By Trevor Shackelford November 4, 2005 -- Bowne & Co., Inc., (NYSE: BNE) announced their third quarter results today. The company reported a loss from continuing operations of $3.8 million, or $0.11 per share, compared to a loss of $5.3 million, or $0.15 per share, for the same period last year. Revenue for the third quarter was $159.4 million, compared to $138.4 million reported last year. Financial print revenue for the third quarter of 2005 increased $22.3 million, or 17% over the third quarter of 2004, primarily as a result of increased compliance reporting and mutual fund services. The results from continuing operations exclude Bowne Global Solutions (BGS), which was sold to Lionbridge Technologies, Inc. in September 2005. The company is implementing $10 million in annualized cost savings, primarily the result of a reduction in workforce. Contents of this Summary Quarter Highlights Segment Performance Guidance Raine Radar Q & A Quarter Highlights Excluding restructuring, integration and asset impairment charges and the gain on sale of a building, pro forma loss per share from continuing operations for third quarter of 2005 was $0.04, compared to $0.13 in the year-ago quarter. Including discontinued operations, net income for the third quarter and year-to-date was $4.5 million and $12.5 million, or $0.13 and $0.35 per diluted share, in the respective 2004 periods. Bowne entered into stock repurchase plan on August 1, 2005 for $35 million in common stock. As of October 25, 2005, the company repurchased 1,636,200 shares at an average price of $13.85. Sale of Bowne Global Solutions (BGS) completed on September 1, 2005. Segment Performance Financial Print Segment Bowne reported third quarter revenues for the segment of $152.3 million, compared to $130 million reported last year. Segment profit for the quarter was $9.5 million or 6.3% as a percentage of revenue, compared to $6.4 million, or 4.9% for the same period in 2004. Year-to-date financial print revenue was $509.9 million, up from $494 million. Mutual fund and compliance revenue increased 14% over 2004, offset by a 13% decrease in transactional revenue, which mirrors the decrease in transactional activity year-to-date. Year-to-date segment profit decreased $3 million from last year. As a percentage of revenue, was 11.6%, compared to 12.6% for the same period in 2004. Litigation Solutions Segment The company reported third quarter sales of $7.02 million, compared to $8.36 million reported for the same period in 2004. Litigation solutions third quarter and year-to-date revenue decreased $1.3 million and $4 million, respectively, from last year. However, segment profit increased $0.7 million as compared to the third quarter of 2004 and $1.2 million year-over-year. The increase in segment profit is attributable to an overall reduction in expenses, and increased marketing expenses in 2004. During the third quarter of 2005, the company recorded a pre tax impairment charge of $2.1 million related to its document scanning and coding business. Guidance The company’ financial outlook for 2005, remain unchanged from prior guidance given in July 2005 except of the additional restructuring and impairment charges and the addition of capital expenditure related to NY office relocation. Details are as follows: Total revenues approximately $650 to 695 million Financial print segment revenues, approximately $620 to $660 million, and segment profit, approximately $65 to $75 million Litigation solutions segment revenues, approximately $30 to $35 million, and segment profit, approximately $3 to $5 million. Depreciation and amortization expenses will be $28 million Interest expense $5.5 million Diluted EPS from continuing operations will be around $0.14 to $0.33 Capital expenditures, excluding NY office relocation $20 million Capital expenditures, NY office relocation will be $24 million Restructuring expenses from cost reductions will result in a fourth quarter pre-tax charge of $4 million. Raine Radar In the absence of BGS, the company is now 95% financial print. That business appears to becoming more profitable, but it is certainly sensitive to the level of activity in the financial market. With cost cutting measures now in place, the company should hopefully be able to return to profitability. Q & A Growth on the compliance side is coming from existing customers and on the mutual fund side growth is coming from new clients. The company believes that the enterprise segment is the fastest growing within the print industry. The company anticipates that NYSE proposals relating to 10-K print will impact less than 5% of revenue. Bowne believes that their assets provide a competitive advantage for the company in the financial print industry. Bowne management views their company as being service focused rather than a heavy asset intensive company within the next 4 to 5 years. Therefore, the company will concentrate on the people, processes, and technology tools rather than the brick and mortar assets.