Checkpoint Systems reports record sales for Q4, 2007
28 Feb '08
4 min read
Included in earnings from continuing operations for the fourth quarter of 2007 are after-tax charges of $2.9 million, or $0.07 per diluted share, related to previously announced management changes, and $1.4 million, or $0.03 per diluted share, related to previously announced restructuring activities.
These charges, included in earnings from continuing operations for the fourth quarter of 2007, were offset by an after-tax gain of $2.5 million, or $0.06 per diluted share, related to the sale of the Company's subsidiary in Austria as well as a net tax gain of $5.1 million, or $0.12 per diluted share, due to changes in the valuation of certain deferred tax accounts.
In the fourth quarter of 2006, earnings from continuing operations included an after-tax charge of $3.1 million, or $0.08 per diluted share, related to the Company's restructuring initiatives and an after-tax gain of $1.1 million, or $0.03 per diluted share, from the settlement of a capital lease from one of the Company's facilities.
Mr. van der Merwe continued, "On a constant dollar basis, increased revenue in the quarter was primarily driven by our acquisitions of the Alpha S3 product portfolio, SIDEP and Asialco, a 29% increase in sales in our U.S. CCTV systems integration business and a 13% increase in our global CheckNet service bureau business.”
“The performance of our CheckNet business was driven by 17% revenue growth in Europe, primarily due to contributions from ADS Worldwide, which was acquired in mid-November 2006. Sales of EAS hardware also increased, with revenues improving 9% in Europe. In our global EAS Labels business, sales in the Asia-Pacific region increased 22% for the quarter, partially offsetting a decline in revenue in the U.S. and Europe."
During the 2007 fourth quarter, the Company announced three acquisitions: Alpha S3, a comprehensive line of security solutions designed to protect high-theft merchandise in an open-display retail environment, SIDEP, a provider of Radio Frequency (RF) Electronic Article Surveillance (EAS) products and Shanghai Asialco Electronics Co., Ltd. (Asialco), a China-based manufacturer of RF-EAS labels.
"The integration of our recent acquisitions is progressing as planned and we are pleased with their initial contributions to our financial performance," continued Mr. van der Merwe. "Alpha S3 in particular is off to a fast start as it concluded a seasonally strong and profitable quarter. We look forward to continued contributions from our acquired businesses as we build on our position to become the leading provider of shrink management solutions to retailers, worldwide."
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