Quadracci: Printing Company Has Been Transformed
MILWAUKEE—Rumors of printing's demise continue to spread, but the rumors can't wipe the smile off Joel Quadracci's face.
Quadracci, chairman, president and CEO of Sussex, WI-based Quad/Graphics, told a lunch gathering at the Greater Milwaukee Committee that the firm has transformed itself in the past three years via its acquisitions, going public and investing in new technology, the Milwaukee Business Journal reported.
"As you know, print is dead. We read about it all the time…in print," the paper quoted Quadracci as joking.
Quadracci told the audience that a strong balance sheet helped it to survive the recession. Another critical factor was the ability of the Quadracci family to retain 80 percent of voting control when the company was taken public.
Despite more than a dozen plant closures, Quadracci noted the company is reinventing itself by playing a critical role in online and mobile ads and helping clients leverage the "multichannel world."
Printer Wiped Out By Hurricane Sandy Back in Business
STATEN ISLAND, NY—The presses at 3 Sons Printing are up and humming at its new home on Canal Street after Hurricane Sandy ruined its Bay Street facility, the Staten Island Advance reported. New gear has been installed at the third-generation printing shop, including a Canon imagePRESS and a four-color Ryobi machine.
Owner Michael Esposito Jr. said that the former home for 3 Sons will eventually be demolished, with plans to construct a new shop, possibly with upstairs apartments, pending the receipt of commercial insurance proceeds, the paper reported.
Esposito said the move to Canal Street will enable the business to become a one-stop shop for its customers, the Advance reported.
The family plans to relocate it second business, Sign Men, from Grant City to Tottenville, in about a month. That shop produces signage and apparel printing.
Two North Carolina Firms Join Forces
GREENSBORO, NC—A pair of printers here, Piedmont Graphics and Color Express, have merged their operations, according to The Business Journal. Financial terms of the deal were not disclosed.
The combined firm will do business as Piedmont Graphics and will operate out of that company's 24,000-square-foot facility. In all, the printer will employ 30 workers. No employees were released as a result of the move.
Jerry Messick, owner of Color Express, will work in the sales department at Piedmont. John Rutledge will continue as Piedmont Graphics president and owner.
White House Investing $200 Million in 3D Printing
WASHINGTON, DC—The Obama Administration announced that it is launching competitions to create three new manufacturing innovation institutes with a Federal commitment of $200 million across five Federal agencies: Defense, Energy, Commerce, NASA and the National Science Foundation. To build off the initial success of a pilot institute headquartered in Youngstown, OH, the president announced that his administration would move forward and launch three new manufacturing innovation institutes this year.
According to the White House, the president will continue to call on Congress to act on his proposal for a one-time, $1 billion investment to create a network of 15 manufacturing innovation institutes across the country.
The president has outlined a comprehensive agenda to invest in American manufacturing. It includes a National Network for Manufacturing Innovation (NNMI). President Obama’s FY14 Budget includes a $1 billion investment at the Department of Commerce to create the NNMI, a model based on approaches that that other countries have successfully deployed. Each institute would serve as a regional hub designed to bridge the gap between basic research and product development, bringing together companies, universities and community colleges, and federal agencies to co-invest in technology areas that encourage investment and production in the United States.
This infrastructure aims to provide a unique ‘teaching factory’ that allows for education and training of students and workers at all levels, while providing the shared assets to help companies, particularly small manufacturers, access cutting-edge capabilities and equipment to design, test, and pilot new products and manufacturing processes.
The Department of Defense (DOD) will lead two of the new institutes, focused on “Digital Manufacturing and Design Innovation” and “Lightweight and Modern Metals Manufacturing,” and the Department of Energy (DOE) will be leading one new institute on “Next Generation Power Electronics Manufacturing.”
All three institutes will be selected through an open, competitive process, led by the Departments of Energy and Defense, with review from a multi-agency team of technical experts. Winning teams will be selected and announced later this year. Federal funds will be matched by industry co-investment, support from state and local governments, and other sources. Like the pilot institute, these institutes are expected to become financially self-sustaining, and the plan to achieve this objective will be a critical evaluation criterion in the selection process. DOD and DOE are opening the competition for the three new institutes immediately.
CGX Sees Slight Sales Increases for Q4, Fiscal Year
HOUSTON—Consolidated Graphics announced financial results for its fourth quarter and year ended March 31, 2013. Revenue for the March 2013 quarter increased to $251.0 million, compared to $250.6 million for the same quarter last year due to a .5 percent same-store sales increase, excluding election related business.
Adjusted operating income increased 115 percent for the quarter to $12.8 million or 5.1 percent of revenue, compared to $6.0 million or 2.4 percent of revenue last year. Adjusted net income increased 167 percent to $7.6 million for the quarter, compared to $2.9 million for the prior year. Adjusted diluted earnings per share for the March quarter increased 182 percent to $.79, compared to $.28 last year. Adjusted EBITDA increased 22.9 percent to $30.7 million for the quarter and free cash flow was $32.4 million.
Largely due to $12.6 million in charges related to the withdrawal from certain multi-employer pension plans and impairment of goodwill, operating loss for the March 2013 quarter was $.2 million. The March 2012 quarter operating loss was $8.3 million and included charges for withdrawing from certain multi-employer pension plans and asset impairments. Net loss for the March 2013 quarter was $.3 million or $.03 diluted loss per share, compared to a net loss of $5.9 million or $.57 diluted loss per share in the prior year.
Revenue for the fiscal year ended March 31, 2013 increased to $1,048 million, compared to $1,045 million in the prior year and adjusted operating income increased 7.4 percent to $54.6 million.
Adjusted EBITDA for the year ended March 31, 2013 increased 4.0 percent to $127.9 million and adjusted diluted earnings per share were $3.43 for the year, compared to $2.70 in the prior year. Full-year free cash flow was $64.6 million.
"We continue to see growth in several key areas of the commercial printing industry," said Joe Davis, chairman and CEO of Consolidated Graphics. "For example, our temporary point of sale product revenues are growing and Consolidated Graphics is in a unique position to deliver these unmatched solutions to customers. These solutions include our ability to distribute and then print consistent and high quality products across our platform. Using our solutions, customers can get to market faster, at an overall lower cost.
"Other key growth areas for Consolidated Graphics include digital print, packaging, fulfillment and collectible cards. These product areas, which represent 38 percent of our overall sales, all grew compared to last year and we expect these trends to continue going forward. We will continue to invest and enhance our capabilities in these areas."
InnerWorkings Named Top Vendor By Advance
CHICAGO—InnerWorkings, a global marketing supply chain company, announced that it was named Vendor of the Year by Advance Auto Parts, which specializes in the automotive aftermarket.
"We are proud to receive this recognition from Advance Auto Parts," said David Freundlich, eastern region president at InnerWorkings. "Our relationship has just been extended and we are very excited about continuing to bring our innovative solutions and results to their business."
This award is given for overall excellence of service, superior achievement in reaching both savings and SLA targets and successful scorecard performance ratings from both marketing and procurement. InnerWorkings was selected out of thousands of suppliers by Advance Auto Parts.
Cosenza Joins the Printing Impressions Group
PHILADELPHIA—North American Publishing Co. (NAPCO) has named Jenelle Cosenza its marketing strategy manager, Printing Impressions Group. She will be responsible for supporting the marketing strategy and goals of the Printing Impressions Group clients in the in-plant and package printing markets.
Cosenza now reports to Brian Ludwick, publisher of packagePRINTING, and Mike Hempstead, publisher of In-plant Graphics.
“We are genuinely excited to have such a talented young woman join our group,” said Mark Subers, senior vice president/group publisher for the Printing Impressions Group. “NAPCO is evolving from a traditional, print-centric publisher to a new media powerhouse and our people are the key drivers of change. Jenelle’s intelligence and enthusiasm will be a tremendous asset to our group and to our many clients as well.”
“I’m very excited to join such a forward-thinking organization,” stated Cosenza. “NAPCO has the strongest brands and audience in the print industry. I look forward to collaborating with my clients to help drive their success through effective, multi-channel programs that incorporate print, augmented reality, online, e-newsletters, events and eLearning efforts. The Printing Impressions Group is a major thought leader in the print industry and I’m glad to be a part of their continued success.”