Waverly to pare medical publishing operations Layoffs planned as firm reports loss

November 10, 1993|By Kim Clark | Kim Clark,Staff Writer

Waverly Inc., which just completed the sale of its two printing plants, said yesterday that it would pare its Baltimore-based medical publishing operations.

The company's announcement came the same day it reported that it lost $3.8 million on publishing revenues of $27.6 million in the quarter that ended Sept. 30. That was down from a $932,000 profit on equivalent sales of $29.9 million in the same quarter last year.

Included in the current quarter's loss was a $1 million charge to pay for severance and other costs associated with layoffs that Waverly said yesterday that it plans for later this year, said E. Philip Hanlon, the company's chief financial officer.

Mr. Hanlon said that the company had not determined where or how large the cuts would be. Waverly employs 450 people in its publishing operations in the United States.

The company also said yesterday that it lost $1 million on the sale of its printing plant to Cadmus Communications Corp., based in Richmond, Va. That sale closed Monday.

Waverly said it sold its printing plants in Easton and Baltimore, which had sales of about $50 million last year and represented about 20 percent of Waverly's revenues, so that it could focus on its core operations of editing and producing journals for doctors and nurses.

As a part of the sale, Cadmus agreed to continue employing all of Waverly's printing plant workers, and signed a 10-year agreement to continue publishing Waverly's journals.

Waverly said, however, that it laid off some members of its corporate staff as a result of the sale.

Mr. Hanlon said the company needed to cut back further because of "fundamental shifts in advertising" that supports the publication of the company's medical journals.

He said revenues for the company's remaining publishing operations were 7.7 percent lower this quarter than in the same period a year ago, and the division lost about $1 million.

The decline stemmed from a reduction in pharmaceutical advertising. Drug makers are increasingly attempting to market directly to consumers, he said.

Also contributing to the company's poor quarter was a $1.2 million write-off for improvements to the Baltimore headquarters buildings.

Waverly said in September that it planned to move out of its downtown offices -- including the Guilford Street building.

Waverly Inc.

Ticker.. .. .. .. .. .. .. ... .Yesterday's

Symbol .. .. .. .. .. .. Bid.. ... . .. Ask

WAVR .. .. .. .. . .. .. 17 3/4 .. . . .. ..18 1/2

Period ended

Sept. 30 .. .. .. .. .. 3rd qtr.. .. .. ..Year ago.. ... .Chg.

Revenue* .. .. .. .. ..$27,603 .. .. .. ..$29,894 .. .. ..-7.6%

Net Income .. .. .. .. $(3,771).. .. .. ..$932.. .. .. .. . --

Primary EPS .... .. .. $(0.87)** .. .. .. $0.22.. .. .. .. . --

.. .. .. .. ..9 mos... .. .. .Year ago.. .. .. .. .. .. Chg.

Revenue*. .. $87,150 .. ... ..$88,309 .. .. .. .. .. ..-1.3%

Net Income.. $(2,078).. .. .. $(1,756).. .. .. .. .. .. . --

Primary EPS. $(0.48)** .. .. .$(0.41) .. .. .. .. .. .. --

Figures in thousands (except per share data.)

* Includes revenue from continuing operations only.

** Includes charge of $0.51 per share for restructuring costs and write-down of existing facilities.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.