Mail-Well Reports 1Q Results, Sales up 5%, Profits Down
Friday, April 27, 2001
ENGLEWOOD, Colo. (April 26, 2001) - Mail-Well, Inc. (NYSE-MWL) today announced that first quarter earnings were $0.08 per share, in line with revised forecasts announced in early March. For the three months ended March 31, 2001, Mail-Well revenues increased principally due to acquisitions and reached $590 million compared to $564 million in the first quarter of 2000. Net income was $4 million compared to $18 million earned in the corresponding period last year. Total debt including securitization was reduced $85 million during the quarter and $256 million since this time last year. "The economic slowdown has caused many of our customers to sharply reduce their advertising expenditures," said Paul V. Reilly, President and CEO. "Our Commercial Print Segment, where margins and results are disappointing, has been significantly affected by these cutbacks while our Envelope, Printed Office Products and Label Segments performed very close to plan. All of our businesses are taking the necessary actions to minimize the impact of the slowing economy. Many of the restructuring plans announced at the beginning of the year have been completed and we will see the benefits of these initiatives as the year progresses." "We continue to be successful in our debt reduction program," Mr. Reilly continued. "Total debt at March 31, 2001 was reduced by $85 million in the quarter and $256 million from its high at the end of the first quarter last year. Also, in anticipation of a possible continued economic downturn, we requested and received from our bank group a change to our debt covenants relating to our leverage ratio. Although the company was well within its old leverage covenants during the quarter, we felt it was important to allow the company increased flexibility within its credit agreement given the prevailing economic conditions. This will enable management to focus on the company's business and strategic plan during the year." "We are also well into our strategic reassessment which we announced in January," Mr. Reilly added. "This reassessment focuses on improving our balance sheet, reaping the benefits of working as an integrated entity and creating sustainable growth and shareholder value. The findings from this reassessment will be shared publicly in the second quarter."