Exhibit 99.1
In October 2003, Mail-Well, Inc. ("Mail-Well") reorganized into two business
segments. This reorganization aligns the structure with principle strategic
goals: to operate as one company; to provide customers with one point of
entry into Mail-Well; and to go to market with a complete range of products
and services.
The commercial segment combines commercial printing plants and the custom
direct portion of the envelope business into a single business that sells
directly to national and local customers. The commercial segment consists of
66 manufacturing facilities and five distribution and fulfillment centers
and specializes in the printing of annual reports, car brochures, brand
marketing collateral, financial communications and general commercial
printing and customized envelopes for billing and remittance and direct mail
advertising.
The resale segment combines all operations that sell to third-party dealers
such as print distributors, forms suppliers and office-product retain
chains. This business consists of 20 plants that produce a variety of
products including business forms, business labels, custom and stock
envelopes, specialty packaging and mailers.
The accompanying segment data presents net sales, operating income and other
financial data for the two business segments for 2003 and 2002 by quarter.
In 2002, segment data includes restructuring expenses and net sales and
operating income of divested operations. The impact of restructuring and
divestitures on segment data for 2003 are not included in this analysis
because these amounts did not significantly impact segment data in 2003.
MAIL-WELL, INC. AND SUBSIDIARIES
SEGMENT DATA
(IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30 DECEMBER 31 DECEMBER 31
MARCH 31 2003 JUNE 30 2003 2003 2003 2003
NET SALES:
Commercial $ 324,062 $ 306,608 $ 315,029 $ 326,826 $ 1,272,525
Resale 103,258 101,218 97,189 97,474 399,139
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Total net sales $ 427,320 $ 407,826 $ 412,218 $ 424,300 $ 1,671,664
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OPERATING INCOME (LOSS):
Commercial $ 12,475 $ 10,286 $ 16,879 $ 19,063 $ 58,703
Resale 11,854 10,456 9,948 12,446 44,704
Corporate services (5,050) (5,116) (4,805) (2,891) (17,862)
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Total operating income $ 19,279 $ 15,626 $ 22,022 $ 28,618 $ 85,545
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OTHER SEGMENT DATA:
Commercial
Depreciation 9,235 9,188 9,141 8,866 36,430
Amortization 211 184 266 302 963
Other non operating income (expenses) (10) (440) (338) (388) (1,176)
Resale
Depreciation 2,352 2,300 2,230 2,224 9,106
Amortization 234 234 234 234 936
Other non operating income (expenses) (34) (66) (67) (80) (247)
Corporate
Depreciation 135 134 136 127 532
Amortization - - - - -
Other non operating income (expenses) (89) 149 (169) (287) (396)
Gain on assets held for sale - - - (117) (117)
Total Company
Depreciation 11,722 11,622 11,507 11,217 46,068
Amortization 445 418 500 536 1,899
Other non operating income (expenses) (133) (357) (574) (755) (1,819)
Gain on assets held for sale - - - (117) (117)
MAIL-WELL, INC. AND SUBSIDIARIES
SEGMENT DATA
(IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30 DECEMBER 31 DECEMBER 31
MARCH 31 2002 JUNE 30 2002 2002 2002 2002
NET SALES:
Commercial $ 320,061 $ 297,965 $ 318,735 $ 331,606 $ 1,268,367
Resale 123,413 123,002 109,993 103,930 460,338
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Total net sales $ 443,474 $ 420,967 $ 428,728 $ 435,536 $ 1,728,705
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OPERATING INCOME (LOSS):
Commercial $ (3,221) $ (5,102) $ (282) $ 10,119 $ 1,514
Resale 10,267 12,136 11,031 9,865 43,299
Corporate services (9,982) (35,021) (26,721) (6,008) (77,732)
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Total operating income (loss) $ (2,936) $ (27,987) $ (15,972) $ 13,976 $ (32,919)
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OTHER SEGMENT DATA:
Commercial
Depreciation 9,006 9,095 9,108 8,806 36,015
Amortization 262 242 214 192 910
Other non operating income (expenses) (8) (171) (379) (255) (813)
Restructuring and other charges 11,622 8,491 15,443 9,339 44,895
Resale
Depreciation 3,129 2,811 2,729 2,719 11,388
Amortization 260 260 246 235 1,001
Other non operating income (expenses) (33) 30 (159) (79) (241)
Restructuring and other charges 2,279 1,651 706 2,003 6,639
Corporate
Depreciation (656) (366) (267) 1,705 416
Amortization (20) 12 66 268 326
Other non operating income (expenses) (251) 90 (1,181) 642 (700)
Impairment loss on assets held for sale - 19,278 - - 19,278
Loss on early extinguishement of debt 7,745 8,718 - - 16,463
Restructuring and other charges 626 (868) 23,259 - 23,017
Total Company
Depreciation 11,479 11,540 11,570 13,230 47,819
Amortization 502 514 526 695 2,237
Other non operating income (expenses) (292) (51) (1,719) 308 (1,754)
Impairment loss on assets held for sale - 19,278 - - 19,278
Loss on early extinguishement of debt 7,745 8,718 - - 16,463
Restructuring and other charges 14,527 9,274 39,408 11,343 74,551
SEGMENT DATA FOR DIVESTED OPERATIONS:
NET SALES:
Resale - Filing products division $ 18,527 $ 17,483 $ 6,330 $ - $ 42,340
Commercial - Digital graphics operations 3,537 3,745 3,416 3,407 14,105
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Total net sales $ 22,064 $ 21,228 $ 9,746 $ 3,407 $ 56,445
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OPERATING INCOME (LOSS):
Resale - Filing products division $ 1,739 $ 1,396 $ 294 $ - $ 3,429
Commercial - Digital graphics operations 488 419 423 (1,280) 50
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Total operating income (loss) $ 2,227 $ 1,815 $ 717 $ (1,280) $ 3,479
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