Exhibit 99.1
NEWS RELEASE
CONTACT
David E. Bosher
Vice President & Treasurer
(804) 287-5685
CADMUS COMMUNICATIONS CORPORATION ANNOUNCES
RECORD FIRST QUARTER RESULTS
RICHMOND, VA, October 23, 1997 -- Cadmus Communications Corporation (NASDAQ NMS:
CDMS) today reported record first quarter net income of $2.0 million, or $.25
per share, for the period ended September 30, 1997. Net income for the same
quarter of fiscal 1997 amounted to $1.7 million, or $.21 per share, and included
a gain of $0.3 million, or $.02 per share, from the sale of the Company's
consumer publishing business. There were 8,109,000 average outstanding shares
for the first quarter of fiscal 1998, compared to 8,024,000 average outstanding
shares for the same period of last year.
Sales for the first quarter of fiscal 1998 were $92.4 million compared to sales
of $93.9 million in the first quarter of fiscal 1997. The lower sales were due
to the closing of several facilities in connection with restructuring actions
taken in the fourth quarter of fiscal 1997 and the sale of the consumer
publishing operation in the first quarter of fiscal 1997. Adjusted for these
closings and the divestiture, sales rose 5% in the first quarter of fiscal 1998.
The Company's Professional Communications sector sales increased 1% as continued
growth from journal operations (up 5% for the quarter) was offset by lower
magazine sales and decreases in paper prices. In the Company's Marketing
Communications sector, sales from continuing operations rose 13%, led by strong
growth from financial communications, direct marketing, custom publishing, and
catalog design operations.
Operating income rose 6% in the first quarter to $5.7 million compared to $5.4
million last year and improved as a percent of sales to 6.2% from 5.7% last
year. Adjusted for the gain from the sale of the publishing division, operating
income increased 11% from fiscal 1997.
C. Stephenson Gillispie, Jr., president and chief executive officer, stated, "We
are pleased by our record first quarter performance and by the continued
improvement in our operations. The recent restructuring actions we have taken
had a positive impact on this quarter's performance. Perhaps most importantly,
we experienced strong sales growth and margin expansion in several of our key
operations, including journal services, financial communications, custom
publishing, and direct marketing. Our successful execution of the restructuring
actions, as well as these positive operating results, gives us increased
confidence in our ability to achieve our fiscal 1998 operating and financial
goals."
Cadmus Communications Corporation is an integrated communications company
offering products and services in two broad areas: marketing communications and
professional communications. Headquartered in Richmond, Virginia, Cadmus is one
of the largest graphic communications companies in North America.
-more-
Page 2
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995:
Information in this release relating to Cadmus' future prospects and performance
are "forward-looking statements" and, as such, are subject to certain risks and
uncertainties that could cause actual results to differ materially. Potential
risks and uncertainties include but are not limited to: (1) continuing
competitive pricing in the markets in which the Company competes, (2) the gain
or loss of significant customers or the decrease in demand from existing
customers, (3) the timing of significant orders received from customers, (4)
seasonal changes in the demand for the Company's products, (5) changes in the
Company's product sales mix, and (6) continued success in the integration of
recently acquired businesses.
**(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,
-------------------------------
1997 1996
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Net sales $ 92,362 $ 93,922
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Operating expenses:
Cost of sales 71,814 72,707
Selling and administrative 14,858 16,101
Restructuring gain - (250)
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86,672 88,558
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Operating income 5,690 5,364
Interest and other expenses:
Interest 1,933 2,076
Other, net 392 511
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2,325 2,587
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Income before income taxes 3,365 2,777
Income taxes 1,329 1,083
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Net income $ 2,036 $ 1,694
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Net income per share $ .25 $ .21
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Weighted average common shares outstanding 8,109 8,024
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