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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 27, 1998 COMMISSION FILE NUMBER 1-
11802
[Graphic omitted]
WORLD COLOR PRESS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 37-1167902
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
THE MILL, 340 PEMBERWICK ROAD 06831
GREENWICH, CONNECTICUT (Zip Code)
(Address of principal executive offices)
203-532-4200
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] No [ ]
At November 6, 1998, 38,436,644 shares of the registrant's common stock, $.01
par value, were outstanding.
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<CAPTION>
WORLD COLOR PRESS, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 27, 1998
INDEX
- --------------------------------------------------------------------------------
Page
----
PART I. FINANCIAL INFORMATION
<S> <C>
Condensed Consolidated Balance Sheets as of September 27, 1998
and December 28, 1997...............................................3
Condensed Consolidated Statements of Operations for the Three and
Nine Months Ended September 27, 1998 and September 28, 1997.........4
Condensed Consolidated Statements of Cash Flows for the Nine Months
Ended September 27, 1998 and September 28, 1997.....................5
Notes to Condensed Consolidated Financial Statements.................6 - 7
Management's Discussion and Analysis of Financial Condition and
Results of Operations..........................................8 - 12
PART II. OTHER INFORMATION..................................................13
</TABLE>
-2-
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<TABLE>
<CAPTION>
WORLD COLOR PRESS, INC.
PART I. FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 27, 1998 AND DECEMBER 28, 1997
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
SEPTEMBER 27, DECEMBER 28,
ASSETS 1998 1997
(Unaudited) (Note)
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents $ 23,621 $ 37,676
Accounts receivable - net 213,785 166,747
Inventories 329,478 204,889
Deferred income taxes 16,473 31,297
Other 46,350 33,625
---------- ----------
Total current assets 629,707 474,234
Property, plant and equipment, at cost 1,611,854 1,495,333
Accumulated depreciation and amortization (698,976) (638,138)
---------- ----------
Property, plant and equipment - net 912,878 857,195
Goodwill - net 668,580 535,416
Other 92,041 66,726
---------- ----------
TOTAL ASSETS $2,303,206 $1,933,571
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 343,626 $ 296,512
Current maturities of long-term debt 37,881 8,970
---------- ----------
Total current liabilities 381,507 305,482
Long-term debt 1,077,961 810,143
Deferred income taxes 101,331 100,045
Other long-term liabilities 102,018 118,132
---------- ----------
Total liabilities 1,662,817 1,333,802
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - shares
authorized, 100,000,000 at September 27,
1998 and December 28, 1997; shares
outstanding, 38,589,142 at September 27,
1998 and 38,353,853 at December 28, 1997 386 384
Additional paid-in capital 715,060 711,292
Accumulated deficit (66,923) (111,907)
Treasury stock, at cost: 185,100 shares (5,609) -
Unamortized restricted stock compensation (2,525) -
---------- ----------
Total stockholders' equity 640,389 599,769
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,303,206 $1,933,571
========== ==========
</TABLE>
Note: Derived from audited financial statements.
See notes to condensed consolidated financial statements.
-3-
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<CAPTION>
WORLD COLOR PRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE AND NINE MONTHS ENDED SEPTEMBER 27, 1998 AND SEPTEMBER 28, 1997
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
THREE MONTHS NINE MONTHS
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Net sales $ 635,980 $ 557,268 $1,732,890 $1,441,266
Cost of sales 508,943 446,567 1,424,069 1,179,198
--------- ---------- ---------- ----------
Gross profit 127,037 110,701 308,821 262,068
Selling, general and
administrative expenses 54,609 50,435 161,202 138,287
--------- ---------- ---------- ----------
Operating income 72,428 60,266 147,619 123,781
Interest expense and
securitization fees 22,877 20,831 65,368 61,099
--------- ---------- ---------- ----------
Income before income taxes 49,551 39,435 82,251 62,682
Income tax provision 20,564 16,562 34,134 26,326
--------- ---------- ---------- ----------
Net income $ 28,987 $ 22,873 $ 48,117 $ 36,356
========= ========== ========== ==========
Net income per common share
- basic $ 0.76 $ 0.68 $ 1.25 $ 1.08
Net income per common share
- diluted $ 0.71 $ 0.66 $ 1.21 $ 1.05
</TABLE>
See notes to condensed consolidated financial statements.
-4-
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<TABLE>
<CAPTION>
WORLD COLOR PRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 27, 1998 AND SEPTEMBER 28, 1997
(IN THOUSANDS)
- --------------------------------------------------------------------------------
NINE MONTHS
1998 1997
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 48,117 $ 36,356
Adjustments to reconcile net income to net cash
flows provided by operating activities:
Depreciation and amortization 104,848 100,498
Deferred income tax provision 11,762 9,402
Changes in operating assets and liabilities:
Proceeds from sale of accounts receivable - 170,000
Other changes in accounts receivable - net (606) (21,787)
Inventories (112,078) (60,237)
Accounts payable and accrued expenses (3,009) (32,930)
Other assets and liabilities - net (68,709) (49,545)
---------- ----------
Net cash (used in) provided by
operating activities (19,675) 151,757
---------- ----------
INVESTING ACTIVITIES:
Additions to property, plant and equipment - net (88,055) (72,247)
Acquisitions of businesses, net of cash acquired (190,095) (172,539)
---------- ----------
Net cash used in investing activities (278,150) (244,786)
---------- ----------
FINANCING ACTIVITIES:
Net borrowings on debt 291,449 83,966
Proceeds from issuance of common stock 1,989 83
Repurchases of common stock (9,668) -
---------- ----------
Net cash provided by financing activities 283,770 84,049
---------- ----------
DECREASE IN CASH AND CASH EQUIVALENTS (14,055) (8,980)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 37,676 33,182
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 23,621 $ 24,202
========== ==========
</TABLE>
See notes to condensed consolidated financial statements.
-5-
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WORLD COLOR PRESS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
1. BASIS OF PRESENTATION
The accompanying condensed consolidated interim financial statements have
been prepared by World Color Press, Inc. (along with its subsidiaries, the
"Company") pursuant to the rules and regulations of the Securities and
Exchange Commission and reflect normal and recurring adjustments, which are,
in the opinion of the Company, considered necessary for a fair presentation.
As permitted by these regulations, these statements do not include all
information required by generally accepted accounting principles to be
included in an annual set of financial statements, however, the Company
believes that the disclosures made are adequate to make the information
presented not misleading. These condensed consolidated financial statements
should be read in conjunction with the consolidated financial statements and
the notes thereto included in the Company's latest Annual Report on Form 10-
K.
During the nine month period ended September 27, 1998, the Company acquired
certain businesses whose contributions were not significant to the Company's
results of operations for the periods presented, nor are they expected to
have a material effect on the Company's results on a continuing basis.
2. INVENTORIES
Inventories are summarized as follows:
<TABLE>
<CAPTION>
SEPTEMBER 27, DECEMBER 28,
1998 1997
<S> <C> <C>
Work-in-process $ 187,298 $ 111,326
Raw materials 142,180 93,563
---------- ----------
Total $ 329,478 $ 204,889
========== ==========
</TABLE>
3. NET INCOME PER COMMON SHARE
The following represents the weighted average common and common equivalent
shares utilized to calculate net income per common share - basic and
diluted:
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Weighted average common
shares outstanding 38,345,545 33,756,531 38,365,261 33,748,531
Common equivalent shares:
Stock options 1,001,455 988,773 1,037,245 847,870
Convertible debt 3,660,477 - 3,660,477 -
---------- ---------- ---------- ----------
Weighted average common and
common equivalent shares
outstanding 43,007,477 34,745,304 43,062,983 34,596,401
========== ========== ========== ==========
</TABLE>
-6-
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WORLD COLOR PRESS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
Interest charges on convertible debt, net of tax, of $1,391 and $4,172,
respectively, have been added back to net income for the calculation of net
income per common share - diluted for the three and nine month periods ended
September 27, 1998.
Options to purchase 25,000 shares of common stock were not included in the
computations of net income per common share - diluted for the three and nine
month periods ended September 27, 1998 because the exercise price of the
options was greater than the average market price of the common shares.
4. SALE - LEASEBACK OF EQUIPMENT
In July 1998, the Company entered into an agreement for the sale and
leaseback of certain printing equipment for which it received approximately
$60,700 of proceeds. The proceeds have been reflected in additions to
property, plant and equipment - net in the condensed consolidated statements
of cash flows for the nine months ended September 27, 1998. The lease,
which expires in July 2010, has been classified as an operating lease.
In October 1998, the Company received proceeds of approximately $27,800 for
the sale and leaseback of additional equipment.
5. TREASURY STOCK
In August 1998, the Board of Directors authorized the repurchase of up to
1,800,000 shares of the Company's common stock. The repurchase of shares
commenced in August 1998 and may occur over the next three years in the open
market at prevailing market prices or in negotiated transactions, depending
on market conditions. The shares will be repurchased to satisfy commitments
under certain employee benefit plans. The Company reissues treasury shares
using the weighted average cost method. The excess of repurchase cost over
reissuance price is applied to the Company's accumulated deficit.
-7-
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WORLD COLOR PRESS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
GENERAL
In the first four months of 1998, the Company acquired four businesses serving
customers in the commercial, direct mail and book markets for an aggregate
purchase price of approximately $200,000. These companies, which have been
included in results of operations since the respective acquisition dates, have
not had a material effect on the Company's results of operations, nor are they
expected to on a continuing basis. These acquisitions have been accounted for
as purchases and will hereinafter be referred to as the "1998 Acquisitions."
In January 1997, the Company purchased Rand McNally Book Services Group ("Book
Services"), an operating unit of Rand McNally, for approximately $155,000. Book
Services is the third largest producer of hardcover books in the United States
and provides manufacturing and other value-added services to book club, trade,
professional, educational, reference and mail-order publishers. In addition,
the Company acquired another business in the third quarter of 1997 (the "1997
Acquisition") whose contribution was not significant to the Company's results of
operations for the periods presented, nor is it expected to have a material
effect on the Company's results on a continuing basis.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 27, 1998 COMPARED TO THREE MONTHS ENDED SEPTEMBER
28, 1997
Net sales increased $78,712 or 14.1% to $635,980 in 1998 from $557,268 in 1997.
The increase was due to the inclusion of sales from the 1998 Acquisitions and
continued strong performance from organic sales growth.
Gross profit increased $16,336 or 14.8% to $127,037 in 1998 from $110,701 in
1997. The gross profit margin increased to 20.0% from 19.9% in 1997 due to
certain cost reduction initiatives and other synergies resulting from the
combination of acquisitions and increased plant utilization.
Selling, general and administrative expenses increased $4,174 or 8.3% to $54,609
in 1998 from $50,435 in 1997. The increase was primarily attributable to the
1998 Acquisitions, including the related additional amortization expense for
goodwill, partially offset by benefits derived from cost saving initiatives.
Interest expense and securitization fees increased $2,046 or 9.8% to $22,877 in
1998 from $20,831 in 1997. The increase was attributable to higher average
borrowings incurred to fund acquisitions and capital expenditures, offset by a
lower average cost of funds.
The effective tax rate, primarily composed of the combined federal and state
statutory rates, was 41.5% for the third quarter of 1998 compared to 42.0% for
the comparable period in 1997.
-8-
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WORLD COLOR PRESS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 27, 1998 COMPARED TO NINE MONTHS ENDED SEPTEMBER 28,
1997
Net sales increased $291,624 or 20.2% to $1,732,890 in 1998 from $1,441,266 in
1997. The increase was due to the inclusion of sales from the 1997 and 1998
Acquisitions, higher paper prices and volume and improved base business
performance.
Gross profit increased $46,753 or 17.8% to $308,821 in 1998 from $262,068 in
1997. The gross profit margin decreased to 17.8% from 18.2% in 1997 due to
increased sales resulting from higher paper prices and volume, slightly offset
by the benefits of certain cost reduction initiatives and other synergies
resulting from the combination of acquisitions and increased plant utilization.
Selling, general and administrative expenses increased $22,915 or 16.6% to
$161,202 in 1998 from $138,287 in 1997. The increase was attributable to the
1997 and 1998 Acquisitions, including the related additional amortization
expense for goodwill, offset by benefits derived from cost saving initiatives.
Interest expense and securitization fees increased $4,269 or 7.0% to $65,368 in
1998 from $61,099 in 1997. The increase was attributable to higher average
borrowings incurred to fund acquisitions, capital expenditures and working
capital requirements, offset by a lower average cost of funds.
The effective tax rate, primarily composed of the combined federal and state
statutory rates, was 41.5% for the first nine months of 1998 compared to 42.0%
for the comparable period in 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company has historically met its liquidity and capital investment needs with
internally generated funds and external borrowings. Net income plus depreciation
and amortization and deferred income taxes was $164,727 and $146,256 for the
nine months ended September 27, 1998 and September 28, 1997, respectively. The
Company's outstanding indebtedness less cash increased $310,784 from December
28, 1997 to September 27, 1998 due primarily to borrowings incurred to fund
acquisitions and capital expenditures. Working capital was $248,200 at
September 27, 1998 and $180,411 at September 28, 1997. The increase of $67,789
or 37.6% was primarily due to the 1998 Acquisitions and an increase in inventory
levels. In accordance with the Company's ongoing program to maintain modern,
efficient plants and increase productivity, the Company anticipates that 1998
net capital expenditures will be approximately 4 - 5% of net sales.
The Company's capital expenditures and acquisitions have been funded in part by
borrowings under the Company's Second Amended and Restated Credit Agreement
dated as of June 6, 1996 (as amended, the "Credit Agreement"), which provides
for aggregate total commitments of $920,000, comprised of $95,000 in term loan
commitments, $250,000 of revolving loan commitments and $575,000 in acquisition
term loan commitments. The Credit Agreement provides for varying semi-annual
reductions, and borrowings bear interest at rates that fluctuate with the prime
rate and the Eurodollar rate. As of September 27, 1998, the Company had
unutilized commitments of $146,119 under its Credit Agreement.
-9-
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WORLD COLOR PRESS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
In July 1998, the Company entered into an agreement for the sale and leaseback
of certain printing equipment for which it received approximately $60,700 of
proceeds. The lease, which expires in July 2010, has been classified as an
operating lease. In October 1998, the Company received proceeds of approximately
$27,800 for the sale and leaseback of additional equipment.
In August 1998, the Board of Directors authorized the repurchase of up to
1,800,000 shares of the Company's common stock. The repurchase of shares
commenced in August 1998 and may occur over the next three years in the open
market at prevailing market prices or in negotiated transactions, depending on
market conditions. The shares will be repurchased to satisfy commitments under
certain employee benefit plans. As of September 27, 1998, the Company had
repurchased 313,119 shares at a weighted average cost of $30.88 and reissued
128,019 shares.
Concentrations of credit risk with respect to accounts receivable are limited
due to the Company's diverse operations and large customer base. As of
September 27, 1998, the Company had no significant concentrations of credit
risk.
In order to reduce the exposure on its variable rate obligations, the Company
has entered into interest rate cap and swap agreements. The Company's interest
rate cap agreements have a notional value of $400,000 and expire in the third
quarter of 1999. The Company's interest rate swap agreements have a notional
value of $75,000 and exchange floating rate for fixed interest payments
periodically over five years. The swap agreement is cancelable by the
counterparty in September and December 1999. The impact of these agreements on
the consolidated financial statements was not material for the periods
presented. While the Company is exposed to credit loss in the event of
nonperformance by the counterparties of these agreements, management believes
that the possibility of incurring such a loss is remote due to the
creditworthiness of the counterparties. The Company does not hold or issue any
derivative financial instruments for trading purposes.
The Company believes that its liquidity, capital resources and cash flows are
sufficient to fund planned capital expenditures, working capital requirements
and interest and principal payments for the foreseeable future.
In April 1998, the American Institute of Certified Public Accountants issued
Statement of Position ("SOP") 98-5, "Reporting on the Costs of Start-Up
Activities," which requires costs of start-up activities and organization costs
to be expensed as incurred. The Company expects to adopt this SOP in the first
quarter of fiscal year 1999. The Company is currently evaluating the impact SOP
98-5 may have on its operating results and financial condition.
YEAR 2000
The Year 2000 issue, which affects virtually all corporations, arises due to the
inability of certain computer software and hardware and embedded chips found in
manufacturing and other equipment to properly recognize dates beyond 1999. This
inability may cause errors in information and/or system failures. The Company
has a comprehensive effort underway to address the Year 2000 issue. As
discussed below, the Company is, among other things, evaluating its present
information technology and non-information technology systems (i.e. equipment
with embedded chips), monitoring and addressing its vendor and customer Year
2000 issues and engaging in remediative measures as necessary.
-10-
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WORLD COLOR PRESS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
In connection with its readiness program, the Company has endeavored to
inventory and assess the state of compliance of all information systems and non-
information systems. The Company commenced remediation of its information
systems in 1994. As a result, the majority of the Company's information
systems, including its financial, human resources and payroll functions, are
Year 2000 compliant. The Company estimates that all of its information systems
will be compliant by mid-1999. With respect to its non-information systems, the
Company has substantially completed an inventory of facilities (HVAC, safety and
security) and manufacturing (press, bindery and finishing) systems. The Company
is working with the outside suppliers of such systems as well as with an outside
consultant to identify and remediate non-compliant components. The Company has
targeted mid-1999 for substantial completion of its readiness efforts with
respect to its non-information systems, including selective testing procedures.
As part of its readiness program, the Company is communicating with its major
customers and vendors to assess such parties' respective efforts to identify and
remediate their own Year 2000 issues in a timely and comprehensive manner. The
Company is also requesting its vendors to certify to the compliancy of their
systems and equipment currently owned or leased by the Company. The Company
intends to follow up with non-compliant vendors through 1999 in order to
continually assess the extent of such third parties' Year 2000 exposure and to
adjust the Company's contingency plans accordingly.
The costs incurred to date solely related to the Company's Year 2000 efforts
have not been material to the Company, and based upon current estimates, the
Company does not believe that the total cost of its Year 2000 readiness programs
will have a material adverse effect upon its operating results or financial
condition. While the Company can make no assurances as to the impact of the
Year 2000 issue on its operations, it currently anticipates that any adverse
consequences of the Year 2000 issue on the Company's systems will not create a
significant disruption to the Company's operations. However, the failure or
delay by the Company, its customers and/or vendors to identify and remediate
each of their respective instances of Year 2000 non-compliance could result in a
material adverse effect on the Company's results of operations, liquidity or
financial condition.
The Company's readiness program includes the development of contingency plans
addressing potential business interruptions arising from Year 2000-related
disruptions. Such plans include assessing the movement of work among its
facilities. In 1999, the Company will hone its contingency plans, taking into
account, among other things, the state of readiness of its vendors, including,
without limitation, utility suppliers, as well as the Company's major customers.
The statements set forth herein concerning Year 2000 issues which are not
historical facts are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. In particular, the costs associated with the
Company's Year 2000 programs, the time-frame in which the Company plans to
complete Year 2000 modifications and the potential impact of the Year 2000
issues on the Company are based upon management's best estimates. These
estimates were derived from internal assessments and numerous assumptions of
future events. These estimates may be adversely affected by, among other things,
the continued availability of personnel and system resources, the accurate
identification of all relevant computer codes, the success of remediation
efforts, the effectiveness of the Company's contingency plans and by the failure
of significant third parties to properly address Year 2000 issues. Therefore,
there can be no guarantee that any estimates or other forward-looking statements
will be achieved and actual results could differ significantly from those
contemplated.
-11-
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WORLD COLOR PRESS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
SEASONALITY
Results of operations for this interim period are not necessarily indicative of
results for the full year. The Company's operations are seasonal. Historically,
approximately two-thirds of its operating income has been generated in the
second half of the fiscal year, primarily due to the higher number of magazine
pages, new product launches and back-to-school and holiday catalog promotions.
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the statements in this
document are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which may cause
the Company's actual results in future periods to differ materially from
forecasted results. Those risks include, among others, changes in customers'
demand for the Company's products, changes in raw material and equipment costs
and availability, seasonal changes in customer orders, pricing actions by the
Company's competitors, changes in estimates of the readiness of the Company
or its vendors and customers with regard to Year 2000 issues and the
significance of costs thereof, and general changes in economic condition.
-12-
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WORLD COLOR PRESS, INC.
PART II. OTHER INFORMATION
- --------------------------------------------------------------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibits required in accordance with Item 601 of Regulation S-K are
incorporated by reference herein as filed with registrant's Annual Report
on Form 10-K for the fiscal year ended December 28, 1997, dated
March 27, 1998.
In addition, the Company has filed herewith the following exhibits:
27.0 Financial Data Schedule for the period ended September 27, 1998 (filed
in electronic form only).
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarterly period ended
September 27, 1998.
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 thereunto duly authorized.
WORLD COLOR PRESS, INC.
Date: November 10, 1998 By:/s/ MICHAEL D. HELFAND
-----------------------
Michael D. Helfand
Executive Vice President, Chief
Financial Officer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 27, 1998 AND THE CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 27,
1998 OF WORLD COLOR PRESS, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-27-1998
<PERIOD-END> SEP-27-1998
<CASH> 23,621
<SECURITIES> 0
<RECEIVABLES> 213,785
<ALLOWANCES> 0
<INVENTORY> 329,478
<CURRENT-ASSETS> 629,707
<PP&E> 1,611,854
<DEPRECIATION> 698,976
<TOTAL-ASSETS> 2,303,206
<CURRENT-LIABILITIES> 381,507
<BONDS> 1,077,961
0
0
<COMMON> 386
<OTHER-SE> 640,003
<TOTAL-LIABILITY-AND-EQUITY> 2,303,206
<SALES> 1,732,890
<TOTAL-REVENUES> 1,732,890
<CGS> 1,424,069
<TOTAL-COSTS> 1,424,069
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 65,368
<INCOME-PRETAX> 82,251
<INCOME-TAX> 34,134
<INCOME-CONTINUING> 48,117
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 48,117
<EPS-PRIMARY> 1.25
<EPS-DILUTED> 1.21
</TABLE>
