PALM BEACH, Fla.--July 21, 2003-- Workflow Management Inc. today reported results for the fiscal year and three months ended April 30, 2003. Fiscal Year End and Fourth Quarter Financial Results After giving effect to the costs and write-offs discussed below, Workflow today reported a GAAP net loss for the fiscal year ended April 30, 2003 of $39.9 million or $3.02 per diluted share versus net income of $9.2 million or $0.70 per diluted share in fiscal 2002. The net loss during fiscal 2003 consisted of a $29.4 million loss from continuing operations, or $2.23 per diluted share, and a $10.5 million loss from discontinued operations, or $0.79 per diluted share. Revenues for fiscal 2003 increased 0.6% to $622.7 million versus $619.0 million in the prior year. Fiscal 2003 EBITDA was $40.1 million before certain items discussed below compared to EBITDA of $38.7 million last fiscal year. Income from continuing operations, excluding the after-tax impact of the items listed below, for fiscal 2003 was $6.2 million or $0.47 per diluted share versus income from continuing operations of $8.9 million or $0.68 per diluted share a year ago. During fiscal 2003, Workflow recorded certain costs totaling approximately $41.2 million. The pre-tax effected items recorded in the results from continuing operations include: $18.0 million in a non-cash goodwill impairment charge $1.1 million inventory write-off included within cost of revenues $3.4 million in restructuring costs $2.7 million in asset write-downs $0.7 million in uncollectible notes receivable $4.0 million in severance and other employment costs $6.0 million loss from an interest rate hedge $1.8 million in fees for an unexecuted debt offering $3.5 million in financing fees and other banking related costs After applying a 26.0% effective tax rate to the items listed above and recording $5.1 million in additional tax expense associated with the deemed dividend treatment of pledging the Company's Canadian assets against the U.S. based credit facility, income from continuing operations was reduced by $35.6 million, or $2.70 per diluted share. "We continue to be encouraged about our core business. Workflow Management achieved steady revenues and an increase in EBITDA before certain items in 2003 notwithstanding a sluggish economy, weakness in the printing industry, uncertainty surrounding the Company's capital structure, and changes in executive management. This is further evidence of the value of Workflow's products and services to current and potential customers, the soundness of our strategy, the quality of our deliverables, and the capability of Workflow's managers and staff," stated Gary W. Ampulski, President and Chief Executive Officer. "Workflow's relationships with the business community continue to be strong. We and our suppliers are ready to meet the needs of an expanding customer base with our continued high standards of excellence. The Company is not in arrears with suppliers nor has our supply chain to our customers been interrupted as a result of current business conditions." For the three months ended April 30, 2003, the Company reported a GAAP net loss from continuing operations of $21.3 million, or $1.60 per diluted share, and $639,000 income from discontinued operations, or $0.04 per diluted share. Fourth quarter revenues decreased 3.9% to $152.5 million versus $158.7 million in the prior year. Fourth quarter EBITDA was $10.2 million, before $22.0 million in charges for restructuring, asset write-downs, severance costs and the goodwill impairment of the types discussed above, compared to EBITDA of $10.6 million last year. Income from continuing operations, excluding the after-tax impact of the foregoing items and the tax impact of pledging Canadian assets against U.S. debt, for the fourth quarter was $1.6 million or $0.12 per diluted share versus income from continuing operations of $2.8 million or $0.21 per diluted share in the comparable period a year ago. After applying a 17.6% effective tax rate to the foregoing items and recording $5.1 million in additional tax expense associated with the deemed dividend treatment of pledging the Company's Canadian assets against the U.S. based credit facility, income from continuing operations was reduced by $22.9 million, or $1.72 per diluted share. "Workflow has made great progress in recent times, successfully integrating operations in the New York, Toronto and Los Angeles areas, and is well underway with the amalgamation of our SFI and iGetSmart businesses. Going forward, our ongoing consolidation efforts will be combined with an increased focus on customer profitability and sales effectiveness. We believe this should result in additional cash flows to operate the business, improved operating margins and increased earnings," said Ampulski. This discussion of Workflow's financial results includes a number of non-GAAP financial measures. Specifically, EBITDA, EBITDA before certain items, and income from continuing operations excluding the after tax impact of restructuring costs and certain other charges are all non-GAAP financial measures. For all non-GAAP financial measures, the Company has presented in the summary financial information included with this press release the most directly comparable GAAP financial measures and has reconciled the non-GAAP financial measures with these most directly comparable GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to assist in understanding the ongoing, underlying operational performance of the Company. Specifically, the Company believes that these non-GAAP financial measures allow those interested to more easily assess quarter-to-quarter and year-to-year comparisons of the Company's financial performance. In addition, the lenders under the Company's credit facility have requested and utilize certain of these non-GAAP financial measures in their analysis of the Company's ongoing business performance.