Second Quarter Highlights include (all results compared to the second quarter of 2019 unless otherwise noted): *Net income of $11.4 million or $0.19 per diluted Class A share decreased compared to net income of $13.6 million or $0.23 per diluted Class A share. Net income, excluding the impact of adjustments(1), of $56.5 million or $0.95 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $47.6 million or $0.81 per diluted Class A share. Adjusted EBITDA(2) increased by $19.3 million to $181.3 million. *Net cash provided by operating activities increased by $37.6 million to $99.8 million. Adjusted free cash flow(3) increased by $32.9 million to $79.0 million. *Total debt decreased by $260.2 million to $2,682.3 million. Net debt(4) decreased $242.8 million to $2,609.9 million and decreased $107.4 million sequentially from the first quarter of 2020.
TC Transcontinental Packaging is proud to support the vital food industry, a sector considered critical by governments, and contribute to the maintenance of essential services in communities during the COVID-19 global pandemic. While some of the sector’s verticals are experiencing a decrease in volumes due to government restrictions or the economic slowdown, the verticals related to food and other essential consumer staples, which represent the large majority of the sector’s activities, continue to fully operate in a safe and secure environment. "Our customers and the population can count on us. We are meeting the requirements of government guidelines, and adjusting constantly our safety practices to ensure the continuity of our operations as a vital packaging provider to essential services and industries, said Thomas Morin, President of TC Transcontinental Packaging. The safety of our people remains our top priority. We have implemented stringent policies and responsible behaviours to minimize movements, maintain physical distance, impose quarantines and maintain a clean work environment to offer a safe and secure environment within our facilities.”
Since the beginning of June 2020, Dr. Kurt Maier (CEO of Heinzel Group) has been the new President of Austropapier, the Association of the Austrian Paper Industry. He succeeds Christian Skilich, who has represented the Austrian paper industry both nationally and internationally since 2018. With Kurt Maier, CEO of the Heinzel Group, a further high-profile board member and industry expert is now taking the lead in representing the interests of the paper industry. Born in Graz in 1961, he received his doctorate from Graz University of Technology in 1991. From 2005 to 2016 he was board member of Zellstoff Pöls AG, first as Chief Financial Officer, later as Chairman of the Board. He then moved to the Heinzel Group headquarter in Vienna, where he has been CEO since 2016.
The Koehler Paper Group has joined the 4evergreen alliance, thereby underlining its efforts to ensure sustainability and protect the environment. This forum was created by the Confederation of European Paper Industries (Cepi) with the aim of increasing the role played by fiber-based packaging in achieving a sustainable circular economy, while at the same time also minimizing the impact of packaging on our climate and environment. 4evergreen brings together the entire value chain and unites it behind a common goal: To increase the role of the bio-based economy within the packaging industry. The alliance is made up of paper manufacturers, food and drink brands like Nestlé and Danone, and companies within the packaging industry (including market leaders Tetra Pak and AR Packaging), but it also includes brands, retailers, and suppliers within the technological and material sectors, right up to those working in sorting and recycling.
Adweek has been sold from one private equity firm to another. The advertising industry publication, which marked its 40th anniversary last year, has been acquired by Los Angeles-based private equity firm Shamrock Capital Advisers, both parties announced Tuesday morning. The seller, Toronto-based PE firm Beringer Capital, had owned Adweek for the past four years, acquiring it in July 2016, about six months after the breakup of its former parent company, Prometheus Global Media, by then-owner Guggenheim Partners.
As a brand that believes in freedom, equality and a life with no boundaries for all – not just some, Banana Republic aims to continue empowering people through clothing. In response to the current crisis in America, Banana Republic Will Work for a Better Republic by donating more than $20 million of new clothing to those in need, including millions of unemployed Americans who need support getting back to work and getting back on their feet. In partnership with Delivering Good – a nonprofit organization that unites retailers, manufacturers, foundations and individuals to support Americans affected by poverty and tragedy – Banana Republic will donate clothing to a variety of partner organizations in states that have been most impacted, including Hour Working Women Program in New York, Central City Neighborhood Partners in Los Angeles, Family Focus Englewood in Chicago, among others. This donation will help people as they build a brighter future.
Grainger announced it has entered into a definitive agreement to sell Fabory Group to Torqx Capital Partners, a Dutch private equity company. Grainger will continue offering broad line MRO products to customers in Western Europe through Cromwell and Zoro. "I want to thank the Fabory team for their innovative and customer-focused approach," said DG Macpherson, Chairman and CEO of Grainger. "I'm confident the acquisition by Torqx will better align with Fabory's growth objectives. At the same time, Grainger remains focused on providing value to our customers, executing our strategy and delivering profitable growth through our high-touch and endless assortment offerings."
Environmental media organization Grist announced today that it has acquired the digital archives and brand assets of online social and environmental-social justice magazine Pacific Standard. Through the agreement, Pacific Standard’s content, which includes written stories in addition to audio and video, will be available for free via its original URL, psmag.com, which Grist now owns. Pacific Standard, which features a combination of deeply reported journalism and peer-reviewed research, was forced to shutter in August of last year after one of its major financial backers pulled funding. The magazine was founded by Sara Miller McCune in 2008 and was first called Miller-McCune.
Royle Printing’s newest installation, a Manroland ROTOMAN S will be operational by the end of June. The press is located at the printer’s newest 120,000 sq. ft. facility on Success Way. The investment utilizes leading Manroland technology and enhances Royle’s diverse manufacturing platform. The press will create ideal conditions for record production times for high-volume jobs with very efficient make-ready numbers. The ROTOMAN S is particularly efficient for the catalog and publication markets; capable of producing digest, standard up-right and tabloid formats. More information on the press can be found on Manroland’s website. Royle has positioned itself for the future by making significant investments in technology, equipment and their most critical resource, people. Today, Royle undoubtedly has one of the more modern, diverse and financially healthy production platforms in print. Royle’s passion is to provide high-quality graphic and distribution solutions to publishing and catalog markets.
After nearly two years of planning and construction, Windsor Mill’s newly reconfigured woodroom is now one of the largest and most modern in North America. The woodroom upgrade allows the mill to increase productivity while reducing fiber loss between the forest and the mill. The woodroom is where logs are debarked and processed into wood chips to feed the mill. The woodroom upgrade involved replacing two existing log-processing lines with one modern, state-of-the-art line. While the previous system could process only 8-foot-long logs, the new single-line system boasts more capacity and can handle logs that are 4 to 26 feet long. Windsor Mill Manager Sylvain Bricault says the debarking process improvement will reduce fiber loss by 4 percent each year, allowing the mill to get more usable fiber from the same amount of wood.
Evergreen Packaging® announced the release of TruSpec® Inkjet Book with ColorPRO Technology, a new digital coated matte paper developed in conjunction with HP. Evergreen is the only North American coated paper producer utilizing cutting edge HP ColorPRO technology. TruSpec Inkjet Book is certified for all HP inkjet presses and in head-to-head product comparisons has proven to provide vastly improved press speed, superior ink densities and color gamut, with stellar lay-flat properties. TruSpec is raising the bar for Inkjet substrate performance. Printer segments from Book Publishing, Direct Mail, and Commercial Print to Packaging, can be more efficient, saving time and money without the traditional speed-to-quality trade-off. “TruSpec Inkjet Book is the first new product in Evergreen’s Pine Bluff digital paper focus and continues our 30 year history as a leading producer of coated publishing and commercial grades,” said Ken Russell, Vice President Paper and Specialty at Evergreen. “This new product is a great fit with our manufacturing process and capabilities. Coupling this product innovation, with our proven service platform, is enabling Evergreen to provide incredibly flexible service, with one stop shopping for paper basis weights ranging from 45 lb. – 60 lb., and roll widths from 18” – 50+”. Collaborating with HP on ColorPRO Technology provides commercial printers and publishers with an opportunity to expand and enhance their business via a paper that prints faster, uses less ink, and comes from a mill with a dependable service platform.”
Verso Corporation announced that Terrence M. Dyer has been appointed Verso's Senior Vice President, Human Resources and Communications, effective June 1, 2020. "I am pleased to have Terry join Verso and our senior leadership team with responsibility for leading our human resources and communications initiatives that support our strategic business plans," said President and Chief Executive Officer Adam St. John. "Terry brings more than 20 years of human resources experience to Verso and has a solid reputation for companywide talent strategies that support current and future business performance, employee engagement and retention."
UPM Plywood is planning to permanently close its Jyväskylä plywood mill, which is producing spruce and birch plywood. The company starts a consultation process concerning the entire personnel working at the mill. UPM Jyväskylä plywood mill employs 167 people. The Profitability of Jyväskylä plywood mill has been weak for a long time, even during periods of high-demand. Despite investments as well as savings and improvement activities, the profitability has not improved to a sustainable level.
Three online advertisers are suing Google for allegedly violating antitrust laws by monopolizing "digital advertising markets." “Google leveraged its stranglehold on online search and search advertising to gain an illegal monopoly in brokering display advertising on other companies’ websites,” the marketers allege in a class-action complaint filed last week in U.S. District Court for the Northern District of California. The case was filed on behalf of Washington, D.C. tour company Grand Atlas Tours, Delray Beach, Florida-based Prana Pets (which sells herbs for dogs and cats) and the San Francisco law firm Hanson Law. They claim Google “achieved this market dominance in part by acquiring rivals in the online advertising space, conditioning access to its search-results data and YouTube video advertising platform upon the purchase of its separate display advertising services, and ensuring those systems were not compatible with those of its competitors in online advertising."
The Postal Regulatory Commission issued its analysis of the United States Postal Service Fiscal Year 2019 Annual Performance Report and FY 2020 Performance Plan. The FY 2019 Report discusses the Postal Service’s progress in meeting its performance goals during FY 2019, while the FY 2020 Plan describes the Postal Service’s plans for meeting its performance goals in FY 2020. Each year, the Commission must review the Postal Service’s performance goals and evaluate whether the Postal Service met those goals in the previous fiscal year. The Commission may also offer recommendations to the Postal Service regarding the protection or promotion of public policy objectives in title 39 of the United States Code. The FY 2020 Plan does not include the impact of COVID-19 on the Postal Service. The Postal Service established the FY 2020 targets before the pandemic. As such, the FY 2020 Plan does not include any expected effects of the pandemic.
Member companies of the Association of American Publishers (AAP) filed a copyright infringement lawsuit against Internet Archive (“IA”) in the United States District Court for the Southern District of New York. The suit asks the Court to enjoin IA’s mass scanning, public display, and distribution of entire literary works, which it offers to the public at large through global-facing businesses coined “Open Library” and “National Emergency Library,” accessible at both openlibrary.org and archive.org. IA has brazenly reproduced some 1.3 million bootleg scans of print books, including recent works, commercial fiction and non-fiction, thrillers, and children’s books. The plaintiffs—Hachette Book Group, HarperCollins Publishers, John Wiley & Sons and Penguin Random House—publish many of the world’s preeminent authors, including winners of the Pulitzer Prize, National Book Award, Newbery Medal, Man Booker Prize, Caldecott Medal and Nobel Prize. Despite the self-serving library branding of its operations, IA’s conduct bears little resemblance to the trusted role that thousands of American libraries play within their communities and as participants in the lawful copyright marketplace. IA scans books from cover to cover, posts complete digital files to its website, and solicits users to access them for free by signing up for Internet Archive Accounts.
Silgan Holdings Inc. announced that it completed its acquisition of the dispensing business of the Albéa Group. This business is a leading global supplier of highly engineered pumps, sprayers and foam dispensing solutions to major branded consumer goods product companies primarily in the beauty and personal care markets. It operates a global network of 10 plants across North America, Europe, South America and Asia. This business generated sales of approximately $395 million in 2019. The purchase price for this acquisition was $900 million, subject to adjustments outlined in the purchase agreement for this acquisition. The Company funded the purchase price for this acquisition and related costs and expenses through term and revolving loan borrowings under its senior secured credit facility, including a $900 million delayed draw term loan.
Sun Chemical will increase the prices of its solvent-based inks and coatings in North America, effective July 1, 2020. Due to the significant increase in the demand for alcohols and solvents for use in sanitizers and pharmaceutical initiatives, the prices of these materials have increased substantially. In order to secure the needed components for the production of solvent-based inks and coatings, Sun Chemical has experienced raw material cost escalation during the second quarter of 2020. These increases are expected to remain in place and possibly accelerate throughout the remainder of the year.
Sun Chemical and its parent company, DIC Corporation, have entered into a definitive agreement to acquire 100 percent of the shares of Sensient Imaging Technologies and certain other assets related to the production of inks. The transaction is expected to be finalized in the second quarter of 2020. The strategic investment in Sensient Imaging Technologies, a supplier of digital inks, will allow Sun Chemical and DIC to expand its inkjet ink capabilities and expertise using complementary technologies that will further strengthen the highest standards of services and solutions to its customers and distributor partners. Inkjet is a strategic segment for Sun Chemical and DIC, and the investment in Sensient Imaging Technologies will demonstrate Sun Chemical and DIC’s commitment in the digital segment.
Mondi is committed to playing its part in the supply of essential products during the COVID-19 outbreak and has recently developed packaging for QIAGEN's SARS-CoV-2 coronavirus test kit. QIAGEN is a leading global provider of molecular Sample to Insight solutions. The company recently launched a syndromic test cartridge kit for the QIAstat-Dx Analyser System that can identify the SARS-CoV-2 coronavirus within an hour. Designed for use in hospitals, clinics and laboratories, the company’s new QIAstat-Dx syndromic testing platform comes in the form of a compact, modular, table-top device into which multi-chamber cartridges containing test samples are inserted for analysis.
Effective June 1, 2020, Solenis LLC closed on its previously announced acquisition of the paper business of ChemSystems, a division of AECI Ltd. Headquartered in Johannesburg, South Africa, ChemSystems is a leading producer and supplier of specialized chemical solutions for water-intensive industries, including the pulp, paper and tissue manufacturing industries in Sub-Saharan Africa. The business will be integrated into Solenis as part of its direct-to-market strategy.
Shutterfly Inc. announced its efforts to bring joy and much-needed resources to communities across America through its Shutterfly For Good platform. “Our business is built on connecting people and creating more from life’s moments; and in these challenging times, that is more important than ever,” said Jim Hilt, Shutterfly president. “It’s been incredible to see how communities around the globe are coming together to lift one another up. At Shutterfly, we believe we have a responsibility to help amplify these efforts and shine a light on the good in the world, today and every day. We’re very happy to have a platform to do that through Shutterfly For Good. click read more below for details
Canfor Corporation, further to its announcement on November 9, 2018, completed the purchase of Elliott Sawmilling Company Inc. on May 31, 2020. Elliott adds over 210 million board feet of production capacity.
Pier 1 Imports, Inc. announced that it has received approval from the U.S. Bankruptcy Court for the Eastern District of Virginia for the Company’s planned wind-down of operations. Pier 1 intends to initiate store closing efforts and liquidation sales once store locations can reopen, in compliance with COVID-19 guidelines from local government and health officials. The Company plans to conclude its liquidation sales by the end of October. “This is not the outcome we hoped for when we began this process, and we are deeply saddened to move forward with winding down Pier 1,” said Robert Riesbeck, Pier 1’s Chief Executive Officer and Chief Financial Officer. “We are incredibly grateful to everyone who has supported Pier 1 since the Company’s inception nearly 60 years ago, including our committed associates, passionate customers and talented vendors.” In connection with the wind-down and as previously announced, Pier 1 intends to sell its remaining assets, including its intellectual property and e-commerce business, pursuant to the bidding procedures established in February 2020. The Court today set July 1, 2020 as the asset bid deadline, July 8, 2020 as the auction date and July 15, 2020 as the sale hearing date. Pier 1 is currently continuing to serve customers through Pier1.com, and orders are being processed and filled.
The U.S. Postal Service (USPS) released a letter that is being sent to local and state election officials and state party officials around the country. This letter highlights key aspects of Election Mail delivery processes — and ways to help educate the public on what to expect when using the mail to vote. The letter, signed by USPS General Counsel and Executive Vice President Thomas J. Marshall, is a continuation of an ongoing outreach effort aimed at educating all interested parties about the Postal Service’s mailing requirements and services in advance of the 2020 elections. “It is critical that the Postal Service’s delivery standards be kept in mind when informing voters how to successfully participate in an election using the mail,” says Marshall, noting the importance of this information “when state and local election officials are making decisions as to the establishment of deadlines and the means used to send a piece of Election Mail to voters.”
Understanding how to stand out in the mailbox is more important than ever in 2020 and beyond, especially so because of today’s competition for consumer attention. In fact, a 2015 study said the average American is exposed to anywhere between 4,000 and 10,000 ads per day. That’s madness! With the large majority of these being digital ads, this provides a huge opportunity for direct mail and print marketing campaigns. Though the average person’s mailbox is much less crowded now than it has been in decades, this competition for consumer attention is more fierce than it has ever been. That’s why when it comes to your direct mail marketing campaign, you need to be very calculated in your approach; understanding cost, attribution, average ROI and the overall health of your house file are vital considerations that must occur with the launch of any successful direct mail program. Click Read More below for details
Mercer International Inc. reports that its Celgar mill, in addition to regularly planned maintenance downtime of five days, will be taking approximately 30 days of additional downtime (aggregate 52,000 ADMTs) in July 2020. The additional downtime largely results from reduced fiber availability in the mill’s procurement area as a result of Covid related sawmill curtailments in British Columbia, the imposition of sawlog equivalent stumpage charges on pulpwood and complex stumpage rules which result in a significant amount of pulp wood already harvested being left to burn in the forest.