Data Documents reports sales and operating earnings for the fourth quarter 1994.

OMAHA, Neb.--(BUSINESS WIRE)--March 14, 1995--Data Documents Holdings Inc. today reported increased sales and operating earnings for the fourth quarter 1994. For the three months ended December 31, 1994 sales were $51.7 million, an increase of 5.4% over the $49.0 million in 1993. Operating earnings, reduced $.5 million from termination of a consulting agreement, were $2.7 million in 1994 compared with $2.3. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $5.2 million in 1994 compared to $4.3 million in the fourth quarter 1993. In the fourth quarter 1994 the company reported an extraordinary charge, net of tax, of $2.8 million from the write-off of unamortized deferred financing costs and certain transaction fees and expenses associated with early termination of debt. As a result of this charge and increased debt expense, the fourth quarter 1994 net loss was $2.8 million compared to net income of $.2 million in 1993.

For the year ended December 31, 1994, sales were $193.6 million, flat with 1993. Sales in 1994 reflected increased value added sales which were offset by declines in stock forms and government sales. Operating earnings for 1994 were $12.1 million compared with $9.2 million in 1993. EBITDA was $20.3 million in 1994 compared to $16.9 million in 1993. In 1994 the net loss was $.9 million, after the extraordinary charge, compared to net income of $1.0 million in 1993.

The fourth quarter reflected increases in custom forms, EDP pressure sensitive labels and INTELIMAIL(R) sales while stock forms sales stabilized. Backlogs have increased to historically high levels. Raw material prices have risen significantly in the fourth quarter and continue to increase in 1995. These price increases to date have been recovered in customer pricing.

Gross profit margins on sales improved in 1994 to 23.4% from 21.5% in 1993. The gain reflects shift in product sales to value added products and successful efforts in reduction of manufacturing costs.

On November 28, 1994 the company completed a public offering of $85,000,000 of 13.1/2% Senior Secured Notes and Warrants due July 15, 2002. The proceeds of the offerings were used to repay outstanding indebtedness, repurchase assets under a sale/leaseback arrangement, redeem all outstanding preferred stock and provide funds for general corporate purposes.

Data Documents, with headquarters in Omaha, Nebraska, has eight manufacturing plants and over sixty sales offices in the U.S. The company is a leading designer and provider of business forms and pressure sensitive label products and offers forms management services and electronic forms automation systems to assist customers in improving overall productivity and reducing costs associated with managing business information. In addition, the company offers businesses direct mail printing, personalization, and mailing services through its INTELIMAIL(R) Division.

CONTACT: Data Documents Holdings Inc., Omaha

Joseph C. Addison, Vice President and CFO 

or

Anita M Meints, Director - Corporate Communications

402/339-0900