Somewhere in a Mississippi warehouse, Batman is waiting for a bankruptcy judge. He is not alone. Millions of comic books, graphic novels, games, figurines, and collectibles tied to the collapse of Diamond Comic Distributors are reportedly caught in a dispute among JPMorgan Chase, publishers, creditors, a landlord, and the bankruptcy estate. For comic book fans, the image is irresistible: superheroes, villains, and entire imagined universes boxed up and immobilized, not by kryptonite or a master criminal, but by secured lending, consignment claims, and warehouse liens. For the printing industry, the story is more than a curiosity from the comic book business. It is a reminder that printed products do not become revenue when ink hits paper, and the signatures get stitched and trimmed. Printed products become revenue when the product moves, reaches the customer, and gets paid for.

The Company’s revenues for the first quarter ended May 31, 2022 were $107.7 million compared to $96.9 million for the same quarter last year, an increase of $10.8 million, or 11.1%. The increase includes revenue contribution of approximately $1.9 million from AmeriPrint, an acquisition completed on May 31, 2021. Gross profit margin was $34.0 million, or 31.6%, as compared to $29.2 million, or 30.1%, for the same quarter last year. Net earnings for the quarter were $11.6 million, or $0.45 per diluted share, as compared to $7.3 million, or $0.28 per diluted share, for the same quarter last year.

Net sales in the quarter were $1.71 billion, up $48.9 million or 2.9% from the first quarter of 2017. On an organic basis, consolidated net sales increased 1.3% driven by higher volumes in both segments as well as higher fuel surcharges in Business Services, partially offset by price pressure in Business Services. From a products and services perspective, Packaging, Logistics, Direct Mail and Business Process Outsourcing accounted for most of the increase while Commercial Print was down due to ongoing secular pressure and lower specialty card sales. Gross profit in the first quarter of 2018 was $294.7 million or 17.3% of net sales versus $326.8 million or 19.7% of net sales in the prior year quarter. The favorable impact of volume growth and cost reduction initiatives was more than offset by inflationary increases, primarily in paper and costs of transportation, unfavorable changes in foreign exchange rates, operational inefficiencies due to volume reductions from two clients and modest price pressure. Click Read More below for additional information.