Checkpoint Systems, Inc. (CKP) Posts Break-even Q1, Versus Expected Loss

Checkpoint Systems, Inc. (NYSE: CKP) reported Q1 EPS of $0.00, $0.11 better than the analyst estimate of ($0.11). Revenue for the quarter came in at $147.4 million, versus $148.2 million reported last year.

Checkpoint Systems, Inc. reaffirmed FY2014 guidance.

Checkpoint Systems' President and Chief Executive Officer, George Babich, said, "I am pleased with our first quarter performance, which marked the first time since 2010 that Checkpoint has reported a profitable start to a fiscal year. I am also pleased to announce that we have completed all projects in our expanded Global Restructuring Plan including Project LEAN. Each of these marks a significant milestone in our turnaround and I thank each and every Checkpoint employee who has contributed to this monumental effort.

"We are beginning to see the impact of the second phase of our three-year turnaround plan: process improvement and margin enhancement initiatives. While our revenues were flat excluding foreign currency fluctuations, our gross profit margins increased nearly 640 basis points over the first quarter last year. Gross profit margins were higher across nearly all product lines, driven by the benefits of Project LEAN, manufacturing cost reductions, improved manufacturing efficiencies, improved field service utilization, and supply chain freight efficiencies. Gross margins were also favorably impacted by the mix of revenues toward EAS consumables and Alpha, reflecting the recurring portion of our recent market share gains.”

Jeff Richard, Executive Vice President and Chief Financial Officer, said, "Checkpoint is embracing the principles of continuous improvement and focusing on profitable growth. Our balance sheet is at its strongest point in three years, with cash exceeding total debt by $35.8 million. While we continue to expect that retailers will remain cautious with their capital investments, we are currently on track to deliver our previously issued 2014 guidance.”

For earnings history and earnings-related data on Checkpoint Systems, Inc. (CKP) click here.

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Edwards Lifesciences (EW) Tops Q1 EPS by 2c; offers guidance
• Allison Transmission (ALSN) Tops Q1 EPS by 2c, Beats on Revenue; Offers FY24 Revenue Guidance