Vertis reports $327M loss, restructuring plan

Share this content:

On Monday, March 31, Vertis Communications Inc. reported a $327 million loss for 2007 and hired financial advisory firm Lazard Ltd. to help implement a financial restructuring plan.

The move comes after Vertis evaluated its $246.5 million in goodwill during the fourth quarter of 2007 and “determined that, because of the company's debt load, the value of the $246.5 million should be written off to assure technical compliance with the accounting rules,” according to Mike DuBose, chairman/CEO of Vertis.

As a result, he continued, “The net loss for the quarter grew to $246.5 million, from the $10.4 million loss that would have been incurred without the loss of the goodwill.” He added that during the same time last year, Vertis had a net income of $18.5 million.

Regardless, Vertis is profitable as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which exceeded guidance and expectations for 2007 because of the operational turnaround beginning to take effect. DuBose said that “This target was achieved even though our entire industry was impacted by the combination of increased cost for paper, fuel prices and postal rate hikes.”

To that end, DuBose added, “All print companies need to keep pace with market demands and embrace new technologies. Vertis has invested in interactive solutions for our clients. Specifically, Vertis' Digital Solutions Group (DSG) can provide the in-house capabilities for creation of personalized URLs (PURLs), e-mail marketing and online insert conversion with Vertis Inserts2online.”

Vertis also offers other interactive media such as mobile marketing, Vertis Web Traffic Driver (online interactive games), widgets and search engine optimization (SEO).

While many in the advertising sector have noted Vertis' recent financial woes and the subsequent hiring of Lazard, the company first began restructuring efforts last year.

“In 2007, we implemented a multi-faceted operational turnaround strategy, which included significant investments in our business and much needed capital improvements. We also added critical customer service and sales personnel, accomplished significant management process improvements and successfully initiated a culture of lean and continuous improvement,” said DuBose, adding that the response from customers has been very positive.

Having successfully completed stage one, Vertis' strategy, in partnership with Lazard, is to build the appropriate capital structure to operate and grow its business.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above