Mail-Well 1st Quarter Results Meet Forecast

- First quarter sales reach $590 million, up 5% from last year

- Debt reduced $85 million in the quarter, $256 million in last twelve

months

- Profits in line with forecasts, down from last year due to impact of

economic slowdown on printing of advertising materials, catalogs and

direct mail promotional material



Apr 26, 2001, 01:00 ET from Mail-Well, Inc.

    ENGLEWOOD, Colo., April 26 /PRNewswire/ -- Mail-Well, Inc. (NYSE:   MWL)
 today announced that first quarter earnings were $0.08 per share, in line with
 revised forecasts announced in early March.  For the three months ended
 March 31, 2001, Mail-Well revenues increased principally due to acquisitions
 and reached $590 million compared to $564 million in the first quarter of
 2000.  Net income was $4 million compared to $18 million earned in the
 corresponding period last year.  Total debt including securitization was
 reduced $85 million during the quarter and $256 million since this time last
 year.
     (Photo: http://www.newscom.com/cgi-bin/prnh/19990429/MAILWELLLOGO )
     "The economic slowdown has caused many of our customers to sharply reduce
 their advertising expenditures," said Paul V. Reilly, President and CEO.  "Our
 Commercial Print Segment, where margins and results are disappointing, has
 been significantly affected by these cutbacks while our Envelope, Printed
 Office Products and Label Segments performed very close to plan.  All of our
 businesses are taking the necessary actions to minimize the impact of the
 slowing economy.  Many of the restructuring plans announced at the beginning
 of the year have been completed and we will see the benefits of these
 initiatives as the year progresses."
     "We continue to be successful in our debt reduction program," Mr. Reilly
 continued.  "Total debt at March 31, 2001 was reduced by $85 million in the
 quarter and $256 million from its high at the end of the first quarter last
 year.  Also, in anticipation of a possible continued economic downturn, we
 requested and received from our bank group a change to our debt covenants
 relating to our leverage ratio.  Although the company was well within its old
 leverage covenants during the quarter, we felt it was important to allow the
 company increased flexibility within its credit agreement given the prevailing
 economic conditions.  This will enable management to focus on the company's
 business and strategic plan during the year."
     "We are also well into our strategic reassessment which we announced in
 January," Mr. Reilly added.  "This reassessment focuses on improving our
 balance sheet, reaping the benefits of working as an integrated entity and
 creating sustainable growth and shareholder value.  The findings from this
 reassessment will be shared publicly in the second quarter."
     Mail-Well will hold a conference call today, April 26, 2001 at 11:00 a.m.
 Mountain Time (1:00p.m. Eastern Time, 12:00p.m. Noon Central Time), to discuss
 the results of the first quarter.  The conference call dial-in number is
 800-946-0785 and the pass code number is 410173.  The conference will also be
 webcast and access is available at www.mail-well.com.
 
     Mail-Well (NYSE:   MWL) specializes in four growing multibillion-dollar
 market segments in the highly fragmented printing industry:  commercial
 printing, envelopes, labels and printed office products.  Mail-Well currently
 has approximately 15,000 employees and more than 140 printing facilities and
 numerous sales offices throughout North America and the United Kingdom.
 Mail-Well reported sales of $2.4 billion in 2000.  The company is
 headquartered in Englewood, Colo.
 
     This press release may make forward-looking statements, which are subject
 to various uncertainties and risks that could affect their outcome.  Factors
 which could cause or contribute to differences include, but are not limited
 to, the cost of paper and other raw materials, product demand and sales, the
 degree and nature of competition, ability to obtain assumed productivity and
 cost savings, postage rates and other changes in the direct mail industry,
 interest rates, availability of financing and general economic conditions.
 This press release does not constitute an offer to sell or solicitation of an
 offer to buy Mail-Well securities.
 
     NOTE:  Web cast links, News Releases and other information on Mail-Well
 can be accessed at www.mail-well.com
 
 
                                  Mail-Well, Inc.
                                 Financial Summary
                         Three Months ended March 31, 2001
                       (millions, except per share amounts)
 
                                                  Three months ended March 31
     Condensed Income Statement                       2001              2000
 
     Net sales                                       $589.9            $563.8
 
     Gross profit                                     131.2             130.1
       Selling, administrative and other               96.0              80.6
       Amortization                                     6.0               4.0
       Restructuring charges                            0.7               --
     Operating income                                  28.5              45.5
       Interest and other expense                      22.1              18.9
     Income before income taxes                         6.4              26.6
       Income taxes (benefit)                           2.8              10.9
     Net income from continuing operations              3.6              15.7
       Income from discontinued operations              --                0.7
     Net income before extraordinary item               3.6              16.4
       Extraordinary gain                               --                1.4
     Net income after extraordinary item               $3.6             $17.8
 
     Additional Information:
 
     EBITDA (before restructuring charges)             50.1              65.7
     Effective tax rate                                43.0%             41.0%
 
 
     Weighted average shares - basic                   47.5              49.2
 
     Earnings per basic share from
      continuing operations                           $0.08             $0.32
     Earnings per basic share before
      extraordinary item                              $0.08             $0.33
     Earnings per basic share after
      extraordinary item                              $0.08             $0.36
 
     Weighted average shares - diluted                 47.8              57.8
 
     Earnings per diluted share from
      continuing operations                           $0.08             $0.31
     Earnings per diluted share before
      extraordinary item                              $0.08             $0.32
     Earnings per diluted share after
      extraordinary item                              $0.08             $0.33
 
 
                                  Mail-Well, Inc.
                                Segment Information
                         Three Months Ended March 31, 2001
                                    ($ Millions)
 
 
                                                  Three Months Ended March 31
     Segment Information                            2001       2000 (1),(2)
       Net sales
         Commercial Printing                       $212.0         $229.4
         Envelope                                   221.6          205.3
         Printed Office Products                     99.8           73.3
         Label                                       56.5           55.8
           Total net sales                          589.9          563.8
 
       Operating income
         Commercial Printing                          6.2           17.7
         Envelope                                    23.1           22.1
         Printed Office Products                      7.2            8.2
         Label                                        3.0            3.6
           Total from operating segments             39.5           51.6
 
         Corporate services and other
          expenses                                   (4.3)          (2.1)
         Restructuring                               (0.7)            --
         Amortization                                (6.0)          (4.0)
       Total operating income                       $28.5          $45.5
 
 
         (1) Net sales have been restated to include billed freight previously
             reported in cost of sales.
         (2) Restated to move one location from Printed Office Products to
             Label.
 
 
                                  Mail-Well, Inc.
                            Consolidated Balance Sheets
                                  ($ Millions)
 
                                           March-01   December-00  March-00
 
     Cash                                     $0.5        $0.5       $10.7
     Receivables, Net                        215.2       222.7       245.8
     Investment in AR Securitization         104.5        75.4        87.5
     Inventories, Net                        173.1       166.4       192.7
     Other current assets                     53.3        54.0        37.0
       Total Current Assets                  546.6       519.0       573.8
 
     Property, plant & equipment, net        555.2       570.0       621.9
     Goodwill & other intangibles, net       621.2       619.2       644.2
     Other assets, net                        46.2        45.4        64.1
       Total                              $1,769.1    $1,753.6    $1,904.0
 
     Current Portion of Long-term debt        39.2        40.5        34.9
     Other Current Liabilities               352.7       303.9       296.5
     Current liabilities                     391.9       344.4       331.4
 
     Long-term debt                          854.6       888.6     1,085.7
     Deferred Income Taxes                   108.4       108.4        57.5
     Other long-term liabilities              32.3        26.3        37.1
 
     Shareholders' equity                    381.9       385.9       392.3
       Total                              $1,769.1    $1,753.6    $1,904.0
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X34482280
 
 

SOURCE Mail-Well, Inc.
    ENGLEWOOD, Colo., April 26 /PRNewswire/ -- Mail-Well, Inc. (NYSE:   MWL)
 today announced that first quarter earnings were $0.08 per share, in line with
 revised forecasts announced in early March.  For the three months ended
 March 31, 2001, Mail-Well revenues increased principally due to acquisitions
 and reached $590 million compared to $564 million in the first quarter of
 2000.  Net income was $4 million compared to $18 million earned in the
 corresponding period last year.  Total debt including securitization was
 reduced $85 million during the quarter and $256 million since this time last
 year.
     (Photo: http://www.newscom.com/cgi-bin/prnh/19990429/MAILWELLLOGO )
     "The economic slowdown has caused many of our customers to sharply reduce
 their advertising expenditures," said Paul V. Reilly, President and CEO.  "Our
 Commercial Print Segment, where margins and results are disappointing, has
 been significantly affected by these cutbacks while our Envelope, Printed
 Office Products and Label Segments performed very close to plan.  All of our
 businesses are taking the necessary actions to minimize the impact of the
 slowing economy.  Many of the restructuring plans announced at the beginning
 of the year have been completed and we will see the benefits of these
 initiatives as the year progresses."
     "We continue to be successful in our debt reduction program," Mr. Reilly
 continued.  "Total debt at March 31, 2001 was reduced by $85 million in the
 quarter and $256 million from its high at the end of the first quarter last
 year.  Also, in anticipation of a possible continued economic downturn, we
 requested and received from our bank group a change to our debt covenants
 relating to our leverage ratio.  Although the company was well within its old
 leverage covenants during the quarter, we felt it was important to allow the
 company increased flexibility within its credit agreement given the prevailing
 economic conditions.  This will enable management to focus on the company's
 business and strategic plan during the year."
     "We are also well into our strategic reassessment which we announced in
 January," Mr. Reilly added.  "This reassessment focuses on improving our
 balance sheet, reaping the benefits of working as an integrated entity and
 creating sustainable growth and shareholder value.  The findings from this
 reassessment will be shared publicly in the second quarter."
     Mail-Well will hold a conference call today, April 26, 2001 at 11:00 a.m.
 Mountain Time (1:00p.m. Eastern Time, 12:00p.m. Noon Central Time), to discuss
 the results of the first quarter.  The conference call dial-in number is
 800-946-0785 and the pass code number is 410173.  The conference will also be
 webcast and access is available at www.mail-well.com.
 
     Mail-Well (NYSE:   MWL) specializes in four growing multibillion-dollar
 market segments in the highly fragmented printing industry:  commercial
 printing, envelopes, labels and printed office products.  Mail-Well currently
 has approximately 15,000 employees and more than 140 printing facilities and
 numerous sales offices throughout North America and the United Kingdom.
 Mail-Well reported sales of $2.4 billion in 2000.  The company is
 headquartered in Englewood, Colo.
 
     This press release may make forward-looking statements, which are subject
 to various uncertainties and risks that could affect their outcome.  Factors
 which could cause or contribute to differences include, but are not limited
 to, the cost of paper and other raw materials, product demand and sales, the
 degree and nature of competition, ability to obtain assumed productivity and
 cost savings, postage rates and other changes in the direct mail industry,
 interest rates, availability of financing and general economic conditions.
 This press release does not constitute an offer to sell or solicitation of an
 offer to buy Mail-Well securities.
 
     NOTE:  Web cast links, News Releases and other information on Mail-Well
 can be accessed at www.mail-well.com
 
 
                                  Mail-Well, Inc.
                                 Financial Summary
                         Three Months ended March 31, 2001
                       (millions, except per share amounts)
 
                                                  Three months ended March 31
     Condensed Income Statement                       2001              2000
 
     Net sales                                       $589.9            $563.8
 
     Gross profit                                     131.2             130.1
       Selling, administrative and other               96.0              80.6
       Amortization                                     6.0               4.0
       Restructuring charges                            0.7               --
     Operating income                                  28.5              45.5
       Interest and other expense                      22.1              18.9
     Income before income taxes                         6.4              26.6
       Income taxes (benefit)                           2.8              10.9
     Net income from continuing operations              3.6              15.7
       Income from discontinued operations              --                0.7
     Net income before extraordinary item               3.6              16.4
       Extraordinary gain                               --                1.4
     Net income after extraordinary item               $3.6             $17.8
 
     Additional Information:
 
     EBITDA (before restructuring charges)             50.1              65.7
     Effective tax rate                                43.0%             41.0%
 
 
     Weighted average shares - basic                   47.5              49.2
 
     Earnings per basic share from
      continuing operations                           $0.08             $0.32
     Earnings per basic share before
      extraordinary item                              $0.08             $0.33
     Earnings per basic share after
      extraordinary item                              $0.08             $0.36
 
     Weighted average shares - diluted                 47.8              57.8
 
     Earnings per diluted share from
      continuing operations                           $0.08             $0.31
     Earnings per diluted share before
      extraordinary item                              $0.08             $0.32
     Earnings per diluted share after
      extraordinary item                              $0.08             $0.33
 
 
                                  Mail-Well, Inc.
                                Segment Information
                         Three Months Ended March 31, 2001
                                    ($ Millions)
 
 
                                                  Three Months Ended March 31
     Segment Information                            2001       2000 (1),(2)
       Net sales
         Commercial Printing                       $212.0         $229.4
         Envelope                                   221.6          205.3
         Printed Office Products                     99.8           73.3
         Label                                       56.5           55.8
           Total net sales                          589.9          563.8
 
       Operating income
         Commercial Printing                          6.2           17.7
         Envelope                                    23.1           22.1
         Printed Office Products                      7.2            8.2
         Label                                        3.0            3.6
           Total from operating segments             39.5           51.6
 
         Corporate services and other
          expenses                                   (4.3)          (2.1)
         Restructuring                               (0.7)            --
         Amortization                                (6.0)          (4.0)
       Total operating income                       $28.5          $45.5
 
 
         (1) Net sales have been restated to include billed freight previously
             reported in cost of sales.
         (2) Restated to move one location from Printed Office Products to
             Label.
 
 
                                  Mail-Well, Inc.
                            Consolidated Balance Sheets
                                  ($ Millions)
 
                                           March-01   December-00  March-00
 
     Cash                                     $0.5        $0.5       $10.7
     Receivables, Net                        215.2       222.7       245.8
     Investment in AR Securitization         104.5        75.4        87.5
     Inventories, Net                        173.1       166.4       192.7
     Other current assets                     53.3        54.0        37.0
       Total Current Assets                  546.6       519.0       573.8
 
     Property, plant & equipment, net        555.2       570.0       621.9
     Goodwill & other intangibles, net       621.2       619.2       644.2
     Other assets, net                        46.2        45.4        64.1
       Total                              $1,769.1    $1,753.6    $1,904.0
 
     Current Portion of Long-term debt        39.2        40.5        34.9
     Other Current Liabilities               352.7       303.9       296.5
     Current liabilities                     391.9       344.4       331.4
 
     Long-term debt                          854.6       888.6     1,085.7
     Deferred Income Taxes                   108.4       108.4        57.5
     Other long-term liabilities              32.3        26.3        37.1
 
     Shareholders' equity                    381.9       385.9       392.3
       Total                              $1,769.1    $1,753.6    $1,904.0
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X34482280
 
 SOURCE  Mail-Well, Inc.