IBSA's CEO, Staff Leave in Management Change
After a disagreement involving the control and management structure of International Business Solutions Alliance LLC (IBSA), President and CEO Paul Keith has left the company. Mark McKinney, formerly IBSA's executive vice president, is its new CEO, and the alliance is relocating its headquarters from Bowling Green, Ky., to Indianapolis.

Keith said he gave IBSA's nine other, equal owners an "ultimatum" on April 17, giving them two weeks to consider a proposal that would have changed the alliance's leadership. "They didn't go for it, and this was a management dispute that couldn't be resolved," said Keith, who had served as the main voice of IBSA since 2002, when it was formed so distributorships could compete with the majors for large medical buying group contracts, Fortune 500 accounts and government business. "I tried to force an idea through but couldn't," Keith said. "'I told them, 'Well, if this doesn't pass, I've got to go.'" He said all of IBSA's other owners asked him to remain with the alliance, and the decision to leave was his. When he left, owners voted to name McKinney CEO.

Mark Musgrave, senior vice president and CFO of IBSA and vice president and co-owner of IBSA affiliate Promotek, Danville, Ill., confirmed that Keith left on his own accord but cited a different impetus. "We were at a point where we needed to get to a bigger town with more employees and resources to draw from," Musgrave said. "We wanted to go to Indianapolis, and Paul just didn't choose to move." He said moving IBSA's headquarters should spark more involvement from the alliance's 132 affiliates and 80 suppliers, mainly because Indianapolis is more accessible than Bowling Green. IBSA's owners chose Indianapolis because of its proximity to owners' offices and major affiliates, available office space and large talent pool, said John Heybach, IBSA's COO.

The day after he gave the ultimatum, Keith said, he told IBSA's five staff members about it and assured them of future employment regardless of whether they stayed with IBSA or left with him. Each resides in the Bowling Green area and decided to leave as well. Keith said he gave them 2-week paid vacations, and that some will work at Bowling Green-based Best Business Systems, the distributorship he ran prior to launching IBSA. "We're all going to meet May 16 to figure out what we're going to do from here—I'm not sure what that's going to be," he said.

Musgrave said IBSA already has replaced IBSA's former staff with consultants in web development and database design, plus two people responsible for accounting and reporting. (Among other reports, IBSA sends monthly reports to affiliates about how much volume they move through the alliance's suppliers.) "I think you're going to see a leaner, more efficient company," Musgrave said. "We started with the philosophy to sell and service national accounts, and that's what we're still doing. I don't think we've ever been in a better position to move forward."

Glenwood, Minn.-based distributorship American Solutions for Business also believes it is well positioned. American and IBSA have been jockeying for position in the medical market since both organizations won contracts last year from Novation, the largest volume group purchasing organization in the health care field. News of IBSA's management change comes only days after American acquired Health Print Ltd., a $8 million division of Amarillo, Texas-based Graham Data Supplies Ltd. that specializes in hospital sales. American's strategy to gain Novation business by acquiring a firm dedicated to medical-market sales is different from IBSA's strategy of training distributors to sell to those accounts. In September 2004, 175 IBSA owners and salespeople met for Novation training in Dallas, where they became certified by IBSA to call on Novation facilities. A prerequisite for attending the training in Dallas was a score of 80 percent or higher on an online test administered by IBSA that covered medical industry topics.

Musgrave, who said he wasn't familiar with the details of American's Health Print acquisition, said IBSA will continue to attract and train distributors who can sell to medical accounts, but "health care business isn't the sole focus of the alliance-we're looking for distributors who are well-rounded and can focus on any market." IBSA recently signed a single-source contract with FirstChoice Cooperative, a GPO located in Tyler, Texas. IBSA will supply a variety of printing, promotional items and technology solutions to FirstChoice's 17,000 health care members. The technology component covers patient admitting solutions and bar coding and RFID technologies, including software and hardware, Musgrave said. IBSA officials estimate that the 3-year contract could be worth as much as $300 million annually to IBSA affiliates.

One of those affiliates, Rich Stienstra, president of distributorship BRIDGE Information Systems Inc., Arlington Heights, Ill., said he wasn't contacted about IBSA's management change prior to receiving an email about it Wednesday, the same day IBSA issued this press release. "I'm surprised it happened," he said, "but Mark McKinney has been at the forefront of IBSA since the beginning. Paul Keith led the charge, and without his energy IBSA wouldn't have happened, but Mark was right there with him." Stienstra said he hasn't talked to other IBSA affiliates or suppliers to assess their feelings about the change, but he expects them to applaud the alliance's move to Indianapolis.

One affiliate applauding is Bonnie Boohaker, president of distributorship Innovative Business Products, Baton Rouge, La. "Indianapolis is more convenient and makes more sense because it's closer to key affiliates," she said. More importantly, Boohaker said, Mark McKinney will "run the operation very well, and I'm excited that he's at the helm." McKinney has helped Boohaker call on acute-care facilities and other health care accounts near Baton Rouge. "He and Paul [Keith] have different personalities-Paul is fast-moving and enthusiastic, and Mark is more laid-back and [contemplative]," she says. "I don't think the change will have much impact on affiliates' businesses or strategy."

Meanwhile, Keith began a web site to discuss his future plans. "I will be starting a new alliance, although the structure and goals of such an organization are still to be worked out," the site says. Keith said he plans to sell his interest in IBSA, a requirement before he can start another company. He owns 20 of IBSA's 190 units, he said, and met with an attorney yesterday to discuss drafting a non-disclosure agreement for prospective buyers of those units. Offers to buy the units would be subject to approval from IBSA's other owners.

Though Keith has "every intention" to start a new alliance, he said, the issue is when he'll be able to do that. He has a 2-year non-compete agreement with IBSA. (The agreement doesn't prevent him from returning to his distributorship, Best Business Systems.) Keith said he's "seeking release" of the agreement, and hopes IBSA's other owners help him accomplish that. To waive the non-compete, the owners would have to "be grateful for what I handed them, but I don't know how much gratitude is out there right now-not a lot," Keith said, adding that he will wait until June 2007 if he must. He said a future alliance wouldn't necessarily be in the printing industry because "I believe I can do this same thing in several markets." Keith emphasized that he has no ill feelings toward IBSA's owners and equated the management conflict to a "marriage gone sour." He said: "I wish them the best. There are nine smart, bright, energetic people left at IBSA, and there's no reason their future shouldn't be bright."

Heybach, former vice president of national account sales, will report to McKinney as COO with responsibility for the company's day-to-day operations. Reporting to Heybach will be Musgrave as senior vice president and CFO; Mike Luckett, as senior vice president of affiliate strategy and relations; and Roger Courson, senior vice president of supplier strategy and relations. Also reporting to Heybach will be Rodney White, vice president of health care sales based in Dallas, and Michelene Bajakian, national account executive based in Chicago. IBSA will continue to maintain and expand its sales offices in Chicago and Dallas.

Click here to read a Print Solutions profile of IBSA, published in May 2004.

Cenveo Q1 Loss Widens
Cenveo Inc., Engewood, Colo., reported a loss of $22.6 million for the first quarter, compared a loss of $16.5 million in the same period last year. The company said it was hurt by restructuring charges, including $8 million from closing one of its plants, and rising raw-material costs. Sales for the period totaled $449.6 million, a gain of 6 percent from $423.7 million a year earlier.

Former MeadWestvaco Papers Group Now NewPage Corp.
NewPage Corporation, Dayton, announced that it will begin operating as an independent company focused solely on the coated and carbonless paper business. This follows Stamford, Conn.-based MeadWestvaco Corp.'s announcement of the Papers Group sale to Cerberus Capital Management LP, a private, New York-based investment firm. NewPage has five fully integrated pulp and paper mills in the eastern United States, supported by 6,300 employees. It made 2.5 million tons of paper last year and generates $2.3 billion in annual sales. Full story.

Revised Standard Mail Rates Effective June 1
Revised standards for material eligible for mailing at Standard Mail postage rates will be effective June 1. The U.S. Postal Service recently revised circumstances in which mail containing "personal" information may be eligible for Standard Mail rates rather than First-Class Mail rates. It also has reorganized and renumbered other standards for First-Class Mail and Standard Mail to better describe the service provided under each class. For more information, visit www.usps.com, and download Postal Bulletin #22142 issued Nov. 25, 2004.

R.R. Donnelley Reports Strong Q1 Results
R.R. Donnelley & Sons Company, Chicago, reported first-quarter 2005 earnings from continuing operations of $109.2 million on net sales of $1.9 billion compared to a loss from continuing operations of $41.4 million, on net sales of $1.3 billion in the first quarter of 2004. The first-quarter 2005 results from continuing operations include charges for restructuring ($10.9 million), impairment ($1.3 million) and integration ($2.5 million) totaling $14.7 million, primarily related to the ongoing integration of its Feb . 27, 2004 acquisition of Moore Wallace. Gross margin increased to 29 percent in the first quarter of 2005 from 20.5 percent in the first quarter of 2004, reflecting, in part, the benefits from cost reductions and procurement savings.

Consolidated Graphics Earnings Rise
Consolidated Graphics Inc., Houston, announced financial results for its fourth quarter and year- ended March 31, 2005. Sales for the quarter were $197.7 million, up 8 percent compared to $183.4 million a year ago. Net income was $8.6 million, an increase of 39 percent compared to $6.2 million reported for the March 2004 quarter. For the year-ended March 31, total sales were a record $779 million, up 10 percent compared to $708.1 million in 2004. Net income in 2005 totaled $32.7 million, an increase of 64 percent compared to net income of $20.0 million last year. Full story.

Price Hikes Raise IP Revenues
International Paper, Stamford, Conn, benefited price increase, with Q1 revenues the highest for a first quarter in four years, although overall sales volumes were lower than in the 2004 fourth quarter. Higher raw material costs, particularly for fiber and caustic soda, continued to have a negative impact on earnings. A higher effective tax rate and increased special items also reduced net earnings compared with the 2004 fourth quarter, the company said. Q1 net sales were $6.6 billion, compared with $6.1 billion in the first quarter of 2004 and $6.6 billion in the fourth quarter of 2004. Net earnings totaled $77 million in the 2005 first quarter, compared with net earnings of $73 million in the first quarter of 2004.

Additionally, the company completed the sale of its Fine Papers business to Mohawk Paper Mills Inc., Cohoes, N.Y. Subject to certain adjustments to be made after closing, the company anticipates cash proceeds from the transaction will be approximately $60 million. The business includes the writing, text and cover papers, and artist papers segments.

SR Q1 Revenue Up
Standard Register Q1 revenue increased $11.7 million, or 5.3%, compared with the first quarter of 2004. "We continued to make progress in negotiating higher document selling prices in order to recover the three paper cost increases incurred during 2004. Higher prices accounted for about two-thirds of the revenue increase in 2005. The balance of the revenue increase was attributed to increased unit volume, primarily as a result of our commercial print initiative," the Dayton,Ohio-based company reported. "Approximately 35% of our revenue is generated through contractual agreements with a number of healthcare group purchasing organizations." Full story.

BBF Printing Solutions' Open House Next Week
BBF Printing Solutions, Largo, Fla., announced that two special guests will appear at its Open House 2005 Event scheduled from May 11-13. Gus Stavros, the company's founder will unveil the company's new, $3 million press. Pinellas Park Mayor William F. Mischler will attend the open house to show support for the local company and launch the new printing press.

Top 100 Distributors Info Is Due Now!
Final call for distributors to be included in Print Solutions' June 2005 Top 100 Distributors issue. The issue will rank distributors by fiscal 2004 sales and include top sales by product, top sales per employee, the fastest-growing distributors and top sales by niche market. The best way to submit your Top 100 information is to complete the online form. If you'd like to fax a hard copy instead, download a PDF and fax completed pages to Darin Painter, Managing Editor, at (703) 549-4966.

Call for Entries: 2005 Print Solutions Magazine PEAK Awards
The deadline for entries is June 1! Win a Print Excellence And Knowledge (PEAK) Award and prove your talent to the marketplace! A PEAK award demonstrates that your work is the best in the industry. PEAK awards recognize companies that meet customers' printing needs through creativity in design, manufacturing, fulfillment, cost savings reporting or other services that solve problems or improve a client's business. Click here for complete information and entry forms.

Chambers of Commerce Get Customized Newsletters
When Carr Printing won a bid to produce newsletters for four chambers of commerce along Utah's Wasatch mountain range, the company's rewards went beyond gaining the accounts. Carr's digital printing process allows it to personalize advertisements and produce customized newsletters with common content for the Wasatch Business Connection. The result: a community service that attracts attention from area businesses—other potential customers. Full story.

Have a solution? Click here to be featured in Solution of the Week

WHAT'S NEW AT DMIA?

The industry is moving faster than ever, and DMIA's TRADEMarts make it easy and convenient to stay updated. Attending a TRADEMart is your best chance to take advantage of the product innovations and dynamic ideas that are hitting the marketplace.

Upcoming TradeMart Dates and Locations
May 11	Independence, OH (Cleveland)	Seminars
May 12	Novi, MI (Detroit)	Seminars

Independence Seminars:
Selling Variable Data Solutions for a Marketing Campaign —Wise
Pressure Seal for the Financial Services Market--Distributor Case Studies
—InfoSeal, LLC
Closing The Sale With Pressure Seal —Wilmer
Selling Direct Mail —Mike Weinzierl, Professional Graphic Communications, Inc., DMIA Distributor
Don't Touch that Stationery Order —Business Stationery Inc.

Novi Seminars:
Selling Variable Data Solutions for a Marketing Campaign —Wise
Pressure Seal for the Financial Services Market--Distributor Case Studies
—InfoSeal, LLC
Closing The Sale With Pressure Seal —Wilmer
Technology Driven Print —Telemark

For more information on TradeMarts, click here.

2005 Manufacturer & Supplier Print Conference
Join print manufacturers and suppliers from May 18-20 in Philadelphia at this business development conference and find out where the industry is headed and where you might want to go in the next five years. The industry's most noted experts will share their insight on emerging markets, new products and alternative distribution channels. For details, click here.

TOP TEN

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

1. Grading Template Sets; 8 1/2" x 11"; .020 gauge frosted transparent vinyl; 64 holes per template; prints 1 color; 4 templates - each prints a different color; shrink wrap together 1 each of 4; QTY=750 sets
2. Children's Board Book; 8 5/8" x 6 1/2"; prints 4cp/4cp; 6 pages; thread stitched; half moon die-cut at top; 24 lots QTY=1MM
3. Disposable Patient Exam Gowns; open front; 50 per carton; QTY=3 cartons
4. Cut provided 8 1/2" x 11" letterhead to 5 1/2" x 8 1/2"; pad in 50's-100's; QTY=8M-10M sheets
5. Ice Sculpture Bags; 36" x 24"; plastic; QTY=600 per month
6. Coffee/Cake Mix Bags; Poly-lined; prints 3PMS-4cp; tin tie closure; QTY=1M-5M-10M
7. Illuminated Hanging Signs; 14" x 44"; prints 2-4 colors; QTY=5
8. Vinyl Gloves; powder-free; 1M per box; QTY=2MM boxes
9. Sports/Energy Drink; private label; prints up to 4cp; packaged in pouches; QTY=minimum+
10. POP Display Base Wrap; prints 4cp; 3' x 50'; QTY=minimum+

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
Research the Industry
An important part of marketing is your target audience. You need to understand who you are marketing so that you can do it in the best possible way. You also need to research the industry, look into the competition and compare the marketing techniques of those companies. Full story.

E-Commerce Spotlight
Internet Businesses Grow
Seventy-two percent of American adults have considered starting their own businesses and 75 percent said the internet has made it easier to launch a small business, according to a survey. Full story.

Product of the Week
Pantone® Ultimate
Survival Kit
This is a great tool for everyone in the printing industry. Each kit contains a color formula guide solid coated, a color formula guide solid matte, a color formula guide solid uncoated, a process guide coated, a process guide uncoated and a process color system guide. Code: PSWOP. Member Price: $242. To order, contact Tina Davis.

Hot Sites
HGTV Mother's Day

Don't forget: Mother's Day is Sunday (May 8). HGTV (Home & Garden Television) has come up with 10 gift ideas for you. Visit the site.

Great American Ink

This animation fine art gallery has the finest collection of original production cels, drawings and concept art in the world. It has rare, historic, beautiful vintage collection of timeless animation fine art spanning the last nine decades of movies and cartoons. Visit the site.

Retirement Capital Group Webcast on Benefit Security
Retirement Capital Group Inc., San Diego, will hold a webcast on nonqualified benefit security between noon and 1 p.m. (EST) on May 11. William L. MacDonald, CEO of Retirement Capital Group, will discuss the process for evaluating benefit security and finding the right device to meet corporate objectives. He also will discuss rabbi trust, secular trust, ISOP trust (providing bankruptcy protection), retention trust and corporate annuities. For more information, visit www.retirementcapital.com.

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 Board of Trustees. For more information, call (800) 336-4641.

Got News?

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