ENGLEWOOD, Colo., Aug. 4 -- Mail-Well, Inc., announced its results for the second quarter and six-month period ended June 30, 2003. The net loss for the quarter was $2.3 million, or $0.05 per share, and the net income was $0.4 million for the six months of 2003 on sales of $408 million and $835 million respectively, compared to a net loss of $38.2 million or $0.80 per share and $171.6 million or $3.60 per share, on sales of $421 million and $864 million during the same periods of 2002. These results reflect an after tax loss on the disposition of discontinued operations of $0.6 million in the second quarter of 2003. In the three months ended June 30, 2002, Mail-Well's net loss also included a charge for restructuring of $9.3 million, a loss of $8.7 million on debt refinancing, together with impairment losses related to discontinued operations and assets held for sale of $19.3 million, none of which recurred in 2003.
EBITDA for the quarter and the first six months of 2003 was $27.3 million and $58.6 million, respectively, representing improvements of 39% and 20% over the $19.6 million and $48.7 million achieved by ongoing operations in the same periods in 2002. An explanation of the company's use of EBITDA for comparative purposes is provided below.
Net cash provided by operating activities in the quarter ended June 30, 2003 was $33.6 million, reversing the use of cash seen in the first quarter of this year, as expected.
Paul Reilly, Chairman, President and CEO, stated, "The second quarter, which has always been seasonally weaker, produced results in line with our expectations. This was achieved on two percent overall higher sales when excluding the $21 million of sales from the operations that we have divested since last year. The year over year increase in sales and profitability in the Print Segment has continued as expected and has more than offset the drop in volumes and prices experienced in both the Envelope and Printed Office Products segments both of which continue to return EBITDA margins in the double digit range. We continue to expect that the full year 2003 will show EBITDA in a range of $130 to $140 million."
Reilly also stated, "Our focus on Total Customer Solutions and our mobilization effort within all of our units are developing as significant drivers of growth. Additionally, the federal 'Do Not Call' program may result in a reallocation of budgets from telemarketing to direct mail to reach prospects and customers. This, together with normal seasonality and our ability to mitigate pricing pressures by reducing costs as a result of previous initiatives, should provide for sequential increase in profitability in the third quarter."
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