Big Flower Expects Lower Third Quarter Results.NEW YORK--(BUSINESS WIRE)--March 14, 1996--Big Flower Press (NYSE NYSE See: New York Stock Exchange :BGF BGF Black Guerrilla Family (Afro-American prison gang symbol/tattoo) BGF Boursier du Gouvernement Français (French) BGF Black Guerilla Family (gang) BGF Best Guy Friend ) announced today that the soft advertising environment experienced in the first two months of 1996, will result in a lower performance from its principal operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , Treasure Chest Advertising, and accordingly, will have an adverse impact on the third quarter financial results. Operating results for the fiscal 1996 third quarter, which will end March 31, are expected to be a loss in the range of 13 cents to 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . In the third quarter a year ago, the company reported earnings of 5 cents per share. Theodore Ammon, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said that the anticipated third quarter loss is a result of customer caution in the face of an uncertain retail outlook during the early months of the calendar year, and some selective competitive pricing conditions for advertising circulars. The earnings per share reevaluation excludes certain costs to be incurred in connection with the acquisition of Webcraft Technologies (including premiums to be paid for the redemption of Webcraft's outstanding subordinated notes), which is slated to close by March 31, 1996. Mr. Ammon commented that the prospects for the company's fourth quarter and the balance of calendar year 1996 continue to be good. "While we are disappointed with the immediate advertising market, we are pleased with the way in which Treasure Chest has responded to this situation by taking necessary measures to continue to provide our long-time customers with products and services which meet their advertising and promotion needs on a cost-effective basis." Mr. Ammon added, "I am particularly pleased with the performance of Laser Tech Color (the company's digital prepress subsidiary), and Webcraft. Both companies are performing above expectations. Laser Tech has added a new, less seasonal revenue stream, and Webcraft, pending the acquisition, will bring additional revenue diversification," Mr. Ammon said. Big Flower Press is a leading advertising and information services See Information Systems. company with expertise in advertising circulars, circulation-building newspaper products, image management, and upon completion of the pending Webcraft Technologies acquisition, specialized direct mail products, commercial games and fragrance samples. For the 12-month period ended December 31, 1995, Big Flower Press generated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of approximately $1.3 billion, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma for the Laser Tech Color acquisition and the pending Webcraft Technologies acquisition. CONTACT: Dilenschneider Group Art Gormley, 212/922-0900 |
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