Troi Mailing Joins Two Sides North America

Change continues to rock the book manufacturing business. Contracts for book printing and bindery services have declined as publishers pull back on new orders and work off the excess inventory that built up in response to demand during the Covid years. Print-on-demand book technologies are placing further downward pressure on traditional book manufacturing. Although there is widespread confidence that the printed book will survive the digital onslaught better than many other forms of print, there are shifts and cracks in the book printing world. Consolidators are buying companies with long histories and respected pedigrees that have served and continue to sell to the trade and educational publishers. At the same time, others are closing down huge manufacturing facilities as overall volumes decline in certain segments. On-demand digital ordering, prepress, and printing technologies, driven primarily by the plethora of installed highly productive continuous form inkjet printing devices, has reduced the need for publishers to order long runs and keep large inventories.

To get the facts on the supply chain crisis, PRINTING United Alliance recently launched the Printing Industry Supply Chain Conditions Survey. Nearly 200 companies, including commercial printers, graphic and sign producers, apparel decorators, functional printers, and package printers/converters, have participated to date. Our survey confirms that the crisis is getting worse. For every substrate covered, reports that availability has decreased over the past 60 days far exceed reports of the opposite, with the highest percentages reporting declines in the availability of coated paper (84.8%), uncoated paper (79.2%), vinyl (62.6%), and plastics other than vinyl (55.7%). Moreover, majorities ranging from 96.7% for coated paper to 74.4% for textiles/fabrics and newsprint report prices continue to rise (see Figure 1). details at: https://www.piworld.com/article/survey-sheds-light-supply-chain-crisis-substrates-consumables/

Q3 Key messages *GAAP net sales, including the impact of foreign exchange, increased 6.4%; Non-GAAP organic net sales increased 5.5%; largely driven by strengthening demand for many of the Company’s products and services *GAAP and Non-GAAP income from operations exceeded prior year; both benefitted from higher sales and strong cost management despite supply chain challenges and inflation *GAAP operating margin improved 450 bps while Non-GAAP improved by 20 bps *GAAP earnings per share from continuing operations of $0.38 and Non-GAAP adjusted earnings per share from continuing operations of $0.57, both improved significantly from prior year *Cash used in operating activities during the nine months ended September 30, 2021 was $29 million compared to cash provided by operating activities of $25 million in the prior year period; current year results reflect working capital investments due to increased volume and inflation in addition to $33 million paid earlier this year to settle LSC bankruptcy-related claims and terminate certain interest rate swap agreements *Gross leverage ratio of 3.7x improved 1.0x from September 30, 2020; net leverage ratio of 3.2x improved 0.5x from the same period last year