EXHIBIT 20(i)
[MOORE LOGO]
NEWS RELEASE
MOORE SECOND QUARTER RESULTS SURPASS PLAN
-----------------------------------------
Normalized loss of $0.06 per share versus $0.14 loss in 2000
Results beat expectations by $0.02
Company forecasts return to profitability in second half of year
Sees additional cost savings opportunities in 2001 & 2002
TORONTO, ON and STAMFORD, CT (July 25, 2001) - Moore Corporation Limited (TSE,
NYSE: MCL) today announced substantially improved second quarter normalized
results (actual results less restructuring and other non-recurring charges) for
the quarter ending June 30, 2001.
On a normalized basis, the Corporation incurred a net loss of $5.0 million for
the second quarter 2001, or a loss of $0.06 per share. This compares favorably
to a normalized 2000 second quarter net loss of $12.6 million, or a loss per
share of $0.14. Normalized operating income grew to $3.9 million in the second
quarter 2001 versus a loss of $13.0 million for the same period a year ago as
the cost containment initiatives continue to drive results.
Moore continued to generate stronger operating cash flow as normalized EBITDA
(operating income plus depreciation and amortization) increased 132.6% to $32.8
million in the quarter versus $14.1 million in the same period last year.
Importantly the company's normalized free cash flow (EBITDA less cash interest,
cash taxes, dividends, and capital expenditures) improved dramatically in the
second quarter as the company produced positive free cash flow of approximately
$13.2 million versus negative free cash flow of $31.6 million in the second
quarter of 2000.
Sales for the quarter were $532.5 million compared to $550.4 million in the same
period in 2000. The company's revenues decline was primarily a result of the
first quarter 2001 divestiture of Colleagues, and the company's decision to exit
certain unprofitable accounts as well as the devaluation of foreign currencies.
This decline was partially offset by solid organic growth in the company's core
businesses, Forms and Labels, and the Integrated Business Solutions Group of
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approximately 4% year over year, continuing the sales improvement that started
in the first quarter of this year.
Moore also reported improved normalized results for the first six months of
2001. On a normalized basis, the company reported a net loss of $12.2 million,
or a loss of $0.14 per share. This compares favorably to a normalized 2000 first
half net loss of $23.0 million, or a loss of $0.26 per share. Normalized
operating income grew to $4.5 million in the first half versus a loss of $24.9
million in the same period a year ago.
Normalized EBITDA for the first six months was $62.1 million up 110.5% from the
$29.5 million in the same period last year. Revenues for the first half ended
June 30, 2001 were $1.11 billion compared to $1.13 billion in 2000 a result of
the previously discussed divestiture of Colleagues, the exit of certain
unprofitable accounts and the devaluation of foreign currencies. This decline
was generally offset by solid organic growth in the company's core businesses,
Forms and Labels, and the Integrated Business Solutions Group of approximately
4.5% year over year.
ROBERT G. BURTON, PRESIDENT AND CHIEF EXECUTIVE OFFICER STATED:
"Our second quarter results clearly reflect the early success of our cost
containment programs, our financial discipline and our product line and
cross-selling strategies. We are aggressively controlling costs; focusing on
waste and productivity, targeting our sales efforts and implementing a targeted
cross-selling initiative that opens our vast product offerings to all of our
customers. We are focused on improving our operating margins and building the
framework of being the low cost, one stop shopping solution for our customers."
"We continue to see additional opportunities to take costs out of our business
in the second half of 2001, in 2002 and 2003. Specifically, we have developed a
framework of purchasing and manufacturing initiatives that will help drive
additional costs out of our business both today and in the coming years."
MR. BURTON CONTINUED:
"Coupled with the tremendous progress made operationally, I am very excited
about the dramatic improvement that has been made in regard to working capital
management. Since we arrived in December, we have markedly improved our DSO's,
inventory turns, and initiated an aggressive focus on the accounts payable and
receivables operations as well as the control of cash. All of these efforts are
resulting in a dramatic turnaround in free cash flow while simultaneously
reducing excess working capital. We expect continued improvement in the back
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half of the year and expect to be able to return the company to profitability
before year end with the many initiatives underway."
Consistent with our reorganization plan, the company recorded restructuring and
other related charges totaling $55.4 million net of tax. These second quarter
charges can be characterized into three categories including:
o Restructuring costs of $36.7 million
o Non-cash charges related to asset impairment of $14.8 million
o Other nonrecurring one time charges of $3.9 million
These charges are in support of the company's strategic initiatives to reduce
headcount, divest of non-performing assets and generate over $100 million of
cost savings.
All of these charges are excluded from actual earnings to arrive at normalized
results.
BURTON CONCLUDED:
"In January we embarked on a year long restructuring initiative designed to
position the company to meet the needs of both our customers and shareholders
and at the same time set the framework for future growth. I am pleased with the
progress to date and I look forward to having all restructuring charges behind
us by year's end."
"Though the economy has been a challenge during the first half of the year, our
job is, and always will be to manage the company without excuses and to live up
to the commitments we have made to customers, shareholders and employees. By
matching costs with our revenues we will meet challenges head on. I believe that
we have many opportunities in front of us. We are disciplined and focused on
what needs to occur in the business. We will continue to walk away from
unprofitable revenue as we look to grow our bottom line. We will continue to
focus on our core printing operations with a focus of acquiring complementary
businesses that support our cross selling initiatives and that add value. We
will strategically divest businesses that do not support our core structure.
Most of all we will remain focused on delivering results for customers and
shareholders."
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SUMMARY OF SECOND QUARTER NORMALIZED RESULTS
o Sales in the second quarter 2001 of $532.5 million compared to sales of
$550.4 million in second quarter 2000.
o S,G&A margin of 24.6%, improved from 26.0%
o Income from operations of $3.9 million in the quarter compared to loss from
operations of $13.0 million for the same period in 2000.
o Net loss for the second quarter 2001 was $5.0 million or $ 0.06 per share
compared to net loss of $12.6 million or $0.14 per share for second quarter
2000.
o EBITDA (operating income plus depreciation and amortization) of $32.8 million
versus $14.1 million in the same period last year.
SUMMARY OF FIRST HALF NORMALIZED RESULTS
o Sales in the first half 2001 of $1.11 billion compared to sales of $1.13
billion in the first six months of 2000.
o S,G&A margin of 25.0%, improved from 26.0%
o Income from operations of $4.5 million in the first half compared to loss
from operations of $24.9 million for the same period in 2000.
o Net loss for the first half 2001 was $12.2 million or a loss of $ 0.14 per
share compared to net loss of $23.0 million or a loss of $0.26 per share for
first half 2000.
o EBITDA (operating income plus depreciation and amortization) of $62.1 million
versus $29.5 million in the same period last year.
Moore Corporation Limited will hold a conference call on Thursday July 26, 2001
at 10:00am EDT to discuss second quarter results. The call will be webcast at
Moore.com under the Investor Overview section.
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MOORE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR NORMALIZED OPERATIONS
In thousands of dollars of U.S. Dollars, except for share data
Three Months Ended Six Months Ended
June 30 June 30
-------------------------- ------------------------------
2001 2000 2001 2000
--------- --------- ----------- -----------
Sales $ 532,526 $ 550,406 $ 1,106,722 $ 1,127,270
Cost of sales 368,757 393,362 768,480 804,888
Selling, general and administrative expenses 130,933 142,982 276,126 292,871
Depreciation & amortization 28,966 27,062 57,595 54,440
--------- --------- ----------- -----------
528,656 563,406 1,102,201 1,152,199
--------- --------- ----------- -----------
Income (loss) from operations 3,870 (13,000) 4,521 (24,929)
Investment and other income 152 1,148 777 1,156
Interest expense 7,034 6,460 14,273 12,235
--------- --------- ----------- -----------
Earnings before tax and minority interest (3,012) (18,312) (8,975) (36,008)
Income tax expense (recovery) 1,472 (6,130) 2,338 (13,702)
Minority interests 491 364 913 713
--------- --------- ----------- -----------
Net earnings (loss) $ (4,975) $ (12,546) $ (12,226) $ (23,019)
========= ========= =========== ===========
Earnings (loss) per share ($0.06) ($0.14) ($0.14) ($0.26)
Average shares outstanding 88,457 88,457 88,457 88,457
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MOORE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR NORMALIZED OPERATIONS
For The Quarter Ended June 30, 2001
In thousands of dollars of U.S. Dollars, except for share data
ADJUSTMENTS
TO NORMALIZE
--------------------------------------------------------
ACTUAL RESTRUCTURING NORMALIZED
AND OTHER CHARGES
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Sales $532,526 - $532,526
Cost of sales 368,757 - 368,757
Selling, general and administrative
expenses 134,806 (3,873) 130,933
Provision for (recovery of)
Restructuring costs 36,723 (36,723) -
Depreciation and amortization 43,761 (14,795) 28,966
--------------------------------------------------------
584,047 (55,391) 528,656
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Income (loss) from operations (51,521) 55,391 3,870
Investment and other income 152 - 152
Interest expense 7,034 - 7,034
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Earnings before tax and Minority interest (58,403) 55,319 (3,012)
--------------------------------------------------------
Income tax expense (recovery) 1,472 - 1,472
Minority interests 491 - 491
--------------------------------------------------------
Net earnings (loss) $ (60,366) $ 55,391 $ (4,975)
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Earnings (loss) per share ($0.68) $0.62 ($0.06)
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Average shares outstanding (in thousands) 88,457 88,457 88,457
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MOORE CORPORATION LIMITED
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR NORMALIZED OPERATIONS
For The First Six Months Ended June 30, 2001
In thousands of dollars of U.S. Dollars, except for share data
Adjustments to Normalize
------------------------------------------------------------------------------------
Restructuring
and other
Actual charges Divestitures Pension Phoenix Normalized
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Sales $1,106,722 - - - - $1,106,722
Cost of sales 829,689 - - (61,209) - 768,480
Selling, general and administrative
expenses 321,748 (4,816) - (40,806) - 276,126
Provision for (recovery of)
restructuring costs 103,374 (103,374) - - - -
Depreciation and amortization 132,746 (26,871) - - (48,280) 57,595
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1,387,557 (135,061) - (102,015) (48,280) 1,102,201
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Income (loss) from operations (280,835) 135,061 - 102,015 48,280 4,521
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Investment and other income (2,430) - 3,207 - - 777
Interest expense 14,273 - - - - 14,273
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Earnings before taxes
and minority interest (297,538) 135,061 3,207 102,015 48,280 (8,975)
------------------------------------------------------------------------------------
Income taxes expense (recovery) (36,625) - (3,935) 40,295 2,603 2,338
Minority interests 913 - - - - 913
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Net Earnings (loss) ($261,826) $135,061 $7,142 $61,720 $45,677 ($12,226)
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Earnings per share ($2.96) $1.52 $0.08 $0.70 $0.52 ($0.14)
------------------------------------------------------------------------------------
Average Shares outstanding
(thousands) 88,457 88,457 88,457 88,457 88,457 88,457
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###
Moore Corporation Limited is an international provider of products and services
that help companies communicate through print and digital technologies. As a
leading supplier of document formatted information, print outsourcing and data
based marketing, Moore designs, manufactures and delivers business communication
products, services and solutions to customers. Moore operates in complementary
marketplaces: Forms, Print Management and Related Products which includes Label
Systems and Integrated Business Solutions including personalized direct
marketing, statement printing and database management. The Moore Internet
address is www.moore.com.
This news release contains statements relating to future results of Moore
(including certain anticipated, believed, expected, and estimated results and
Moore's outlook concerning future profitability, and statements as to
acquisitions, additional cost savings, the generation of working capital, the
elimination of unprofitable revenues and the elimination of restructuring
charges by the end of the year) that are "forward-looking statements" as defined
in the U.S. Private Securities Litigation Reform Act of 1995. Readers are
cautioned not to place undue reliance on these forward-looking statements and
any such forward-looking statements are qualified in their entirety by reference
to the following cautionary statements. All forward-looking statements speak
only as of the date hereof and are based on current expectations and involve a
number of assumptions, risks and uncertainties that could cause the actual
results to differ materially from such forward-looking statements. Factors that
could cause such material differences include, without limitation, the
following: the effects of paper and other raw material price fluctuations,
successful execution of cross-selling, cost containment and other key
strategies, the successful negotiation, execution and integration of
acquisitions, the ability to renegotiate or terminate unprofitable contracts,
the ability to divest non-core businesses, the rate of migration from
paper-based forms to digital formats, future growth rates in Moore's core
business, the impact of currency fluctuations in the countries in which Moore
operates, general economic and other factors beyond Moore's control, and other
assumptions, risks and uncertainties described from time to time in Moore's
periodic filings with securities regulators.
----------------
Inquiries from analysts and investors should be directed to James E. Lillie,
Executive Vice President Operations, at Moore Corporation at (203) 406-3711.
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