CREEL Acquires Las Vegas Operations

Worzalla was ranked the largest employee-owned book printer in North America and the fifth-largest North American book printer in Printing Impressions’ latest industry rankings titled “2021 Printing Impressions 300.” Worzalla was also ranked the 63rd largest printer by annual sales on the general list that includes all printing companies in North America. This is the second consecutive year Worzalla has been ranked as a Top 5 Market Segment Leader in the book printing category. Worzalla also held its ranking as the 63rd largest printer from last year. “Our consistent growth and ranking in Printing Impressions’ annual report is a reflection of Worzalla’s ability to support its customers as book sales continue to increase across America,” said Jim Fetherston, President and CEO of Worzalla. “Much of our success is due to our dedicated associates, who do so much to deliver quality products for our customers despite the challenges our industry has faced over the last few years.” In 2021 Worzalla launched phase three of its modernization plan adding needed printing capacity to its facilities in Stevens Point, Wisconsin. The expansion included the addition of a new casemaker and press. Additionally, Worzalla continued to grow its workforce for the day-to-day operations of creating the millions of books ordered by Worzalla’s customers each year.

*Revenue was $54.1 million lower than last year. COVID-19 continued to negatively impact our results, primarily across the Promotional Solutions, Cloud Solutions and Checks segments. *The Payments segment delivered strong revenue growth of 15.6% over the same period last year, benefiting from Treasury Management revenue growth of 20.9% in the third quarter driven primarily by December 2019 sales wins. *Net income of $29.4 million was impacted by COVID-19, compared to a net loss of $318.5 million in the third quarter 2019. 2019 results included pre-tax, non-cash asset impairment charges of $391.0 million. The impairment charges related to goodwill, as well as amortizable intangible assets. *Cash flow from operations for the nine months ending September 30, 2020 was $166.8 million and capital expenditures were $42.7 million. Free cash flow, defined as cash provided by operating activities less capital expenditures, was $124.1 million, a decrease of $34.2 million as compared to 2019. In addition to COVID-19, free cash flow was impacted by previously disclosed expenditures to support the Company’s business transformation and the ongoing secular decline in checks. These impacts were partially offset by lower income taxes and a legal settlement in the prior year. *At the end of the third quarter, the Company had $1.04 billion of total debt outstanding under its revolving credit facility, compared to $883.5 million at the beginning of 2020. Liquidity was $413.0 million, with cash and cash equivalents totaling $310.4 million at the end of the quarter.

Nashua’s namesake company, Nashua Corp., owned by graphics giant Cenveo, will shutter its Merrimack location by April 30 of next year, resulting in 53 layoffs and marking the end of a manufacturing legacy in New Hampshire that goes back more than a century. The company notified the state and the town by letter on Oct. 26 that the Merrimack packing facility at 59A Daniel Webster Highway is ramping down and will be permanently closed by next spring.