*NEWS*NASHUA REPORTS 2Q 2006 RESULTS

  • ncc-banner-902-x-177-june-2017
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • 4toner4
  • ces_web_banner_toner_news_902x1776
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • banner-01-26-17b
  • 2toner1-2
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • Print
Share

*NEWS*NASHUA REPORTS 2Q 2006 RESULTS

 user 2006-08-25 at 9:42:00 am Views: 84
  • #16067

    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.