EXHIBIT 99.1
[SCHAWK LOGO]
AT SCHAWK, INC.: AT DRESNER CORPORATE SERVICES:
JAMES J. PATTERSON KRISTINE WALCZAK
SR. VP AND CFO 312-726-3600
847-827-9494 kwalczak@dresnerco.com
jpatterson@schawk.com
SCHAWK INC. ANNOUNCES IMPROVED OUTLOOK
FOR SECOND QUARTER AND FULL YEAR 2004 RESULTS
o Net sales and earnings expected to be a record for quarter and
six-month year-to-date periods
o Increased sales due to revenues from acquisitions, new business wins
and "low-carb" and other health conscious packaging changes
o Earnings per share for the quarter estimated at a record $0.28 to
$0.30 per fully diluted share
DES PLAINES, IL, JULY 12, 2004--SCHAWK, INC. (NYSE: SGK), one of North America's
leading providers of digital imaging graphics services to the consumer products
industry, today announced that, based on preliminary results, it anticipates
significantly improved results for the second quarter and full year 2004 as
compared to previous period results.
SECOND QUARTER 2004 OUTLOOK
Commenting on the preliminary results from the quarter, David A. Schawk,
President and Chief Executive Officer, noted, "We expect to announce record
results in net sales and profits for the three-month and six-month periods when
we report final results on July 27, 2004. Net sales for the second quarter are
anticipated to be in the range of $63 to $65 million, and our earnings per share
is anticipated to be in the range of $0.28 to $0.30 cents per fully diluted
share."
As points of reference, in the quarter ended March 31, 2004, net sales were
$52.1 million, and earnings per share were $0.16 per fully diluted share. In the
prior-year second quarter, net sales were $51.6 million and earnings per share
were $0.21 per fully diluted share.
Mr. Schawk continued: "As we stated in the first quarter earnings release, March
2004 was a record sales month for the Company. These strong sales results
continued during the second quarter with record months in April, May and June,
and were driven by consumer food and beverage products packaging clients seeking
to meet changing consumer demand for "low carb" and "Better for You" new
products, along with recipe changes to their favorite brands. Our ability to
help these clients quickly bring their new products to market has enabled them
to capitalize on these demands. In addition, we believe that our three
acquisitions at year-end 2003 also contributed to increased sales during the
quarter. Finally, a number of new client wins over the past twelve months have
started to make a significant impact, as these accounts have begun to fully
utilize Schawk's broad array of services.
-more-
SCHAWK INC. Q2 2004 PRELIMINARY RESULTS
ADD 1
FULL YEAR 2004 OUTLOOK
Mr. Schawk continued; "Based on current trends, we expect net sales for 2004 of
$230 million, compared to $201 million in 2002, and earnings per share for the
full year in the range of $0.85 to $0.89 per share, compared to $0.78 reported
in 2003.
"We are gratified to see verification that we have properly positioned ourselves
to meet the changing needs of our clients, and we are encouraged by the strong
preliminary results from the second quarter and first six months of 2004. We
look forward to reviewing our results for the second quarter on July 27, 2004 in
our earnings release and on our earnings conference call."
EARNINGS RELEASE, CONFERENCE CALL AND WEBCAST
Schawk Inc. will release second-quarter 2004 financial results on Tuesday, July
27, 2004, before the market opens.
Schawk has also scheduled its conference call for Tuesday, July 27, 2004, at
9:30 a.m. central time. Hosting the call will be David A. Schawk, president and
CEO, A. Alex Sarkisian, executive vice president and COO, and John Cragen, vice
president and Corporate Controller.
To participate in the call, please dial 800-219-6110 or 303-262-2144 at least
five minutes prior to the start time and ask for the Schawk, Inc. conference
call, or on the Internet, go to http://www.actioncast.acttel.com, event ID
23737. If you are unavailable to participate on the live call, a replay will be
available through August 3 at 11:59 p.m. eastern time. To access the replay,
dial 800-405-2236 or 303-590-3000, enter conference ID 11003204, and follow the
prompts. The replay will also be available on the Internet at
http://www.actioncast.acttel.com, event ID 23737, for 30 days.
Schawk, Inc., headquartered in suburban Chicago, is a leading supplier of
digitized high resolution color graphic services, brand consulting and design
and an array of digitally based workflow solutions, all aimed at bringing
enhanced value to its clients. Schawk provides these advanced services for the
food, beverage, and consumer products packaging, point of sale, and advertising
markets.
Certain statements in this press release are forward-looking statements within
the meaning of Section 21E of the Securities and Exchange Act of 1934, as
amended and are subject to the safe harbor created thereby. These statements are
made based upon current expectations and beliefs that are subject to risk and
uncertainty. Actual results might differ materially from those contained in the
forward-looking statements because of factors, such as, among other things, the
strength of the United States economy in general and specifically market
conditions for the consumer products industry, the level of demand for Schawk's
services, loss of key management and operational personnel, our ability to
implement our growth strategy, the stability of state, federal and foreign tax
laws, our ability to identify and exploit industry trends and to exploit
technological advances in the imaging industry, our ability to continue to
implement our restructuring plan, the stability of political conditions in Asia
and other foreign countries in which we have production capabilities, terrorist
attacks and the U.S. response to such attacks, as well as other factors detailed
in Schawk, Inc.'s filings with the Securities and Exchange Commission.
For more information about Schawk, visit our website at www.schawk.com.
###