CADMUS COMMUNICATIONS CORP/NEW
8-K, 1999-10-15
COMMERCIAL PRINTING
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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  ------------


                                    Form 8-K

                                  ------------


               CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


        Date of Report (Date of earliest event reported) October 14, 1999
                                                         ----------------

                        CADMUS COMMUNICATIONS CORPORATION
                        ---------------------------------
             (Exact name of registrant as specified in its charter)



           Virginia                      0-12954                54-1274108
           --------                      -------                ----------
(State or other jurisdiction of        (Commission          (I.R.S. Employer
 incorporation or organization)        File Number)       Identification Number)



6620 West Broad Street, Suite 240, Richmond, Virginia       23230
- -----------------------------------------------------       -----
     (Address of principal executive offices)             (Zip Code)



Registrant's telephone number, including area code    (804) 287-5680
                                                      --------------

<PAGE>

Item 5.       Other Events.

On October 14, 1999,  Cadmus  Communications  Corporation (the "Company") issued
the press  release  attached  hereto as Exhibit 99.1 to announce  organizational
changes  and  a  restructuring  plan  intended  to  effect  additional,  planned
synergies in  connection  with its April 1999  acquisition  of the Mack Printing
Group and to focus the Company's  resources on the  professional  communications
and  specialty  packaging  markets.  C.  Stephenson  Gillispie,  Jr.,  chairman,
president  and chief  executive  officer  and Bruce V.  Thomas,  executive  vice
president and chief operating officer, read the prepared remarks attached hereto
as Exhibit 99.2 on a conference  call with analysts,  shareholders,  prospective
investors, and other interested parties.

Information  in  these  documents  relating  to  Cadmus'  future  prospects  and
performance  are  "forward-looking   statements,"  as  defined  by  the  Private
Securities  Litigation  Reform Act of 1995, and, as such, are subject to certain
risks and  uncertainties  that could cause actual results to differ  materially.
Potential  risks and  uncertainties  include  but are not  limited  to:  (1) the
effective integration of recent acquisitions, (2) continuing competitive pricing
in the  markets  in  which  the  Company  competes,  (3)  the  gain  or  loss of
significant customers or the decrease in demand from existing customers, (4) the
ability of the  Company to continue to obtain  improved  efficiencies  and lower
overall  production  costs, (5) changes in the Company's  product sales mix, (6)
the  performance of new  management and leadership  teams in the Company and its
divisions, (7) the impact of industry consolidation among key customers, (8) the
ability of the Company to operate  profitably and effectively with higher levels
of  indebtedness,  and (9) the ability to retain key  employees  and managers in
light of lower-than-planned incentives and benefits.


Item 7.       Exhibits.

         Exhibit 99.1    Press Release
         Exhibit 99.2    Prepared Remarks from Conference Call

<PAGE>

                                  Signatures

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized on October 15, 1999.


                                  CADMUS COMMUNICATIONS CORPORATION


                                  By:   /s/ C. Stephenson Gillispie, Jr.
                                     -----------------------------------------
                                      C. Stephenson Gillispie, Jr.
                                      Chairman, President, and Chief Executive
                                        Officer






<PAGE>
                                  Exhibit Index


         Exhibit


99.1     Press Release
99.2     Prepared Remarks from Conference Call



                                                                    Exhibit 99.1


FOR IMMEDIATE RELEASE               Contact: Teri Schrettenbrunner
                                             Director, Corporate Communications
                                             (804) 287-6260


               CADMUS COMMUNICATIONS ANNOUNCES RESTRUCTURING PLAN
                       AND RELATED ORGANIZATIONAL CHANGES

           SAVINGS OF APPROXIMATELY $6 MILLION ANNUALLY EXPECTED FROM
                             RESTRUCTURING ACTIONS


RICHMOND,  Va. (Oct. 14, 1999) - Cadmus Communications  Corporation  (Nasdaq/NM:
CDMS) today announced  organizational  changes and a restructuring plan intended
to effect  additional,  planned  synergies  in  connection  with the April  1999
acquisition  of the  Mack  Printing  Group  (Mack)  and to focus  the  Company's
resources on the professional  communications  and specialty  packaging markets.
Cadmus  expects to record  charges in the range of $33 to $37  million  ($6 - $7
million in cash charges) before taxes as a result of these actions. A portion of
these  charges will be reflected in the results for the  Company's  first fiscal
quarter that ended  September  30, but the majority  will be included in results
for the current fiscal quarter that closes in December.  The non-cash portion of
the  charges,  which  includes  the  write-off  of  assets,  goodwill  and other
intangibles,  is primarily  associated with the point of purchase (POP) business
that the company is closing.

"We are taking these  actions to enhance  Cadmus'  future  profitability  and to
capitalize on the  opportunities  we have for  consistent  growth,"  remarked C.
Stephenson  Gillispie,  Jr.,  Cadmus'  chairman,  president and chief  executive
officer.  "The  restructuring  plan  continues  our  strategy  to  increase  our
concentration of personnel,  facilities,  and capital on markets where we have a
leadership position.  Our revised  organizational  structure will provide a more
heightened focus on execution and performance."

Gillispie  continued,  "With  the  closing  of POP  and the  elimination  of its
operating  losses,  the  factors  that will drive  value  going  forward are the
further successful  integration of Mack,  continued strong cash flow generation,
and improved  top-line growth from our  well-established  positions in journals,
specialty  magazines,  and specialty  packaging.  The actions we are  announcing
today  will  reduce  our  operating  scope,  allowing  us to focus on these  key
elements of our future growth."

Key Components of Restructuring Plan and Organizational Changes
Cadmus indicated that the major components of the restructuring plan and changes
to the Company's organizational structure are:

o       closing the Atlanta-based Cadmus POP business unit;
o       implementing   additional,   planned   synergies   associated  with  the
        integration of Mack;
o       consolidating   certain   corporate   functions  and  related   overhead
        rationalization; and
o       implementing a revised management  structure effective  immediately with
        Bruce  V.  Thomas  promoted  into the new  position  of  executive  vice
        president and chief operating officer of the Company.

Restructuring Plan
The Company believes that the annual pre-tax savings from the  implementation of
these  changes will total  approximately  $6 million.  This figure  includes the
elimination  of operating  losses from areas that Cadmus is exiting,  as well as
cost savings from the consolidation of certain ongoing operations.  In addition,
the Company  expects to realize net proceeds from the closures and  divestitures
that will be sufficient to reduce interest  expense by  approximately $1 million
annually. Net sales from closed or divested businesses represented $57.6 million
of the Company's total pro forma fiscal 1999 net sales of $526.7 million.

Bruce V. Thomas, Cadmus' chief operating officer, noted that the majority of the
anticipated  restructuring  charge will consist of non-cash items.  Thomas said,
"Although the  recognition  of these charges will lead to reported net losses in
both the first and  second  quarters,  we expect  these  actions  to have a very
positive  impact on our  financial  condition.  In fact,  we believe that as the
tangible benefits of the cost savings  associated with the restructuring  become
evident in the second half of fiscal 2000, our overall financial  condition will
be significantly strengthened."

Commenting  on the  POP  closure,  Thomas  said,  "Although  we  have  dedicated
considerable  managerial and other resources to this business unit, it continues
to generate sizeable  operating losses. We do not believe that it remains in the
best interests of the organization as a whole to sustain  additional  losses and
further  managerial  disruption  in  an  attempt  to  return  this  business  to
profitability.  Therefore,  we will be exiting  the POP  business  as quickly as
possible.  We intend to work closely with  customers to minimize the  disruption
our decision will have on their marketing programs."

The actions related to the Mack integration involve the planned consolidation of
various  redundant  operations  and  facilities.  David G. Wilson,  president of
Cadmus' Professional Communications group, noted, "Similar to other acquisitions
we have made in the past, we are integrating  Mack in several phases to ensure a
continuing  high level of service to customers.  Our initial step was to realize
costs savings by using our increased purchasing  leverage.  We have accomplished
most of these  economies and are now prepared to move into the next phase of our
integration  plan. This phase will involve  consolidating  several  departments,
principally  associated  with  our  composition,  warehousing,  and  fulfillment
activities.  We expect to have  completed  virtually all of these actions by the
close of fiscal 2000.  The  integration of Mack is proceeding  smoothly,  and we
remain on schedule and on target in terms of the  synergies  we had  anticipated
from the transaction."

Organizational Changes
Cadmus also announced a new management structure.  In this new structure,  Bruce
V. Thomas, who has been chief financial officer,  will serve in the new position
of  executive  vice  president  and  chief  operating   officer  with  operating
responsibility  for all of the Company's  business units.  David G. Wilson,  Jr.
will assume the new position of vice  chairman of the board and will continue to
serve as president of the Cadmus  Professional  Communications  group.  David E.
Bosher,  previously vice president and treasurer,  will serve as chief financial
officer.  Steven R. Isaac,  executive  vice  president  of the former  Marketing
Communications sector, will leave Cadmus to return to the  advertising/marketing
services industry.

Gillispie said, "The organizational  changes that are effective immediately will
reduce our executive staff and overhead  expenses.  More  importantly,  they are
designed to provide improved  operating focus and performance to what has become
a much larger company in the past six months. During this time, Bruce Thomas has
had increasing operating  responsibility and has demonstrated that he will bring
enthusiasm, focus, and urgency to enhanced operating effectiveness."

Cadmus Communications Corporation provides customers with integrated, end-to-end
communications  solutions.  The Company is organized around two primary markets:
Professional  Communications,  serving  customers who publish  information,  and
Marketing  Communications,  serving  customers  who convey  marketing  messages.
Additional  information  about Cadmus is available at the  Company's  web site -
www.cadmus.com

                                       ###

"Safe Harbor"  Statement under the Private  Securities  Litigation Reform Act of
1995:  Information  in this release  relating to Cadmus'  future  prospects  and
performance  are  "forward-looking  statements"  and,  as such,  are  subject to
certain  risks and  uncertainties  that  could  cause  actual  results to differ
materially.  Potential risks and  uncertainties  include but are not limited to:
(1) the effective integration of recent acquisitions, (2) continuing competitive
pricing in the  markets in which the Company  competes,  (3) the gain or loss of
significant customers or the decrease in demand from existing customers, (4) the
ability of the  Company to continue to obtain  improved  efficiencies  and lower
overall  production  costs, (5) changes in the Company's  product sales mix, (6)
the  performance of new  management and leadership  teams in the Company and its
divisions, (7) the impact of industry consolidation among key customers, (8) the
ability of the Company to operate  profitably and effectively with higher levels
of  indebtedness,  and (9) the ability to retain key  employees  and managers in
light of lower-than-planned incentives and benefits.


<PAGE>

                                 FACTS IN BRIEF

                 Cadmus Communications Corporation Restructuring


STRATEGIC OVERVIEW
o    The focus of this  restructuring  plan is to  further  focus the  Company's
     resources on the Professional  Communications and Specialty Packaging niche
     markets,  each of which is  providing  a solid  return on  investment.  The
     principal  components of this plan will be to discontinue  the POP business
     unit which has been operating at a significant  loss and to effect the next
     phase of planned  rationalization of the Company's professional  operations
     that were substantially expanded through the April 1999 Mack Printing Group
     acquisition.
o    The new  managerial  organization  has been  effected  to  sharpen  Cadmus'
     business  focus on  execution  and  performance.  The new  responsibilities
     announced today are intended to reduce costs and establish a structure able
     to focus more directly on Cadmus key value drivers:

     -  The successful integration of Mack
     -  Continued strong cash flow performance
     -  Improved  top-line growth from strong positions in journals,  specialty
        magazines, and specialty packaging

o    Further actions are anticipated to realize additional  overhead savings and
     achieve a clear  operating  focus on the niche  markets where the Company's
     core competencies can be most effectively employed.


FINANCIAL OVERVIEW

o    Restructuring charges are expected as follows:

      Non-cash  items - $27-$30  million,  pre-tax
      Cash items - $6-$7  million, pre-tax
      Total restructuring  charge - $33-$37 million,  pre-tax ($2.40 - $2.75 per
      share,  after-taxes)

o    Annual pre-tax  savings of  approximately  $6 million are expected from the
     implementation  of  the  restructuring   plan.  This  figure  includes  the
     elimination  of losses from areas that the  Company is exiting,  as well as
     cost savings from the consolidation of certain ongoing operations.
o    Approximately $17 million of charges will be recognized in the first fiscal
     quarter that ended in September  1999.  This amount will include the charge
     associated  with the previously  announced  consolidation  of the Company's
     advertising  agency  operations.  The  remainder  of the  charges  will  be
     accounted for in the second fiscal quarter.
o    Net  proceeds  from  the  restructuring   actions  are  expected  to  total
     approximately $14 - 15 million. This will be used to reduce debt, resulting
     in an annualized savings of at least $1 million in interest expense.
o    The units divested or closed contributed $57.6 million of the Company's pro
     forma net sales in fiscal 1999 of $526.7 million
o    The restructuring  charge will reduce shareholders' equity by approximately
     $23 million,  or $2.55 per share.  However,  in addition to the $16 million
     reduction in total debt recorded in the first  quarter of fiscal 2000,  the
     net proceeds from the  restructuring  actions will reduce  proforma debt by
     approximately  $12 -  $14  million  over  the  remainder  of  fiscal  2000.
     Therefore,  the  Company  does not  expect  the  restructuring  actions  to
     materially impact its financial condition.


RESTRUCTURING SUMMARY

o    The restructuring plan encompasses the following major actions:

     -   Closing the Atlanta-based Cadmus Point of Purchase (POP) business unit
     -   Implementing   planned,   additional   synergies  associated  with  the
         integration of the Mack Printing Group, acquired in April 1999
     -   Consolidating   certain   corporate   functions  and  related  overhead
         rationalization

o    The  decision to close the POP business  unit  reflects  Cadmus'  desire to
     avoid continuing to operate this business at a considerable  loss.  Closure
     is  expected  by  December  1999  under a plan  intended  to  minimize  the
     disruption on customers' marketing programs.
o    The additional synergies related to the Mack Printing Group are the planned
     synergies   involving  the   rationalization   of  certain   functions  and
     departments across the Professional  Communications business. The timing of
     this  action  follows  the  original  plan  that was set at the time of the
     acquisition.  The  initial  step was to realize  cost  savings by using our
     increased  purchasing  leverage.  Most of  these  economies  have  now been
     realized,  leading to the next phase that will unify the combined resources
     of  the   Professional   Communications   division.   This   will   involve
     consolidating  several  departments,  principally  associated  with various
     composition functions and warehousing. All of these actions are expected to
     be completed by the close of fiscal 2000.
o    As a result of the Mack  acquisition,  the  Company  gained  control  of an
     advanced information system that has been fully installed and tested. After
     evaluating  this system,  the  decision  was made to integrate  this proven
     process and cease the development  effort that was underway by Cadmus for a
     comprehensive   information   system   for  the   Company's   manufacturing
     operations.
o    The restructuring plan includes a comprehensive program to reduce corporate
     overhead and the size of other operating units.  This reflects not only the
     new  actions  that are  announced  today but also  planned  changes  in the
     Company's  advertising  agency business.  The Company also plans to combine
     its specialty packaging and fulfillment/distribution  operations to provide
     a more integrated service for designing,  printing and distributing mailers
     and other marketing material.


ORGANIZATION SUMMARY
o    The changes in executive management that are effective immediately include:

     -   Bruce V. Thomas,  who has been chief financial  officer,  will serve in
         the new  position  of  executive  vice  president  and chief  operating
         officer.

     -   David G. Wilson,  Jr., will assume the new position of vice chairman of
         Cadmus'  Board.  He will  continue to serve as  president of the Cadmus
         Professional Communications group.

     -   David E. Bosher, previously vice president and treasurer, will serve as
         chief financial officer.

     -   Steven  R.  Isaac,  previously  the head of  Cadmus'  former  Marketing
         Communications   sector,   will   leave   Cadmus   to   return  to  the
         advertising/marketing services industry.

BUSINESS PROFILE
o    Cadmus is North  America's  fourth largest  publications  printer,  and the
     world's largest producer of scientific, technical, and medical journals.
o    Cadmus  provides  customers  with  integrated,   end-to-end  communications
     solutions.   The  Company  is   organized   around  two  primary   markets:
     Professional Communications, serving customers who publish information, and
     Marketing Communications, serving customers who convey marketing messages.
o    The Company's Professional  Communications  services include the production
     and distribution of printed and electronic  journals,  specialty magazines,
     soft cover books and  directories.  Its Marketing  Communications  services
     include the creation, production, distribution and fulfillment of specialty
     packaging, promotional printing, software duplication, and catalogs.
o    Cadmus is active in the  architecture  and maintenance of web sites through
     its Dynamic Diagrams operating unit.
o    Cadmus'  production  facilities  are  located in Georgia,  Maryland,  North
     Carolina, Pennsylvania, and Virginia.
o    The Company has approximately 3, 900 employees.





                                                                    Exhibit 99.2
                      Prepared Remarks from Conference Call
                           Thursday, October 14, 1999


Introduction - Steve Gillispie

Good  morning.  I want to thank you for  joining  us on what we realize is short
notice.  Each of you should  have  received a copy of our news  release  that we
issued this morning  regarding two key developments  for Cadmus.  One is a major
change in our  organizational  structure,  and the other is a restructuring plan
that we believe will have material, near-term impact on our earnings model.

Let me preface  all of our  comments  with the note that we are  confident  that
these  collective  actions  are  going to yield  meaningful  improvement  in our
financial  performance  not only in fiscal 2000,  but also over the next several
years. Our intent today,  however, is to be very fact based -- to give you (1) a
clear picture of why we are making these changes, (2) the benchmarks you can use
to monitor our progress in completing this plan, and (3) most  importantly,  the
resulting returns that we expect.

I want to take a few minutes to  highlight  the  organizational  changes that we
have made. Then, Bruce Thomas will walk you through the  restructuring  plan and
the specific actions we will be taking over the next several months.
Finally, Dave Bosher will join us in addressing any questions you may have.

First, our  organizational  changes.  As explained in the release,  Bruce Thomas
will be  serving in the new  position  of  Executive  Vice  President  and Chief
Operating  Officer,  with  day-to-day  operating  responsibility  for all of our
business units. Dave Bosher will replace Bruce as Chief Financial Officer. Steve
Isaac,   who  has  served  as  Executive   Vice   President  of  the   Marketing
Communications  Sector,  will be leaving the Company to return to the  marketing
and advertising industry.

Our new  organizational  structure  represents  more than  just an  evolutionary
change in the way we are going to manage Cadmus. I believe that the returns from
this  managerial  realignment  are going to be very  real and very  significant.
Since 1995,  we have been pursuing a plan to focus our business on those markets
where we have core strengths and can establish market leadership  positions.  At
the same time, we have been working to streamline  and make our  governance  and
decision-making  structure  more  effective.  The path has not been  straight or
without  bumps along the way.  Our  announcements  today,  however,  mark a true
milestone in this process.

As a result of these changes, we will be able to move more quickly to capitalize
on business  opportunities and meet competitive threats. Our focus going forward
is going to be on execution,  and it also will be proactive.  In my view, and in
our Board's view,  this  structure  absolutely  represents the right approach to
drive  better  execution,  as well as a  forward-looking  process at each of our
business units.

My personal goal is to complement Bruce's day-to-day oversight of our operations
with the execution of the strategic steps and other broad  initiatives that will
allow us to maximize the return on our capital and shareholder value.

The  markets in which we compete are  growing,  but they also are  changing  and
consolidating  at an  increasing  pace. We have a solid  competitive  stance and
strong end-to-end capabilities in each of these markets.

In  this  environment,   there  are  opportunities  for  Cadmus  to  expand  our
relationships with existing customers;  to add significant new customers seeking
our market-focused, end-to-end capabilities; and to enhance our business profile
through acquisitions and/or alliances. I will focus my energies on ensuring that
we can translate  these strong  market  positions  into above  average  top-line
growth.

At this point, I'll turn the call over to Bruce for a more detailed  description
of our restructuring plan.


Restructuring Plan - Bruce Thomas

Thank you, Steve.

The   restructuring   plan  we  are  announcing   today  is  large,  and  it  is
comprehensive.  It is designed to take all of the steps necessary to concentrate
our resources on those markets where we have strong competitive  positions,  and
to  significantly  improve our financial  performance  both  near-term and going
forward.  In my remarks, I want to give you a brief "thumbnail" of the plan, and
then I'll walk you through some of the details of each of its major components.

First,  however,  let me  frame  for you the  broad  financial  impacts  of this
restructuring  plan. We estimate that the charge,  that we will be taking in our
1st and 2nd fiscal quarters, will be in the range of $33 to $37 million pre-tax.
Of that amount, only $6-8 million will require cash outlays. The balance,  which
represents the bulk of the charge,  will be non-cash  primarily  associated with
the write-off of assets,  goodwill, and intangibles associated with the point of
purchase business.

We  estimate  that  annual  savings  from  this   restructuring   plan  will  be
approximately  $6  million  before  taxes.  A portion of these  savings  will be
realized in this fiscal year with the full impact  accruing in fiscal  2001.  In
addition,  we expect to realize  approximately $15 million in net after-tax cash
proceeds,  all of which will be used to repay debt and generate  lower  interest
expense.

The restructuring plan consists of four broad components:

     1.   closing our Atlanta-based point of purchase business;
     2.   implementing  additional,  planned  synergies in  connection  with our
          continued integration of Mack;
     3.   divesting our Richmond- and Charlotte-based marketing agencies; and
     4.   consolidating  and  rationalizing   certain  corporate  functions  and
          overhead.

I'd like to briefly discuss these components,  highlighting the specific actions
being taken, the timing of each action,  and the financial impact we expect from
each action going forward.

First, the closure of our point of purchase business. Obviously, this has been a
very difficult  decision for us. We have devoted  significant  managerial  time,
attention,  and  energy in an attempt  to  restore  this unit to  profitability.
However,  we continue to sustain sizeable  operating  losses.  We have concluded
that it is no longer in the best  interests  of the  organization  as a whole to
continue to absorb these losses and to further  distract and disrupt the rest of
the organization in an attempt to turn this business around.  Therefore, our POP
operations will be closed.  Some customers have already been notified and others
will be notified today. We will be working with them to transition their work to
other Cadmus units or to alternative suppliers.  We believe that this transition
can be  accomplished  over the next 30 to 45 days,  and that we will  completely
cease operations at POP on or about December 1.

Second, the planned additional  synergies related to the ongoing  integration of
Mack. As we have  previously  told you, we are  following  the same  integration
model that  produced the highly  successful  integrations  of Waverly  Press and
Lancaster.  Our initial step was to obtain the savings from  procurement-related
activities.  Most of this procurement integration has been accomplished,  and we
are on track to hit our annual savings target.

In the next phase of our integration, we will be consolidating several redundant
departments   and  operations   and   rationalizing   our  overhead   structure.
Specifically,  we will be  consolidating  our two composition  facilities in the
Lancaster,  Pennsylvania  area.  These facilities are only five miles apart, use
identical  composition  systems,  and share several major customers.  We will be
consolidating  these  operations into Mack's Science Press facility,  which will
result in a reduction in force and efficiency  improvements,  and also will free
up a building for sale.

In addition to this consolidation,  we will be consolidating our warehousing and
fulfillment  operations,  where we store and  distribute  non-current  issues of
journals  and  magazines.  This  consolidation  will  result  in  a  significant
reduction in lease expense, as well as improved operating efficiencies.

Finally, we will be consolidating reprint operations,  where we actually receive
author  requests for  additional  copies of their  articles and reproduce  those
reprints.  Currently,  we have two centers where we receive these requests and 5
facilities  where these reprints are produced.  The savings here will largely be
the result of equipment  consolidation  and  liquidation,  as well as efficiency
improvement.

These  integration-related  actions  were  identified  during our due  diligence
process related to Mack.  Their  implementation  is occurring right on schedule,
and our  anticipated  savings of at least $3 to $3.5  million  annually  is also
right on target with the  amounts  that we  originally  sized at the time of the
Mack  acquisition.  We expect that all of these actions will be completed in the
second half of this fiscal year and that we will  realize the full  savings from
this integration during fiscal 2001.

Third, the divestiture and closure of our marketing agencies. These actions have
been completed. As you know, we closed the Richmond-based agency in July, and on
September 30, we sold our Charlotte-based Direct Marketing agency.

Finally,   we  are  consolidating   certain  corporate  functions  and  reducing
overheads.  In  particular,  and  most  significantly,  we are  eliminating  all
overhead  formerly  associated  with the  Marketing  Communications  sector.  In
addition,  we will effect some integration of the Finance,  IT, and HR functions
across our Professional  Communications sector and at our corporate office. This
consolidation  should be accomplished  during the second  quarter,  and we would
expect to begin  realizing the benefits from these actions in the second half of
this fiscal year.

Let me just  conclude  by saying  that we are  firmly  convinced  that this plan
significantly  enhances  the  outlook  for  Cadmus'  future  profitability,  and
positions us to  capitalize on  opportunities  for growth in the markets we have
targeted.  Perhaps  most  importantly,  we are  well on our  way to  effectively
executing  this plan. We have been working on these  actions for several  months
and have very well  developed  plans and  processes to ensure that we can manage
and execute in timely fashion. We will stay on schedule and we will get it done.

With that, let me turn this call back over to Steve for his concluding remarks.

Conclusion - Steve Gillispie

Thanks,  Bruce.  We hope  this  detailed  review  of our plan has been  helpful.
Obviously,  some of the  actions,  such as the Mack  integration  actions,  were
planned and  expected.  Others,  such as the POP  closing,  are  difficult,  but
absolutely necessary decisions. Our focus is on consistent, above-average growth
in earnings per share. We are confident that this goal is attainable and believe
that our  performance  in the second half will provide you with evidence that we
are on the right course.

At this point,  we'd like to turn this discussion over to you for questions that
you may have for Bruce, Dave or me.


Top Judgements:
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Moreland Planning Scheme Amendment C208more | Heritage Nominations Study | Panel Report | 15 July 2022
New Zealand Tegel Growers Association Incorporated | 2 August 2022
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