Champion Reports Net Losses for Second Quarter and First Six Months

The losses for the second quarter and six months ended April 30, 2012 were reflective of pre-tax non-cash charges of $9.5 million associated with impairment of goodwill at the newspaper segment and an increase in the deferred tax asset valuation allowance of $15.2 million.

Marshall T. Reynolds, chairman of the board and CEO of Champion, said, “Our second quarter and first six months of 2012 was negatively impacted due to two charges associated with certain non-cash events. When we step back and look at the fundamental operations of the company, we have grown sales for the year to date period to $65.0 million from $62.9 million in the previous year or 3.4 percent and when we look at the second quarter of 2012 compared to the prior year we have grown sales 7.7 percent.