CEO Resigns As Master Graphics Is Delisted
MEMPHIS, TN—Master Graphics' common stock has been delisted from the Nasdaq exchange, "as a result of Master Graphics' inability to satisfy the maintenance standards," offi- cials say. Master's common stock will continue to be quoted and traded on the OTC Bulletin Board under the same symbol, MAGR.
Commenting on the delisting action, Master Graphics' CEO Robert J. Diehl says he is "disappointed that our poor operating performance in 1999 has resulted in our delisting from the Nasdaq National Market. However, we do not expect the delisting action to materially impact our efforts to continue the implementation of our Year 2000 operating plan." Diehl says that Master Graphics officials are currently "examining all available options to improve operating performance, including the sale of assets."
A preliminary estimate of fourth quarter 1999 operating results indicates that losses will be higher than anticipated due to lower sales volume and lower margins on its sales, but the extent of the loss is not yet known. However, its Year 2000 operating plan will result in a one-time restructuring charge.
Master Graphics also announced the resignation of its chairman, John P. Miller, effective February 1, "to pursue other business interests." Miller had served as chairman since the company's inception. The board did not immediately appoint a new chairman.
"Master Graphics is comprised of a fine group of colleagues. I am confident that the company's strategy is sound and that it can effectively compete in its marketplace. I wish them well. This voluntary decision will allow the company to focus on the future," Miller says.
The board of directors also voted to add Michael B. Bemis as a director. Bemis has held several executive positions with Entergy Corporation, including CEO for London Electricity.
"We appreciate John's efforts and we wish him future success. We also look forward to drawing on Mike Bemis' business background and experience as the management team works to implement our Year 2000 operating plan," Diehl says.
Master Graphics also postponed the initial public offering of the common stock of its EagleDirect.com subsidiary, "until a more favorable business climate develops for the company and the offering," officials say. EagleDirect.com provides printing and database marketing services via the Internet.
"At this time in the company's history, we believe it is imperative to focus our attention on core operations rather than the spin-off of EagleDirect.com," Diehl notes.