Cenveo Announces 2Q Results, Major Costs Savings
Cenveo Inc. announced 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." Click here to read Cenveo's quarterly report filed with the SEC.

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 interview with The Denver Post.

In a July 28 letter to Malone, Robert G. Burton, chairman, CEO and managing member of 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.

R.R. Donnelley Reports 2Q Profit
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. Full story.

Harland Reports Strong 2Q Results
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. Full story.

Deluxe Reports Consolidated Results
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. Full story.

Nashua Reports 2Q 2005 Results
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
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
Standard Register licensed its ExpeData® Print Solution that allows printing uniquely patterned digital paper to 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.

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 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." Full story.

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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 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 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. Click here or call Harriet Carter, CDC, at 800-336-4641.

TOP TEN

Here are this week's top unusual source requests received by DMIA:

1. Earring Cards; felt front/plastic backer; 2/1c; to hold/display earrings; QTY=5M
2. Glue Dots to affix various products to substrates; QTY=1M
3. Ice Cream Bands; paper; 4cp; QTY=500-1M
4. Table Aprons; 6-8"; QTY=3
5. Glue Applicator; used to apply fugitive glue to direct mail piece; QTY=10
6. Keys; promotional; brass; 2 1/2" long; QTY=1MM
7. Custom Imprinted Candy; Lifesaver; QTY=500
8. Hand Sanitizer; 2oz; with imprint; Carabiner handle; QTY=500-1M
9. 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
10. 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-only—all 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 Source Hotline Database online. For new sales ideas every day, try our 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 Cheryl Rush.

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. Full story.