SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-K/A
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended June 30, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Commission File Number 0-12954
CADMUS COMMUNICATIONS CORPORATION
(Exact Name of Registrant as specified in its charter)
VIRGINIA 54-1274108
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6620 West Broad Street, Suite 500
Richmond, Virginia 23230
(Address of principal executive offices, including zip code)
____________
Registrant's telephone number, including area code: (804)287-5680
<PAGE>
PART I
ITEM 1. BUSINESS
Introduction
Cadmus Communications Corporation ("the Company" or
"Cadmus") is a graphic communications company which, through its
subsidiaries, provides printing, marketing, and publishing
services. The Company is a Virginia corporation headquartered at
6620 West Broad Street, Suite 500, Richmond, Virginia 23230.
Cadmus was formed in 1984 when The William Byrd Press,
Incorporated ("Byrd"), a leading regional publications printer,
combined its operations with Washburn Graphics, Inc.
("Washburn"), a vertically integrated graphic arts firm. Byrd,
in operation since 1904, is based in Richmond, Virginia and
Washburn, in operation since 1902, is based in Charlotte, North
Carolina.
Since its inception in 1984, Cadmus has grown primarily
through acquisitions of companies which either complement or
expand the capabilities the Company offers its customers. On
June 30, 1986, Cadmus acquired American Graphics, Inc.
("American"), a full-service graphic arts firm specializing in
promotional printing and the production of point-of-sale
advertising materials which is based in Atlanta, Georgia. Cadmus
Direct Marketing, Inc. ("CDMI"), formerly Washburn Direct
Marketing, Inc., was incorporated on January 1, 1990, having
previously operated as a division of Washburn. CDMI provides
direct marketing and database management services.
During fiscal year 1988, Cadmus acquired three additional
companies: Three Score, Inc. ("3 Score"), an Atlanta, Georgia
company engaged in retail and other direct mail catalog
production services; Garamond/Pridemark Press, Inc. ("Garamond"),
located in Baltimore, Maryland; and Vaughan Printers,
Incorporated ("Vaughan"), located in Orlando, Florida. Both
Garamond and Vaughan are smaller commercial printing companies
specializing in products similar to those at Washburn.
In fiscal year 1992, the Company acquired Tuff Stuff
Publications, Inc. ("Tuff Stuff") a Richmond, Virginia based
publisher of pricing guide magazines for various trading card
collectors and other related products. During fiscal year 1993,
the Company completed a joint venture arrangement with The Lanman
Companies, Inc. ("Lanman") whereby the operations of Vaughan were
combined with those of Central Florida Press, a division of
Lanman. This new company, Central Florida Press, L.C. ("CFP"),
located in Orlando, Florida, has both sheetfed and half-web print
capabilities. Also during the year, the Company acquired
Marblehead Communications, Inc. ("Marblehead"), based in Boston,
Massachusetts, which is a contract/custom publisher that
produces magazines and newsletters.
During fiscal year 1994, the Company acquired the net assets
of Waverly Press from Waverly, Inc. Waverly Press is a Maryland-
based premier printer of scientific, scholarly and medical
journals and now operates under the name Cadmus Journal Services,
Inc ("Cadmus Journal Services").
Printing and Marketing
Printing and marketing services account for approximately
92.5% of Cadmus revenues. Printing operations provide a full
range of services to customers which include state-of-the-art
data imaging, electronic prepress, multicolor printing, custom
binding and distribution services. The following is a list of
major printed materials produced with some examples of each:
Research Journals Medical and Biomedical, Technical and Scientific,
Learned and Scholarly, and Mathematics Journals
Specialty Periodicals Professional, Trade, Corporate and Consumer Magazines
Financial Documents Debt and Equity Offerings, Proxy Statements,
Annual Reports, and Quarterly Reports
Promotional Materials Catalogs, Directories, Brochures, Product
Literature, and Point-of-Sale Materials
Specialty Packaging Cartons, Portfolio Folders, 3-D Mailers and Video
Sleeves
<PAGE>
Through our marketing services we provide our clients
complete creative, production, mailing, and fulfillment services
for direct marketing programs and marketing information systems.
Cadmus integrates direct marketing functions, ranging from
consumer market research and agency services to database
management and marketing information analysis, with the resulting
ability to implement tactical direct response campaigns and
programs for our clients. Cadmus also provides turn-key catalog
services from original design conception through the final
product for retail department stores, direct marketing retailers,
and industrial customers.
Publishing
Publishing services account for approximately 7.5% of Cadmus
revenues. There are two major types of published products:
Consumer Products Tuff Stuff publishes special interest
magazines which target specific
consumers. Currently there are four
such Cadmus-owned publications:
Tuff Stuff
Tuff Stuff's Collect!
Kenner Guide
Mid-Atlantic Soccer
Contract Products Marblehead publishes magazines for
clients under contract whereby the
client retains ownership of the title.
Cadmus contract services include design,
editorial, advertising sales,
production, and distribution of titles.
Other Factors Affecting the Business of Cadmus
Seasonal Fluctuations
Seasonal fluctuations occur in the overall demand for
printing. Printing of both periodicals for the educational and
scholarly market and promotional materials tends to decline in
the summer months. However, consumer publications tend to peak
before Christmas and before Easter. Printing of interim
financial statements clusters around the end of the first month
in each calendar quarter and printing of annual reports tends to
fall into the first and second calendar quarters. All of these
factors combine to give Cadmus a modest seasonal pattern with the
months October through June producing volumes slightly greater
than the months July through September.
Raw Materials
The principal raw material used in Cadmus' business is
paper. Significant stock inventories are not maintained except
at Byrd and Cadmus Journal Services, where a supply of roll paper
stock is required to operate the web presses. The other
companies generally purchase paper on a direct order basis for
specific jobs. Cadmus purchases its paper requirements under
agreements that guarantee tonnage and provide short range price
protection for three to six month intervals. The price of paper
charged to customers is subject to escalation so that, except in
rare instances, Cadmus does not have exposure to changes in the
cost of paper.
All Cadmus subsidiaries use a variety of other raw materials
including ink, film, offset plates, chemicals and solvents, glue,
wire, and subcontracted components. In general, none of the
subsidiaries have experienced any significant difficulty in
obtaining raw materials.
Competition
Cadmus is subject to competition from a large number of
companies, some of which have greater resources and capacity. In
recent years there has been an excess of capacity in the printing
industry which has increased competition. Rapid technological
change has brought new competitors to the marketplace.
The markets served by Cadmus face competition based on a
combination of factors including quality, service levels and
price.
Employees
As of June 30, 1994, Cadmus and its subsidiaries employed
approximately 2,400 persons. No employees are currently covered
by a collective bargaining agreement. Cadmus believes its
relationship with employees is excellent.
Regulation
The printing business uses or generates substantial
quantities of inks, solvents, and other waste products which
require disposal. The subsidiaries usually return salvageable
waste ink to their suppliers, and contract for the removal of
other waste products.
Cadmus believes its subsidiaries are in substantial
compliance with all applicable air quality, waste disposal, and
other environmental-related rules and regulations, as well as
with other general employee health and safety laws and
regulations.
The Virginia State Air Pollution Control Board (the "Board")
has expressed concern about excessive levels of certain air
pollutant emissions throughout the metropolitan Richmond area
from a number of sources, including automobiles and local
industries, such as Byrd. The Board has made no decision whether
further emission reductions will be required by automotive or
industry emissions controls. Depending on any future action by
the Board and in conjunction with the Clean Air Act Amendments of
1990, several industries, including Byrd, will be required to
take further actions to reduce emission levels, which may include
the installation of additional air pollution control equipment.
The amount of the expenditures necessitated by any such actions
is not anticipated to be material.
________________
See pages 6 through 9 and 12 through 17 of the 1994 Annual Report
to Shareholders (the "Annual Report") for additional information
on the business of Cadmus and its subsidiaries, which information
is incorporated herein by reference.
<PAGE>
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized, as of the 29th day of September, 1994.
CADMUS COMMUNICATIONS CORPORATION
/s/ C. Stephenson Gillispie, Jr.
C. Stephenson Gillispie, Jr.
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in their capacities, as
of the 29th day of September, 1994.
<TABLE>
<CAPTION>
Signature Title
<S> <C>
/s/ C. Stephenson Gillispie, Jr. President, Chief Executive Officer and Director
C. Stephenson Gillispie, Jr. (Principal Executive Officer)
/s/ Michael Dinkins Vice President and Chief Financial Officer
Michael Dinkins (Principal Financial and Accounting Officer)
*/s/ Robert I. Dalton, Jr. Director
Robert I. Dalton, Jr.
*/s/ Lee P. Dudley Director
Lee P. Dudley
*/s/ Price H. Gwynn, III Director
Price H. Gwynn, III
*/s/ Frank G. Louthan, Jr. Director
Frank G. Louthan, Jr.
*/s/ John D. Munford, II Director
John D. Munford, II
*/s/ John C. Purnell, Jr. Director
John C. Purnell, Jr.
*/s/ Russell M. Robinson, II Director
Russell M. Robinson, II
*/s/ John W. Rosenblum Director
John W. Rosenblum
*/s/ Wallace Stettinius Chariman of the Board and Director
Wallace Stettinius
*/s/ Bruce A. Walker Director
Bruce A. Walker
*By /s/ C. Stephenson Gillispie, Jr.
C. Stephenson Gillispie, Jr.
Attorney-in-fact
</TABLE>
Three years ago, we embarked on a strategy to pull the disparate pieces of
Cadmus together into a unique and effective communications company. We again
made substantial progress toward that goal in 1994. More importantly, we are
optimistic that our efforts during this past year have positioned Cadmus for
even better results in 1995 and beyond.
Building Shareholder Value
We continue to work hard to build shareholder value and we are pleased with
the results. A key contribution to the building of shareholder value has been
our ability to deliver consistently improved financial performance. In 1994,
we achieved our targets in earnings and cash flow, and made improvements in
sales growth, margins, and other key financial measurements. Highlights were:
- --net income from operations of $.86 per share, an increase of 13.2% from last
year. excluding the $1.9 million restructuring charge, net income was $1.05 per
share, a 38.2% increase from fiscal 1993;
- --cash from operating activities improved from $10.4 million last year to $26.0
million this year;
- --sales increased 25.0% to $247.7 million. sales exclusive of Cadmus Journal
Services (the former printing division of Waverly, Inc.) increased 8.5% for the
year; and
- --margin improvement-operating income as a percent of sales before the
restructuring charge increased to 6.0% from 5.7% last year. after the
restructuring charge, fiscal 1994 operating income was 5.2% of sales.
6
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We are pleased with our progress building shareholder value. For the fiscal
year, the book value of each share increased from $8.49 to $9.03 and the market
price of Cadmus shares advanced from $83/4
to $173/4 as the market recognized the Company's progress and improvement. While
we still have opportunities for further improvement, particularly in our
margins, we believe we are headed in the right direction.
Building our Business
As we strive to improve the financial performance of our company, we are working
to ensure its vitality well into the 21st century. Our strategy has four basic
tracks:
- --increase the profitability of our existing business;
- --develop new products and new markets;
- --acquire new businesses and new capabilities
acquisitions that support and are logical
extensions of our strategies; and
- --add management talent and depth-bring to
Cadmus results-oriented leaders on whom we
can build and rely.
Strengthening Existing Businesses
We have stated that we will reinvest to stay current with technology, to
strengthen our existing businesses, and to develop new products and markets. In
1994, we continued this reinvestment, with total capital expenditures of $11.2
million. We concentrated our expenditures in our higher growth and higher margin
product lines. For example, we installed a state-of-the-art text and graphics
composition system in our journal operations in Richmond and Baltimore. This
system will significantly improve both the range of services we can offer to our
journal customers and the efficiency of our journal businesses.
We also installed a new typesetting system for our financial printing product
line which electronically links our facilities in Charlotte, Richmond,
Baltimore, and Raleigh, and also permits us to output
OUR EFFORTS
DURING THIS
PAST YEAR HAVE
POSITIONED
CADMUS FOR
EVEN BETTER
RESULTS IN 1995
AND BEYOND.
7
<PAGE>
typeset pages directly into our customers'offices. This typesetting network will
allow us to solidify our presence in the markets we currently serve and to
expand our reach into new and growing markets.
For our annual report and commercial printing customers, we installed a new
Heidelberg half-web press and another six-unit Heidelberg sheetfed press. These
presses enhance our production capabilities and position us to expand these
profitable and demanding product lines. In addition, we installed a state-of-
the-art color pre-press system at the Cadmus Color Center in Richmond, which
will increase production capabilities in our specialty publication and
commercial product lines.
We have also continued our efforts to improve our processes and our performance-
the initiative we call "World Class Execution."Nearly every Cadmus company now
has a viable world class execution program, has established quality improvement
teams, and is beginning to recognize improvements and savings. In addition,
cross-company councils have been formed to improve our performance in
procurement, finance, information services, and sales and marketing.
AT CADMUS JOURNAL SERVICES WE (Photograph appears here,
HAVE FORMED 13 "PIT"OR PROCESS see appendix)
IMPROVEMENT TEAMS THAT WORK
REGULARLY TO IMPROVE MANUFACTURING
AND OTHER PROCESSES. THE PICTURED TEAM
IS WORKING TO ACHIEVE MORE TIMELY
AND EFFICIENT DISTRIBUTION FROM OUR
EASTON PLANT-GETTING OUR JOURNALS TO
SUBSCRIBERS AS QUICKLY AS POSSIBLE.
We are particularly pleased, for example, with our progress in paper procurement
and inventory management. We purchase approximately $50 million of paper
annually. Recognizing the magnitude of this annual expenditure, we formed our
Procurement Council, hired experienced purchasing personnel at our largest
companies, and began to work aggressively to improve our purchasing and
inventory management procedures. The results to date have been remarkable. Paper
inventory turns have improved from 14.8 times annually in fiscal 1993 to 23.4
times annually in 1994, producing significant improvements in cash flow and
working capital.
Another promising development has been the formation of our Marketing Council-a
group comprised of sales and marketing leaders across Cadmus. This group has
been working to improve our performance and profitability through more focus and
attention on the way we sell. Early results from this initiative are
encouraging.
8
<PAGE>
Developing New Products and Markets
The development of new products and new markets is another important part of our
strategy to improve our existing business. Over the past several years, this has
been a major point of emphasis, and the results have been dramatic.
The installation of a press equipped with ultraviolet drying has permitted us to
achieve very high quality printing on plastics. We have used this capability to
expand our offerings in our profitable point-of-purchase product line. Demand
for these products has exceeded our expectations and we have plans to install
another press to meet this demand and retain our momentum. Similarly, our
investment in technology specifically designed to meet the demands of our
specialty packaging customers has allowed us to expand our capabilities and to
grow both sales and profits in this product line. For the year, specialty
packaging sales grew 31%. To capitalize on our strong market position and unique
production capabilities, we are adding sales personnel and another press in
fiscal 1995.
We have also made significant progress in our financial printing product line.
We have strong market positions in Richmond and Charlotte, but we need to
augment this strength with expansion into other geographic markets. In 1994, we
strengthened the sales and production capabilities of our Baltimore facility,
opened a facility in Raleigh, and installed a sophisticated typesetting
network. These new and enhanced facilities are already contributing and we are
planning to open new facilities in New York and other cities in the near
future.
In our marketing businesses, we have launched two exciting initiatives in the
past 18 months. The first, "Kids Link,"is a marketing program designed to
assist companies in developing products and marketing concepts for children.
This program, which also assists educators with teaching and study aids, has
been exceptionally well received by both teachers and customers. The second
initiative, NFL PrimetimeTM, is a joint project between Cadmus and the National
Football League. This project, one of several initiatives underway through our
sports marketing division, offers a Sunday and Monday night viewers guide for
businesses to distribute to their customers. These initiatives should produce
exciting results in 1995 and will serve as models for additional programs and
concepts as we build our marketing business.
Finally, in our publishing business, we have successfully assimilated Marblehead
Communications, the custom publishing business we acquired in 1993.
Additionally, we have launched two new titles of our own. COLLECT! is a new
magazine serving the non-sport collectibles market. MID-ATLANTIC SOCCER is a
regional magazine focused on promoting youth soccer. These titles represent
logical extensions of our publishing foothold and COLLECT!, in particular, has
been quite successful to date, in terms of both circulation and profitability.
Strategic Acquisitions
We have said we will acquire companies that create demand, enhance our market
position, provide sources for improved earnings, and expand our geographic
reach. In recent years, we have acquired two publishing companies, Tuff Stuff
Publications and Marblehead Communications, and we have completed a joint
venture with The Lanman Companies to form Central Florida Press, L.C. In 1994 we
completed our most ambitious acquisition to date-the purchase of Waverly Press,
the former printing division of Waverly, Inc. We combined this business, with
about $50 million in sales, with the Journal Division of Byrd Press, to create a
new company called "Cadmus Journal Services." We believe that Cadmus Journal
Services is now the largest company in North America specializing in the
production of scientific, technical, medical, and scholarly journals. In
addition, this acquisition positions Cadmus to retain and solidify our position
as a world leader in the production and delivery of journal products and
services.
The development of new products and markets differentiates
Cadmus and positions us for profitable growth.
9
<PAGE>
Cadmus remains a company in transition. We continue to focus on creative,
"brainware"products and developing the human resources to permit us to move
successfully in that strategic direction. We also continue to reconfigure
ourselves to reflect more closely the customers and markets that we serve.
Our strategy for the future can be summarized in these three
statements:
--We are a customer-focused company locating and penetrating market niches
that enable consistent growth at acceptable returns.
--We will differentiate our core competencies by developing customized
products and services resulting from in-depth knowledge of our customers and
their needs.
--We will focus on logical extensions of our existing capabilities as we
pursue innovative, non-traditional products and services designed for
customers who require a solution versus just a single product.
This strategy will guide us in the months and years to come. As we
strengthen and improve the profitability of our existing businesses, our near-
term focus will be on sales management and performance, continued improvement in
our manufacturing processes, and increased emphasis on our cross-company
councils.
Specifically, for 1995, a major emphasis will be on improving the way we
sell and market our products and services. In order to grow our revenues and
improve our profitability, we must develop an even greater awareness of our
customers'needs and of trends that will affect them. We also know that we need
new approaches for cultivating prospects, executing sales calls, and proactively
managing customer relationships once the sale has closed. Product line
differentiation has been our core sales and marketing strategy for several years
and is now well established throughout Cadmus. As this approach has become part
of our culture, we have seen improvements in revenue growth and profitability.
We expect further improvement and even more exciting results in this coming
year. We have also identified the sales techniques that are required to make our
product line strategy a success and are learning to teach those skills and to
transport them from one Cadmus company to another, from one product line to
another.
Capital investment will strengthen our businesses even more. As previously
mentioned, we plan to add a second UV press at American Graphics to meet the
demand from the point-of-purchase market and a second Heidelberg CD press at
12
<PAGE>
Washburn Graphics to maintain our momentum in the specialty packaging
product line. We also plan to purchase the additional equipment and technology
to permit us to integrate fully the text and graphics composition process-an
important and fundamental change in the way journals currently are produced.
Finally, we intend to acquire a facility in Richmond that will unite Expert
Brown and the Cadmus Color Center under one roof and allow them to continue
their growth and broaden the range of products and services we are offering to
customers in the Mid-Atlantic area.
We also continue to develop new products and new markets and to search for
and complete strategic acquisitions. We recently announced the formation of
Cadmus Interactive, our Atlanta-based company focusing on the development and
marketing of multimedia and new media products and services. This company was
formed with the acquisition of ModelMation, Inc., which has provided very high
quality interactive services to technology companies such as AT&T, Siemens,
Sprint, Antec, and Scientific-Atlanta. To this existing and profitable core, we
are adding executive and production personnel with significant multimedia
experience. This initiative will allow us to remain at the cutting edge of
multimedia technology and product development and will position Cadmus to emerge
as a leader in the interactive marketplace.
(photograph appears here, see appendix)
TO INTRODUCE A NEW INDUSTRIAL CONTROL SYSTEM, CARL HAMILTON OF AUSTRIA-BASED
B&R INDUSTRIAL AUTOMATION (LEFT) WORKS WITH CADMUS INTERACTIVE'S GEORGE-ERICK
BRINCKMANN (RIGHT) TO PRODUCE AN INTERACTIVE MARKETING AND SALES PRESENTATION.
THE DISKETTE-BASED PROMOTION RUNS ON PERSONAL COMPUTERS, BOTH DEMONSTRATING AND
TAKING ORDERS FOR B&R'S PRODUCT.
13
<PAGE>
We are committed to increasing the percentage of Cadmus revenues from
publishing and marketing, and we believe this will be a year in which we make
significant progress toward this goal. Our acquisition of Marblehead
Communications in fiscal 1993 showed us what is required to assimilate new
publishing companies into Cadmus effectively and profitably. Moreover, we
believe we now have assembled the talent and expertise to grow this business
segment.
In our marketing businesses, we will continue our sports marketing
initiative. We now understand how we can most effectively bring our unique
marketing approach to bear for the mutual benefit of the "Leagues"and their
advertisers. We are currently working with the National Football League, the
National Hockey League, NASCAR, and the PGA and we expect those relationships to
develop further in the next several years. Concurrently, we are seeking ways to
expand our business into baseball, basketball, and soccer. We are encouraged by
the early results from this initiative, and we look forward to even more
exciting results next year.
Last, but certainly not least, we will continue to build and develop our
management and human resources. Under the direction of Greg Moyer, our Human
Resources officer, we will be working to create systems and embrace philosophies
that bring Cadmus together to create a single, unifying Cadmus culture. We will
learn how to leverage and export our human resource talent from one business to
another and from one product line to another. We will extend further our world
class
WE HAVE BEEN WORKING TO PROVIDE CUSTOMIZED AND INNOVATIVE SOLUTIONS TO
INDIVIDUAL CUSTOMER NEEDS. NOWHERE WAS THIS COMMITMENT MORE EVIDENT THAN IN OUR
WORK WITH ESKIMO PIE CORPORATION TO PRODUCE THEIR UNIQUE ANNUAL REPORT. PICTURED
HERE ARE JIM CHEATHAM, ESKIMO PIE'S ADMINISTRATIVE OFFICER/INVESTOR RELATIONS
(LEFT), AND RON LANIO, CEO OF EXPERT BROWN (RIGHT).
(Photograph appears here, see appendix)
14
<PAGE>
execution initiative and look to obtain the benefits that come from
identifying and sharing best practices. We have an exceptionally talented and
diverse employee population, and we think we can achieve remarkable results from
creative and imaginative leadership and management of this resource.
In summary, we are convinced that our strategy is sound. As we move forward,
we will be aligning systems and bringing additional resources to bear to more
aggressively execute and drive that strategy. We will be picking up the pace-and
we believe the results will be exciting to our customers, our shareholders, and
our employees.
WE ARE CONVINCED
THAT OUR STRATEGY
IS SOUND. WE WILL
BE PICKING UP
THE PACE...
15
<PAGE>
(Photograph appears here, see appendix)
ANNUAL REPORTS
Cadmus produces over 150 annual reports each year. Sheetfed producers are
Washburn Graphics, Garamond, and Expert Brown. Longer-run annual reports are
produced at Washburn Graphics and Byrd Press. These companies obtain a
competitive advantage from their typesetting skills and capacity, electronic
color scanning and assembly expertise, and a thorough understanding of financial
markets.
(Photograph appears here, see appendix)
CATALOGS
Operating on a nationwide basis, Three Score provides turn-key design and
creative services to catalog producers. These services include design, layout,
copywriting, studio and location photography, and coordinating services. In
addition, every Cadmus printing company can and does print catalogs.
(Photograph appears here, see appendix)
PROMOTIONAL PRINTING
Five Cadmus companies - American Graphics, Expert Brown, Garamond, Central
Florida Press, and Washburn Graphics - offer high-quality sheetfed printing
services to a broad range of customers. In addition, Washburn Graphics, Central
Florida Press and Byrd Press offer sophisticated commercial web capabilities for
longer-run products.
(Photograph appears here, see appendix)
PUBLISHING
Cadmus actively entered the publishing business in 1992 with the acquisition
of Tuff Stuff. Its principal publications are TUFF STUFF, a monthly magazine
directed to trading card collectors, and COLLECT!, a monthly magazine directed
to non-sport collectors and hobbyists. More recently, Cadmus acquired Marblehead
Communications, a Boston-based contract/custom publisher currently producing
nearly a dozen publications of various frequencies, formats, and run lengths.
16
<PAGE>
(Photograph appears here, see appendix)
DIRECT MARKETING
Two Cadmus companies-Cadmus Direct Marketing and American Graphics-provide
strategic consulting, integrated marketing, creative, database analysis and
management, data processing, direct mail production, telemarketing, and
fulfillment services. Cadmus Direct Marketing is a full service marketer
operating on a national basis. American Graphics provides specific customers and
industry segments with traditional direct market services.
(Photograph appears here, see appendix)
FINANCIAL PRINTING
Garamond, Expert Brown, and Washburn Graphics offer turn-key financial
printing services in the Carolinas, Virginia, and Maryland. Specific products
include proxy statements, initial and secondary offerings, debt offerings, and
other compliance documentation.
(Photograph appears here, see appendix)
POINT-OF-SALE MARKETING
Demand for point-of-sale materials is increasing dramatically as advertising
patterns change and evolve. Every Cadmus printing company is capable of
producing point-of-sale material. However, American Graphics has developed the
ability to provide turn-key point-of-sale production and market management
services.
(Photograph appears here, see appendix)
RESEARCH JOURNALS
Formed by the combination of the Byrd Press Journal Division and the Waverly
Press acquisition, Cadmus Journal Services is an international industry leader
in the production of research journals. This product line serves four distinct
markets: medical and bio-medical; technical and scientific; learned and
scholarly; and mathematics.
(Photograph appears here, see appendix)
SPECIALTY MAGAZINES
These special interest magazines typically are produced by in-house
editorial and production staffs and are provided free to customers, employees,
members or industry participants. Historically a Byrd Press product and area of
expertise, every Cadmus printing company serves customers producing corporate or
other specialty magazines.
(Photograph appears here, see appendix)
SPECIALTY PACKAGING
Responding to customer needs for a variety of short-run, high quality, hand
insertable packaging products, Washburn Graphics has acquired the specialized
equipment and production skills which enable them to offer to these customers
one-stop production and related services.
17
************* APPENDIX ***************
On page 6, photo appears of process improvement team, description in the
paragraph to the left of where the photo appears.
On page 13, photograph of a lap top comuputer and software described in the
paragraph preceding the photograph.
On page 14, photograph of Ron Lanio (CEO of Expert Graphics) and Jim
Cheatham (Eskimo Pie's Administrative Officer/Investor Relations) as
described in the paragraph preceding the photograph.
On page 16, photograph of various annual reports. Photograph precedes the
Annual Reports heading, top left.
On page 16, photograph of various catalogs. Photograph precedes the Catalogs
heading, top right.
On page 16, photograph of various promotional printing. Photograph precedes
the Promotional Printing heading, bottom left.
On page 16, photograph of various publishing. Photograph precedes the
Publishing heading, bottom right.
On page 17, photograph of various direct marketing products. Photograph
precedes the Direct Marketing heading, top left.
On page 17, photograph of financial printing products. Photograph precedes
the Financial Printing heading, top center.
On page 17, photograph of various Point-of-Sale marketing materials.
Photograph precedes the Point-of-Sale Marketing heading, top right.
On page 17, photograph of various journal products. Photograph
precedes the Research Journals heading, bottom left.
On page 17, photograph of specialty magazines. Photograph precedes
the Specialty Magazines heading, bottom center.
On page 17, photograph of various Specialty Packaging. Photograph precedes
the Specialty Packaging heading, bottom right.
