COLORADO
|
84-1250533
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
ONE
CANTERBURY GREEN
201
BROAD STREET
|
|
STAMFORD,
CT
|
06901
|
(Address
of principal executive offices)
|
(Zip
Code)
|
203-595-3000
|
|
(Registrant’s
telephone number, including area
code)
|
Title of Each
Class
|
Name of Each Exchange on Which
Registered
|
Common
Stock, par value $0.01 per share
|
New
York Stock Exchange
|
PART
I
|
|||
PAGE
|
|||
1
|
|||
7
|
|||
11
|
|||
11
|
|||
11
|
|||
PART
II
|
|||
12
|
|||
14
|
|||
15
|
|||
29
|
|||
30
|
|||
82
|
|||
82
|
|||
84
|
|||
PART
III
|
|||
84
|
|||
84
|
|||
84
|
|||
84
|
|||
84
|
|||
PART
IV
|
|||
84
|
|
·
|
Custom
labels and specialty forms;
|
|
·
|
Stock
envelopes, labels and business forms;
and
|
|
·
|
Direct
mail and customized envelopes developed for advertising, billing and
remittance.
|
|
·
|
Specialty
packaging and high quality promotional materials for multinational
consumer products companies;
|
|
·
|
STM
journals, special interest and trade magazines for not-for-profit
organizations, educational institutions and specialty
publishers;
|
|
·
|
High-end
color printing of a wide range of premium products for major national and
regional customers; and
|
|
·
|
General
commercial printing products for regional and local
customers.
|
Name
|
|
Age
|
Position
|
|
Year
Elected
to
Present
Position
|
|
Robert G. Burton, Sr. |
69
|
Chairman
and Chief Executive Officer
|
2005
|
|||
Mark
S. Hiltwein
|
46
|
Chief
Financial Officer
|
2007
|
|||
Dean
Cherry
|
49
|
President,
Envelope Operations
|
2008
|
|||
Harry
Vinson
|
49
|
President,
Publisher Services, Commercial Print and Packaging
Operations
|
2007
|
|||
Timothy
M. Davis
|
55
|
Senior
Vice President, General Counsel and Secretary
|
2006
|
|
·
|
requiring
a substantial portion of our cash flow from operations to be dedicated to
the payment of principal and interest on indebtedness instead of funding
working capital, capital expenditures, acquisitions and other business
purposes;
|
|
·
|
making
it more difficult for us to satisfy all of our debt obligations, thereby
increasing the risk of triggering a cross-default
provision;
|
|
·
|
increasing
our vulnerability to economic downturns or other adverse developments
relative to less leveraged
competitors;
|
|
·
|
limiting
our ability to obtain additional financing for working capital, capital
expenditures, acquisitions or other corporate purposes in the future;
and
|
|
·
|
increasing
our cost of borrowing to satisfy business
needs.
|
|
·
|
incur
or guarantee additional
indebtedness;
|
|
·
|
make
restricted payments, including dividends and prepaying
indebtedness;
|
|
·
|
create
or permit certain liens;
|
|
·
|
enter
into business combinations and asset sale
transactions;
|
|
·
|
make
investments, including capital
expenditures;
|
|
·
|
amend
organizational documents and change accounting
methods;
|
|
·
|
enter
into transactions with affiliates;
and
|
|
·
|
enter
into new businesses.
|
2009
|
High
|
Low
|
|||
First
Quarter
|
$
|
5.48
|
$
|
1.54
|
|
Second
Quarter
|
5.56
|
2.76
|
|||
Third
Quarter
|
7.20
|
3.60
|
|||
Fourth
Quarter
|
9.42
|
6.56
|
|||
2008
|
High
|
Low
|
|||
First
Quarter
|
$
|
18.16
|
$
|
9.66
|
|
Second
Quarter
|
13.04
|
9.21
|
|||
Third
Quarter
|
10.67
|
7.50
|
|||
Fourth
Quarter
|
7.76
|
2.24
|
Years ended
|
|||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
||
Cenveo
|
100.00
|
424.52
|
683.87
|
563.55
|
143.55
|
282.26
|
|
S&P
500 Index
|
100.00
|
104.83
|
121.20
|
127.87
|
81.12
|
102.15
|
|
S&P
1500 Commercial Printing Index
|
100.00
|
96.97
|
107.24
|
116.08
|
47.83
|
73.04
|
Years
Ended
|
||||||||||||||||
Statement
of Operations:
|
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
December
30, 2006
|
December
31, 2005
|
|||||||||||
Net
sales
|
$
|
1,714,631
|
$
|
2,098,694
|
$
|
2,046,716
|
$
|
1,511,224
|
$
|
1,594,781
|
||||||
Restructuring,
impairment and other
charges
|
68,034
|
399,066
|
(1)
|
40,086
|
41,096
|
77,254
|
||||||||||
Operating
income (loss)
|
32,188
|
(223,546
|
)
(1)
|
137,550
|
63,395
|
(26,310
|
)
|
|||||||||
(Gain)
loss on early extinguishment of
debt
|
(16,917
|
)
|
(14,642
|
)
|
9,256
|
32,744
|
—
|
|||||||||
Income
(loss) from continuing operations
|
(39,837
|
)
|
(296,976
|
)(2)
|
23,985
|
(11,148
|
)
|
(148,101
|
)
|
|||||||
Income
(loss) from discontinued operations,
net of taxes
|
8,898
|
(1,051
|
)
|
16,796
|
(3)
|
126,519
|
(4)
|
13,049
|
||||||||
Net
income (loss)
|
(30,939
|
)
|
(298,027
|
)(2)
|
40,781
|
(3)
|
115,371
|
(4)
|
(135,052
|
)
|
||||||
Income
(loss) per share from continuing operations:
|
||||||||||||||||
Basic
|
(0.70
|
)
|
(5.51
|
)
|
0.45
|
(0.21
|
)
|
(2.96
|
)
|
|||||||
Diluted
|
(0.70
|
)
|
(5.51
|
)
|
0.44
|
(0.21
|
)
|
(2.96
|
)
|
|||||||
Income
(loss) per share from discontinued operations:
|
||||||||||||||||
Basic
|
0.16
|
(0.02
|
)
|
0.31
|
2.38
|
0.26
|
||||||||||
Diluted
|
0.16
|
(0.02
|
)
|
0.31
|
2.38
|
0.26
|
||||||||||
Net
income (loss) per share:
|
||||||||||||||||
Basic
|
(0.54
|
)
|
(5.53
|
)
|
0.76
|
2.17
|
(2.70
|
)
|
||||||||
Diluted
|
(0.54
|
)
|
(5.53
|
)
|
0.75
|
2.17
|
(2.70
|
)
|
||||||||
Balance
Sheet data:
|
||||||||||||||||
Total
assets
|
1,525,773
|
1,552,114
|
2,002,722
|
999,892
|
1,079,564
|
|||||||||||
Total
long-term debt, including current maturities
|
1,233,917
|
1,306,355
|
1,444,637
|
675,295
|
812,136
|
|||||||||||
|
(1) Includes
$372.8 million pre-tax goodwill impairment
charges.
|
|
(2) Includes
$330.7 million goodwill impairment charges, net of tax benefit of $42.1
million.
|
|
(3) Includes
a $17.0 million gain on a disposal of discontinued operations, net of
taxes of $8.4 million.
|
|
(4) Includes
a $113.5 million gain on a disposal of discontinued operations, net of
taxes of $22.5 million.
|
Years
Ended
|
||||||||||||
January
2,
2010
|
January
3,
2009
|
December
29,
2007
|
||||||||||
(in
thousands, except per share amount)
|
||||||||||||
Net
sales
|
$ | 1,714,631 | $ | 2,098,694 | $ | 2,046,716 | ||||||
Operating
income (loss):
|
||||||||||||
Envelopes,
forms and
labels
|
$ | 77,200 | $ | (40,979 | ) | $ | 117,342 | |||||
Commercial
printing
|
(6,397 | ) | (136,828 | ) | 55,085 | |||||||
Corporate
|
(38,615 | ) | (45,739 | ) | (34,877 | ) | ||||||
Total
operating income
(loss)
|
32,188 | (223,546 | ) | 137,550 | ||||||||
Gain
on sale of non-strategic businesses
|
— | — | (189 | ) | ||||||||
Interest
expense,
net
|
106,063 | 107,321 | 91,467 | |||||||||
(Gain)
loss on early extinguishment of debt
|
(16,917 | ) | (14,642 | ) | 9,256 | |||||||
Other
(income) expense,
net
|
(1,368 | ) | (637 | ) | 3,131 | |||||||
Income
(loss) from continuing operations before income taxes
|
(55,590 | ) | (315,588 | ) | 33,885 | |||||||
Income
tax expense
(benefit)
|
(15,753 | ) | (18,612 | ) | 9,900 | |||||||
Income
(loss) from continuing operations
|
(39,837 | ) | (296,976 | ) | 23,985 | |||||||
Income
(loss) from discontinued operations, net of taxes
|
8,898 | (1,051 | ) | 16,796 | ||||||||
Net
income
(loss)
|
$ | (30,939 | ) | $ | (298,027 | ) | $ | 40,781 | ||||
Income
(loss) per share—basic:
|
||||||||||||
Continuing
operations
|
$ | (0.70 | ) | $ | (5.51 | ) | $ | 0.45 | ||||
Discontinued
operations
|
0.16 | (0.02 | ) | 0.31 | ||||||||
Net
income
(loss)
|
$ | (0.54 | ) | $ | (5.53 | ) | $ | 0.76 | ||||
Income
(loss) per share—diluted:
|
||||||||||||
Continuing
operations
|
$ | (0.70 | ) | $ | (5.51 | ) | $ | 0.44 | ||||
Discontinued
operations
|
0.16 | (0.02 | ) | 0.31 | ||||||||
Net
income
(loss)
|
$ | (0.54 | ) | $ | (5.53 | ) | $ | 0.75 |
Years
Ended
|
|||||||||
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
|||||||
(in
thousands)
|
|||||||||
Income
tax expense (benefit) for U.S. operations
|
$
|
(18,342
|
)
|
$
|
(17,969
|
)
|
$
|
11,903
|
|
Income
tax expense (benefit) for foreign operations
|
2,589
|
(643
|
)
|
(2,003
|
)
|
||||
Income
tax expense (benefit)
|
$
|
(15,753
|
)
|
$
|
(18,612
|
)
|
$
|
9,900
|
|
Effective
income tax rate
|
(28.3
|
)%
|
(5.9
|
)%
|
29.2
|
%
|
Years
Ended
|
|||||||||
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
|||||||
(in
thousands)
|
|||||||||
Segment
net
sales
|
$
|
819,399
|
$
|
916,145
|
$
|
897,722
|
|||
Segment
operating income
(loss)
|
$
|
77,200
|
$
|
(40,979
|
)
|
$
|
117,342
|
||
Operating
income (loss)
margin
|
9.4
|
%
|
(4.5
|
)%
|
13.1
|
%
|
|||
Items
included in segment operating income:
|
|||||||||
Restructuring
and impairment charges
|
$
|
17,405
|
$
|
174,178
|
$
|
11,350
|
Years
Ended
|
|||||||||
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
|||||||
(in
thousands)
|
|||||||||
Segment
net
sales
|
$
|
895,232
|
$
|
1,182,549
|
$
|
1,148,994
|
|||
Segment
operating income
(loss)
|
$
|
(6,397)
|
$
|
(136,828
|
)
|
$
|
55,085
|
||
Operating
income (loss)
margin
|
(0.7)
|
%
|
(11.6
|
)%
|
4.8
|
%
|
|||
Items
included in segment operating income:
|
|||||||||
Restructuring
and impairment charges
|
$
|
48,744
|
$
|
217,568
|
$
|
28,279
|
Payments
Due
|
Long-Term
Debt(1)
|
Operating
Leases
|
Other
(2)
|
Total
|
|||||||||
2010
|
$
|
109,894
|
$
|
25,026
|
$
|
47,234
|
$
|
182,154
|
|||||
2011
|
93,339
|
20,253
|
24,072
|
137,664
|
|||||||||
2012
|
110,476
|
14,781
|
2,497
|
127,754
|
|||||||||
2013
|
1,021,314
|
11,327
|
1,754
|
1,034,395
|
|||||||||
2014
|
55,270
|
7,099
|
1,409
|
63,778
|
|||||||||
Thereafter
|
184,262
|
12,508
|
4,604
|
201,374
|
|||||||||
Total
|
$
|
1,574,555
|
$
|
90,994
|
$
|
81,570
|
$
|
1,747,119
|
(1)
|
Includes
$340.6 million of estimated interest expense over the term of our
long-term debt, with variable rate debt having an average interest rate of
approximately 4.7%.
|
(2)
|
Includes
pension and other postretirement contributions of $10.6 million,
anticipated worker’s compensation paid losses of $13.6 million,
restructuring related liabilities of $28.1 million, including interest
expense on lease terminations, income tax contingencies of $10.4 million,
derivative liabilities of $16.9 million, and purchase commitments for
equipment of $2.0 million. Excluded from the table are $3.5 million income
tax contingencies as we are unable to reasonably estimate the ultimate
amount payable or timing of
settlement.
|
Rating Agency
|
Corporate
Rating
|
Amended
Credit
Facilities
|
8⅞%
Notes
|
10½%
Notes
|
7⅞%
Notes
|
8⅜%
Notes
|
Outlook
|
Last Update
|
||||||||||
Moody’s
|
B2
|
Ba2
|
B2
|
B3
|
Caa1
|
Caa1
|
Negative
|
January
2010
|
||||||||||
Standard
& Poor’s
|
B+
|
BB
|
B
|
B-
|
B-
|
B-
|
Negative
|
January
2010
|
January
2,
|
January
3,
|
||||||
2010
|
2009
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
10,796
|
$
|
10,444
|
|||
Accounts
receivable, net
|
268,563
|
270,145
|
|||||
Inventories
|
145,228
|
159,569
|
|||||
Prepaid
and other current assets
|
64,843
|
74,890
|
|||||
Total
current assets
|
489,430
|
515,048
|
|||||
Property,
plant and equipment, net
|
387,879
|
420,457
|
|||||
Goodwill
|
319,756
|
311,183
|
|||||
Other
intangible assets, net
|
295,418
|
276,944
|
|||||
Other
assets, net
|
33,290
|
28,482
|
|||||
Total
assets
|
$
|
1,525,773
|
$
|
1,552,114
|
|||
Liabilities
and Shareholders’ Deficit
|
|||||||
Current
liabilities:
|
|||||||
Current
maturities of long-term debt
|
$
|
15,057
|
$
|
24,314
|
|||
Accounts
payable
|
183,940
|
174,435
|
|||||
Accrued
compensation and related liabilities
|
29,841
|
37,319
|
|||||
Other
current liabilities
|
98,079
|
88,870
|
|||||
Total
current liabilities
|
326,917
|
324,938
|
|||||
Long-term
debt
|
1,218,860
|
1,282,041
|
|||||
Deferred
income taxes
|
5,004
|
26,772
|
|||||
Other
liabilities
|
151,502
|
139,318
|
|||||
Commitments
and contingencies
|
|||||||
Shareholders’
deficit:
|
|||||||
Preferred
stock, $0.01 par value; 25 shares authorized, no
shares issued
|
—
|
—
|
|||||
Common
stock, $0.01 par value; 100,000 shares authorized, 62,033
and 54,245 shares issued and outstanding
as of January
2, 2010 and January 3, 2009, respectively
|
620
|
542
|
|||||
Paid-in
capital
|
331,051
|
271,821
|
|||||
Retained
deficit
|
(477,905
|
)
|
(446,966
|
)
|
|||
Accumulated
other comprehensive loss
|
(30,276
|
)
|
(46,352
|
)
|
|||
Total
shareholders’ deficit
|
(176,510
|
)
|
(220,955
|
)
|
|||
Total
liabilities and shareholders’ deficit
|
$
|
1,525,773
|
$
|
1,552,114
|
Years
Ended
|
||||||||||
January
2,
|
January
3,
|
December
29,
|
||||||||
2010
|
2009
|
2007
|
||||||||
Net
sales
|
$
|
1,714,631
|
$
|
2,098,694
|
$
|
2,046,716
|
||||
Cost
of sales
|
1,394,778
|
1,671,185
|
1,628,706
|
|||||||
Selling,
general and administrative expenses
|
209,578
|
242,981
|
229,961
|
|||||||
Amortization
of intangible assets
|
10,053
|
9,008
|
10,413
|
|||||||
Restructuring,
impairment and other charges
|
68,034
|
399,066
|
40,086
|
|||||||
Operating
income (loss)
|
32,188
|
(223,546
|
)
|
137,550
|
||||||
Gain
on sale of non-strategic businesses
|
—
|
—
|
(189
|
)
|
||||||
Interest
expense, net
|
106,063
|
107,321
|
91,467
|
|||||||
(Gain)
loss on early extinguishment of debt
|
(16,917
|
)
|
(14,642
|
)
|
9,256
|
|||||
Other
(income) expense, net
|
(1,368
|
)
|
(637
|
)
|
3,131
|
|||||
Income
(loss) from continuing operations before income taxes
|
(55,590
|
)
|
(315,588
|
)
|
33,885
|
|||||
Income
tax expense (benefit)
|
(15,753
|
)
|
(18,612
|
)
|
9,900
|
|||||
Income
(loss) from continuing operations
|
(39,837
|
)
|
(296,976
|
)
|
23,985
|
|||||
Income
(loss) from discontinued operations, net of taxes
|
8,898
|
(1,051
|
)
|
16,796
|
||||||
Net
income (loss)
|
$
|
(30,939
|
)
|
$
|
(298,027
|
)
|
$
|
40,781
|
||
Income
(loss) per share—basic:
Continuing
operations
|
$
|
(0.70
|
)
|
$
|
(5.51
|
)
|
$
|
0.45
|
||
Discontinued
operations
|
0.16
|
(0.02
|
)
|
0.31
|
||||||
Net
income (loss)
|
$
|
(0.54
|
)
|
$
|
(5.53
|
)
|
$
|
0.76
|
||
Income
(loss) per share—diluted:
Continuing
operations
|
$
|
(0.70
|
)
|
$
|
(5.51
|
)
|
$
|
0.44
|
||
Discontinued
operations
|
0.16
|
(0.02
|
)
|
0.31
|
||||||
Net
income (loss)
|
$
|
(0.54
|
)
|
$
|
(5.53
|
)
|
$
|
0.75
|
||
Weighted
average shares:
|
||||||||||
Basic
|
56,787
|
53,904
|
53,584
|
|||||||
Diluted
|
56,787
|
53,904
|
54,645
|
Years
Ended
|
|||||||||
January
2,
|
January
3,
|
December
29,
|
|||||||
2010
|
2009
|
2007
|
|||||||
Cash
flows from operating activities:
|
|||||||||
Net
income (loss)
|
$
|
(30,939
|
)
|
$
|
(298,027
|
)
|
$
|
40,781
|
|
Adjustments
to reconcile net income (loss) to net cash provided
by operating activities:
|
|||||||||
Gain
on sale of discontinued operations, net of taxes
|
—
|
—
|
(17,007
|
)
|
|||||
Loss
(income) from discontinued operations, net of taxes
|
(8,898
|
)
|
1,051
|
211
|
|||||
Depreciation
|
56,350
|
65,001
|
55,095
|
||||||
Amortization
of other intangible assets
|
10,053
|
9,008
|
10,413
|
||||||
Non-cash
interest expense, net
|
2,304
|
1,773
|
1,410
|
||||||
Deferred
income taxes
|
(17,573
|
)
|
(24,287
|
)
|
8,763
|
||||
Non-cash
restructuring, impairment and other charges, net
|
32,204
|
378,688
|
19,729
|
||||||
(Gain)
loss on early extinguishment of debt
|
(16,917
|
)
|
(14,642
|
)
|
9,256
|
||||
Provisions
for bad debts
|
5,428
|
4,660
|
5,363
|
||||||
Provisions
for inventory obsolescence
|
3,895
|
902
|
2,851
|
||||||
Stock-based
compensation provision
|
14,274
|
18,140
|
10,280
|
||||||
(Gain)
loss on disposal of assets
|
(5,006
|
)
|
(4,364
|
)
|
(369
|
)
|
|||
(Gain)
loss on sale of non-strategic businesses
|
—
|
—
|
(189
|
)
|
|||||
Other
non-cash charges, net
|
—
|
3,350
|
—
|
||||||
Changes
in operating assets and liabilities, excluding the effects
of acquired businesses:
|
|||||||||
Accounts
receivable
|
21,620
|
70,376
|
(6,086
|
)
|
|||||
Inventories
|
33,075
|
5,198
|
1,193
|
||||||
Accounts
payable and accrued compensation and related liabilities
|
(19,672
|
)
|
(2,928
|
)
|
(9,101
|
)
|
|||
Other
working capital changes
|
(3,110
|
)
|
1,454
|
(36,580
|
)
|
||||
Other,
net
|
(5,036
|
)
|
(5,505
|
)
|
(9,805
|
)
|
|||
Net
cash provided by continuing operating activities
|
72,052
|
209,848
|
86,208
|
||||||
Net
cash provided by discontinued operating activities
|
—
|
—
|
2,198
|
||||||
Net
cash provided by operating activities
|
72,052
|
209,848
|
88,406
|
||||||
Cash
flows from investing activities:
|
|||||||||
Capital
expenditures
|
(25,227
|
)
|
(49,243
|
)
|
(31,538
|
)
|
|||
Cost
of business acquisitions, net of cash acquired
|
(3,189
|
)
|
(47,412
|
)
|
(627,304
|
)
|
|||
Acquisition
payments
|
—
|
(3,653
|
)
|
(3,653
|
)
|
||||
Proceeds
from sale of property, plant and equipment
|
14,619
|
18,258
|
8,949
|
||||||
Proceeds
from sale of investment
|
4,032
|
—
|
—
|
||||||
Proceeds
from divestitures, net
|
—
|
—
|
431
|
||||||
Net
cash used in investing activities of continuing operations
|
(9,765
|
)
|
(82,050
|
)
|
(653,115
|
)
|
|||
Proceeds
from the sale of discontinued operations
|
—
|
—
|
73,628
|
||||||
Net
cash provided by investing activities of discontinued
operations
|
—
|
—
|
73,628
|
||||||
Net
cash used in investing activities
|
(9,765
|
)
|
(82,050
|
)
|
(579,487
|
)
|
|||
Cash
flows from financing activities:
|
|||||||||
Repayments
of term loans
|
(24,594
|
)
|
(7,200
|
)
|
(4,900
|
)
|
|||
Repayment
of 8⅜% senior subordinated notes
|
(23,024
|
)
|
(19,567
|
)
|
(20,880
|
)
|
|||
Repayments
of other long-term debt
|
(12,178
|
)
|
(18,933
|
)
|
(29,053
|
)
|
|||
Payment
of amendment and debt issuance costs
|
(7,296
|
)
|
(5,297
|
)
|
(5,906
|
)
|
|||
Repayment
of 7⅞% senior subordinated notes
|
(4,295
|
)
|
(10,561
|
)
|
—
|
||||
Repayment
of 10½% senior notes
|
(3,250
|
)
|
—
|
—
|
|||||
Purchase
and retirement of common stock upon vesting of RSUs
|
(2,043
|
)
|
(1,054
|
)
|
(1,302
|
)
|
|||
Borrowings
(repayment) under revolving credit facility, net
|
14,500
|
(83,200
|
)
|
75,700
|
|||||
Proceeds
from exercise of stock options
|
532
|
1,876
|
304
|
||||||
Repayment of senior unsecured loan
|
—
|
(175,000
|
)
|
—
|
|||||
Tax
(liability) asset from stock-based compensation
|
—
|
(1,377
|
)
|
67
|
|||||
Payment
of refinancing or repurchase fees, redemption premiums and
expenses
|
(94
|
) |
(130
|
)
|
(8,045
|
)
|
|||
Proceeds
from issuance of 10½% senior notes
|
—
|
175,000
|
—
|
||||||
Proceeds
from issuance of other long-term debt
|
—
|
12,927
|
—
|
||||||
Proceeds
from issuance of term loans
|
—
|
—
|
720,000
|
||||||
Proceeds
from senior unsecured loan
|
—
|
—
|
175,000
|
||||||
Repayment
of term loan B
|
—
|
—
|
(324,188
|
)
|
|||||
Repayment
of Cadmus revolving senior bank credit facility
|
—
|
—
|
(70,100
|
)
|
|||||
Repayment of 9⅝% senior notes
|
—
|
—
|
(10,498
|
)
|
|||||
Net
cash (used in) provided by financing activities
|
(61,742
|
)
|
(132,516
|
)
|
496,199
|
||||
Effect
of exchange rate changes on cash and cash equivalents
of continuing operations
|
(193
|
)
|
(720
|
)
|
206
|
||||
Net
increase (decrease) in cash and cash equivalents
|
352
|
(5,438
|
)
|
5,324
|
|||||
Cash
and cash equivalents at beginning of year
|
10,444
|
15,882
|
10,558
|
||||||
Cash
and cash equivalents at end of year
|
$
|
10,796
|
$
|
10,444
|
$
|
15,882
|
Common
Stock
|
Paid-In
Capital
|
Retained
Deficit
|
Accumulated
Other
Comprehensive
(Loss)
Income
|
Total
Shareholders’
Equity
(Deficit)
|
||||||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||||||
Balance
as of December 30, 2006
|
53,515 | $ | 535 | $ | 244,894 | $ | (189,720 | ) | $ | 2,748 | $ | 58,457 | ||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||
Net
income
|
40,781 | 40,781 | ||||||||||||||||||||||
Other
comprehensive income (loss):
|
||||||||||||||||||||||||
Pension
liability adjustment, net of tax expense of $145
|
(2,131 | ) | (2,131 | ) | ||||||||||||||||||||
Unrealized
loss on cash flow hedges, net of tax benefit of $4,985
|
(7,780 | ) | (7,780 | ) | ||||||||||||||||||||
Currency
translation adjustment
|
6,151 | 6,151 | ||||||||||||||||||||||
Reclassifications
to earnings on sale of discontinued operations:
|
||||||||||||||||||||||||
Currency
translation adjustment
|
(5,501 | ) | (5,501 | ) | ||||||||||||||||||||
Other
comprehensive
loss
|
(9,261 | ) | ||||||||||||||||||||||
Total
comprehensive income
|
31,520 | |||||||||||||||||||||||
Exercise
of stock
options
|
304 | 304 | ||||||||||||||||||||||
Purchase
and retirement of common stock upon vesting of RSUs
|
2 | (1,304 | ) | (1,302 | ) | |||||||||||||||||||
Amortization
of stock based compensation
|
10,280 | 10,280 | ||||||||||||||||||||||
Excess
tax benefit from stock based compensation
|
67 | 67 | ||||||||||||||||||||||
Balance
as of December 29, 2007
|
53,700 | 537 | 254,241 | (148,939 | ) | (6,513 | ) | 99,326 | ||||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||
Net
loss
|
(298,027 | ) | (298,027 | ) | ||||||||||||||||||||
Other
comprehensive income (loss):
|
||||||||||||||||||||||||
Pension
liability adjustment, net of tax benefit of $14,586
|
(22,614 | ) | (22,614 | ) | ||||||||||||||||||||
Unrealized
loss on cash flow hedges, net of tax benefit of $5,115
|
(7,731 | ) | (7,731 | ) | ||||||||||||||||||||
Currency
translation adjustment
|
(8,508 | ) | (8,508 | ) | ||||||||||||||||||||
Reclassifications
of currency translation adjustment to earnings resulting
from goodwill
impairment charges
|
(986 | ) | (986 | ) | ||||||||||||||||||||
Other
comprehensive
loss
|
(39,839 | ) | ||||||||||||||||||||||
Total
comprehensive
loss
|
(337,866 | ) | ||||||||||||||||||||||
Exercise
of stock
options
|
5 | 1,871 | 1,876 | |||||||||||||||||||||
Purchase
and retirement of common stock upon vesting of RSUs
|
(1,054 | ) | (1,054 | ) | ||||||||||||||||||||
Amortization
of stock based compensation
|
18,140 | 18,140 | ||||||||||||||||||||||
Excess
tax benefit from stock based compensation
|
(1,377 | ) | (1,377 | ) | ||||||||||||||||||||
Balance
as of January 3, 2009
|
54,245 | 542 | 271,821 | (446,966 | ) | (46,352 | ) | (220,955 | ) | |||||||||||||||
Comprehensive
income (loss):
|
||||||||||||||||||||||||
Net
loss
|
(30,939 | ) | (30,939 | ) | ||||||||||||||||||||
Other
comprehensive income (loss):
|
||||||||||||||||||||||||
Pension
liability adjustment, net of tax expense of $2,704
|
4,618 | 4,618 | ||||||||||||||||||||||
Unrealized
loss on cash flow hedges, net of tax expense of $4,666
|
7,020 | 7,020 | ||||||||||||||||||||||
Currency
translation adjustment
|
4,438 | 4,438 | ||||||||||||||||||||||
Other
comprehensive
loss
|
16,076 | |||||||||||||||||||||||
Total
comprehensive
loss
|
(14,863 | ) | ||||||||||||||||||||||
Exercise
of stock
options
|
532 | 532 | ||||||||||||||||||||||
Common
stock issued in connection with Nashua Corporation
acquisition
|
71 | 46,474 | 46,545 | |||||||||||||||||||||
Purchase
and retirement of common stock upon vesting of RSUs
|
7 | (2,050 | ) | (2,043 | ) | |||||||||||||||||||
Amortization
of stock based compensation
|
14,274 | 14,274 | ||||||||||||||||||||||
Balance
as of January 2, 2010
|
62,033 | $ | 620 | $ | 331,051 | $ | (477,905 | ) | $ | (30,276 | ) | $ | (176,510 | ) |
Level 1 — | Valuations based on quoted prices for identical assets and liabilities in active markets. |
Level 2 — |
Valuations
based on observable inputs other than quoted prices included in Level 1,
such as quoted prices for similar assets and liabilities in active
markets, quoted prices for identical or similar assets and liabilities in
markets that are not active, or other inputs that are observable or can be
corroborated by observable market data.
|
Level 3 — |
Valuations
based on unobservable inputs reflecting the Company’s own assumptions,
consistent with reasonably available assumptions made by other market
participants.
|
As
of
September
15, 2009
|
||||
Accounts
receivable, net
|
$
|
24,056
|
||
Other
current assets
|
29,045
|
|||
Property,
plant and equipment
|
27,985
|
|||
Goodwill
|
8,423
|
|||
Other
intangible assets
|
29,600
|
|||
Other
assets
|
2,960
|
|||
Total
assets acquired
|
122,069
|
|||
Current
liabilities, excluding current maturities of long-term debt
|
25,990
|
|||
Current
maturities of long-term debt
|
2,800
|
|||
Other
liabilities
|
42,617
|
|||
Total
liabilities assumed
|
71,407
|
|||
Net
assets acquired
|
50,662
|
|||
Less
cash acquired
|
(1,001)
|
|||
Cost
of Nashua acquisition, net of cash acquired
|
$
|
49,661
|
Years
Ended
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
As
Reported
|
Pro
Forma
|
As
Reported
|
Pro
Forma
|
|||||||||||||
Net
sales
|
$ | 1,714,631 | $ | 1,887,748 | $ | 2,098,694 | $ | 2,363,597 | ||||||||
Operating
income (loss)
|
32,188 | 31,347 | (223,546 | ) | (241,645 | ) | ||||||||||
Income
(loss) from continuing operations
|
(39,837 | ) | (40,673 | ) | (296,976 | ) | (318,025 | ) | ||||||||
Net
income (loss)
|
(30,939 | ) | (31,775 | ) | (298,027 | ) | (319,076 | ) | ||||||||
Income
(loss) per share – basic and diluted:
|
||||||||||||||||
Continuing
operations
|
$ | (0.70 | ) | $ | (0.66 | ) | $ | (5.51 | ) | $ | (5.22 | ) | ||||
Net
income (loss)
|
$ | (0.54 | ) | $ | (0.51 | ) | $ | (5.53 | ) | $ | (5.23 | ) | ||||
Weighted
average shares:
|
||||||||||||||||
Basic
and diluted
|
56,787 | 61,730 | 53,904 | 60,960 |
2007
|
||||||||
As
Reported
|
Pro
Forma
|
|||||||
Net
sales
|
$ | 2,046,716 | $ | 2,148,368 | ||||
Operating
income
|
137,550 | 150,168 | ||||||
Income
(loss) from continuing operations
|
23,985 | 23,369 | ||||||
Net
income
|
40,781 | 40,165 | ||||||
Income
(loss) per share – basic:
|
||||||||
Continuing
operations
|
$ | 0.45 | $ | 0.44 | ||||
Net
income
|
$ | 0.76 | $ | 0.75 | ||||
Income
(loss) per share – diluted:
|
||||||||
Continuing
operations
|
$ | 0.44 | $ | 0.43 | ||||
Net
income
|
$ | 0.75 | $ | 0.74 |
2007
|
||||||||
As
Reported
|
Pro
Forma
|
|||||||
Net
sales
|
$ | 2,046,716 | $ | 2,128,533 | ||||
Operating
income
|
137,550 | 140,874 | ||||||
Income
(loss) from continuing operations
|
23,985 | 19,029 | ||||||
Net
income
|
40,781 | 35,825 | ||||||
Income
(loss) per share – basic:
|
||||||||
Continuing
operations
|
$ | 0.45 | $ | 0.36 | ||||
Net
income
|
$ | 0.76 | $ | 0.67 | ||||
Income
(loss) per share – diluted:
|
||||||||
Continuing
operations
|
$ | 0.44 | $ | 0.35 | ||||
Net
income
|
$ | 0.75 | $ | 0.66 |
Nashua
|
|||
Employee
separation
costs
|
$
|
710
|
|
Asset
impairments
|
35
|
||
Equipment
moving
expenses
|
211
|
||
Lease
termination
expenses
|
159
|
||
Building
clean-up and other expenses
|
69
|
||
Total
restructuring and impairment charges
|
$
|
1,184
|
Lease
Termination
Costs
|
Employee
Separation
Costs
|
Other
Exit Costs
|
Total
|
|||||||||||||
Balance
as of December 29, 2007
|
$ | 3,453 | $ | 495 | $ | 351 | $ | 4,299 | ||||||||
Accruals,
net
|
62 | 1,049 | 149 | 1,260 | ||||||||||||
Payments
|
(1,251 | ) | (1,544 | ) | (500 | ) | (3,295 | ) | ||||||||
Balance
as of January 3, 2009
|
2,264 | — | — | 2,264 | ||||||||||||
Assumed
in Nashua acquisition
|
877 | 123 | — | 1,000 | ||||||||||||
Nashua
Plan
|
159 | 710 | — | 869 | ||||||||||||
Payments
|
(509 | ) | (301 | ) | — | (810 | ) | |||||||||
Balance
as of January 2, 2010
|
$ | 2,791 | $ | 532 | $ | — | $ | 3,323 |
January
2,
2010
|
January
3,
2009
|
|||||||
Raw
materials
|
$ | 60,332 | $ | 67,236 | ||||
Work
in
process
|
25,812 | 27,011 | ||||||
Finished
goods
|
59,084 | 65,322 | ||||||
$ | 145,228 | $ | 159,569 |
January
2,
2010
|
January
3,
2009
|
|||||||
Land
and land
improvements
|
$ | 18,622 | $ | 21,421 | ||||
Buildings
and
improvements
|
106,785 | 111,208 | ||||||
Machinery
and
equipment
|
616,022 | 622,929 | ||||||
Furniture
and
fixtures
|
12,652 | 12,589 | ||||||
Construction
in
progress
|
12,143 | 14,558 | ||||||
766,224 | 782,705 | |||||||
Accumulated depreciation | (378,345 | ) | (362,248 | ) | ||||
$ | 387,879 | $ | 420,457 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Total
|
||||||||||
Balance
as of December 29, 2007
|
$ | 305,025 | $ | 364,777 | $ | 669,802 | ||||||
Acquisitions
|
6,902 | 9,775 | 16,677 | |||||||||
Foreign
currency
translation
|
— | (1,475 | ) | (1,475 | ) | |||||||
Impairment
charge
|
(168,429 | ) | (205,392 | ) | (373,821 | ) | ||||||
Balance
as of January 3,
2009
|
143,498 | 167,685 | 311,183 | |||||||||
Acquisitions
|
8,573 | — | 8,573 | |||||||||
Balance
as of January 2,
2010
|
$ | 152,071 | $ | 167,685 | $ | 319,756 |
January
2, 2010
|
January
3, 2009
|
|||||||||||||||||||
Weighted
Average
Remaining Amortization Period (Years)
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
||||||||||||||
Intangible
assets with determinable lives:
|
||||||||||||||||||||
Customer
relationships
|
15
|
$
|
172,205
|
$
|
(38,394
|
)
|
$
|
133,811
|
$
|
159,206
|
$
|
(29,875
|
)
|
$
|
129,331
|
|||||
Trademarks
and tradenames
|
24
|
21,011
|
(4,986
|
)
|
16,025
|
21,011
|
(4,089
|
)
|
16,922
|
|||||||||||
Patents
|
4
|
3,028
|
(2,023
|
)
|
1,005
|
3,028
|
(1,755
|
)
|
1,273
|
|||||||||||
Non-compete
agreements
|
2
|
2,456
|
(1,958
|
)
|
498
|
2,456
|
(1,634
|
)
|
822
|
|||||||||||
Other
|
9
|
802
|
(223
|
)
|
579
|
768
|
(392
|
)
|
376
|
|||||||||||
199,502
|
(47,584
|
)
|
151,918
|
186,469
|
(37,745
|
)
|
148,724
|
|||||||||||||
Intangible
assets with indefinite lives:
|
||||||||||||||||||||
Trademarks
|
143,500
|
—
|
143,500
|
127,500
|
—
|
127,500
|
||||||||||||||
Pollution
credits
|
—
|
—
|
—
|
720
|
—
|
720
|
||||||||||||||
Total
|
$
|
343,002
|
$
|
(47,584
|
)
|
$
|
295,418
|
$
|
314,689
|
$
|
(37,745
|
)
|
$
|
276,944
|
Annual
Estimated Expense
|
||||
2010
|
$ | 11,542 | ||
2011
|
11,319 | |||
2012
|
11,236 | |||
2013
|
11,000 | |||
2014
|
10,759 |
January
2,
2010
|
January
3,
2009
|
|||||||
Accrued
customer
rebates
|
$ | 15,613 | $ | 18,427 | ||||
Other
accrued liabilities
|
82,466 | 70,443 | ||||||
$ | 98,079 | $ | 88,870 |
January
2,
2010
|
January
3,
2009
|
|||||||
Term
loan, due
2013
|
$ | 683,306 | $ | 707,900 | ||||
7⅞%
senior subordinated notes, due 2013
|
296,270 | 303,370 | ||||||
10½%
senior notes, due
2016
|
170,000 | 175,000 | ||||||
8⅜%
senior subordinated notes, due 2014 ($32.2 million and $72.3 million
outstanding
principal amount as of January 2, 2010 and January 3, 2009,
respectively)
|
32,715 | 73,581 | ||||||
Revolving
credit facility, due
2012
|
22,500 | 8,000 | ||||||
Other
|
29,126 | 38,504 | ||||||
1,233,917 | 1,306,355 | |||||||
Less
current
maturities
|
(15,057 | ) | (24,314 | ) | ||||
Long-term
debt
|
$ | 1,218,860 | $ | 1,282,041 |
2010
|
$ | 15,057 | ||
2011
|
13,463 | |||
2012
|
33,924 | |||
2013
|
963,345 | |||
2014
|
35,896 | |||
Thereafter
|
172,232 | |||
$ | 1,233,917 | |||
January
2, 2010
|
January
3, 2009
|
|||||||
Current
Liabilities:
|
||||||||
Interest
Rate Swaps
|
$ | 9,044 | $ | 4,483 | ||||
Long-Term
Liabilities:
|
||||||||
Interest
Rate Swaps
|
7,875 | 23,180 | ||||||
Forward
Starting Swaps
|
— | 943 |
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
||||||||||
Domestic
|
$ | (61,391 | ) | $ | (315,140 | ) | $ | 35,712 | ||||
Foreign
|
5,801 | (448 | ) | (1,827 | ) | |||||||
$ | (55,590 | ) | $ | (315,588 | ) | $ | 33,885 |
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
||||||||||
Current
tax expense (benefit):
|
||||||||||||
Federal
|
$ | (1,815 | ) | $ | 2,011 | $ | 747 | |||||
Foreign
|
2,276 | 960 | (1,300 | ) | ||||||||
State
|
1,359 | 2,704 | 1,690 | |||||||||
1,820 | 5,675 | 1,137 | ||||||||||
Deferred
expense (benefit):
|
||||||||||||
Federal
|
(14,643 | ) | (13,889 | ) | 7,400 | |||||||
Foreign
|
313 | (1,603 | ) | (703 | ) | |||||||
State
|
(3,243 | ) | (8,795 | ) | 2,066 | |||||||
(17,573 | ) | (24,287 | ) | 8,763 | ||||||||
Income
tax expense (benefit)
|
$ | (15,753 | ) | $ | (18,612 | ) | $ | 9,900 |
January
2,
2010
|
January
3,
2009
|
December
29,
2007
|
||||||||||
Expected
tax expense (benefit) at federal statutory income tax
rate
|
$ | (19,456 | ) | $ | (110,456 | ) | $ | 11,860 | ||||
State
and local income tax expense (benefit)
|
(1,230 | ) | (1,302 | ) | 2,352 | |||||||
Change
in valuation
allowance
|
356 | (1,298 | ) | (4,621 | ) | |||||||
Change
in contingency
reserves
|
265 | (4 | ) | 299 | ||||||||
Non-U.S.
tax rate
differences
|
560 | (486 | ) | (478 | ) | |||||||
Non-deductible
goodwill
|
— | 90,990 | — | |||||||||
Non-deductible
expenses
|
4,516 | 2,883 | 1,349 | |||||||||
Non-deductible
investment expense
|
— | — | 274 | |||||||||
Statutory
foreign rate
change
|
— | — | (921 | ) | ||||||||
Other
|
(764 | ) | 1,061 | (214 | ) | |||||||
Income
tax expense
(benefit)
|
$ | (15,753 | ) | $ | (18,612 | ) | $ | 9,900 |
January
2,
2010
|
January
3,
2009
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss
carryforwards
|
$ | 89,263 | $ | 63,539 | ||||
Capital
loss
carryback
|
— | 3,647 | ||||||
Compensation
and benefit related accruals
|
55,774 | 43,077 | ||||||
Foreign
tax credit
carryforwards
|
16,661 | 16,661 | ||||||
Alternative
minimum tax credit carryforwards
|
10,644 | 10,000 | ||||||
Accounts
receivable
|
3,006 | 3,275 | ||||||
Restructuring
accruals
|
9,699 | 5,428 | ||||||
Accrued
tax and
interest
|
5,014 | 12,307 | ||||||
Other
|
16,544 | 18,841 | ||||||
Valuation
allowance
|
(24,461 | ) | (28,081 | ) | ||||
Total
deferred tax
assets
|
182,144 | 148,694 | ||||||
Deferred
tax liabilities:
|
||||||||
Property,
plant and
equipment
|
(62,126 | ) | (60,944 | ) | ||||
Goodwill
and other intangible assets
|
(96,644 | ) | (86,633 | ) | ||||
Inventory
|
365 | 1,029 | ||||||
Other
|
(6,943 | ) | (234 | ) | ||||
Total
deferred tax
liabilities
|
(165,348 | ) | (146,782 | ) | ||||
Net
deferred tax
asset
|
$ | 16,796 | $ | 1,912 |
January
2,
2010
|
January
3,
2009
|
|||||||
Current
deferred tax asset (included in prepaid and other current
assets)
|
$ | 21,800 | $ | 28,684 | ||||
Long-term
deferred tax
liability
|
(5,004 | ) | (26,772 | ) | ||||
Total
|
$ | 16,796 | $ | 1,912 |
Unrecognized tax benefit – December 30, 2006 | $ | 10,748 | ||
Gross
increases - tax positions in prior period
|
540 | |||
Gross
increases - tax positions in current
period
|
6,743 | |||
Unrecognized
tax benefit – December 29, 2007
|
18,031 | |||
Gross
increases - tax positions in prior period
|
308 | |||
Gross
decreases - tax positions in prior period
|
(1,162 | ) | ||
Unrecognized
tax benefit – January 3, 2009
|
17,177 | |||
Gross
increases - tax positions in prior period
|
203 | |||
Gross
decreases – expiration of applicable statute of limitations
|
(7,798 | ) | ||
Unrecognized
tax benefit – January 2, 2010
|
$ | 9,582 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Employee
separation costs
|
$ | 5,505 | $ | 12,842 | $ | 1,156 | $ | 19,503 | ||||||||
Asset
impairments, net of gains on sale
|
2,944 | 11,077 | 143 | 14,164 | ||||||||||||
Equipment
moving expenses
|
1,863 | 3,427 | — | 5,290 | ||||||||||||
Lease
termination expenses
|
3,126 | 1,687 | 210 | 5,023 | ||||||||||||
Multi-employer
pension withdrawal expenses
|
— | 11,303 | — | 11,303 | ||||||||||||
Building
clean-up and other expenses
|
2,196 | 3,728 | 184 | 6,108 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 15,634 | $ | 44,064 | $ | 1,693 | $ | 61,391 |
Lease
Termination
|
Employee
Separation
Costs
|
Pension
Withdrawal
Liabilities
|
Building
Clean-up
and
Other
Expenses
|
Total
|
||||||||||||||||
Balance
at January 3, 2009
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Accruals,
net
|
5,023 | 19,503 | 11,303 | 6,108 | 41,937 | |||||||||||||||
Payments
|
(2,799 | ) | (16,100 | ) | — | (5,968 | ) | (24,867 | ) | |||||||||||
Balance
at January 2, 2010
|
$ | 2,224 | $ | 3,403 | $ | 11,303 | $ | 140 | $ | 17,070 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Employee
separation costs
|
$ | 122 | $ | 87 | $ | 29 | $ | 238 | ||||||||
Asset
impairments, net of gain on sale
|
67 | 981 | — | 1,048 | ||||||||||||
Equipment
moving expenses
|
— | 59 | — | 59 | ||||||||||||
Lease
termination expenses
|
140 | (51 | ) | 3 | 92 | |||||||||||
Multi-employer
pension withdrawal income
|
— | 2,133 | — | 2,133 | ||||||||||||
Building
clean-up and other expenses
|
182 | 698 | 67 | 947 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 511 | $ | 3,907 | $ | 99 | $ | 4,517 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Goodwill
impairment charges
|
$ | 168,429 | $ | 204,392 | $ | — | $ | 372,821 | ||||||||
Employee
separation costs
|
2,739 | 5,961 | 290 | 8,990 | ||||||||||||
Asset
impairments, net of gain on sale
|
1,130 | 1,421 | — | 2,551 | ||||||||||||
Equipment
moving expenses
|
324 | 658 | — | 982 | ||||||||||||
Lease
termination expenses
|
665 | 1,591 | 63 | 2,319 | ||||||||||||
Multi-employer
pension withdrawal income
|
— | (236 | ) | — | (236 | ) | ||||||||||
Building
clean-up and other expenses
|
562 | 1,671 | 51 | 2,284 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 173,849 | $ | 215,458 | $ | 404 | $ | 389,711 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Total
|
||||||||||
Employee
separation costs
|
$ | 2,381 | $ | 2,684 | $ | 5,065 | ||||||
Asset
impairments
|
3,989 | 4,159 | 8,148 | |||||||||
Equipment
moving expenses
|
1,389 | 1,166 | 2,555 | |||||||||
Lease
termination expenses
|
126 | 3,773 | 3,899 | |||||||||
Multi-employer
pension withdrawal expenses
|
— | 2,092 | 2,092 | |||||||||
Building
clean-up and other expenses
|
885 | 1,784 | 2,669 | |||||||||
Total
restructuring and impairment charges
|
$ | 8,770 | $ | 15,658 | $ | 24,428 |
Lease
Termination
Costs
|
Employee
Separation
Costs
|
Pension
Withdrawal
Liabilities
|
Total
|
|||||||||||||
Balance
as of December 29, 2007
|
$ | 3,582 | $ | 541 | $ | 2,092 | $ | 6,215 | ||||||||
Accruals,
net
|
2,319 | 8,990 | (236 | ) | 11,073 | |||||||||||
Payments
|
(2,312 | ) | (7,556 | ) | (56 | ) | (9,924 | ) | ||||||||
Balance
as of January 3, 2009
|
3,589 | 1,975 | 1,800 | 7,364 | ||||||||||||
Accruals,
net
|
92 | 238 | 2,133 | 2,463 | ||||||||||||
Payments
|
(2,040 | ) | (2,212 | ) | (777 | ) | (5,029 | ) | ||||||||
Balance
as of January 2, 2010
|
$ | 1,641 | $ | 1 | $ | 3,156 | $ | 4,798 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Employee
separation
costs
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Asset
impairments, net of gain on sale
|
— | 18 | — | 18 | ||||||||||||
Equipment
moving
expenses
|
— | 14 | — | 14 | ||||||||||||
Lease
termination
expenses
|
(203 | ) | 419 | 93 | 309 | |||||||||||
Building
clean-up and other expenses
|
279 | 322 | — | 601 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 76 | $ | 773 | $ | 93 | $ | 942 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Employee
separation
costs
|
$ | 36 | $ | 132 | $ | 35 | $ | 203 | ||||||||
Asset
impairments, net of gain on sale
|
— | (226 | ) | — | (226 | ) | ||||||||||
Equipment
moving
expenses
|
— | 520 | — | 520 | ||||||||||||
Lease
termination
expenses
|
(93 | ) | 492 | 218 | 617 | |||||||||||
Building
clean-up and other expenses
|
386 | 1,192 | 25 | 1,603 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 329 | $ | 2,110 | $ | 278 | $ | 2,717 |
Envelopes,
Forms
and
Labels
|
Commercial
Printing
|
Corporate
|
Total
|
|||||||||||||
Employee
separation
costs
|
$ | 1,888 | $ | 2,960 | $ | 251 | $ | 5,099 | ||||||||
Asset
impairments, net of gain on sale
|
(349 | ) | 4,242 | — | 3,893 | |||||||||||
Equipment
moving
expenses
|
792 | 554 | — | 1,346 | ||||||||||||
Lease
termination
expenses
|
(132 | ) | 1,471 | 112 | 1,451 | |||||||||||
Building
clean-up and other expenses
|
381 | 3,394 | 94 | 3,869 | ||||||||||||
Total
restructuring and impairment charges
|
$ | 2,580 | $ | 12,621 | $ | 457 | $ | 15,658 |
Lease
Termination
Costs
|
Employee
Separation
Costs
|
Pension
Withdrawal
Liabilities
|
Total
|
||||||||||||
Balance
as of December 29, 2007
|
$
|
4,793
|
$
|
1,163
|
$
|
297
|
$
|
6,253
|
|||||||
Accruals,
net
|
617
|
203
|
—
|
820
|
|||||||||||
Payments
|
(1,533
|
)
|
(1,366
|
)
|
(89
|
)
|
(2,988
|
)
|
|||||||
Balance
as of January 3, 2009
|
3,877
|
—
|
208
|
4,085
|
|||||||||||
Accruals,
net
|
309
|
—
|
—
|
309
|
|||||||||||
Payments
|
(2,508
|
)
|
—
|
(120
|
)
|
(2,628
|
)
|
||||||||
Balance
as of January 2, 2010
|
$
|
1,678
|
$
|
—
|
$
|
88
|
$
|
1,766
|
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
(In
Years)
|
Aggregate
Intrinsic
Value(a)
(in
thousands)
|
|||||||
Outstanding
as of December 30, 2006
|
3,326,780
|
$
|
14.71
|
5.7
|
$
|
21,589
|
||||
Granted
|
780,000
|
17.89
|
||||||||
Exercised
|
(34,175
|
)
|
8.92
|
$
|
463
|
|||||
Forfeited
|
(222,625
|
)
|
18.84
|
|||||||
Outstanding
as of December 29, 2007
|
3,849,980
|
$
|
15.14
|
4.8
|
$
|
13,661
|
||||
Granted
|
—
|
—
|
||||||||
Exercised
|
(209,880
|
)
|
8.93
|
$
|
516
|
|||||
Forfeited
|
(718,125
|
)
|
17.04
|
|||||||
Outstanding
as of January 3, 2009
|
2,921,975
|
$
|
15.12
|
3.9
|
$
|
32
|
||||
Granted
|
1,315,328
|
(b)
|
4.27
|
|||||||
Exercised
|
(106,452
|
)
|
3.82
|
$
|
421
|
|||||
Forfeited
|
(213,000
|
)
|
16.13
|
|||||||
Outstanding
as of January 2, 2010
|
3,917,851
|
$
|
11.73
|
3.7
|
$
|
5,513
|
||||
Exercisable
as of December 29, 2007
|
1,316,855
|
$
|
12.71
|
4.5
|
$
|
7,503
|
||||
Exercisable
as of January 3, 2009
|
1,678,225
|
$
|
13.76
|
3.9
|
$
|
32
|
||||
Exercisable
as of January 2, 2010
|
2,288,226
|
$
|
13.81
|
2.8
|
$
|
437
|
|
(a)
|
Intrinsic
value for purposes of this table represents the amount by which the fair
value of the underlying stock, based on the respective market prices as of
January 2, 2010, January 3, 2009 and December 29, 2007 or, if exercised,
the exercise dates, exceeds the exercise prices of the respective
options.
|
|
(b)
|
Includes
176,328 stock options assumed in connection with the acquisition of
Nashua.
|
January
2,
2010
|
December
29,
2007
|
||||||
Weighted
average fair value of option grants during the year
|
$
|
1.68
|
$
|
6.31
|
|||
Assumptions:
|
|||||||
Expected option life in
years
|
4.25
|
4.25
|
|||||
Risk-free interest
rate
|
2.09
|
%
|
4.05
|
%
|
|||
Expected
volatility
|
0.460
|
0.363
|
|||||
Expected dividend
yield
|
0.0
|
%
|
0.0
|
%
|
Restricted
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
RSUs
|
Weighted
Average
Grant
Date
Fair
Value
|
||||||||
Unvested
as of December 30, 2006
|
150,000
|
$
|
9.52
|
607,150
|
$
|
19.19
|
|||||
Granted
|
—
|
—
|
761,750
|
17.89
|
|||||||
Vested
|
(50,000
|
)
|
9.52
|
(173,900
|
)
|
20.55
|
|||||
Forfeited
|
—
|
—
|
(62,850
|
)
|
18.97
|
||||||
Unvested
as of December 29, 2007
|
100,000
|
$ |
9.52
|
1,132,150
|
$ |
18.36
|
|||||
Granted
|
—
|
—
|
1,930,410
|
9.77
|
|||||||
Vested
|
(50,000
|
)
|
9.52
|
(395,600
|
)
|
18.19
|
|||||
Forfeited
|
—
|
—
|
(136,171
|
)
|
17.59
|
||||||
Unvested
as of January 3, 2009
|
50,000
|
$ |
9.52
|
2,530,789
|
$ |
11.95
|
|||||
Granted
|
171,144
|
(a)
|
6.53
|
562,960
|
4.22
|
||||||
Vested
|
(50,000
|
)
|
9.52
|
(1,136,715
|
)
|
11.89
|
|||||
Forfeited
|
(10,000
|
)
|
6.53
|
(60,449
|
)
|
9.59
|
|||||
Unvested
as of January 2, 2010
|
161,144
|
$ |
6.53
|
1,896,585
|
$ |
9.72
|
|
(a)
|
Represents
restricted shares that were granted in connection with the acquisition of
Nashua.
|
Pensions
|
SERPs
|
OPEBs
|
||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Reconciliation
of benefit obligation:
|
||||||||||||||||||||||||
Benefit
obligation at beginning of year
|
$ | 151,371 | $ | 155,793 | $ | 16,329 | $ | 17,215 | $ | 2,189 | $ | 2,425 | ||||||||||||
Projected
benefit obligation assumed from
acquisitions
|
102,724 | — | 2,908 | — | 341 | — | ||||||||||||||||||
Service
cost
|
543 | 480 | — | — | — | — | ||||||||||||||||||
Interest
cost
|
10,821 | 9,030 | 1,347 | 935 | 133 | 137 | ||||||||||||||||||
Actuarial
(gain) loss
|
6,374 | (5,995 | ) | 395 | 110 | 355 | (149 | ) | ||||||||||||||||
Plan
amendment (gain) loss
|
— | — | — | — | — | (47 | ) | |||||||||||||||||
Benefits
paid
|
(9,467 | ) | (7,937 | ) | (2,014 | ) | (1,931 | ) | (171 | ) | (177 | ) | ||||||||||||
Benefit
obligation at end of year
|
$ | 262,366 | $ | 151,371 | $ | 18,965 | $ | 16,329 | $ | 2,847 | $ | 2,189 | ||||||||||||
Reconciliation
of fair value of plan assets:
|
||||||||||||||||||||||||
Fair
value of plan assets at beginning of year
|
$ | 98,226 | $ | 132,989 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Fair
value of plan assets assumed from
acquisitions
|
69,412 | — | — | — | — | — | ||||||||||||||||||
Actual
return on plan assets
|
20,668 | (32,934 | ) | — | — | — | — | |||||||||||||||||
Employer
contributions
|
4,594 | 6,108 | 2,014 | 1,931 | 171 | 177 | ||||||||||||||||||
Benefits
paid
|
(9,467 | ) | (7,937 | ) | (2,014 | ) | (1,931 | ) | (171 | ) | (177 | ) | ||||||||||||
Fair
value of plan assets at end of year
|
183,433 | 98,226 | — | — | — | — | ||||||||||||||||||
Funded
status at end of period
|
$ | (78,933 | ) | $ | (53,145 | ) | $ | (18,965 | ) | $ | (16,329 | ) | $ | (2,847 | ) | $ | (2,189 | ) | ||||||
Amounts
recognized in accumulated other comprehensive
loss:
|
||||||||||||||||||||||||
Net
actuarial loss
|
$ | 34,636 | $ | 42,063 | $ | 1,264 | $ | 870 | $ | 111 | $ | (248 | ) | |||||||||||
Prior
service cost
|
10 | 18 | — | — | (42 | ) | (47 | ) | ||||||||||||||||
Total
|
$ | 34,646 | $ | 42,081 | $ | 1,264 | $ | 870 | $ | 69 | $ | (295 | ) | |||||||||||
Amounts
recognized in the consolidated balance
sheets:
|
||||||||||||||||||||||||
Current
liabilities
|
$ | — | $ | — | $ | 2,129 | $ | 1,939 | $ | 367 | $ | 265 | ||||||||||||
Long-term
liabilities
|
78,933 | 53,145 | 16,836 | 14,390 | 2,480 | 1,924 | ||||||||||||||||||
Total
liabilities
|
$ | 78,933 | $ | 53,145 | $ | 18,965 | $ | 16,329 | $ | 2,847 | $ | 2,189 |
January
2,
2010
|
January
3,
2009
|
December
29,
2007
|
||||||||||
Service
cost
|
$ | 543 | $ | 480 | $ | 413 | ||||||
Interest
cost on projected benefit obligation
|
12,301 | 10,102 | 8,731 | |||||||||
Expected
return on plan assets
|
(9,251 | ) | (10,624 | ) | (8,339 | ) | ||||||
Net
amortization and deferral
|
2 | 8 | 8 | |||||||||
Recognized
actuarial
loss
|
2,383 | 221 | 224 | |||||||||
Net
periodic
cost
|
$ | 5,978 | $ | 187 | $ | 1,037 | ||||||
January
2,
2010
|
January
3,
2009
|
December
29, 2007
|
||||||||||
Weighted
average discount
rate
|
5.75% | 6.25% | 6.00% | |||||||||
Expected
long-term rate of return on plan assets
|
8.00% | 8.00% | 8.00% | |||||||||
Rate
of compensation
increase
|
4.00% | 4.00% | 4.00% | |||||||||
January
2,
2010
|
January
3,
2009
|
Target
|
|||||||||||
Equity
securities
|
46-61% | 46-71% |
|
60-75% |
|
||||||||
Fixed
income
securities
|
20-35% | 25-38% |
|
25-35% |
|
||||||||
Alternative
investments and
other
|
4-29% | 4-16% |
|
0-10% |
|
Quoted
Market Prices In Active Markets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
Total
|
|||||||||||||
Cash
and cash equivalents
|
$ | 4,492 | $ | — | $ | — | $ | 4,492 | ||||||||
Fixed
income
|
39,562 | 1,815 | — | 41,377 | ||||||||||||
Commodities
|
2,938 | — | — | 2,938 | ||||||||||||
Equity
|
96,778 | — | — | 96,778 | ||||||||||||
Alternative
investments
|
— | — | 35,707 | 35,707 | ||||||||||||
Group
annuity contracts
|
— | 2,141 | — | 2,141 | ||||||||||||
Total
|
$ | 143,770 | $ | 3,956 | $ | 35,707 | $ | 183,433 |
Alternative
Investments
|
||||
Balance
as of January 3, 2009
|
$ | 16,314 | ||
Assumed
in acquisition
|
17,083 | |||
Unrealized
gains
|
2,628 | |||
Purchases,
sales and settlements
|
(318 | ) | ||
Balance
as of January 2, 2010
|
$ | 35,707 |
January
2,
2010
|
January
3,
2009
|
|||||||
Projected
benefit
obligation
|
$ | 281,331 | $ | 167,700 | ||||
Accumulated
benefit
obligation
|
280,463 | 166,928 | ||||||
Fair
value of plan
assets
|
183,433 | 98,226 |
Pension Plans
|
SERP
|
OPEB
|
|||||||||||
2010
|
$ | 13,622 | $ | 2,116 | $ | 377 | |||||||
2011
|
14,041 | 2,026 | 340 | ||||||||||
2012
|
14,697 | 2,104 | 316 | ||||||||||
2013
|
15,246 | 2,164 | 293 | ||||||||||
2014
|
15,834 | 2,082 | 271 | ||||||||||
2015 – 2019 | 86,635 | 7,731 | 1,075 |
2010
|
$ | 25,026 | ||
2011
|
20,253 | |||
2012
|
14,781 | |||
2013
|
11,327 | |||
2014
|
7,099 | |||
Thereafter
|
12,508 | |||
Total
|
$ | 90,994 |
January
2,
2010
|
January
3,
2009
|
|||||||
Currency
translation
adjustments
|
$ | 3,539 | $ | (899 | ) | |||
Unrealized
loss on cash flow hedges, net of tax expense of $4,666 and tax
benefit of $10,101 as of January 2, 2010 and January 3, 2009,
respectively
|
(11,483 | ) | (18,503 | ) | ||||
Pension
liability adjustments, net of tax expense of $2,704 and tax benefit of
$13,292 as of January 2, 2010 and January 3, 2009,
respectively
|
(22,332 | ) | (26,950 | ) | ||||
Total
accumulated other comprehensive
loss
|
$ | (30,276 | ) | $ | (46,352 | ) |
January
2, 2010
|
January
3,
2009
|
December
29, 2007
|
||||||||||
Numerator
for basic and diluted income (loss) per share:
|
||||||||||||
Income
(loss) from continuing
operations
|
$ | (39,837 | ) | $ | (296,976 | ) | $ | 23,985 | ||||
Income
(loss) from discontinued operations, net of taxes
|
8,898 | (1,051 | ) | 16,796 | ||||||||
Net
income
(loss)
|
$ | (30,939 | ) | $ | (298,027 | ) | $ | 40,781 | ||||
Denominator
weighted average common shares outstanding:
|
||||||||||||
Basic
shares
|
56,787 | 53,904 | 53,584 | |||||||||
Dilutive
effect of equity
awards
|
— | — | 1,061 | |||||||||
Diluted
shares
|
56,787 | 53,904 | 54,645 | |||||||||
Income
(loss) per share – basic:
|
||||||||||||
Continuing
operations
|
$ | (0.70 | ) | $ | (5.51 | ) | $ | 0.45 | ||||
Discontinued
operations
|
0.16 | (0.02 | ) | 0.31 | ||||||||
Net
income
(loss)
|
$ | (0.54 | ) | $ | (5.53 | ) | $ | 0.76 | ||||
Income
(loss) per share - diluted:
|
||||||||||||
Continuing
operations
|
$ | (0.70 | ) | $ | (5.51 | ) | $ | 0.44 | ||||
Discontinued
operations
|
0.16 | (0.02 | ) | 0.31 | ||||||||
Net
income
(loss)
|
$ | (0.54 | ) | $ | (5.53 | ) | $ | 0.75 |
January
2,
2010
|
January
3,
2009
|
December
29,
2007
|
||||||||||
Net
sales:
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 819,399 | $ | 916,145 | $ | 897,722 | ||||||
Commercial
Printing
|
895,232 | 1,182,549 | 1,148,994 | |||||||||
Total
|
$ | 1,714,631 | $ | 2,098,694 | $ | 2,046,716 | ||||||
Operating
income (loss)(1):
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 77,200 | $ | (40,979 | ) | $ | 117,342 | |||||
Commercial
Printing
|
(6,397 | ) | (136,828 | ) | 55,085 | |||||||
Corporate
|
(38,615 | ) | (45,739 | ) | (34,877 | ) | ||||||
Total
|
$ | 32,188 | $ | (223,546 | ) | $ | 137,550 | |||||
Restructuring,
impairment and other charges:
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 17,405 | $ | 174,178 | $ | 11,350 | ||||||
Commercial
Printing
|
48,744 | 217,568 | 28,279 | |||||||||
Corporate
|
1,885 | 7,320 | 457 | |||||||||
Total
|
$ | 68,034 | $ | 399,066 | $ | 40,086 | ||||||
Significant
non-cash charges:
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 4,011 | $ | 169,916 | $ | 3,640 | ||||||
Commercial
Printing
|
27,919 | 210,172 | 16,089 | |||||||||
Corporate
|
274 | 1,950 | — | |||||||||
Total
|
$ | 32,204 | $ | 382,038 | $ | 19,729 | ||||||
Depreciation
and intangible asset amortization:
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 24,561 | $ | 25,410 | $ | 21,015 | ||||||
Commercial
Printing
|
39,825 | 47,164 | 43,346 | |||||||||
Corporate
|
2,017 | 1,435 | 1,147 | |||||||||
Total
|
$ | 66,403 | $ | 74,009 | $ | 65,508 | ||||||
Capital
expenditures:
|
||||||||||||
Envelopes,
Forms and
Labels
|
$ | 4,239 | $ | 7,181 | $ | 5,145 | ||||||
Commercial
Printing
|
18,150 | 39,819 | 24,546 | |||||||||
Corporate
|
2,838 | 2,243 | 1,847 | |||||||||
Total
|
$ | 25,227 | $ | 49,243 | $ | 31,538 | ||||||
Net
sales by product line:
|
||||||||||||
Envelopes
|
$ | 517,512 | $ | 651,235 | $ | 604,351 | ||||||
Commercial
Printing and Packaging
|
600,294 | 815,388 | 823,195 | |||||||||
Journals
and
Periodicals
|
293,891 | 365,490 | 323,370 | |||||||||
Labels
and Business
Forms
|
302,934 | 266,581 | 295,800 | |||||||||
Total
|
$ | 1,714,631 | $ | 2,098,694 | $ | 2,046,716 | ||||||
Intercompany
sales:
|
||||||||||||
Envelopes,
Forms and Labels to Commercial Printing
|
$ | 4,350 | $ | 6,415 | $ | 8,802 | ||||||
Commercial
Printing to Envelopes, Forms and Labels
|
1,865 | 3,655 | 6,985 | |||||||||
Total
|
$ | 6,215 | $ | 10,070 | $ | 15,787 |
January
2,
2010
|
January
3,
2009
|
|||||||
Identifiable
assets:
|
||||||||
Envelopes,
Forms and
Labels
|
$ | 689,516 | $ | 624,760 | ||||
Commercial
Printing
|
776,637 | 863,224 | ||||||
Corporate
|
59,620 | 64,130 | ||||||
Total
|
$ | 1,525,773 | $ | 1,552,114 |
January
2,
2010
|
January
3,
2009
|
December
29,
2007
|
||||||||||
Net
sales:
|
||||||||||||
U.S.
|
$ | 1,636,112 | $ | 2,014,412 | $ | 1,961,505 | ||||||
Foreign
|
78,519 | 84,282 | 85,211 | |||||||||
Total
|
$ | 1,714,631 | $ | 2,098,694 | $ | 2,046,716 |
January
2,
2010
|
January
3,
2009
|
|||||||
Long-lived
assets (property plant and equipment, goodwill and intangible
assets:
|
||||||||
U.S.
|
$
|
980,452
|
$
|
991,596
|
||||
Foreign
|
22,601
|
16,988
|
||||||
Total
|
$
|
1,003,053
|
$
|
1,008,584
|
(1)
|
The
Company’s segment operating income (loss) of each reportable segment for
the three-months ended March 28, 2009, three- and six-months ended June
27, 2009 and three- and nine-months ended October 3, 2009, have been
revised to correct an immaterial error related to certain corporate
allocations to each reportable segment during the fourth quarter of
2009. The Company does not believe the effect of these revisions is
material, quantitatively or qualitatively, to its consolidated financial
statements. The table below presents the impact of this revision for each
reportable segment’s operating income (loss) for each period
presented:
|
Three
Months Ended
March
28, 2009
|
Three
Months Ended
June
27, 2009
|
Three
Months Ended
October
3, 2009
|
||||||||||||||||
As
Reported
|
As
Adjusted
|
As
Reported
|
As
Adjusted
|
As
Reported
|
As
Adjusted
|
|||||||||||||
Operating
income (loss):
|
||||||||||||||||||
Envelopes,
Forms and Labels
|
$
|
8,406
|
$
|
10,475
|
$
|
10,647
|
$
|
16,457
|
$
|
19,872
|
$
|
27,522
|
||||||
Commercial
Printing
|
1,430
|
(639
|
)
|
(7,408
|
)
|
(13,218
|
)
|
14,364
|
6,714
|
|||||||||
Corporate
|
(9,615
|
)
|
(9,615
|
)
|
(8,716
|
)
|
(8,716
|
)
|
(9,234
|
)
|
(9,234
|
)
|
||||||
Total
|
$
|
221
|
$
|
221
|
$
|
(5,477
|
)
|
$
|
(5,477
|
)
|
$
|
25,002
|
$
|
25,002
|
||||
Six
Months Ended
June
27, 2009
|
Nine
Months Ended
October
3, 2009
|
|||||||||||||||||
As
Reported
|
As
Adjusted
|
As
Reported
|
As
Adjusted
|
|||||||||||||||
Operating
income (loss):
|
||||||||||||||||||
Envelopes,
Forms and Labels
|
$
|
19,053
|
$
|
26,932
|
$
|
38,925
|
$
|
54,454
|
||||||||||
Commercial
Printing
|
(5,978
|
)
|
(13,857
|
)
|
8,386
|
(7,143
|
)
|
|||||||||||
Corporate
|
(18,331
|
)
|
(18,331
|
)
|
(27,565
|
)
|
(27,565
|
)
|
||||||||||
Total
|
$
|
(5,256
|
)
|
$
|
(5,256
|
)
|
$
|
19,746
|
$
|
19,746
|
Parent
|
Subsidiary
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | — | $ | 8,971 | $ | 764 | $ | 1,061 | $ | — | $ | 10,796 | ||||||||||||
Accounts
receivable, net
|
— | 111,687 | 151,046 | 5,830 | — | 268,563 | ||||||||||||||||||
Inventories
|
— | 70,252 | 73,715 | 1,261 | — | 145,228 | ||||||||||||||||||
Notes
receivable from subsidiaries
|
— | 36,938 | — | — | (36,938 | ) | — | |||||||||||||||||
Prepaid
and other current assets
|
— | 50,319 | 13,501 | 1,023 | — | 64,843 | ||||||||||||||||||
Total
current assets
|
— | 278,167 | 239,026 | 9,175 | (36,938 | ) | 489,430 | |||||||||||||||||
Investment
in subsidiaries
|
(176,510 | ) | 1,537,082 | 4,225 | 6,725 | (1,371,522 | ) | — | ||||||||||||||||
Property,
plant and equipment, net
|
— | 125,694 | 261,765 | 420 | — | 387,879 | ||||||||||||||||||
Goodwill
|
— | 29,243 | 290,513 | — | — | 319,756 | ||||||||||||||||||
Other
intangible assets, net
|
— | 7,590 | 287,828 | — | — | 295,418 | ||||||||||||||||||
Other
assets, net
|
— | 26,664 | 6,278 | 348 | — | 33,290 | ||||||||||||||||||
Total
assets
|
$ | (176,510 | ) | $ | 2,004,440 | $ | 1,089,635 | $ | 16,668 | $ | (1,408,460 | ) | $ | 1,525,773 | ||||||||||
Liabilities
and Shareholders’ (Deficit) Equity
|
||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||
Current
maturities of long-term debt
|
$ | — | $ | 7,610 | $ | 7,447 | $ | — | $ | — | $ | 15,057 | ||||||||||||
Accounts
payable
|
— | 97,442 | 84,657 | 1,841 | — | 183,940 | ||||||||||||||||||
Accrued
compensation and related liabilities
|
— | 15,670 | 14,171 | — | — | 29,841 | ||||||||||||||||||
Other
current liabilities
|
— | 76,919 | 20,357 | 803 | — | 98,079 | ||||||||||||||||||
Intercompany
payable (receivable)
|
— | 781,625 | (786,378 | ) | 4,753 | — | — | |||||||||||||||||
Notes
payable to issuer
|
— | — | 36,938 | — | (36,938 | ) | — | |||||||||||||||||
Total
current liabilities
|
— | 979,266 | (622,808 | ) | 7,397 | (36,938 | ) | 326,917 | ||||||||||||||||
Long-term
debt
|
— | 1,197,461 | 21,399 | — | — | 1,218,860 | ||||||||||||||||||
Deferred
income tax liability (asset)
|
— | (47,298 | ) | 53,981 | (1,679 | ) | — | 5,004 | ||||||||||||||||
Other
liabilities
|
— | 51,521 | 99,981 | — | — | 151,502 | ||||||||||||||||||
Shareholders’
(deficit) equity
|
(176,510 | ) | (176,510 | ) | 1,537,082 | 10,950 | (1,371,522 | ) | (176,510 | ) | ||||||||||||||
Total
liabilities and shareholders’ (deficit) equity
|
$ | (176,510 | ) | $ | 2,004,440 | $ | 1,089,635 | $ | 16,668 | $ | (1,408,460 | ) | $ | 1,525,773 |
Parent
|
Subsidiary
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Net
sales
|
$ | — | $ | 745,381 | $ | 949,974 | $ | 19,276 | $ | — | $ | 1,714,631 | ||||||||||||
Cost
of sales
|
— | 629,246 | 753,096 | 12,436 | — | 1,394,778 | ||||||||||||||||||
Selling,
general and administrative
|
— | 118,328 | 90,825 | 425 | — | 209,578 | ||||||||||||||||||
Amortization
of intangible assets
|
— | 425 | 9,628 | — | — | 10,053 | ||||||||||||||||||
Restructuring
and impairment charges
|
— | 43,651 | 24,383 | — | — | 68,034 | ||||||||||||||||||
Operating
income (loss)
|
— | (46,269 | ) | 72,042 | 6,415 | — | 32,188 | |||||||||||||||||
Interest
expense, net
|
— | 104,585 | 1,538 | (60 | ) | — | 106,063 | |||||||||||||||||
Intercompany
interest expense (income)
|
— | (1,042 | ) | 1,042 | — | — | — | |||||||||||||||||
(Gain)
loss on early extinguishment of debt
|
— | (16,917 | ) | — | — | — | (16,917 | ) | ||||||||||||||||
Other
(income) expense, net
|
— | 930 | (2,586 | ) | 288 | — | (1,368 | ) | ||||||||||||||||
Income
(loss) from continuing operations before
income taxes and equity in income of
unconsolidated subsidiaries
|
— | (133,825 | ) | 72,048 | 6,187 | — | (55,590 | ) | ||||||||||||||||
Income
tax expense (benefit)
|
— | 893 | (19,431 | ) | 2,785 | — | (15,753 | ) | ||||||||||||||||
Income
(loss) from continuing operations before
equity in income of unconsolidated subsidiaries
|
— | (134,718 | ) | 91,479 | 3,402 | — | (39,837 | ) | ||||||||||||||||
Equity
in income of unconsolidated
subsidiaries
|
(30,939 | ) | 94,881 | 3,402 | — | (67,344 | ) | — | ||||||||||||||||
Income
(loss) from continuing operations
|
(30,939 | ) | (39,837 | ) | 94,881 | 3,402 | (67,344 | ) | (39,837 | ) | ||||||||||||||
Income
from discontinued operations, net of taxes
|
— | 8,898 | — | — | — | 8,898 | ||||||||||||||||||
Net
income (loss)
|
$ | (30,939 | ) | $ | (30,939 | ) | $ | 94,881 | $ | 3,402 | $ | (67,344 | ) | $ | (30,939 | ) |
Parent
|
Subsidiary
|
Guarantor
|
Non-
Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||||||||||
Net
cash provided by (used in) operating activities
|
$ | 14,274 | $ | (79,440 | ) | $ | 134,516 | $ | 2,702 | $ | — | $ | 72,052 | |||||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||
Capital
expenditures
|
— | (8,863 | ) | (16,364 | ) | — | — | (25,227 | ) | |||||||||||||||
Cost
of business acquisitions, net of cash acquired
|
— | (3,189 | ) | — | — | — | (3,189 | ) | ||||||||||||||||
Intercompany
note
|
— | 2,257 | — | — | (2,257 | ) | — | |||||||||||||||||
Investment
in guarantor subsidiary preferred shares
|
— | — | — | (6,725 | ) | 6,725 | — | |||||||||||||||||
Proceeds
from sale of property, plant and equipment
|
— | 13,041 | 1,578 | — | — | 14,619 | ||||||||||||||||||
Proceeds
from sale of investment
|
— | — | 4,032 | — | — | 4,032 | ||||||||||||||||||
Net
cash (used in) provided by investing activities
|
— | 3,246 | (10,754 | ) | (6,725 | ) | 4,468 | (9,765 | ) | |||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||
Repayment
of term loans
|
— | (24,594 | ) | — | — | — | (24,594 | ) | ||||||||||||||||
Repayment
of 8⅜% senior subordinated notes
|
— | (23,024 | ) | — | — | — | (23,024 | ) | ||||||||||||||||
Repayments
of other long-term debt
|
— | (385 | ) | (11,793 | ) | — | — | (12,178 | ) | |||||||||||||||
Payment
of amendment and debt issuance costs
|
— | (7,296 | ) | — | — | — | (7,296 | ) | ||||||||||||||||
Repayment
of 7⅞% senior subordinated notes
|
— | (4,295 | ) | — | — | — | (4,295 | ) | ||||||||||||||||
Repayment
of 10½% senior notes
|
— | (3,250 | ) | — | — | — | (3,250 | ) | ||||||||||||||||
Purchase
and retirement of common stock upon vesting
of RSUs
|
(2,043 | ) | — | — | — | — | (2,043 | ) | ||||||||||||||||
Payment
of fees on repurchase and retirement of debt
|
— | (94 | ) | — | — | — | (94 | ) | ||||||||||||||||
Borrowings
under revolving credit facility, net
|
— | 14,500 | — | — | — | 14,500 | ||||||||||||||||||
Proceeds
from exercise of stock options
|
532 | — | — | — | — | 532 | ||||||||||||||||||
Proceeds
from issuance of preferred shares
|
— | — | 6,725 | ― | (6,725 | ) | — | |||||||||||||||||
Intercompany
note
|
— | — | (2,257 | ) | — | 2,257 | — | |||||||||||||||||
Intercompany
advances
|
(12,763 | ) | 128,888 | (116,427 | ) | 302 | — | — | ||||||||||||||||
Net
cash (used in) provided by financing activities
|
(14,274 | ) | 80,450 | (123,752 | ) | 302 | (4,468 | ) | (61,742 | ) | ||||||||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
— | — | (299 | ) | 106 | — | (193 | ) | ||||||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
— | 4,256 | (289 | ) | (3,615 | ) | — | 352 | ||||||||||||||||
Cash
and cash equivalents at beginning of period
|
— | 4,715 | 1,053 | 4,676 | — | 10,444 | ||||||||||||||||||
Cash
and cash equivalents at end of period
|
$ | — | $ | 8,971 | $ | 764 | $ | 1,061 | $ | — | $ | 10,796 |
Parent
|
Subsidiary
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | — | $ | 4,715 | $ | 1,053 | $ | 4,676 | $ | — | $ | 10,444 | ||||||||||||
Accounts
receivable, net
|
— | 127,634 | 137,746 | 4,765 | — | 270,145 | ||||||||||||||||||
Inventories
|
— | 86,219 | 72,149 | 1,201 | — | 159,569 | ||||||||||||||||||
Notes
receivable from subsidiaries
|
— | 39,195 | — | — | (39,195 | ) | — | |||||||||||||||||
Prepaid
and other current assets
|
— | 62,961 | 9,879 | 2,050 | — | 74,890 | ||||||||||||||||||
Total
current assets
|
— | 320,724 | 220,827 | 12,692 | (39,195 | ) | 515,048 | |||||||||||||||||
Investment
in subsidiaries
|
(220,955 | ) | 1,380,326 | 7,063 | — | (1,166,434 | ) | — | ||||||||||||||||
Property,
plant and equipment, net
|
— | 165,140 | 254,841 | 476 | — | 420,457 | ||||||||||||||||||
Goodwill
|
— | 29,245 | 281,938 | — | — | 311,183 | ||||||||||||||||||
Other
intangible assets, net
|
— | 9,089 | 267,855 | — | — | 276,944 | ||||||||||||||||||
Other
assets, net
|
— | 21,936 | 6,205 | 341 | — | 28,482 | ||||||||||||||||||
Total
assets
|
$ | (220,955 | ) | $ | 1,926,460 | $ | 1,038,729 | $ | 13,509 | $ | (1,205,629 | ) | $ | 1,552,114 | ||||||||||
Liabilities
and Shareholders’ (Deficit) Equity
|
||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||
Current
maturities of long-term debt
|
$ | — | $ | 15,956 | $ | 8,358 | $ | — | $ | — | $ | 24,314 | ||||||||||||
Accounts
payable
|
— | 99,150 | 73,402 | 1,883 | — | 174,435 | ||||||||||||||||||
Accrued
compensation and related liabilities
|
— | 21,311 | 16,008 | — | — | 37,319 | ||||||||||||||||||
Other
current liabilities
|
— | 74,653 | 13,302 | 915 | — | 88,870 | ||||||||||||||||||
Intercompany
payable (receivable)
|
— | 658,885 | (663,337 | ) | 4,452 | — | — | |||||||||||||||||
Notes
payable to issuer
|
— | — | 39,195 | — | (39,195 | ) | — | |||||||||||||||||
Total
current liabilities
|
— | 869,955 | (513,072 | ) | 7,250 | (39,195 | ) | 324,938 | ||||||||||||||||
Long-term
debt
|
— | 1,259,175 | 22,866 | — | — | 1,282,041 | ||||||||||||||||||
Deferred
income tax liability (asset)
|
— | (56,500 | ) | 84,076 | (804 | ) | — | 26,772 | ||||||||||||||||
Other
liabilities
|
— | 74,785 | 64,533 | — | — | 139,318 | ||||||||||||||||||
Shareholders’
(deficit) equity
|
(220,955 | ) | (220,955 | ) | 1,380,326 | 7,063 | (1,166,434 | ) | (220,955 | ) | ||||||||||||||
Total
liabilities and shareholders’ (deficit) equity
|
$ | (220,955 | ) | $ | 1,926,460 | $ | 1,038,729 | $ | 13,509 | $ | (1,205,629 | ) | $ | 1,552,114 |
Parent
|
Subsidiary
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Net
sales
|
$ | — | $ | 993,403 | $ | 1,085,130 | $ | 20,161 | $ | — | $ | 2,098,694 | ||||||||||||
Cost
of sales
|
— | 809,380 | 847,861 | 13,944 | — | 1,671,185 | ||||||||||||||||||
Selling,
general and administrative
|
— | 144,490 | 97,929 | 562 | — | 242,981 | ||||||||||||||||||
Amortization
of intangible assets
|
— | 447 | 8,561 | — | — | 9,008 | ||||||||||||||||||
Restructuring
and impairment charges
|
— | 167,897 | 231,169 | — | — | 399,066 | ||||||||||||||||||
Operating
income (loss)
|
— | (128,811 | ) | (100,390 | ) | 5,655 | — | (223,546 | ) | |||||||||||||||
Interest
expense, net
|
— | 105,739 | 1,747 | (165 | ) | — | 107,321 | |||||||||||||||||
Intercompany
interest expense (income)
|
— | (2,320 | ) | 2,320 | — | — | — | |||||||||||||||||
(Gain)
loss on early extinguishment of debt
|
— | (14,642 | ) | — | — | — | (14,642 | ) | ||||||||||||||||
Other
(income) expense, net
|
— | 305 | (197 | ) | (745 | ) | — | (637 | ) | |||||||||||||||
Income
(loss) from continuing operations before income taxes and equity in income
of unconsolidated subsidiaries
|
— | (217,893 | ) | (104,260 | ) | 6,565 | — | (315,588 | ) | |||||||||||||||
Income
tax expense (benefit)
|
— | (15,549 | ) | (3,270 | ) | 207 | — | (18,612 | ) | |||||||||||||||
Income
(loss) from continuing operations before equity in income of
unconsolidated subsidiaries
|
— | (202,344 | ) | (100,990 | ) | 6,358 | — | (296,976 | ) | |||||||||||||||
Equity
in income of unconsolidated subsidiaries
|
(298,027 | ) | (94,632 | ) | 6,358 | — | 386,301 | — | ||||||||||||||||
Income
(loss) from continuing operations
|
(298,027 | ) | (296,976 | ) | (94,632 | ) | 6,358 | 386,301 | (296,976 | ) | ||||||||||||||
Income
from discontinued operations, net of taxes
|
— | (1,051 | ) | — | — | — | (1,051 | ) | ||||||||||||||||
Net
income (loss)
|
$ | (298,027 | ) | $ | (298,027 | ) | $ | (94,632 | ) | $ | 6,358 | $ | 386,301 | $ | (298,027 | ) |
Parent
|
Subsidiary
|
Guarantor
|
Non-
Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||||||||||
Net
cash provided (used in) by operating activities
|
$ | 18,140 | $ | (69,095 | ) | $ | 258,441 | $ | 2,362 | $ | — | $ | 209,848 | |||||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||
Cost
of business acquisitions, net of cash acquired
|
— | (47,412 | ) | — | — | — | (47,412 | ) | ||||||||||||||||
Capital
expenditures
|
— | (27,368 | ) | (21,875 | ) | — | — | (49,243 | ) | |||||||||||||||
Intercompany
note
|
— | 913 | — | — | (913 | ) | — | |||||||||||||||||
Acquisition
payments
|
— | (3,653 | ) | — | — | — | (3,653 | ) | ||||||||||||||||
Proceeds
from sale of property, plant and equipment
|
— | 17,944 | 314 | — | — | 18,258 | ||||||||||||||||||
Net
cash (used in) provided by investing activities
|
— | (59,576 | ) | (21,561 | ) | — | (913 | ) | (82,050 | ) | ||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||
Repayment
of senior unsecured loan
|
— | (175,000 | ) | — | — | — | (175,000 | ) | ||||||||||||||||
Repayment
under revolving credit facility, net
|
— | (83,200 | ) | — | — | — | (83,200 | ) | ||||||||||||||||
Repayment
of 8⅜% senior subordinated notes
|
— | (19,567 | ) | — | — | — | (19,567 | ) | ||||||||||||||||
Repayments
of other long-term debt
|
— | (1,137 | ) | (17,796 | ) | — | — | (18,933 | ) | |||||||||||||||
Repayment
of 7⅞% senior subordinated notes
|
— | (10,561 | ) | — | — | — | (10,561 | ) | ||||||||||||||||
Repayments
of term loans
|
— | (7,200 | ) | — | — | — | (7,200 | ) | ||||||||||||||||
Payment
of debt issuance costs
|
— | (5,297 | ) | — | — | — | (5,297 | ) | ||||||||||||||||
Purchase
and retirement of common stock upon vesting
of RSUs
|
(1,054 | ) | — | — | — | — | (1,054 | ) | ||||||||||||||||
Tax
liability from stock-based compensation
|
(1,377 | ) | — | — | — | — | (1,377 | ) | ||||||||||||||||
Payment
of refinancing fees, redemption, premiums and
expenses
|
— | (130 | ) | — | — | — | (130 | ) | ||||||||||||||||
Proceeds
from issuance of 10½% senior notes
|
— | 175,000 | — | — | — | 175,000 | ||||||||||||||||||
Proceeds
from issuance of other long-term debt
|
— | 6,927 | 6,000 | — | — | 12,927 | ||||||||||||||||||
Proceeds
from exercise of stock options
|
1,876 | — | — | — | — | 1,876 | ||||||||||||||||||
Intercompany
note
|
— | — | (913 | ) | — | 913 | — | |||||||||||||||||
Intercompany
advances
|
(17,585 | ) | 240,460 | (224,000 | ) | 1,125 | — | — | ||||||||||||||||
Net
cash (used in) provided by financing activities
|
(18,140 | ) | 120,295 | (236,709 | ) | 1,125 | 913 | (132,516 | ) | |||||||||||||||
Effect
of exchange rate changes on cash and cash equivalents of continuing
operations
|
— | — | — | (720 | ) | — | (720 | ) | ||||||||||||||||
Net
(decrease) increase in cash and cash
equivalents
|
— | (8,376 | ) | 171 | 2,767 | — | (5,438 | ) | ||||||||||||||||
Cash
and cash equivalents at beginning of year
|
— | 13,091 | 882 | 1,909 | — | 15,882 | ||||||||||||||||||
Cash
and cash equivalents at end of year
|
$ | — | $ | 4,715 | $ | 1,053 | $ | 4,676 | $ | — | $ | 10,444 |
Parent
Company
|
Subsidiary
Issuer
|
Guarantor
Subidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminations | Consolidated | |||||||||||||||||||
Net
sales
|
$ | — | $ | 1,162,075 | $ | 872,947 | $ | 11,694 | $ | — | $ | 2,046,716 | ||||||||||||
Cost
of sales
|
— | 954,373 | 665,472 | 8,861 | — | 1,628,706 | ||||||||||||||||||
Selling,
general and administrative
|
— | 164,620 | 64,907 | 434 | — | 229,961 | ||||||||||||||||||
Amortization
of intangible assets
|
— | 4,826 | 5,587 | — | — | 10,413 | ||||||||||||||||||
Restructuring
and impairment charges
|
— | 39,956 | 130 | — | — | 40,086 | ||||||||||||||||||
Operating
income (loss)
|
— | (1,700 | ) | 136,851 | 2,399 | — | 137,550 | |||||||||||||||||
Gain
on sale of non-strategic businesses
|
— | (189 | ) | — | — | — | (189 | ) | ||||||||||||||||
Interest
expense, net
|
— | 90,070 | 1,411 | (14 | ) | — | 91,467 | |||||||||||||||||
Intercompany
interest expense (income)
|
— | (3,598 | ) | 3,598 | — | — | — | |||||||||||||||||
Loss
on early extinguishment of debt
|
— | 9,186 | 70 | — | — | 9,256 | ||||||||||||||||||
Other
expense, net
|
— | 1,091 | 1,681 | 359 | — | 3,131 | ||||||||||||||||||
Income
(loss) from continuing operations before
income taxes and equity in income of unconsolidated
subsidiaries
|
— | (98,260 | ) | 130,091 | 2,054 | — | 33,885 | |||||||||||||||||
Income
tax expense (benefit)
|
— | 12,303 | (2,504 | ) | 101 | — | 9,900 | |||||||||||||||||
Income
(loss) from continuing operations before
equity in income of unconsolidated subsidiaries
|
— | (110,563 | ) | 132,595 | 1,953 | — | 23,985 | |||||||||||||||||
Equity
in income of unconsolidated
subsidiaries
|
40,781 | 134,548 | 1,953 | — | (177,282 | ) | — | |||||||||||||||||
Income
(loss) from continuing operations
|
40,781 | 23,985 | 134,548 | 1,953 | (177,282 | ) | 23,985 | |||||||||||||||||
Income
from discontinued operations, net of taxes
|
— | 16,796 | — | — | — | 16,796 | ||||||||||||||||||
Net
income (loss)
|
$ | 40,781 | $ | 40,781 | $ | 134,548 | $ | 1,953 | $ | (177,282 | ) | $ | 40,781 |
Parent
|
Subsidiary
|
Guarantor
|
Non-Guarantor
|
|||||||||||||||||||||
Company
|
Issuer
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||||||||||
Net
cash (used in) provided by continuing operating
activities
|
$ | 10,280 | $ | (65,159 | ) | $ | 139,178 | $ | 1,909 | $ | — | $ | 86,208 | |||||||||||
Net
cash provided by discontinued operating activities
|
— | 2,198 | — | — | — | 2,198 | ||||||||||||||||||
Net
cash (used in) provided by operating activities
|
10,280 | (62,961 | ) | 139,178 | 1,909 | — | 88,406 | |||||||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||
Cost
of business acquisitions, net of cash acquired
|
— | (627,304 | ) | — | — | — | (627,304 | ) | ||||||||||||||||
Capital
expenditures
|
— | (14,016 | ) | (17,522 | ) | — | — | (31,538 | ) | |||||||||||||||
Intercompany
note
|
— | 2,733 | — | — | (2,733 | ) | — | |||||||||||||||||
Acquisition
payments
|
— | (3,653 | ) | — | — | — | (3,653 | ) | ||||||||||||||||
Proceeds
from sale of property, plant and equipment
|
— | 8,702 | 247 | — | — | 8,949 | ||||||||||||||||||
Proceeds
from divestitures, net
|
— | 431 | — | — | — | 431 | ||||||||||||||||||
Net
cash provided by (used in) investing activities of continuing
operations
|
— | (633,107 | ) | (17,275 | ) | — | (2,733 | ) | (653,115 | ) | ||||||||||||||
Proceeds
from the sale of discontinued operations
|
— | 73,628 | — | — | — | 73,628 | ||||||||||||||||||
Net
cash provided by investing activities of discontinued
operations
|
— | 73,628 | — | — | — | 73,628 | ||||||||||||||||||
Net
cash provided by (used in) investing activities
|
— | (559,479 | ) | (17,275 | ) | — | (2,733 | ) | (579,487 | ) | ||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||
Proceeds
from issuance of term loans
|
— | 720,000 | — | — | — | 720,000 | ||||||||||||||||||
Proceeds
from unsecured loan
|
— | 175,000 | — | — | — | 175,000 | ||||||||||||||||||
Borrowings
under revolving credit facility, net
|
— | 75,700 | — | — | — | 75,700 | ||||||||||||||||||
Proceeds
from exercise of stock options
|
304 | — | — | — | — | 304 | ||||||||||||||||||
Proceeds
from excess tax benefit from stock based
compensation
|
67 | — | — | — | — | 67 | ||||||||||||||||||
Repayment
of term loan B
|
— | (324,188 | ) | — | — | — | (324,188 | ) | ||||||||||||||||
Repayment
of Cadmus revolving senior bank credit
facility
|
— | (70,100 | ) | — | — | — | (70,100 | ) | ||||||||||||||||
Repayment
of 8⅜% senior subordinated notes
|
— | (20,880 | ) | — | — | — | (20,880 | ) | ||||||||||||||||
Repayment
of 9⅝% notes
|
— | (10,498 | ) | — | — | — | (10,498 | ) | ||||||||||||||||
Repayments
of term loans
|
— | (4,900 | ) | — | — | — | (4,900 | ) | ||||||||||||||||
Repayments
of other long-term debt
|
— | (2,477 | ) | (26,576 | ) | — | — | (29,053 | ) | |||||||||||||||
Payment
of refinancing fees, redemption, premiums and
expenses
|
— | (8,045 | ) | — | — | — | (8,045 | ) | ||||||||||||||||
Payment
of debt issuance costs
|
— | (5,906 | ) | — | — | — | (5,906 | ) | ||||||||||||||||
Purchase
and retirement of common stock upon vesting
of RSUs
|
(1,302 | ) | — | — | — | — | (1,302 | ) | ||||||||||||||||
Intercompany
note
|
— | — | (2,733 | ) | — | 2,733 | — | |||||||||||||||||
Intercompany
advances
|
(9,349 | ) | 103,170 | (93,821 | ) | — | — | — | ||||||||||||||||
Net
cash provided by (used in) financing activities
|
(10,280 | ) | 626,876 | (123,130 | ) | — | 2,733 | 496,199 | ||||||||||||||||
Effect
of exchange rate changes on cash and cash equivalents of continuing
operations
|
— | — | 206 | — | — | 206 | ||||||||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
— | 4,436 | (1,021 | ) | 1,909 | — | 5,324 | |||||||||||||||||
Cash
and cash equivalents at beginning of year
|
— | 8,655 | 1,903 | — | — | 10,558 | ||||||||||||||||||
Cash
and cash equivalents at end of year
|
$ | — | $ | 13,091 | $ | 882 | $ | 1,909 | $ | — | $ | 15,882 |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||
Year
Ended 2009
|
||||||||||||||||
Net
sales
|
$ | 412,100 | $ | 397,644 | $ | 448,039 | $ | 456,848 | ||||||||
Operating
income
(loss)
|
221 | (5,477 | ) | 25,002 | 12,442 | |||||||||||
Income
(loss) from continuing operations
|
(4,187 | ) | (17,841 | ) | (8,432 | ) | (9,377 | ) | ||||||||
Income
(loss) from discontinued operations, net of taxes
|
(124 | ) | (411 | ) | 9,505 | (72 | ) | |||||||||
Net
income
(loss)
|
(4,311 | ) | (18,252 | ) | 1,073 | (9,449 | ) | |||||||||
Income
(loss) per share from continuing operations—
|
||||||||||||||||
Basic
and diluted(1)
|
(0.08 | ) | (0.33 | ) | (0.15 | ) | (0.15 | ) | ||||||||
Income
(loss) per share from discontinued operations—
|
||||||||||||||||
Basic
and diluted(1)
|
— | (0.01 | ) | 0.17 | — | |||||||||||
Net
income (loss) per share—basic and diluted(1)
|
(0.08 | ) | (0.34 | ) | 0.02 | (0.15 | ) |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||||
Year
Ended 2008
|
|||||||||||||||||
Net
sales
|
$ | 534,328 | $ | 524,501 | $ | 522,705 | $ | 517,160 | |||||||||
Operating
income
(loss)
|
22,980 | 36,151 | 48,176 | (330,853 | ) | (2) | |||||||||||
Income
(loss) from continuing operations
|
(2,743 | ) | 3,066 | 12,387 | (309,686 | ) | (3) | ||||||||||
Income
(loss) from discontinued operations, net of taxes
|
(656 | ) | (399 | ) | (59 | ) | 63 | ||||||||||
Net
income
(loss)
|
(3,399 | ) | 2,667 | 12,328 | (309,623 | ) | (3) | ||||||||||
Income
(loss) per share from continuing operations—
|
|||||||||||||||||
Basic
and diluted(1)
|
(0.05 | ) | 0.06 | 0.23 | (5.71 | ) | |||||||||||
Income
(loss) per share from discontinued operations—
|
|||||||||||||||||
Basic
and diluted(1)
|
(0.01 | ) | (0.01 | ) | — | — | |||||||||||
Net
income (loss) per share—basic and diluted(1)
|
(0.06 | ) | 0.05 | 0.23 | (5.71 | ) |
(1)
|
The
quarterly earnings per share information is computed separately for each
period. Therefore, the sum of such quarterly per share amounts may differ
from the total year.
|
(2)
|
Includes
$372.8 million of pre-tax goodwill impairment
charges.
|
(3)
|
Includes
$330.7 million of goodwill impairment charges, net of a tax benefit of
$42.1 million.
|
Page
|
|||
Schedule
II
|
Valuation
and Qualifying Accounts for the Years Ended
|
||
January
2, 2010, January 3, 2009 and December 29, 2007
|
91
|
Exhibit
Number
|
Description
|
|
2.1
|
Stock
Purchase Agreement dated as of July 17, 2007 among Cenveo Corporation,
Commercial Envelope Manufacturing Co. Inc. and its
shareholders—incorporated by reference to Exhibit 2.1 to registrant’s
current report on Form 8-K filed July 20, 2007.
|
|
3.1
|
Articles
of Incorporation—incorporated by reference to Exhibit 3(i) of the
registrant’s quarterly report on Form 10-Q for the quarter ended June 30,
1997, filed August 14, 1997.
|
|
3.2
|
Articles
of Amendment to the Articles of Incorporation dated May 17,
2004—incorporated by reference to Exhibit 3.2 to registrant’s quarterly
report on Form 10-Q for the quarter ended June 30, 2004, filed August 2,
2004.
|
|
3.3
|
Amendment
to Articles of Incorporation and Certificate of Designations of Series A
Junior Participating Preferred Stock of the registrant dated April 20,
2005—incorporated by reference to Exhibit 3.1 to registrant’s current
report on Form 8-K filed April 21, 2005.
|
|
3.4
|
Bylaws
as amended and restated effective February 22, 2007—incorporated by
reference to Exhibit 3.2 to registrant’s current report on Form 8-K filed
August 30, 2007.
|
|
4.1
|
Indenture
dated as of February 4, 2004 between Mail-Well I Corporation, the
Guarantors named therein and U.S. Bank National Association, as Trustee,
and Form of Senior Subordinated Note and Guarantee relating to Mail-Well I
Corporation’s 7⅞% Senior Subordinated Notes due 2013—incorporated by
reference to Exhibit 4.5 to registrant’s annual report on Form 10-K for
the year ended December 31, 2003, filed February 27,
2004.
|
|
4.2
|
Supplemental
Indenture, dated as of June 21, 2006 among Cenveo Corporation (f/k/a
Mail-Well I Corporation), the Guarantors named therein and U.S. Bank
National Association, as Trustee, to the Indenture dated as of February 4,
2004 relating to the 7⅞% Senior Subordinated Notes due 2013—incorporated
by reference to Exhibit 4.2 to registrant’s current report on Form 8-K
filed June 27, 2006.
|
|
4.3
|
Third
Supplemental Indenture, dated as of March 7, 2007 among Cenveo Corporation
(f/k/a Mail-Well I Corporation), the Guarantors named therein and U.S.
Bank National Association, as Trustee, to the Indenture dated as of
February 4, 2004 relating to the 7⅞% Senior Subordinated Notes due 2013—
incorporated by reference to Exhibit 4.7 to registrant’s quarterly report
on Form 10-Q for the quarter ended March 31, 2007, filed May 9,
2007.
|
|
4.4
|
Fourth
Supplemental Indenture, dated as of July 9, 2007 among Cenveo Corporation
(f/k/a Mail-Well I Corporation), the Guarantors named therein and U.S.
Bank National Association, as Trustee, to the Indenture dated as of
February 4, 2004 relating to the 7⅞% Senior Subordinated Notes due 2013—
incorporated by reference to Exhibit 4.8 to registrant’s quarterly report
on Form 10-Q for the quarter ended June 30, 2007, filed August 8,
2007.
|
|
4.5
|
Fifth
Supplemental Indenture, dated as of August 30, 2007 among Cenveo
Corporation (f/k/a Mail-Well I Corporation), the Guarantors named therein
and U.S. Bank National Association, as Trustee, to the Indenture dated as
of February 4, 2004 relating to the 7⅞% Senior Subordinated Notes due
2013—incorporated by reference to Exhibit 4.6 to registrant’s quarterly
report on Form 10-Q for the quarter ended September 29, 2007, filed
November 8, 2007.
|
4.6
|
Sixth
Supplemental Indenture, dated as of April 16, 2008 among Cenveo
Corporation (f/k/a Mail-Well I Corporation), the Guarantors named therein
and U.S. Bank National Association, as Trustee, to the Indenture dated as
of February 4, 2004, relating to the 7⅞% Senior Subordinated Notes due
2013—incorporated by reference to Exhibit 4.7 to registrant’s quarterly
report on Form 10-Q for the quarter ended June 28, 2008, filed August 7,
2008.
|
4.7
|
Seventh
Supplemental Indenture, dated as of August 20, 2008 among Cenveo
Corporation (f/k/a Mail-Well I Corporation), the Guarantors named therein
and U.S. Bank National Association, as Trustee, to the Indenture dated as
of February 4, 2004, relating to the 7⅞% Senior Subordinated Notes due
2013—incorporated by reference to Exhibit 4.8 to registrant’s quarterly
report on Form 10-Q for the quarter ended September 27, 2008, filed
November 5, 2008.
|
4.8
|
Eighth
Supplemental Indenture, dated as of October 15, 2009 among Cenveo
Corporation (f/k/a Mail-Well I Corporation), the Guarantors named therein
and U.S. Bank National Association, as Trustee, to the Indenture dated as
of February 4, 2004, relating to the 7⅞% Senior Subordinated Notes due
2013—incorporated by reference to Exhibit 4.1 to registrant’s current
report on Form 8-K filed October 16, 2009.
|
|
4.9
|
Indenture,
dated as of June 15, 2004, among Cadmus Communications Corporation, the
Guarantors named therein and Wachovia Bank, National Association, as
Trustee, relating to the 8⅜% Senior Subordinated Notes due
2014—incorporated by reference to Exhibit 4.9 to Cadmus Communications
Corporation’s registration statement on Form S-4 filed August 24,
2004.
|
|
4.10
|
First
Supplemental Indenture, dated as of March 1, 2005, to the Indenture dated
as of June 15, 2004, among Cadmus Communications Corporation, the
Guarantors named therein, Mack Printing, LLC and Wachovia Bank, National
Association, as Trustee, relating to the 8⅜% Senior Subordinated Notes due
2014—incorporated by reference to Exhibit 4.9.1 to Cadmus Communications
Corporation’s quarterly report on Form 10-Q for the quarter ended March
31, 2005, filed May 13, 2005.
|
4.11
|
Second
Supplemental Indenture, dated as of May 19, 2006, to the Indenture dated
as of June 15, 2004, among Cadmus Communications Corporation, the
Guarantors named therein and U.S. Bank National Association (successor to
Wachovia Bank, National Association), as Trustee, relating to the 8⅜%
Senior Subordinated Notes due 2014—incorporated by reference to Exhibit
4.9.2 to Cadmus Communications Corporation’s annual report on Form 10-K
for the year ended July 1, 2006, filed September 13,
2006.
|
4.12
|
Third
Supplemental Indenture, dated as of March 7, 2007, to the Indenture dated
as of June 15, 2004, among Cenveo Corporation (as successor to Cadmus
Communications Corporation), the Guarantors named therein and U.S. Bank
National Association (successor to Wachovia Bank, National Association),
as Trustee, relating to the 8⅜% Senior Subordinated Notes due
2014—incorporated by reference to Exhibit 4.11 to registrant’s quarterly
report on Form 10-Q for the quarter ended March 31, 2007, filed May 9,
2007.
|
|
4.13 | Fourth Supplemental Indenture, dated as of July 9, 2007, to the Indenture dated as of June 15, 2004, among Cenveo Corporation (as successor to Cadmus Communications Corporation), the Guarantors named therein and U.S. Bank National Association (successor to Wachovia Bank, National Association), as Trustee, relating to the 8⅜% Senior Subordinated Notes due 2014—incorporated by reference to Exhibit 4.13 to registrant’s quarterly report on Form 10-Q for the quarter ended June 30, 2007, filed August 8, 2007. |
4.14
|
Fifth
Supplemental Indenture, dated as of August 30, 2007, to the Indenture
dated as of June 15, 2004, among Cenveo Corporation (as successor to
Cadmus Communications Corporation), the Guarantors named therein and U.S.
Bank National Association (successor to Wachovia Bank, National
Association), as Trustee, relating to the 8⅜% Senior Subordinated Notes
due 2014—incorporated by reference to Exhibit 4.13 to registrant’s
quarterly report on Form 10-Q for the quarter ended September 29, 2007,
filed November 8, 2007.
|
4.15
|
Sixth
Supplemental Indenture, dated as of November 7, 2007, to the Indenture
dated as of June 15, 2004, among Cenveo Corporation (as successor to
Cadmus Communications Corporation), the Guarantors named therein and U.S.
Bank National Association (successor to Wachovia Bank, National
Association), as Trustee, relating to the 8⅜% Senior Subordinated Notes
due 2014—incorporated by reference to Exhibit 4.12 to registrant’s annual
report on Form 10-K for the year ended December 29, 2007, filed on March
28, 2008.
|
|
4.16
|
Seventh
Supplemental Indenture, dated as of April 16, 2008, to the Indenture dated
as of June 15, 2004, among Cenveo Corporation (as
successor to Cadmus Communications Corporation), the Guarantors named
therein and U.S. Bank National Association (successor to Wachovia Bank,
National Association), as Trustee, relating to the 8⅜% Senior Subordinated
Notes due 2014—incorporated by reference to Exhibit 4.16 to registrant’s
quarterly report on Form 10-Q for the quarter ended June 28, 2008, filed
on August 7, 2008.
|
|
4.17
|
Eighth
Supplemental Indenture, dated as of August 20, 2008, to the Indenture
dated as of June 15, 2004, among Cenveo Corporation (as successor to
Cadmus Communications Corporation), the Guarantors named therein and U.S.
Bank National Association (successor to Wachovia Bank, National
Association), as Trustee, relating to the 8⅜% Senior Subordinated Notes
due 2014—incorporated by reference to Exhibit 4.18 to registrant’s
quarterly report on Form 10-Q for the quarter ended September 27, 2008,
filed November 5, 2008.
|
|
4.18
|
Ninth
Supplemental Indenture, dated as of October 15, 2009, to the Indenture
dated as of June 15, 2004, among Cenveo Corporation (as successor to
Cadmus Communications Corporation), the Guarantors named therein and U.S.
Bank National Association (successor to Wachovia Bank, National
Association), as Trustee, relating to the 8⅜% Senior Subordinated Notes
due 2014—incorporated by reference to Exhibit 4.2 to registrant’s current
report on Form 8-K filed October 16, 2009.
|
|
4.19
|
Indenture,
dated as of June 13, 2008, between Cenveo Corporation and U.S. Bank
National Association, as Trustee, relating to the 10½% Notes of Cenveo
Corporation—incorporated by reference to Exhibit 4.1 to registrant’s
current report on Form 8-K filed June 13, 2008.
|
|
4.20
|
Guarantee
by Cenveo, Inc. and the other guarantors named therein relating to the
10½% Notes of Cenveo Corporation—incorporated by reference to Exhibit 4.2
to registrant’s current report on Form 8-K dated (date of earliest event
reported) June 9, 2008, filed June 13, 2008.
|
|
4.21
|
First
Supplemental Indenture, dated as of August 20, 2008, to the Indenture of
June 13, 2008 between Cenveo Corporation and U.S. Bank National
Association, as Trustee, relating to the 10½% Notes of Cenveo
Corporation—incorporated by reference to Exhibit 4.21 to registrant’s
quarterly report on Form 10-Q for the quarter ended September 27, 2008,
filed November 5, 2008.
|
|
4.22
|
Second
Supplemental Indenture, dated as of October 15, 2009, to the Indenture of
June 13, 2008 between Cenveo Corporation and U.S. Bank National
Association, as Trustee, relating to the 10½% Notes of Cenveo
Corporation—incorporated by reference to Exhibit 4.3 to registrant’s
current report on Form 8-K filed October 16, 2009.
|
|
4.23
|
Registration
Rights Agreement dated as of June 13, 2008, among Cenveo Corporation,
Cenveo, Inc., the other Guarantors named therein and Lehman Brothers
Inc.—incorporated by reference to Exhibit 10.1 to registrant’s current
report on Form 8-K dated (date of earliest event reported) June 9, 2008,
filed June 13, 2008.
|
|
4.24
|
Indenture
dated as of February 5, 2010 among Cenveo Corporation, the Guarantors
named therein and Wells Fargo Bank, National Association, as
Trustee—incorporated by reference to Exhibit 4.1 to registrant’s current
report on Form 8-K filed February 9,
2010.
|
4.25
|
Form
of Guarantee issued by Cenveo, Inc. and the other Guarantors named
therein—incorporated by reference to Exhibit 4.2 to registrant’s current
report on Form 8-K filed February 9, 2010.
|
|
4.26
|
Registration
Rights Agreement dated as of February 5, 2010 among Cenveo Corporation,
Cenveo, Inc., the other Guarantors named therein and the initial
purchasers named therein—incorporated by reference to Exhibit 4.3 to
registrant’s current report on Form 8-K filed February 9,
2010.
|
|
4.27
|
Intercreditor
Agreement dated as of February 5, 2010 among Cenveo Corporation, Cenveo,
Inc., the grantors named therein, Wells Fargo Bank, National Association,
as second lien collateral agent, Bank of America, N.A., as first lien
agent and control agent—incorporated by reference to Exhibit 4.4 to
registrant’s current report on Form 8-K filed February 9,
2010.
|
|
4.28*
|
Second
Lien Pledge and Security Agreement dated as of February 5, 2010 among
Cenveo Corporation, Cenveo, Inc., the other grantors named therein and
Wells Fargo Bank, National Association, as collateral
agent.
|
|
4.29*
|
Second
Lien Intellectual Property Security Agreement dated as of February 5, 2010
among Cenveo Corporation, Cenveo, Inc., the other grantors named therein
and Wells Fargo Bank, National Association, as collateral
agent.
|
|
10.1+ | Form of Indemnity Agreement between Mail-Well, Inc. and each of its officers and directors—incorporated by reference from Exhibit 10.17 of the registrant's Registration Statement on Form S-1 dated March 25, 1994. | |
10.2+
|
Employment
Agreement dated as of October 27, 2005 between the registrant and Robert
G. Burton, Sr.—incorporated by reference to Exhibit 10.29 of registrant’s
annual report on Form 10-K filed for the year ended December 31, 2005,
filed March 2, 2006.
|
|
10.3+
|
Amendment,
dated November 8, 2006, to Employment Agreement dated as of October 27,
2005 between the registrant and Robert G. Burton, Sr.—incorporated by
reference to Exhibit 10.19 of registrant’s annual report on Form 10-K
filed for the year ended December 30, 2006, filed February 28,
2007.
|
|
10.4+
|
Amendment,
dated November 6, 2007, to Employment Agreement dated as of October 27,
2005, as amended, between the registrant and Robert G. Burton,
Sr.—incorporated by reference to Exhibit 10.4 to registrant’s annual
report on Form 10-K for the year ended December 29, 2007, filed March 28,
2008.
|
|
10.5+
|
Amendment,
dated February 27, 2008, to Employment Agreement dated as of October 27,
2005, as amended, between the registrant and Robert G. Burton,
Sr.—incorporated by reference to Exhibit 10.1 to registrant’s quarterly
report on Form 10-Q for the quarter ended March 29, 2008, filed May 7,
2008.
|
|
10.6+
|
Amendment,
dated December 29, 2008, to Employment Agreement dated as of October 27,
2005, as amended, between the registrant and Robert G. Burton,
Sr.—incorporated by reference to Exhibit 10.6 to registrant’s annual
report on Form 10-K for the fiscal year ended January 3, 2009, filed March
19, 2009.
|
|
10.7+
|
Employment
Agreement dated as of February 1, 2008 between the registrant and Dean
Cherry—incorporated by reference to Exhibit 10.5 to registrant’s annual
report on Form 10-K for the year ended December 29, 2007, filed on March
28, 2008.
|
|
10.8+
|
Employment
Agreement dated as of July 11, 2007 between the registrant and Mark
Hiltwein—incorporated by reference to Exhibit 10.2 to registrant’s
quarterly report on Form 10-Q for the quarter ended September 29, 2007,
filed November 8, 2007.
|
|
10.9+
|
Employment
Agreement dated as of June 22, 2006 between the registrant and Timothy
Davis—incorporated by reference to Exhibit 10.22 to registrant’s quarterly
report on Form 10-Q for the quarter ended July 1, 2006, filed August 9,
2006.
|
10.10
|
Settlement
and Governance Agreement by and among the registrant, Burton Capital
Management, LLC and Robert G. Burton, Sr., dated September 9,
2005—incorporated by reference to Exhibit 10.1 to the registrant’s current
report on Form 8-K filed September 12, 2005.
|
|
10.11+
|
Cenveo,
Inc. 2001 Long-Term Equity Incentive Plan, as amended—incorporated by
reference to Exhibit 10.24 to registrant’s quarterly report on Form 10-Q
for the quarter ended June 30, 2004, filed August 2,
2004.
|
|
10.12+
|
Cenveo,
Inc. 2007 Long-Term Equity Incentive Plan, as amended—incorporated by
reference to Exhibit A to registrant’s Schedule 14A filed April 6,
2009.
|
|
10.13+
|
Form
of Non-Qualified Stock Option Agreement for Employees under 2007 Long-Term
Equity Incentive Plan—incorporated by reference to Exhibit 10.17 to
registrant’s annual report on Form 10-K for the year ended December 29,
2007, filed on March 28, 2008.
|
|
10.14+
|
Form
of Restricted Share Unit Award Agreement for Employees under 2007
Long-Term Equity Incentive Plan—incorporated by reference to Exhibit 10.18
to registrant’s annual report on Form 10-K for the year ended December 29,
2007, filed on March 28, 2008.
|
|
10.15+
|
Form
of Restricted Share Unit Award Agreement for Non-Employee Directors under
2007 Long-Term Equity Incentive Plan—incorporated by reference to Exhibit
10.19 to registrant’s annual report on Form 10-K for the year ended
December 29, 2007, filed on March 28, 2008.
|
|
10.16
|
Credit
Agreement dated as of June 21, 2006 among Cenveo Corporation, Cenveo,
Inc., Bank of America, N.A., as Administrative Agent, Swing Line Lender
and L/C Issuer, and the other lenders party thereto—incorporated by
reference to Exhibit 4.1 to registrant’s current report on Form 8-K filed
June 27, 2006.
|
|
10.17
|
First
Amendment, dated as of March 7, 2007, to Credit Agreement dated as of June
21, 2006, among Cenveo Corporation, Cenveo, Inc., Bank of America, N.A.,
as Administrative Agent, and the other lenders party thereto—incorporated
by reference to Exhibit 10.1 to registrant’s quarterly report on Form 10-Q
for the quarter ended March 31, 2007, filed May 9,
2007.
|
|
10.18
|
Credit
Agreement Supplement, dated as of July 9, 2007, to Credit Agreement dated
as of June 21, 2006, among Cenveo Corporation, Cenveo, Inc., Bank of
America, N.A., as Administrative Agent, and the other lenders party
thereto—incorporated by reference to Exhibit 10.2 to registrant’s
quarterly report on Form 10-Q for the quarter ended June 30, 2007, filed
August 8, 2007.
|
|
10.19
|
Third
Amendment, dated as of April 24, 2009, to Credit Agreement dated as of
June 21, 2006, among Cenveo Corporation, Cenveo, Inc., Bank of America,
N.A., as Administrative Agent, and the other lenders party
thereto—incorporated by reference to Exhibit 10.1 to registrant’s current
report on Form 8-K filed April 27, 2009 and incorporated by reference to
Exhibit 10.1 to registrant’s current report on Form 8-K filed July 30,
2009.
|
|
10.20*
|
Fourth
Amendment, dated as of January 25, 2010, to Credit Agreement dated as of
June 21, 2006, among Cenveo Corporation, Cenveo, Inc., Bank of America,
N.A, as Administrative Agent, and the other lenders party
thereto.
|
|
10.21
|
Loan
Agreement, dated as of August 30, 2007, among Cenveo Corporation, Cenveo,
Inc., Lehman Commercial Paper Inc., as Administrative Agent, the lenders
party thereto and Lehman Brothers Inc., as Sole Lead Arranger and Sole
Book Manager—incorporated by reference to Exhibit 10.3 to registrant’s
quarterly report on Form 10-Q for the quarter ended September 29, 2007,
filed November 8, 2007.
|
21.1*
|
Subsidiaries
of the registrant.
|
|
23.1*
|
Consent
of Deloitte & Touche LLP.
|
|
23.2*
|
Consent
of Grant Thornton LLP.
|
|
24.1
|
Power
of Attorney—incorporated by reference to page 93.
|
|
31.1*
|
Certification
by Robert G. Burton, Sr., Chief Executive Officer, pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
|
|
31.2*
|
Certification
by Mark S. Hiltwein, Chief Financial Officer, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
|
32.1*
|
Certification
of the Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, furnished as an exhibit to this report on Form
10-K.
|
|
32.2*
|
Certification
of the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, furnished as an exhibit to this report on Form
10-K.
|
+
|
Management
contract or compensatory plan or
arrangement.
|
*
|
Filed
herewith.
|
For
The Years Ended
|
||||||||||||
January
2, 2010
|
January
3, 2009
|
December
29, 2007
|
||||||||||
Accounts
receivable allowances
|
||||||||||||
Balance
at beginning of
year
|
$ | 6,016 | $ | 9,911 | $ | 4,802 | ||||||
Charged
to costs and
expenses
|
5,428 | 4,660 | 5,363 | |||||||||
Recoveries
and other charges(2)
|
1,064 | (554 | ) | 3,466 | ||||||||
Deductions(1)
|
(4,869 | ) | (8,001 | ) | (3,720 | ) | ||||||
Balance
at end of
year
|
$ | 7,639 | $ | 6,016 | $ | 9,911 |
(1)
|
Amounts
written off.
|
(2)
|
Other
charges include balances related to acquisitions and changes attributable
to foreign currency
translation.
|
CENVEO,
INC.
|
||
By:
|
/S/ ROBERT
G. BURTON, SR.
|
|
Robert
G. Burton, Sr., Chairman and
Chief
Executive Officer
(Principal
Executive Officer)
|
||
By:
|
/S/ MARK
S. HILTWEIN
|
|
Mark
S. Hiltwein,
Chief
Financial Officer
(Principal
Financial Officer and
Principal
Accounting Officer)
|
||
Signature
|
Title
|
Date
|
|||
/s/ Robert G. Burton,
Sr.
|
Chairman
and Chief Executive Officer
|
March
3, 2010
|
|||
Robert
G. Burton, Sr.
|
(Principal
Executive Officer)
|
||||
/s/ Mark S.
Hiltwein
|
Chief
Financial Officer
|
March
3, 2010
|
|||
Mark
S. Hiltwein
|
(Principal
Financial Officer and
|
||||
Principal
Accounting Officer)
|
|||||
/s/ Gerald S.
Armstrong
|
Director
|
March
3, 2010
|
|||
Gerald
S. Armstrong
|
|||||
/s/ Leonard C.
Green
|
Director
|
March
3, 2010
|
|||
Leonard
C. Green
|
|||||
/s/ Mark J.
Griffin
|
Director
|
March
3, 2010
|
|||
Mark
J. Griffin
|
|||||
/s/ Robert
Obernier
|
Director
|
March
3, 2010
|
|||
Robert
Obernier
|