Shortage of Paper Endangers Rebound of Graphic Industry World-Wide (whattheythink.com)

Net sales in the third quarter of 2017 were $329.5 million compared to $382.7 million in the same period last year, a decline of 13.9%. The Company generated net sales of $1.01 billion for the nine months ended September 30, 2017, compared to $1.16 billion for the same period last year, a decline of 13.1%. The sales decline for both the three and nine month periods was primarily driven by: (i) lower sales in the envelope segment, primarily due to lower direct mail demand primarily from our financial institution customers and lower demand in our wholesale and generic transactional envelope product lines primarily due to marketplace trends; (ii) lower sales volumes in the commercial print group and the publisher services group, primarily driven by lower customer demand and continued pricing pressures; and (iii) lower sales in the label segment, primarily due to the decision to exit our coating operation which was completed in the second quarter of 2016, and lower sales driven by customer demand and product mix changes. Operating loss was $0.5 million for the three months ended September 30, 2017, compared to operating income of $20.2 million in the same period last year. Operating income was $22.6 million for the nine months ended September 30, 2017, compared to operating income of $51.9 million for the same period last year, a decline of 56.5%. The decline during the three months ended September 30, 2017 was primarily due to lower gross profit resulting from lower sales volumes and intangible asset impairments of $7.7 million driven by our current and expected future operating results for certain product lines. The declines in the nine months ended September 30, 2017 were primarily due to lower gross profit resulting from lower sales volumes, the impact of the decision to exit the coating operation, intangible asset impairments of $7.7 million driven by our current and expected future operating results for certain product lines, and higher restructuring and other charges resulting from the 2017 Profitability Improvement Plan. Click Read More below for additional information.

People are tired of looking at screens. Since February 2020, the number of weekly virtual meetings has risen around 150%, with the amount of time people spend in those meetings up around 252% — that is a lot of time staring at screens all day long. For marketers looking to reach that same audience, online or mobile ads are losing their effectiveness as people seek to step away from the digital world when they end their workday. This is where direct mail comes in — a medium that has never gone away, but is seeing a resurgence post-pandemic. “There has been a permanent change in how mail is being used as a marketing channel,” Gary Masse, CEO of IWCO Direct, points out. “Now mail is the channel that breaks through the digital clutter to gain your prospects’ attention, while being coordinated with online channels to drive greater response in all channels.” Deloitte’s “2021 Connectivity and Mobile Trends Survey” found that the average household now has an average of 25 connected devices, with 38% of households connecting additional devices in the past few years.

Kappa Media, LLC, and its controlling Member Nicholas Karabots, have announced the acquisition of the remaining partnership interest of Vanguard Graphics, LLC, from Mr. Steve Rossi. As of August 31, 2017, Kappa and one of its affiliates will have full ownership of Vanguard. Kappa purchased its original ownership stake in the company in April 2016. While the acquisition will not have an immediate impact on customers, vendors, or employees, the change in ownership illustrates the commitment of Kappa to continue to invest the capital necessary to position Vanguard for additional future growth. Click Read More below for additional detail.