EXHIBIT 99.1
[Cadmus Letterhead]
NEWS RELEASE CONTACT
David E. Bosher
Vice President & Treasurer
(804) 287-5685
CADMUS COMMUNICATIONS CORPORATION REPORTS 50% INCREASE
IN FIRST QUARTER NET INCOME
RICHMOND, VA, October 24, 1995 -- Cadmus Communications Corporation (NASDAQ
NMS: CDMS) today reported a 50% increase in net income for the first
quarter of fiscal 1996.
Net sales in the first quarter of fiscal 1996 increased 24% to $74.7
million compared to $60.4 million for the same period last year. Operating
income rose 43% to $4.0 million in the first quarter of fiscal 1996 from
$2.8 million in the first quarter of 1995. Net income was $1.5 million, or
$.24 per share, in the first quarter of 1996, which represents an increase
of 50% over net income of $1.0 million, or $.16 per share, for the prior
year first quarter. Average shares outstanding were 6,326,000 and
6,190,000 for the first quarter of fiscal years 1996 and 1995,
respectively.
The increase in sales was broad-based, with nine of the Company's eleven
product lines recording improvement. Adjusted for the impact of higher
paper prices, sales increased 18%. Printing and marketing sales rose 19%
and 36%, respectively, while publishing sales declined 9%.
The growth in printing sales for the first quarter of fiscal 1996 over the
first quarter of fiscal 1995 was driven predominantly by strong performance
from the financial printing, specialty packaging, and magazine product
lines. Financial printing sales rose 146% due to strong equity and debt
new-issue markets and increased merger activity. Specialty packaging sales
increased 70% due to growth from existing customers. Finally, magazine
sales increased 52% due primarily to the addition of several new accounts.
The increase in first quarter marketing sales was driven primarily by a 38%
increase in point-of-purchase revenues and a 25% increase in direct
marketing sales. The increase in point-of-purchase sales was the result of
both growth in existing accounts and the addition of several new accounts.
The growth in direct marketing revenues resulted primarily from the
acquisition of Ronald James Direct in the fourth quarter of fiscal 1995.
The decline in first quarter publishing revenues was attributable to lower
consumer publishing sales, which offset gains in custom publishing. The
decrease in consumer publishing sales resulted from the timing of a trade
show and to the absence of a TUFF STUFF special edition, which were
included in fiscal 1995 first quarter results.
The 43% increase in operating income for the first quarter of 1996 was due
primarily to an improved product mix, the positive impact from the
restructuring of the Company's magazine and journal operations, and the
benefits from Cadmus-wide procurement initiatives.
Headquartered in Richmond, Virginia, Cadmus Communications Corporation is a
graphic communications company specializing in printing, marketing, and
publishing.
**(See attached financial highlights)**
CADMUS COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
1995 1994
Net sales $ 74,673 $ 60,383
Operating expenses
Cost of sales 56,803 46,631
Selling and administrative 13,918 10,997
Operating income 3,952 2,755
Interest and other (income) expenses
Interest 1,422 1,267
Other (income) expenses 57 (119)
Income before income taxes 2,473 1,607
Income taxes 957 633
Net income $ 1,516 $ 974
Net income per share $ .24 $ .16
Average number of common shares
outstanding 6,326 6,190