Checkpoint Systems Reported Financial Results for The First Quarter Ended March 30, 2014

Checkpoint Systems, Inc. reported financial results for the first quarter ended March 30, 2014.

First Quarter GAAP Results
Net revenues from continuing operations in the first quarter of 2014 decreased 0.5%, to $147.4 million from $148.2 million in the first quarter of 2013. Foreign currency translation effects resulted in a $0.9 million or 0.6% decrease in net revenues. During the quarter, gross profit margins were 42.3% compared with 35.9% in the 2013 first quarter.

Selling, general, and administrative (SG&A) expenses in the first quarter of 2014 decreased $1.2 million or 2.1% to $54.3 million from $55.5 million in the first quarter of 2013. The first quarter of 2014 included approximately $2.2 million ($1.6 million in SG&A) of additional cost reductions from the global restructuring initiatives.

Operating income in the first quarter of 2014 was $2.2 million, $4.4 million higher when compared with operating loss of $2.2 million in the same period last year. Foreign currency translation effects resulted in a $0.7 million reduction in operating income.

Net earnings from continuing operations in the first quarter of 2014 were nil per diluted share versus a net loss of $0.12 per diluted share in the same period last year.

First Quarter Adjusted non-GAAP Operating Income, EBITDA and Earnings per Share
Adjusted non-GAAP operating income from continuing operations was $4.1 million in the first quarter of 2014, $10.7 million higher when compared with a loss of $6.6 million in the same period last year. Adjusted EBITDA was $11.8 million in the first quarter of 2014, $9.5 million higher compared with $2.3 million in the first quarter of 2013. Adjusted non-GAAP net earnings from continuing operations in the first quarter of 2014 was $0.04 per diluted share compared to net loss of $0.23 per diluted share in the same period last year.