*NEWS*NASHUA REPORTS 2Q 2006 RESULTS

[Anonymous]

Nashua Reports Second Quarter 2006 Results
NASHUA,
NH — — August  2006 — Nashua Corporation, a manufacturer and
marketer of labels, thermal specialty papers and imaging products,
today announced financial results for the second quarter ended June 30,
2006.Net sales for the second quarter of 2006 were $65.5 million,
compared to $67.3 million for the second quarter of 2005. Gross margin
for the second quarter of 2006 was $9.5 million, or 14.5%, compared to
$11.4 million, or 17%, for the second quarter of 2005. Loss from
continuing operations before income taxes was $1.6 million in the
second quarter of 2006 compared to income from continuing operations
before income taxes of $0.5 million in the second quarter of 2005. Loss
from continuing operations was $1.0 million in the second quarter of
2006, or $0.16 per share, compared to income from continuing operations
of $0.3 million, or $0.05 per share, in the second quarter of 2005. Net
income for the second quarter of 2005, which included income of $1.1
million, or $0.18 per share, from discontinued operations related to
the exit of the toner business and the settlement of tax issues with
the Internal Revenue Service, was $1.4 million or $0.23 per share.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
were $0.2 for the second quarter of 2006 compared to $2.5 million for
the second quarter of 2005.Net sales for the six months ended June 30,
2006, were $130.3 million, compared to $135 million for the first half
of 2005. Gross margin for the first half of 2006 was $19.2 million, or
14.8%, compared to $21.9 million, or 16.2%, for the first half of 2005.
Loss from continuing operations before income taxes for the first six
months of 2006 was $2.5 million, compared to loss from continuing
operations before income taxes of $0.2 million in the first half of
2005. Loss from continuing operations for the first half of 2006 was
$1.5 million, or $0.25 per share, compared to a loss from continuing
operations of $0.1 million, or $0.02 per share, for the first half of
2005. Net loss, including discontinued operations, was $0.5 million, or
$0.09 per share, for the first half of 2006 compared to a net loss of
$0.2 million, or $0.04 per share, for the first half of 2005. EBITDA
was $2.1 million for the first six months of 2006 compared to $4.0
million for the same period in 2005.Commenting on the Company’s second
quarter performance, Thomas Brooker, President and Chief Executive
Officer of Nashua, said, “The declines in sales, margin and net income
in the second quarter are disappointing and reflect intense competition
in the industry and the effect of actions taken by Nashua to position
the Company to deliver improved performance. The decline in income in
the second quarter resulted partially from costs associated with the
consolidation of Label manufacturing operations into Florida, Tennessee
and Nebraska facilities. This project is expected to be completed by
the end of the third quarter. In addition, we incurred incremental
one-time costs associated with the consolidation of our coated paper
manufacturing into a smaller space at the Merrimack, New Hampshire
facility and severance and incremental pension costs associated with
the Company’s defined benefit plans. Liquidation of assets of Nashua’s
previously-owned toner business continued during the second quarter,
enabling the Company to reduce bank debt by approximately $5 million
since December 31, 2005.”Nashua entered into a non-binding letter of
intent for the sale of the Merrimack, New Hampshire facilities and
currently is negotiating a purchase and sale agreement as well as a
lease agreement for space in Merrimack. There is no guarantee that the
sale will close. Also, Nashua has entered into a purchase and sale
agreement for the sale of Company property in Nashua, New Hampshire for
$2.0 million, which is expected to close in the fourth quarter of 2006. 

[Author]

August 25, 2006 at 9:42 AM