Northern Rhode Island Dailies Merge Into One (mediapost.com)

*Revenue and Operating Profit Grew Across All Four Divisions *Diluted EPS Increased 46% to $3.28; Adjusted Diluted EPS Increased 40% to $3.40 *Operating Profit Margin Improved 920 Basis Points to 56.9% *Adjusted Operating Profit Margin Improved 740 Basis Points to 58.7% *Several New Products Launched During the Quarter

First Quarter Results Overview: *Total net sales were $77.3 million, a decrease of $53.0 million or 40.7%, compared to $130.3 million last year. As previously announced, the Company temporarily closed all of its 239 stores on March 18, 2020 in response to the COVID-19 pandemic. All stores remained closed to the public for the final 45 days of the 91-day fiscal quarter, including during the peak weeks of the quarter surrounding normal school spring breaks and Easter. Net sales from physical stores for the first quarter of fiscal 2020 were $47.0 million, a decrease of 57.5% compared to $110.6 million for the first quarter of fiscal 2019. The Company's e-commerce business continued to operate throughout the first quarter, and increased significantly following the closure of the Company’s stores. Net sales from e-commerce for the first quarter of fiscal 2020 were $30.3 million, an increase of 54.2% compared to approximately $19.7 million for the first quarter of fiscal 2019. The Company ended the quarter with 239 total stores, including one RSQ-branded pop-up store, all of which were closed as of the end of the first quarter of fiscal 2020, compared to 229 total stores, including three RSQ-branded pop-up stores, last year. *Gross profit was $1.6 million, or 2.1% of net sales, compared to $35.7 million, or 27.4% of net sales last year. Product margins decreased 770 basis points as a percentage of net sales primarily due to an estimated inventory valuation reserve of $4.7 million and increased markdowns. Occupancy costs deleveraged 1,250 basis points as a percentage of net sales despite being $0.5 million lower than last year, primarily due to the significant net sales decline resulting from the store closures noted above. Distribution costs deleveraged 440 basis points as a percentage of net sales primarily due to an increase in e-commerce shipping charges of $0.9 million resulting from a greater volume of e-commerce orders. Buying costs deleveraged 70 basis points as a percentage of net sales despite being $0.1 million below last year. *Operating loss was $28.4 million, or 36.7% of net sales, compared to operating income of $0.1 million, or 0.1% of net sales, last year. The decrease in operating results was directly attributable to the impacts of the COVID-19 pandemic on our business, including as noted above. *Net loss was $17.4 million, or $0.59 per share, compared to net income of $0.7 million, or $0.02 per diluted share, last year.

Midland Paper, Packaging & Supplies, one of North America's largest independent distributors of media for business communications, wrapped up a very successful Dscoop 2018 in Dallas Texas last week. Midland Paper unveiled three unique specialty products that created new and exciting print opportunities for the Dscoop participants: •Diamond Print Glitter - Eye catching, non-flaking, glitter paper that folds without cracking with unlimited print applications •Blanks Plastic Paper - Unique waterproof poly film used for menus, tags, cards, POP, signage and other graphic applications •Setalux HP - Printable book, magazine, catalog cover material as well as luxury packaging. “All three new products created a lot of “buzz” on the showcase floor. We couldn’t keep up with the requests for samples on the Diamond Print Glitter, while the Plastic Paper and Setalux HP were extremely popular." Click Read More below for additional information.