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.
Allen Press, Inc. is excited to announce the purchase of a Muller Martini Tempo 22 Saddle Stitcher. The Tempo 22 is among the world’s fastest saddle stitchers, producing up to 22,000 booklets per hour.
The acquisition further cements Allen Press’ position as the most advanced and versatile printing company in Kansas and Missouri. Customers will benefit greatly from this technological marvel which will deliver faster turnaround times, top quality and greater efficiencies on the production of all 8 ½ x 11 range saddle stitched materials.
“We have built an aspirational and world-class equipment list over the last few years, now besting even our largest competitors in the Kansas City area,” said Randy Radosevich, Allen Press CEO. “Adding the Tempo 22 further highlights our ascension to being an industry leader. This is very exciting for Allen Press, our partners, and the entire Lawrence, KS community.”
Saddle stitching is the primary binding technique for a variety of printed materials including magazines, publications, booklets, annual reports and catalogs. The Tempo 22 can produce these materials at lightning speeds. In most cases producing booklets three times faster than normal stitching machines, while also offering inline and fully automated inkjetting, cross-strapping and shrink-wrapping options.
“We’re excited to let our customer community know about our newest acquisition and what it means for their projects. And even more new technology is coming, so stay tuned!”, said Maria Preston-Cargill, Senior Vice President, Sales and Marketing.
The Tempo 22 is expected to arrive next month with installation and testing to be completed by month-end.