation) in the first quarter of 2012 was 37.7% compared to 40.6% in the first quarter of 2011. Gross margin was negatively impacted in 2012 by investments made in production resources to support future revenue growth.

Net income decreased by 28.4% from $7.6 million in the first quarter of 2011 to $5.4 million in the first quarter of 2012. The decrease was primarily due to the previously discussed investments to increase capacity, an increase in selling, marketing and administrative costs of $1.2 million to grow revenue in the future, and an increase in the effective tax rate from 20.6% in the first quarter of 2011 to 34.4% in the first quarter of 2012. The increase in the tax rate was due to an income tax benefit of $1.6 million recorded during the first quarter of 2011 associated with the reversal of withholding taxes on intercompany interest accrued but unpaid.

EBITDA (a non-GAAP measure) decreased by $1.1 million, or 4.9%, to $21.3 million for the first quarter of 2012 compared to $22.4 million for the same period in 2011. Included in these EBITDA figures are integration and consolidation costs, acquisition expenses and management fees totaling $0.8 million in the first quarter of 2012 and $0.4 million in the first quarter of 2011. The reconciliation of the non-GAAP measure, EBITDA, to the GAAP measure, net income, is as follows:

 

 

Quarter Ended

03/31/12

(in millions)

Quarter Ended

03/31/11

(in millions)
     

Net income

$ 5.4

$ 7.6
     

Add:

    

Depreciation and amortization

6.4

5.7

Amortization recorded through net sales

0.2

0.2

Other expense, net

0.3

0.3

Interest expense

6.2

6.6

Income tax expense

2.8

2.0
     

EBITDA

$ 21.3

$ 22.4

While EBITDA is a non-GAAP measure, management believes its inclusion enhances the users' overall understanding of the Company's current financial performance and future prospects. This non-GAAP financial information should be considered in addition to, and not as a substitute for, or superior to, results prepared in accordance with GAAP.

Hank Baughman, CEO of SGS, said "We are pleased with the growth in revenue we achieved during the first quarter of 2012. We have made growing the top line a focus, and we are performing well against that goal. We expect to see a return to historical margins later in the year as we put our cost structure back in line with revenue."

SGS International, Inc. is 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 11, 2012. Please dial (1-800-230-1092) in the USA or (1-612-234-9960) internationally to access the call. The conference ID number is 247633.

Please contact Jim Dahmus, CFO of SGS, at 1-502-634-5295 if you have any questions about this release.