Large Format Review - Business News

Electronics For Imaging, Inc., a world leader in customer-focused digital printing innovation, announced today that its Board of Directors has authorised a new share repurchase program of up to $30 million of its common stock. No amounts remain available under the prior authorisations. The share repurchase program will be funded from existing cash on hand and cash generated from operations. No date was established for the completion of the share repurchase program.

Repurchases will be made in accordance with applicable securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.  The company has no obligation to repurchase shares under the authorisation, and the timing, actual number and value of the shares which are repurchased will be at the discretion of management. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice.

For the past twenty years ScreenPro has been providing services to the print industry, pre-dominantly across the Midlands. It has been a key supplier of consumable products such as printing inks and chemicals as well as offering a specialist screen and stencil service.

The company developed its range of products over the years progressing from a stockist of Gibbon Inks & Coatings to becoming a fully authorised Distributor and strategic partner of Sun Chemical, offering the complete range from screen to commercial sheet-fed products.

The past seven years has seen the company grow considerably, and in addition to supplying traditional print processes, ScreenPro has now fully embraced digital technology. This is demonstrated with Triangle Inks, one of the worlds leading ink manufacturers, appointing ScreenPro as their dealer for Central England. ScreenPro can now offer and support the whole range of Triangle’s digital inks across the vast majority of wide and superwide inkjet printers. This is continuing to be a large growth area for ScreenPro, who now have many customers buying digital media and inks as well as hardware. 

This increase in business has led ScreenPro to move to newly refurbished business premises in Birmingham. This larger facility houses an improved screen stretching area with increased capability, super large stencilling facilities, fully equipped colour matching labs and a colour blending department. All this, coupled with ample warehousing facilities allows ScreenPro to carry healthy stocks for immediate delivery to its customers.

ScreenPro customers range from large graphic houses right through to small print shops. They also have a large industrial market to serve and the ability to react to customer’s needs and offer them innovative solutions, rather than standard off the shelf products has really given them a competitive edge.

The team at ScreenPro is very hands on and their ethos has always held customer service at its core. The management team, screen & ink technicians, engineers and sales staff all come from a print related background and the company has an impressive combined experience of nearly 150 years!

Steve Hughes, Joint Managing Director of ScreenPro has worked in the printing industry for 20 years and comments, “Having the facilities to allow customers to come and see the products they want to buy in action combined with having the space to hold sufficient stock has proved very beneficial. The large colour matching & blending facility also provides customers with peace of mind that the ink will arrive on time and to the specification requested.

Steve continues “ScreenPro has built its business through a combination of investing in the latest technologies and more importantly its people. There is no point having great products if we can’t deliver excellent customer service. We are committed to providing a friendly and knowledgeable service to all our customers large or small.”

Avery Dennison Corporation today announced preliminary, unaudited fourth quarter and full-year 2010 results. All non-GAAP financial measures are reconciled to GAAP in the attached tables.

Fourth Quarter Financial Summary - Preliminary

Free Cash Flow (a non-GAAP financial measure) as used herein is defined as net cash from operating activities (as reported), less net purchases of property, plant, equipment, software, and other deferred charges, plus proceeds from sale (purchases) of investments, net (see accompanying schedule A-3 for reconciliation to GAAP financial measures).
Full Year Financial Summary - Preliminary
(in millions, except per share amounts)

Free Cash Flow (a non-GAAP financial measure) as used herein is defined as net cash from operating activities (as reported), less net purchases of property, plant, equipment, software, and other deferred charges, plus proceeds from sale (purchases) of investments, net (see accompanying schedule A-3 for reconciliation to GAAP financial measures).

"We delivered solid results in 2010, led by sales growth and expanded margins in Pressure-sensitive Materials and Retail Information Services," said Dean A. Scarborough, Avery Dennison chairman, president and CEO. "Our employees did a great job serving our customers, and I want to thank them for their outstanding performance.

"In addition, we generated strong free cash flow and exceeded our debt reduction goal for the year," Scarborough said. "Having strengthened our balance sheet, we have begun to return more cash to shareholders, through our fourth-quarter share repurchases and the dividend increase and repurchase authorization we announced today.

"For 2011, we expect to continue our solid sales growth and margin expansion," Scarborough said. "We also will continue to invest in marketing and R&D to further advance our market leadership and generate long-term growth."

For more details on the Company's results, see the Company's supplemental presentation materials, "Fourth Quarter and Full-Year 2010 Financial Review and Analysis," posted at the Company's Web site at www.investors.averydennison.com, and furnished under Form 8-K with the SEC.

Fourth Quarter 2010 Results by Segment

All references to sales reflect comparisons on an organic basis, which exclude the impact of foreign currency translation and, where applicable, an extra week in the fiscal year 2009. All references to operating margin exclude the impact of restructuring, asset impairment charges, and other items.

Pressure-sensitive Materials (PSM)

• Roll Materials sales grew at a low-double digit rate, reflecting strength in all regions. Sales grew at a mid-single digit rate in the Graphics and Reflective Products division.
• Operating margin increased as the benefits of increased volume, pricing actions, and productivity initiatives more than offset raw material inflation. Operating margin declined sequentially as raw material inflation continued to outpace price increases.

Retail Information Services (RIS)

• Sales growth reflected increased demand from retailers and brands in the U.S. and Europe.
• Operating margin increased due to increased volume and restructuring and productivity initiatives, partially offset by higher employee costs. Operating margin increased sequentially due to higher volume, reflecting the normal seasonal trend.

Office and Consumer Products (OCP)

• The decline in sales reflected weak end-market demand and increased competition in the label category.
• Operating margin declined due to increased investment in demand creation, consumer promotions, and innovation, raw material inflation, and lower volume.

Other specialty converting businesses

• Sales growth primarily reflected increased demand for specialty tapes.
• Operating margin improved as the benefits of increased volume and productivity actions more than offset raw material inflation.

Other

The Board of Directors today announced a 25 percent increase in the first quarter 2011 dividend to $0.25 per share, and an authorisation to repurchase an additional five million shares.

During the fourth quarter of 2010, the Company repurchased approximately three million shares for a total cost of $109 million (offsetting dilution), and contributed $78 million to pension obligations (more than $50 million above requirements).

The fourth quarter effective GAAP tax rate of negative 60 percent included $0.42 per share from a discrete tax planning event. The adjusted tax rate for the fourth quarter was negative 35 percent.

Outlook

In the Company's supplemental presentation materials, "Fourth Quarter and Full-Year 2010 Financial Review and Analysis," the Company provides a list of factors that it believes will contribute to its 2011 financial results. Based on the factors listed and other assumptions, the Company expects adjusted (non-GAAP) earnings per share of $3.00 to $3.30. The Company expects free cash flow in 2011 of $325 to $350 million.

First quarter 2011 earnings as a percentage of full-year 2011 earnings are expected to be at the low end of the historical range of 15 to 20 percent, reflecting normal seasonality as well as the timing of inflation and pricing actions.

PaperlinX Canada Limited has reached an agreement with Océ-Canada to become a Full Service Dealer for Océ Digital Graphics Systems products effective immediately, further strengthening the company's commitment to the growing Sign & Display Graphics Industry across the country.

"PaperlinX Canada has built a strong foundation of business diversification as a key component to our strategic plan," said Gord Saray, director of business development for Eastern Canada. "The sign & display graphics segment is a critical pillar in this foundation. Our team remains focused on providing value to our customers through viable equipment, media and consumable solutions. PaperlinX Canada also strives to attract suppliers who are industry innovators and leaders. We are proud to represent Océ Canada; a company which will be a valuable resource supporting our customers and employees across Canada."

PaperlinX Canada will market and sell Océ Digital Graphics products through Coast Paper and SPICERS. The important element of servicing of Océ Digital Graphics equipment will be managed by TSG, Technical Services Group of PaperlinX Canada.

 

Inca Digital has announced sales of the Inca Onset S20, its high-volume wide format inkjet flatbed printer, have exceeded expectations in North America. "Sales in North America reflect the positive results we are experiencing throughout the world. Globally, Inca Onset S20 business is going very well," said Dr. Linda Bell, CEO, Inca Digital.

Sold exclusively by Fujifilm, the Inca Onset S20 delivers high levels of productivity and versatility for production of superior quality retail graphics. Recent speed upgrades have boosted the Onset S20's throughput to 3330 sqft (62 full beds per hour), an increase of 24 percent over the original model. The Onset S20 offers a choice of white or light cyan and light magenta in addition to the standard CMYK configuration, and a variety of finishing effects, including matte, satin, and high gloss, on materials up to 123 inches x 63 inches, and two inches thick. Customers throughout North America have been very pleased with its performance.

Quantum Graphics Inc. in Shelby Township, MI, a specialty graphics shop that produces retail graphics for indoor and outdoor use, was one of the first facilities to install the Onset S20 in the U.S. "We needed the productivity," said Gerard Buczek, COO and Vice-President, "We had an Inca Columbia Turbo, and an Inca Eagle H, which are both very reliable machines. We chose the Onset S20 for the same reason we chose the others—we were primarily screen printers and are used to a flatbed register system. We run mostly indoor graphics—on styrene, 24-point board, lightweight board, and vinyl decals. We do more line colours than four-colour process. The Onset S20 has already brought in new business. With the light magenta/light cyan we can print a wider colour gamut to match Pantone and brand colours. We play around with the RIP for colour enhancement and can print a variety of gloss levels, which gets new clients in the door who are used to a litho or screen-printed gloss. We can run larger quantities--in the 500-600 range--without thinking twice. It's a natural fit for us."

Matrix Imaging, a large-format digital printer located in downtown Indianapolis, was familiar with Inca, owning an Inca Spyder 320 with CMYK before it installed its Inca Onset S20—a CMYK printer with white— in March. "We liked the Inca Onset S20's full bed array printing, which eliminates banding and adds speed," said Brian Freije, president of Matrix Imaging. "We produce POP displays in medium runs from 1,000 or less -- and unique specialty products, such as acrylics with white, and lenticular displays. The applications on the Inca Onset S20 are really endless; we have printed on styrene, gator foam, plywood and even ceiling tiles. We use the gloss effect often -- particularly spot gloss, which gives the look of varnish. The quality is great -- much better than screen printing and it allows us to compete with offset. It's an excellent machine, and delivers all-around savings."

DuraColor, Racine, WI, a high-quality graphics producer of OEM, retail, and fleet materials in the midwest, purchased an Inca Onset S20 CMYK plus white for faster throughput of wide-format products. DuraColor also operates a six-colour Inca Spyder 320 and Inca Eagle 44. "We produce high-end POP materials, and recent demand required us to produce more than the volume an hour that came off the Spyder," said Ralph Rhein, VP Operations. "We're already running two shifts nonstop with the Inca Onset S20, producing high-quality POP, foam, styrene, PVC chloroplast and vinyls. We create interior signs, mall graphics, aisle graphics and monthly promotions. Graphics include photos, four-colour process work, double sided materials, and lots of odd things--basically anything that ink sticks to and gets through the machine. If we didn't have the Inca Onset S20, we would have lost a good portion of a product rollout for a major company and split the work with other printers. It has been proven to be an excellent addition to all our company's G7 calibrated digital presses and it has delivered a large amount of revenue for us."

Miller Zell's Graphic Center in Atlanta bought an Inca Onset S20 Gloss CMYK plus white, looking to capitalise on the digital wide format machine's reduced make-ready and set-up time and costs. The Graphic Center, a leading-edge facility for wide and super-wide format printing of POP and other in-store signage, also has an Inca Spyder 320 (CMYK/ lc/lm/white) and rigid and roll-to-roll printers. "We have had a good track record with the Spyder 320 and wanted something that was capable of more press sheets per hour," says Ford Bowers, General Manager. "We are consistently getting up to 50 boards or more an hour with the Onset S20 with their automation, and with their new 12 pass mode are exceeding 60 boards per hour. We are primarily a screen printer, but the Inca Onset S20's capabilities put digital in the ballpark for us. With screen printing, the set-up and make-readies are expensive and the average number of sheets per job has decreased. A six-colour screen press requires crews of three-to-four people. Running the Onset S20 requires just one person. The savings in make-ready, labour and waste are phenomenal. We are running interior store graphics, printing anything from white text on coloured substrates to matching Pantones. Now that we have the Inca S20, we anticipate a tremendous competitive advantage and boost to bottom-line profit."

"The ability of the Inca Onset S20 to print a multitude of projects at a very competitive speed has made it an extremely attractive printer for sign and display shops," said Heather Kendle, Inca Digital Director of Marketing. "The Onset S20 has been an extremely competitive alternative to screen and offset printing. In fact, some of our customers have already invested in a second Onset."

 

Graphtec America has announced its expansion into a new larger facility in Irvine, CA, strategically located near the Orange County/John Wayne airport. Even in the current challenging business environment, Graphtec America continues to grow and needed a larger facility to handle those growth demands.

The new 44,000 square foot facility provides a larger warehouse and additional shipping docks, enlarged customer service area, and enlarged training area. The new facility will also bring together the existing executive staff and marketing teams with the customer service, technical support, and logistics teams in one building. This consolidation into one larger facility will enable better customer service, streamlined technical support, and expanded shipping capabilities.

As of February 21, 2011 the Graphtec America corporate headquarters will be located at17462 Armstrong Avenue, Irvine CA 92614. Graphtec America telephone and fax numbers will remain the same.