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DMIA's Award-Winning E-Mail Newsletter for Members Only August 5,
2005
Open this issue in your browser: http://www.dmia.org/sol_center/enewsletter/05aug05.html
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NEWS
Cenveo Announces 2Q Results, Major Costs Savings <http://www.cenveo.com> Cenveo Inc. announced
<http://biz.yahoo.com/prnews/050801/lam091.html?.v=18>
results for the quarter and six months ended June 30. The net loss was $10.6
million for the quarter and $33.2 million for the six months. Sales for the
quarter were $422 million and $871 million for the six months ended June 30.
Last year, the net loss for the corresponding quarter was $2.1 million and
for the six months ended June 30, 2004, the net loss was $18.6 million. Cenveo's
net loss for the six months ended June 30, 2005, included restructuring,
impairment and other charges of $13 million and losses on sales of non-strategic
businesses of $1.3 million.
Net cash provided by operating activities in the quarter ended June 30 was
$16.9 million compared to $9.8 million provided during the same period last
year. It's still expected that operations will generate approximately $35
million of free cash flow for the full year.
President and CEO James Malone said, "The second quarter has been a turning
point for Cenveo. Building on the previously announced plan to reduce SG&A
expenses by $20 million on an annual basis, we have identified another $35
million of cost reductions that will be in place no later than January 1, 2006.
On this basis, and even before factoring in continued strong market successes,
we expect Cenveo to be at an annual EBITDA (earnings before interest, taxes,
depreciation and amortization) run rate of $190 million going into 2006. This
significant change in the expected EBITDA of the company has been made possible
by flattening the organization, reducing the size and changing the role of head
office and making Cenveo much more customer and operations oriented. We have
discontinued all programs and activities that are not designed to serve our
customers or support the high level of corporate governance that we are
committed to maintain." <http://biz.yahoo.com/e/050802/cvo10-q.html>
Click here to read Cenveo's quarterly report filed with the <http://www.sec.gov> SEC.
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At a Aug. 2 conference call, Malone said he believed that Cenveo can
become a low-cost producer and a value-added company. "We're pretty well
positioned to fix the foundation of the company and refocus the efforts to two
simple things: driving customer response and driving efficiencies and
productivity," he said.
"Cenveo must and can play a part in the consolidation opportunities in the
industry as it relates to strategic alliances, acquisitions, mergers and that
kind of activity," Malone said. He discussed some of his plans in a recent
<http://www.denverpost.com/business/ci_2883874>
interview with The Denver Post.
In a <http://www.burtonmg.com/news/072805.asp>
July 28 letter to Malone, Robert G. Burton, chairman, CEO and managing member of
<http://www.burtonmg.com>
Burton Capital Management LLC, said, "We believe that your letter of July 21, in
which you refuse to approve of the election of our nominees at the special
meeting in order to avoid the possibility that their election will trigger
certain 'change of control' obligations under Cenveo's debt instruments and
severance arrangements, is absurd and further evidence that the Cenveo board of
directors is not acting in the best interests of all shareholders."
Earlier, Cenveo said that it didn't approve of Burton Capital Management's
nominees for the Sept. 14 special meeting of Cenveo shareholders. On June 10,
Cenveo, Englewood, Colo., received a letter from Burton Capital Management,
Goodwood Inc., and others, calling for a special meeting of Cenveo's
shareholders. In May, Cenveo rejected a proposal from Burton Capital Management
that would have resulted in the appointment of Burton as the firm's chairman and
CEO.
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R.R. Donnelley Reports 2Q Profit <http://www.rrdonnelley.com>R.R.
Donnelley & Sons Company reported second-quarter 2005 earnings of $95.3
million on net sales of $1.9 billion compared to earnings of $40.7 million on
net sales of $1.8 billion in the second quarter of 2004. Gross margins increased
to 27.6 percent from 26.7 percent a year ago due to cost reduction actions and
procurement savings. <http://www.rrdonnelley.com/wwwRRD/News/News.asp>Full
story.
Harland Reports Strong 2Q Results <http://www.harland.net/>John H.
Harland Company reported strong results for the second quarter of
2005. Consolidated net income for the quarter was $18.8 million,
more than double the 2004 second-quarter net income of $8.9 million.
Consolidated sales for the quarter were $239.4 million, up 24.1 percent from
2004 second-quarter. <http://biz.yahoo.com/pz/050803/83286.html>Full
story.
Deluxe Reports Consolidated Results <http://www.deluxe.com>Deluxe Corp.
reported consolidated results of operations for the six months ended June 30.
Revenue was $871.8 million for 2005, up $253.9 million from 2004. The company
said that New England Business Service Inc. (NEBS) contributed revenue of $321
million. It acquired NEBS in June 2004. Gross margin was 65.3 percent compared
to 66.1 percent in 2004. <http://biz.yahoo.com/e/050804/dlx10-q.html>Full
story.
Nashua Reports 2Q 2005 Results <http://www.nashua.com> <http://www.nashua.com> Nashua Corporation
announced financial results for the second quarter ended July 1. Net sales for
the second quarter of 2005 were $73.2 million, compared to $72.6 million for the
second quarter of 2004. Gross margin for the second quarter of 2005 was $12.1
million compared to $13.6 million for the second quarter of 2004. EBITDA was
$3.3 million for the second quarter of 2005 compared to $3.8 million for the
second quarter of 2004.
Boise to Expand Operations <http://www.bc.com> Boise Cascade announced that
it has signed a letter of intent to lease a facility in Lathrop, California. The
30-acre site, which includes a 150,000-square-foot building, will be converted
into a new building materials distribution center to serve the northern
California and northern Nevada trade areas.
Additionally, the company announced plans for a major expansion of its
engineered wood products operations in Alexandria, La., to support customers in
the eastern United States. The plans are subject to regulatory approval. The
project will add approximately 4 million cubic feet of laminated veneer lumber
(LVL) capacity to the facility by early 2006. The company also plans to build
another 4 million cubic feet of capacity at the plant.
Standard Register, Swiss Company Sign Deal <http://www.standardregister.com>
Standard Register licensed its ExpeData(R) Print Solution that allows printing
uniquely patterned digital paper to <http://www.baumer.ch> Baumer AG, a printer of
business documents in Frauenfel, Switzerland. Baumer is a member of Standard
Register's Global Print Network program and is the second international company
to license the solution since its May launch.
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SOLUTION OF THE WEEK
Summer is Prime Time for Tax Form Sales Tax form season
peaks for manufacturers in mid-winter, so why is Marilyn Mraz sweating to get
direct mail pieces to her tax form clients this summer? "I like to torment
them," she says with a laugh. "If they don't order by the second reminder, I
place toothpicks under their fingers."
The toothpicks are a joke, but Mraz makes a point: Distributors who start
early have a definite advantage when selling tax forms. "Preparation is key when
selling anything, but it's the factor with tax forms," says Mraz, sales manager
of <http://www.transformtech.net>
TransForm Technologies, a distributorship in Norcross, Ga. "[Tax form] clients
typically wait until the last minute. If you're the first [distributor] to the
party, you'll be less likely to lose easy business." <http://www.dmia.org/sol_center/enewsletter/enews_articles/sow080505.html>
Full story.
Have a solution? <http://www.printsolutionsmag.com/dmia/ewklysow.html>
Click here to be featured in Solution of the Week
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WHAT'S NEW AT DMIA?
Print Solutions 2005 Conference and Expo The nation's
premier show for the business printing industry will be held Oct. 18-20 at the
Orange County Convention Center, Orlando, Fla. This year, the emphasis is on
in-depth training and usable solutions. You will gain the expertise and know-how
to do your job better and grow your business, whether you're in management or
sales. For details, visit <http://www.printsolutionsshow.com>
www.printsolutionsshow.com.
Train First If you have new employees or veterans who
need a refresher course on the basics of our industry, check out the Business
Printing Curriculum at DMIA's <http://www.printuniversity.org>
Print University. The courses combine distance learning with residence training,
and the results will put your company far ahead of the "do it yourself "
training curve. Don't wait! Class size is limited for this once-a-year
opportunity held in conjunction with the Print Solutions Conference and Expo in
Orlando, Florida, Oct. 18-20. <http://www.printuniversity.org/BusPrintingCur/BusPrintingCur.html>
Click here or call <mailto:hcarter@dmia.org> Harriet Carter,
CDC, at 800-336-4641.
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TOP TEN
Here are this week's top unusual source requests received by
DMIA:
- Earring Cards; felt front/plastic backer; 2/1c; to hold/display earrings; QTY=5M
- Glue Dots to affix various products to substrates; QTY=1M
- Ice Cream Bands; paper; 4cp; QTY=500-1M
- Table Aprons; 6-8"; QTY=3
- Glue Applicator; used to apply fugitive glue to direct mail piece; QTY=10
- Keys; promotional; brass; 2 1/2" long; QTY=1MM
- Custom Imprinted Candy; Lifesaver; QTY=500
- Hand Sanitizer; 2oz; with imprint; Carabiner handle; QTY=500-1M
- White Twisty Ties; similar to those used at grocery stores to tie produce bags; 5.5" x .5"; ties can be written on with regular ink pens; QTY=1M
- 3 Part Snapset Form; 4 1/4 x 9 3/4"; Pt. 1 is pressure sensitive label stock; Pt. 2 is 15# pink bond; Pt. 3 is 32# white ledger; carbon interleaved; prints black ink face-onlyall pts. alike; 2-hole punch through all pts. at top 1/4" - 2 3/4"; Pt. 1 has 12 slits, 1/2" apart, full across 4 1/4"; QTY=5-10M
If you have a source request—for anything—call the Hotline at (800) 333-2828
between 9 a.m. and 5 p.m. Eastern Time, or use the <http://64.115.51.134/index.htm>
Source Hotline Database online. For new sales ideas every day, try our <http://www.dmia.org/dmiasearch/am_pm/search/index.cfm>
1,000 Sales Ideas Database. Manufacturers, if you produce any of these items and
would like to check your listing with the Source Hotline, please email <mailto:crush@dmia.org> Cheryl Rush.
E-WEEKLY INSTANT POLL This week's question: Which
existing customers do you share the most profitable relationship with? <http://www.dmia.org/poll/poll080505.html>
Click here to vote.
SALES AND MARKETING TIP Clean that Email Address
List You have created the perfect message for your email campaign.
But do you know it's equally important to focus on its successful delivery?
Chances are that your current email address list has a number of significant
problems. <http://www.workz.com/content/view_content.html?section_id=457&content_id=6879>
Full story.
E-COMMERCE SPOTLIGHT Where is E-Commerce Headed? This
recent study looks at shoppers' behaviors and attitudes, shopping differences
between new and experienced web users, and trends that point to e-commerce's
future. <http://www.e-commerceguide.com/news/trends/article.php/3524581>
Full story.
PRODUCT OF THE WEEK 2004 Distributor Compensation & Benefits
Report This 294-page report includes actual compensation for all
positions at a distributorship. The data is broken down by sales volumes to
compare your company to like-sized firms. The report also includes sales per
sales representative and sales per employee for six levels of distributorships.
Find out how sales representatives are paid, benefits, experience levels, and
more. Code: DICOMP. Member Price: $149. To order, <mailto:tdavis@dmia.org> click here.
HOT SITES
Astrobiology Magazine This online magazine contains
thousands of short pieces on variety of topics such as life on Mars, extrasolar
life, stellar evolution and climate. Visitors also can view a list of "hot
topics," and sign up to receive new editions. The site has several thematic
areas, including one on the art of Astrobiology. <http://www.astrobio.net/news> Visit
the site.
Olga's Gallery This site claims to be one of the
largest and most comprehensive online collections with more than 10,000 works of
art. You can view work of artists from the world, buy the work and read
interesting tidbits of the artists' lives. <http://www.abcgallery.com/index.html
> Visit the site.
Print Education & Research Foundation DMIA and the
former International Association for Document Technologies Foundation joined
forces in 2003 and formed the Print Education & Research Foundation (PERF).
Headquartered with DMIA, PERF's mission is to provide research and education
that promote long-term growth and profitability of the industry's organizations
that embrace supply-chain options. PERF initiatives include developing research
reports on emerging products and markets; educational and training programs; and
finding ways to improve the industry's profitability and functionality. Its
staff is directed by a <http://www.dmia.org/about/foundation.html>
Board of Trustees. For more information, call (800) 336-4641.
GOT NEWS?
Email your press releases to: <mailto:pvasishtha@dmia.org?cc=bholt@printsolutionsmag.com;csachs@dmia.org&subject=E-Weekly
News> E-Weekly News. Send company logos as .gif or .jpg files (20k or less).
Submissions may be edited and logos may be resized.
_______________________________________________________________________________________ ISSN1552-3667
© Copyright 2005 <http://www.dmia.org> Document
Management Industries Association; 433 E. Monroe Ave.; Alexandria, VA
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click here. To unsubscribe or change your address, <http://www.printsolutionsmag.com/dmia/enewsunsub.html>
click here. To advertise, <mailto:ckelly@dmia.org> click
here.
The E-weekly is designed by Christine Sachs and edited by Preeti Vasishtha
with contributions from Darin Painter and Andy Brown. Contact us at <mailto:eweekly@printsolutionsmag.com>
eweekly@printsolutionsmag.com. Visit
Print Solutions Magazine at <http://www.printsolutionsmag.com>
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