SOURCE: Bowne & Co., Inc.

November 10, 2008 16:35 ET

Bowne & Co. Reports Third Quarter 2008 Results

Announces 10% Reduction in Workforce and Annualized Cost Savings Totaling Approximately $21 to $23 Million

NEW YORK, NY--(Marketwire - November 10, 2008) - Bowne & Co., Inc. (NYSE: BNE), a global leader in shareholder and marketing communications services, today announced its third quarter and year-to-date operating results in a difficult capital markets environment as well as a 10% reduction in its workforce.

Revenue was $164.0 million in the third quarter of 2008 compared to $181.7 million in the third quarter of 2007, a decline of $17.7 million, or 9.8%. In the third quarter of 2008, the Company generated gross profit of $42.1 million, with a 25.7% gross margin contribution, compared to $63.1 million and a 34.7% gross margin contribution in the prior year period. Segment loss was ($7.3) million in the third quarter of 2008 compared to segment profit of $9.5 million in the third quarter of 2007. Loss from continuing operations was ($17.2) million, or ($0.62) per diluted share, compared to income of $0.9 million, or $0.03 per diluted share, in the third quarter of 2007.

For the nine months ended September 30, 2008, revenue was $609.7 million, down 7.0% from $655.9 million reported for the first nine months of 2007. In the first nine months of 2008, the Company generated gross profit of $199.6 million, with a 32.7% gross margin contribution, compared to $245.5 million and a 37.4% gross margin contribution in the comparable prior year period. Segment profit was $35.4 million in the first nine months of 2008 compared to $71.1 million in the comparable 2007 period. Segment profit margin in the first nine months of 2008 was 5.8%, compared to 10.8% in the same period in 2007. Loss from continuing operations was ($13.4) million, or ($0.49) per diluted share for the nine months ended September 30, 2008, compared to income of $27.0 million, or $0.87 per diluted share, in the comparable 2007 period.

Pro forma loss from continuing operations totaled ($11.9) million in the third quarter of 2008 and pro forma income from continuing operations of $4.4 million for the 2008 year-to-date period, compared to income of $2.2 million and $28.1 million, respectively, in the comparable prior year periods. This resulted in pro forma diluted loss per share of ($0.43) in the third quarter of 2008 and pro forma diluted earnings per share of $0.16 for the 2008 year-to-date period, compared to diluted earnings per share of $0.08 and $0.90, respectively, in the comparable 2007 periods. (See page 10, Pro Forma Supplemental Income Information, for a reconciliation between the non-GAAP financial measures and the Company's Condensed Consolidated Statements of Operations.)

"Activity in the capital markets is at its lowest level since the mid 1990s. We've taken steps to further streamline our operating environment, including a 10% reduction in workforce effective in November. Based upon actions implemented in 2008, we've now reduced our headcount by over 1,000 positions, or 24%, with an expected annualized cost savings of approximately $70 million," said Dave Shea, Chairman and Chief Executive Officer. "We're pleased with the progress we've made on our recent acquisitions, which are meeting our expectations and progressing on schedule. Although the current environment is very challenging, we're confident that the changes we've implemented will position us as an even stronger, more flexible company in the future."

Additional comments on the operating results in the third quarter and first nine months of 2008, as well as adjusted annual guidance given the current market environment, are provided below.

Revenue:

Capital markets services revenue, formerly referred to as transactional revenue, was $42.4 million in the third quarter of 2008, which is $37.2 million, or 46.7%, lower than the comparable 2007 period. For the first nine months of 2008, capital markets services revenue was $158.7 million, which is $65.3 million, or 29.2%, lower than 2007. Capital markets services revenue for both periods of time was at its lowest level since the mid 1990s. This decrease is directly related to the decline in overall capital markets activity. Specifically, overall filing activity decreased 32% during the quarter and the first nine months of 2008, and IPO activity declined 71% for the quarter and 66% year-to-date. The decline in the Company's capital markets services revenue was partially offset by an increase in revenue from Bowne Virtual Dataroom™ (VDR). VDR revenue, which is now reported as part of capital markets services revenue, increased 54.4% for the quarter and 59.4% year-to-date, to $3.6 million and $10.3 million, respectively.

Shareholder reporting services revenue, which includes compliance reporting, investment management services and translations services revenue, was $72.4 million and $300.5 million for the third quarter of 2008 and year-to-date periods, a increase of 9.8% for the quarter and a decrease of 1.8% year-to-date compared to the comparable 2007 periods, respectively. For the third quarter of 2008 and year-to-date periods, compliance reporting revenue decreased approximately 4.9% and 8.3%, investment management services revenue increased 19.3% and 3.8%, and translations services revenue increased 29.3% and 24.3%, respectively. Compliance reporting revenue in 2007 benefited from new SEC regulations regarding executive compensation proxy disclosures, and revenue from special notice and proxy filings in 2007 that did not recur in 2008. The increase in revenue from investment management services is primarily the result of revenue gained through the acquisition of Gcom2 Solutions, Inc. ("GCom") in February 2008 and Capital Systems, Inc. ("Capital") in July 2008.

Marketing and business communications services revenue increased $15.3 million, or 57.2%, to $42.1 million during the third quarter of 2008, and increased $30.5 million, or 32.4%, to $124.6 million during the first nine months of 2008. The increase in revenue is due to revenue contributions from the acquisitions of the digital print division of Rapid Solutions Group ("RSG"), Alliance Data Mail Services ("Alliance"), and GCom.

Acquisition activity and integration of acquired businesses: The Company has made substantial progress in the integration of its recent acquisitions of Alliance, acquired in November 2007; GCom, acquired in February 2008; RSG, acquired in April 2008: and Capital, acquired in July 2008. Together, these acquisitions contributed approximately $26.3 million in revenue during the third quarter and approximately $55.5 million during the first nine months of 2008. Diversifying Bowne's revenue stream has been an ongoing strategic goal during the past several years and the revenue contributions from the acquisitions of RSG, Alliance and GCom will continue to support that objective. As planned, the Company expects to complete the integration of these acquired businesses by the end of 2008.

Segment Profit: The Company generated segment loss of ($7.3) million in the third quarter and segment profit of $35.4 million year to-date, compared to segment profit of $9.5 million and $71.1 million in the comparable prior year periods. The decline in capital markets services revenue is the primary driver of the reduction in segment profit in the third quarter and first nine months of 2008.

Restructuring activities: The Company continually reviews its business, manages its costs and aligns its resources with market demand, especially in light of reduced activity in the capital markets and the resulting reduction in capital markets revenue. As a result, the Company has been taking the opportunity over the last several years to reduce fixed costs, eliminate redundancies and better position the Company to respond to changing economic conditions.

During the fourth quarter of 2008, the Company initiated a reduction in force as it continues to rationalize its resources and in response to the continued downturn in capital markets activity. The Company reduced its headcount by approximately 330 positions, which included a broad range of functions and was enterprise-wide. The Company expects that these actions will result in annualized savings of approximately $21.0 to $23.0 million. The related restructuring charges resulting from these actions are expected to result in a fourth quarter pre-tax charge of approximately $4.0 to $6.0 million.

During 2008, including the recent reduction in workforce, the Company implemented initiatives designed to achieve approximately $70.0 million in annualized cost reductions. These initiatives were part of the Company's continued focus on improving its cost structure and realizing operating efficiencies, and in response to the downturn in overall capital markets activity. The cost reductions included the elimination of a total of approximately 1,000 positions, or 24% of the Company's total headcount.

Balance Sheet and Cash Flow: The Balance Sheet at September 30, 2008 includes $16.3 million in cash and marketable securities, which is $87.4 million lower than the prior year-end. This decline reflects a decrease in operating income, the utilization of cash to help fund the acquisitions of GCom, RSG, and Capital, the utilization of cash to fund restructuring and integration costs, and the funding of capital expenditures.

Average days sales outstanding was 70 days for the nine months ended September 30, 2008 and 69 days for the comparable period in 2007. Work-in-process inventory was $19.6 million at September 30, 2008 compared to $19.1 million at September 30, 2007. As of September 30, 2008 the Company had $39 million outstanding under its $150 million five-year senior, unsecured revolving credit facility that expires in May 2010, and $75.0 million outstanding under the Company's Convertible Subordinated Debentures ("the Notes").

October 1, 2008 marked the five-year anniversary of the Notes, and was also the first day on which the "put" and "call" option became exercisable. On this date, holders of approximately $66.7 million of the Notes exercised their right to have the Company repurchase their Notes. As a result, the Company repurchased approximately $66.7 million of the Notes in cash, at par, plus accrued interest, using its existing revolving credit facility. As of November 10, 2008, approximately $8.3 million of the Notes remain outstanding, and the Company has $108 million outstanding under the revolving credit facility.

Business Outlook: In August 2008, the Company had revised its business outlook for 2008. As a result of further declines in overall capital markets activity and the additional workforce reductions initiated in late October of 2008, the Company is further revising its business outlook for 2008 for the following:

--  to reflect the anticipated continued significant downturn in industry-
    wide capital markets activity.  The Company is currently estimating its
    revenue from capital markets services at approximately $195 to $205
    million.  This represents our lowest level of transactional revenue since
    the mid 1990s.
    
--  to reflect a slight reduction in non-transactional revenue.  The
    Company is currently estimating its revenue from non-transactional
    activities at $585 million to $600 million in 2008 as compared to our
    previous estimate of $605 million to $625 million.  The reduced estimate is
    primarily due to lower revenue growth which the Company believes is partly
    associated with the general downturn in the economy.
    
--  to reflect its recent acquisitions.  The acquisitions of Alliance and
    GCom were included in the original guidance provided in March 2008;
    however, the acquisitions of RSG and Capital were not contemplated as part
    of the original guidance.  The Company will complete the integration of
    these acquired businesses in the fourth quarter of 2008, and is beginning
    to realize the benefits resulting from the operating efficiencies and cost
    reduction synergies.  As previously disclosed, the annualized revenue from
    these four acquisitions is estimated at $110 to $120 million, and the
    segment profit on an annual basis is estimated at $25 to $30 million.  The
    Company expects that these four acquisitions will contribute approximately
    $70 to $75 million in revenue and $5 to $6 million in segment profit in
    2008 to Bowne's consolidated operating results.  We had previously
    estimated that these acquisitions would contribute approximately $80
    million to $85 million in revenue and $9 million to $11 million in segment
    profit in 2008 to Bowne's operating results.  The reduced 2008
    contributions are primarily due to lower overall capital markets activity
    and a slight delay in completing certain integration activities.
    
--  to reflect the estimated impact of additional reductions in workforce
    that was implemented during the fourth quarter of 2008.  As previously
    noted, the Company made an additional reduction in its workforce and
    eliminated approximately 330 positions as part of its ongoing efforts to
    streamline its operations and realize operating efficiencies, as well as in
    response to the continued downturn in overall capital markets activity.
    The annual cost savings as a result of these workforce reductions is
    expected to be approximately $21 to $23 million; the 2008 benefit to
    segment profit is estimated at approximately $1.0 million.  This cost
    reduction initiative will result in fourth quarter pre-tax restructuring
    charges of approximately $4.0 million to $6.0 million.
    

The Company notes that forward-looking statements of future performance made in this release are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including demand for and acceptance of the Company's services, new technological developments, competition and general economic or market conditions, particularly in the domestic and international capital markets.


(in millions, except per share          August 2008       November 2008
 amounts)                             Revised Outlook    Updated Outlook
                                      ---------------- -------------------
Revenue:                               $ 825 to $ 870    $ 780 to $ 805

   Transactional                       $ 220 to $ 245    $ 195 to $ 205

   Non-transactional                   $ 605 to $ 625    $ 585 to $ 600

Segment Profit (1)                      $ 65 to $ 80      $ 34 to $ 39

Restructuring, integration and asset
 impairment charges                     $ 21 to $ 24      $ 34 to $ 36

Depreciation and amortization           $ 30 to $ 32      $ 30 to $ 32

Interest expense                        $ 6 to $ 6.5      $ 6.5 to $ 7

Diluted E.P.S. from continuing
 operations                           $ 0.20 to $ 0.45 ($ 0.86) to ($ 0.73)

Diluted E.P.S. from continuing
 operations-pro forma (2)             $ 0.65 to $ 0.90  ($ 0.10) to $ 0.03

Diluted shares (3)                           28.0              28.0

Capital expenditures                     $ 20 to $ 23     $ 20 to $ 23


(1) Excludes restructuring, integration and asset impairment charges.

(2) Pro forma has been adjusted to exclude the charges discussed in Note 1
    above.

(3) At August 1st and November 1st, 27.0 million shares were outstanding.
    In addition, another 1.0 million shares from the potential dilutive
    effect of stock options and deferred stock units is assumed.

Bowne & Co., Inc. will hold its earnings conference call to review its 2008 third quarter results on Tuesday, November 11, 2008, at 11 a.m. Eastern Time. To join the Webcast, log on to http://www.bowne.com. To access the call via telephone, please dial (877) 407-8033 (domestic) or (201) 689-8033 (international), conference ID # 301861

About Bowne & Co., Inc.

Bowne & Co., Inc. (NYSE: BNE) provides shareholder and marketing communications services around the world. Dealmakers rely on Bowne to handle critical capital markets communications with speed and accuracy. Compliance professionals turn to Bowne to prepare and file regulatory and shareholder communications online and in print. Marketers look to Bowne to create and distribute customized, one-to-one communications on demand. With 3,200 employees in 60 offices around the globe, Bowne has met the ever-changing demands of its clients for more than 230 years. For more information, please visit www.bowne.com.

[Tables follow]

                            BOWNE & CO., INC.
                                (NYSE: BNE)
              Condensed Consolidated Statements of Operations
                                (unaudited)



(in thousands, except per share     For the Periods Ended September 30,
 information)                         Quarter             Year-to-Date
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------

Revenue                         $ 163,956  $ 181,678  $ 609,731  $ 655,898

Expenses:
  Cost of revenue                (121,901)  (118,596)  (410,162)  (410,410)
  Selling and administrative      (49,401)   (53,580)  (164,163)  (174,410)
  Depreciation                     (6,860)    (5,975)   (20,996)   (19,988)
  Amortization                     (1,659)      (409)    (3,238)    (1,204)
  Restructuring, integration and
   asset impairment charges(1)     (8,491)    (2,106)   (28,525)   (12,154)
                                ---------  ---------  ---------  ---------
                                 (188,312)  (180,666)  (627,084)  (618,166)
                                ---------  ---------  ---------  ---------
Operating (loss) income           (24,356)     1,012    (17,353)    37,732
  Interest expense                 (1,834)    (1,339)    (5,166)    (4,043)
  Other income (expense), net         926       (259)     3,116        262
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations before income taxes   (25,264)      (586)   (19,403)    33,951
Income tax benefit (expense)(2)     8,017      1,534      6,012     (6,986)
                                ---------  ---------  ---------  ---------
(Loss) income from continuing
 operations                       (17,247)       948    (13,391)    26,965
Net income (loss) from
 discontinued operations(3)         6,084       (144)     5,221        215
                                ---------  ---------  ---------  ---------
Net (loss) income               $ (11,163) $     804  $  (8,170) $  27,180
                                =========  =========  =========  =========
(Loss) earnings per share from
 continuing operations:
  Basic                         $   (0.62) $    0.03  $   (0.49) $    0.95
  Diluted                       $   (0.62) $    0.03  $   (0.49) $    0.87
Earnings (loss) per share from
 discontinued operations:
  Basic                         $    0.22  $       -  $    0.19  $       -
  Diluted                       $    0.22  $       -  $    0.19  $       -
Total (loss) earnings per
 share:
  Basic                         $   (0.40) $    0.03  $   (0.30) $    0.95
  Diluted                       $   (0.40) $    0.03  $   (0.30) $    0.87
Weighted-average shares
 outstanding:
  Basic                            27,624     28,309     27,410     28,481
  Diluted                          27,702     28,933     27,724     33,102

Dividends per share             $   0.055  $   0.055  $   0.165  $   0.165

(1) 2008 includes charges of approximately $7.1 million for the quarter and
    $12.0 million year-to-date related primarily to the integration of the
    acquisitions of Alliance (November 2007), GCom (February 2008), RSG
    (April 2008) and Capital (July 2008).  Also included in 2008 are
    charges of approximately $1.4 million for the quarter and approximately
    $16.5 million year-to-date related to workforce reductions and facility
    closures.  2007 includes charges of approximately $1.5 million year-to-
    date related to the integration of the January 2007 acquisition of St
    Ives Financial.  Also included in the 2007 year-to-date period are
    charges of $5.9 million related to the consolidation of leased space at
    55 Water Street, New York, NY.

(2) In 2007, the Company recorded a tax benefit of $6.3 million for the
    year-to-date period related to the settlements of audits of our 2001-
    2004 federal income tax returns.

(3) Quarter and year-to-date 2008 includes tax benefits of approximately
    $5.8 million related to previously unrecognized tax benefits associated
    with our discontinued outsourcing and globalization businesses.




                            BOWNE & CO., INC.
                                (NYSE: BNE)
                  Condensed Consolidated Balance Sheets

                                                    Sept. 30,    Dec. 31,
(in thousands)                                         2008        2007
                                                    ----------- -----------
                                                    (unaudited)
Assets
Cash and cash equivalents                           $    14,088 $    64,941
Marketable securities                                     2,242      38,805
Accounts receivable, net                                139,249     134,489
Inventories                                              29,921      28,789
Prepaid expenses and other current assets                60,971      43,198
                                                    ----------- -----------
             Total current assets                       246,471     310,222
                                                    ----------- -----------

Property, plant and equipment, net                      133,820     121,848
Goodwill and other intangibles, net                      93,824      45,451
Other assets                                             35,968      31,896
                                                    ----------- -----------
                 Total assets                       $   510,083 $   509,417
                                                    =========== ===========

Liabilities and Stockholders' Equity
Current portion of long-term debt and capital lease
 obligations(1)                                     $       783 $    75,923
Accounts payable and accrued liabilities                105,199     125,350
                                                    ----------- -----------
            Total current liabilities                   105,982     201,273
                                                    ----------- -----------

Long-term debt and capital lease obligations            115,750       1,835
Deferred employee compensation                           36,125      36,808
Deferred rent and other                                  19,109      19,022
Stockholders' equity                                    233,117     250,479
                                                    ----------- -----------
     Total liabilities and stockholders' equity     $   510,083 $   509,417
                                                    =========== ===========


(1) As a result of the redemption/repurchase features of the Company's
    $75.0 million Convertible Subordinated Debentures in October 2008,
    $75.0 million of this debt is classified as current debt as of
    December 31, 2007. As of September 30, 2008, the Debentures are
    classified as non-current debt.



                            BOWNE & CO., INC.
                                (NYSE: BNE)
              Condensed Consolidated Statements of Cash Flows
                                (unaudited)

                                                      Nine Months Ended
                                                        September 30,
                                                    ----------------------
(in thousands)                                         2008        2007
                                                    ----------  ----------
Cash flows from operating activities:
  Net (loss) income                                 $   (8,170) $   27,180
  Net income from discontinued operations               (5,221)       (215)
  Depreciation and amortization                         24,234      21,192
  Asset impairment charges                                 246       3,393
  Changes in assets and liabilities, net of
   acquisitions, discontinued operations and certain
   non-cash transactions                               (34,026)      9,074
  Net cash used in operating activities of
   discontinued operations                              (1,473)     (3,620)
                                                    ----------  ----------
Net cash (used in) provided by operating activities    (24,410)     57,004
                                                    ----------  ----------

Cash flows from investing activities:
  Purchase of property, plant and equipment            (16,654)    (14,295)
  Purchase of marketable securities                     (5,000)    (41,200)
  Proceeds from the sale of marketable securities
   and other                                            39,891      46,591
  Acquisition of businesses, net of cash acquired      (79,495)    (12,588)
                                                    ----------  ----------
Net cash used in investing activities                  (61,258)    (21,492)
                                                    ----------  ----------

Cash flows from financing activities:
  Payments of capital lease obligations                   (762)       (677)
  Net proceeds from borrowings under revolving
   credit facility                                      39,000           -
  Proceeds from stock options exercised                    766      11,153
  Payment of dividends                                  (4,410)     (4,617)
  Purchase of treasury stock                                 -     (40,101)
  Other                                                    221         835
                                                    ----------  ----------
Net cash provided by (used in) financing activities     34,815     (33,407)
                                                    ----------  ----------

Net (decrease) increase in cash and cash
 equivalents                                        $  (50,853) $    2,105
Cash and Cash Equivalents--beginning of period          64,941      42,986
                                                    ----------  ----------
Cash and cash equivalents--end of period            $   14,088  $   45,091
                                                    ==========  ==========



                        BOWNE & CO., INC.
                           (NYSE: BNE)
                       Segment Information
                           (unaudited)

During the first quarter of 2008, the Company has been realigned to operate as a unified company and no longer operates as two separate business units. As such, the Company now has one reportable segment, which is consistent with how the Company is structured and managed. The results of operations for the three and nine months ended September 30, 2008 and 2007 reflect this current presentation.

Management uses segment profit to evaluate Company performance. Segment profit is defined as gross margin (revenue less cost of revenue) less selling and administrative expenses. Segment performance is evaluated exclusive of interest, income taxes, depreciation, amortization, restructuring, integration and asset impairment charges, and other expenses and other income. Segment profit is measured because management believes that such information is useful in evaluating the Company's results relative to other entities that operate within our industry. Our segment profit is also used as the primary financial measure for purposes of evaluating financial performance under the Company's annual incentive plan.

(in thousands)                      For The Periods Ended September 30,
                                ------------------------------------------
                                      Quarter             Year-to-Date
                                --------------------  --------------------
                                  2008       2007       2008       2007
                                ---------  ---------  ---------  ---------
Capital markets services
 revenue                        $  42,397  $  79,579  $ 158,705  $ 224,027

Shareholder reporting services
 revenue:
  Compliance reporting             26,080     27,411    146,057    159,195
  Investment management            41,842     35,061    140,882    135,779
  Translation services              4,521      3,497     13,559     10,908
                                ---------  ---------  ---------  ---------
Total shareholder reporting
 services revenue                  72,443     65,969    300,498    305,882
Marketing & business
 communications services
 revenue                           42,077     26,770    124,596     94,113
Commercial printing and other
 revenue                            7,039      9,360     25,932     31,876
                                ---------  ---------  ---------  ---------
Total revenue                     163,956    181,678    609,731    655,898
Cost of revenue                  (121,901)  (118,596)  (410,162)  (410,410)
                                ---------  ---------  ---------  ---------
Gross margin                       42,055     63,082    199,569    245,488
Selling and administrative
 expenses                         (49,401)   (53,580)  (164,163)  (174,410)
                                ---------  ---------  ---------  ---------
Segment (loss) profit           $  (7,346) $   9,502  $  35,406  $  71,078
                                =========  =========  =========  =========



                           BOWNE & CO., INC.
                              (NYSE: BNE)
          PRO FORMA SUPPLEMENTAL INCOME INFORMATION
    Reconciliation to Condensed Consolidated Statements of Operations
                             (unaudited)

Pro forma supplemental income information, which is not prepared in accordance with generally accepted accounting principles, excludes restructuring, integration and asset impairment charges and tax benefits associated with tax refunds. The Company believes that the presentation of this supplemental information is useful to investors to evaluate performance in comparison to prior year's results. This pro forma supplemental information is an alternative to, and not a replacement measure of, operating performance as determined in accordance with generally accepted accounting principles.

                                    For the Periods Ended September 30,
                                      Quarter             Year-to-Date
                                --------------------  --------------------
(in thousands, except per share
 information)                     2008       2007       2008       2007
                                ---------  ---------- ---------  ---------
Net (loss) income from
 continuing operations          $ (17,247) $      948 $ (13,391) $  26,965
Add back: (net of pro forma tax
 effect)
Restructuring, integration and
 asset impairment charges(1)        5,344       1,301    17,827      7,480
Tax benefit associated with tax
 refunds received and related
 reduction of tax liability(2)          -           -         -     (6,328)
                                ---------  ---------- ---------  ---------
(Loss) income from continuing
 operations, pro forma          $ (11,903) $    2,249 $   4,436  $  28,117
                                =========  ========== =========  =========
(Loss) earnings per share from
 continuing operations:
     Basic                      $   (0.62) $     0.03 $   (0.49) $    0.95
     Diluted                    $   (0.62) $     0.03 $   (0.49) $    0.87
(Loss) earnings per share from
 continuing operations--pro
 forma:
     Basic                      $   (0.43) $     0.08 $    0.16  $    0.99
     Diluted                    $   (0.43) $     0.08 $    0.16  $    0.90
Weighted-average shares
 outstanding:
     Basic                         27,624      28,309    27,410     28,481
     Diluted(3)                    27,702      28,933    27,724     33,102

(1) In 2008, restructuring, integration and asset impairment charges of
    $8.5 million for the quarter and $28.5 million year-to-date are net
    of tax benefits of $3.2 million and $10.7 million, respectively.
    In 2007, restructuring, integration and asset impairment charges of
    $2.1 million for the quarter and $12.2 million year-to-date are net of
    tax benefits of $0.8 million and $4.7 million, respectively.
(2) In 2007, the Company recorded a tax benefit of $6.3 million for the
    year-to-date period related to the settlements of audits of our
    2001-2004 federal income tax returns.
(3) The weighted-average diluted shares outstanding used to calculate the
    pro forma EPS for the year-to-date period ended September 30, 2007
    includes the potential dilution from the Convertible Subordinated Debt
    of 4,058,445 shares. Net income used in the calculation of diluted
    earnings per share has been adjusted to reflect the addition of
    interest expense, net of tax, related to the convertible debt.  The
    diluted share count for the quarter and year-to-date periods ended
    September 30, 2008 and the quarter ended September 30, 2007 do not
    include the potential dilution from the Convertible Subordinated Debt
    shares since the effect would be anti-dilutive.


Contact Information

  • Investor Relations Contact:
    John J. Walker
    SVP & Chief Financial Officer
    212-658-5804
    john.walker@bowne.com

    Media Contact:
    Pamela Blum
    Director, Corporate Communications
    212-658-5884
    pamela.blum@bowne.com

    Bowne & Co., Inc.
    55 Water Street
    New York, NY 10041
    (212) 924-5500
    Fax: (212) 658-5871