Apparel labeling to provide solid foundation for future growth, Checkpoint
04 Mar '11
4 min read
Gross profit margin was 39.7% compared to 43.1% for the fourth quarter of 2009. The decrease was principally due to lower gross margins in the EAS consumables businesses.
GAAP operating income was $9.8 million compared to $19.7 million for the fourth quarter of 2009. Non-GAAP operating income excluding restructuring expenses and pre-acquisition reserve adjustments was $16.1 million, or 6.8% of net revenues. Non-GAAP operating income for the fourth quarter of 2009 was $23.9 million, or 10.1% of net revenues.
Restructuring expenses were $5.4 million due primarily to the initial stages of our selling, general, and administrative restructuring plan.
Selling, general and administrative expenses include $0.8 million in expense resulting from an adjustment to pre-acquisition reserves. Effective tax rate was an expense of 3.5% compared to a benefit of 5.1% for the fourth quarter of 2009.
Cash flow provided by operating activities was $18.9 million compared to cash flow provided by operating activities of $60.6 million for the fourth quarter of 2009.
At December 26, 2010, cash and cash equivalents were $173.8 million compared to $162.1 million at December 27, 2009, and total debt was $141.9 million compared to $116.9 million at December 27, 2009. Capital expenditures were $7.4 million for the fourth quarter of 2010.
Based on an assessment of current market conditions, Checkpoint is providing guidance for 2011. This guidance does not include the impact of unusual charges, such as additional restructuring expenses that the Company may incur during the year, and assumes a continuation of current exchange rates. This guidance includes the impact of Shore to Shore, Inc. commencing in the second quarter.
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