The Company generated net sales of $460.9 million for the three months ended June 27, 2015, compared to $479.4 million for the same period last year, a decline of 3.9%. The Company generated net sales of $936.0 million for the six months ended June 27, 2015, compared to $969.5 million for the same period last year, a decline of 3.5%. The decline in net sales is attributable to the consolidation of several envelope facilities during the second half of 2014 in connection with the accelerated integration of the National Envelope assets with our existing operations and two new envelope facilities and continued pricing pressure in our print business. Excluding the impact of the integration, we believe our envelope group net sales were up modestly, which is primarily attributable to product mix and pricing improvements, offset by volume declines.
Digital Lizard, a Creel Printing company, has embarked on a multimillion-dollar expansion project that will double its printing capacity and extend services with a fulfillment operation.
Digital Lizard’s equipment purchase includes two HP Indigo 7800 digital presses for its Hayden, Idaho, plant and a second HP Indigo W7250 digital press for its Las Vegas facility. A printing powerhouse with unsurpassed versatility and photo-quality reproduction, the company’s first HP Indigo W7250 has been a significant draw among corporate, Internet, agency, and photo-gift-market clients. The second press will augment the company’s manufacturing depth and help it respond to increasing demand.
Along with the new press installations, Digital Lizard is adding a 40,000-square-foot building next to its Las Vegas plant, turning the space into a high-tech fulfillment center. New services include comprehensive data/asset utilization, inventory management, “intelligent” mailing, and other value-driving services. The company is also bringing foil stamping capabilities in-house—providing for unique finishing to catalogs, booklets, manuals, direct mail, and other client projects.
Total growth investment is estimated at $23 million. Installations and facility updates are scheduled for completion by the end of August.
All Digital Lizard services are fully integrated into fulfillment operations through secure online ordering portals that allow for 24/7 customer access and utility. This ease of service has been well-received. The new fulfillment center is already handling a number of complex programs, including the management/fulfillment of a global, 85-partner, 500-product, promotional initiative and a highly secure, 200-version healthcare booklet distribution effort.
“Digital Lizard’s new capacity and fulfillment services are intended to streamline customers’ promotional and marketing activities, while giving them new cost-efficiencies and functionality,” said Bill Wieners, president of Digital Lizard. “In this marketplace, it’s all about advantage. Digital Lizard is committed to making the investments that give our customers value, and keep them, and us, at the cutting edge.”