Workflow Management, Inc., today reported results for the three months ended October 31, 2003. The Company reported GAAP net income for its second quarter ended October 31, 2003 of $1.1 million or $0.08 per diluted share, up from GAAP net income of $517,000 or $0.04 per diluted share in the comparable period a year ago. For the three months ended October 31, 2003, revenues increased $5.3 million or 3.7% compared to the first quarter of fiscal 2004. EBITDA increased $3.2 million or 46.2% on a comparable basis excluding the non-recurring gains recorded in the first quarter of fiscal 2004. As a percentage of revenues, excluding non-recurring gains, EBITDA increased to 6.8% versus 4.8% in first quarter of fiscal 2004. Compared to the same quarter in the prior year, revenues of $148.2 million for the three months ended October 31, 2003 decreased 6.9%. Operating income was $7.8 million, or 5.2% of revenues, in the second quarter versus operating income of $8.9 million, or 5.6% of revenues, last year. EBITDA was $10.1 million compared to EBITDA of $11.4 million in the comparable period a year ago. Income from continuing operations for the three months ended October 31, 2003, excluding the after-tax impact of financing fees expensed with our August 1, 2003 credit facility amendment and the tax impact of pledging Canadian assets against U.S. debt as required by our lenders, was $1.9 million or $0.14 per diluted share versus income from continuing operations of $2.0 million or $0.15 per diluted share a year ago on a comparable basis. Since April 30, 2003, the Company's fiscal year-end, credit facility debt outstanding has decreased $11.6 million or 7.0% to $153.5 million. "Although we remain behind the prior year results, we are pleased that we have shown notable improvement in the major financial categories over our first quarter results. In particular, operating profit, net income and EBITDA all show double digit growth over the first three months of this fiscal year," stated Gary W. Ampulski, President and Chief Executive Officer. "We have begun to streamline our vendor base, eliminate unnecessary facilities, consolidate our supply chain and renegotiate or eliminate unprofitable customer and supplier relationships. Coupled with the integrations and cost saving initiatives implemented during the summer months, we believe that we are well positioned as the economy continues to strengthen." "We continue to reduce the level of debt outstanding on our credit facility and we are experiencing debt levels not seen on a consistent basis for over three years," stated Michael L. Schmickle, EVP and Chief Financial Officer. "We are pleased with the significant improvements in our working capital and we continue to make operational changes that we believe will further strengthen our balance sheet."