Cenveo Inc. (formerly Mail-Well) -  Envelopes -  Category Main Page 

303-790-8023

8310 S. VALLEY HIGHWAY, #400
ENGLEWOOD, CO 80112

www.cenveo.com

Sales

$1.6 billion

Business Description 

We are one of North America's leading providers of printing and
printing related products and value added services. We produce general
commercial printing, high impact premium printing, custom and stock
envelopes, printed business forms and labels. We believe we are the world's
largest manufacturer of envelopes, the leading printer of envelopes in the
United States and Canada, and the premier printer of high impact color
printing in the United States and the largest US manufacture of business
forms and labels sold through distributors. We operate 86 printing and
manufacturing facilities and five distribution and fulfillment centers.

COMMERCIAL

Our commercial business had sales of $1.3 billion in 2003. This
business segment operates 66 manufacturing facilities and specializes in
the printing of annual reports, car brochures, brand marketing collateral,
financial communications, general commercial printing and the manufacture
and printing of customized envelopes for billing and remittance and direct
mail advertising. In addition, we operate five distribution and fulfillment
centers and provide our customers with other value added services such as
ecommerce.

OUR INDUSTRIES

The printing industry is one of the largest and most fragmented
industries in the United States with total estimated sales of $155.5
billion in 2002 generated by more than 45,000 companies, according to the
Printing Industries of America, Inc. The printing industry includes general
commercial printing, financial and legal printing, greeting cards, labels
and wrappers, magazines, newspapers, books, other specialty and quick
printing and related services such as prepress and finishing. We estimate
that the market in which we primarily compete has total annual sales of
approximately $52.2 billion serviced by over 20,000 printing businesses.

Envelope printing and manufacturing combined constitutes a $4.1 billion
market in North America according to the Envelope Manufacturer's
Association. Products in the envelope industry include customized envelopes
for direct mail, transactional envelopes, non-custom envelopes for resale,
and specialty envelopes and filing products.

Printed office products constitutes an estimated $15 billion market,
with the short-run indirect segment of the market in which we compete
estimated at $3.4 billion.

OUR PRODUCTS

Commercial Printing. We serve two primary commercial printing markets
and the growing market for visual communications products and services
other than print. Our general commercial printing markets are: (1) high end
color printed materials, such as annual reports and car brochures, which
are longer run premium products for major national and regional companies
and (2) general commercial printing products such as advertising and
promotional materials for local markets. Our printing products also include
advertising literature, corporate identity materials, calendars, greeting
cards, brand marketing materials, catalogs, maps, CD packaging and direct
mail. We also offer our customers services such as design, fulfillment,
ecommerce, inventory management and other enterprise solutions for
companies seeking strategic partners for their branding and other
communications priorities.

Envelope. We serve two primary markets: (1) customized envelopes and
packaging products, including Tyvek(R) mailers used by the US Postal
Service, sold directly to end users or to independent distributors who sell
to end users; and (2) envelopes and other products sold to wholesalers,
paper merchants, printers, contract stationers, independent retailers and
superstores. In the customized envelope market, we offer printed customized
conventional envelopes for billing and remittance, direct mail marketers,
catalog orders and other end-users, such as banks, brokerage firms and
credit card companies. In the wholesale envelope market, we manufacture and
print a broad line of stock and custom envelopes that are featured in
national catalogs for the office products market or offered through office
products retailers, including contract stationers.

Printed Office Products. We print a diverse line of custom products
for small and mid-size businesses including both traditional and specialty
forms for use with desktop PCs and laser printers and pressure sensitive
labels. Our printed office products include business documents, specialty
documents produced through VersaSeal(R), Hi-Reply(TM) and Pro-card(TM)
brands and short-run secondary labels, which are made of paper or film
affixed with pressure sensitive adhesive and are used for mailing,
messaging, bar coding and other applications. These products are generally
sold through independent value-added resellers of office products.

OUR SERVICES

We offer our customers a wide variety of related services to enhance
the value of our printed products and assist them in using digital
technologies to improve the effectiveness of their visual communications.
Among our services are:

Delivery systems. We offer a flexible "just-in-time" delivery program
which allows customers to receive their products just prior to when they
are needed.

Digital archiving. We offer customers the option to store digitally
rendered artwork on our file servers. The artwork can then be accessed and
retrieved at any time for use by any authorized design or production group
via high speed transmission links.

Direct-to-Plate and Direct Imaging Technology. We have both
direct-to-plate and direct imaging technologies, which eliminate several
manual functions and material costs in the prepress stage. Both
technologies support a completely digital workflow, providing a better
printed product, faster turnaround and in the case of direct imaging,
reduced inventory, capability to print-on-demand and lower distribution
costs.

E-commerce. We have the capability to provide to our customers a full
range of e-commerce services to obtain estimates, do remote proofing, and
order printing or other products through their web page. Included, at
customer request, are a variety of reporting, marketing and service
functions designed to increase on-line sales.

Electronic Prepress. We offer a fully automated electronic prepress
that allows the customer to submit artwork and other data in hardcopy or
digitally either on disk, CD or via high speed transmission line. Hardcopy
artwork is digitally scanned and mastered to create a file for use either
in direct-to-plate or direct-to-press applications. We also provide
traditional prepress services to customers who require graphics and artwork
to be photographed, composed and incorporated into files for plate or
direct-to-press applications.

Fulfillment. Strategically located throughout the United States we
have full-service fulfillment centers with online order assembly and bar
coding. Many of these centers have digital presses to reduce the costs of
inventory and obsolescence.

Inventory management systems. Large national organizations with
centralized purchasing and supply departments serving multiple locations
use our inventory management services. Included in these services are
reports on usage by inventory unit (SKU) and/or available warehouse supply
and summary billing.

E-Solutions. We offer a full range of robust and dynamic
Internet-based print procurement, print management and print distribution
solutions. We also work with leading service providers to improve the
effectiveness and speed of internet-based processes for our customers.

Warehousing Services. For customers who prefer to contract out the
management of their printed product storage and distribution we have the
expertise and space to store finished product and drop ship in bulk or ship
on an "as needed" basis.

Enterprise solutions. Large national organizations looking for
integrated, managed supply chain solutions can avail themselves of flexible
solutions that connect them to their internal departments and external
customers and suppliers. We have the supply chain management processes,
techniques, systems and resources to manage, produce and deliver their
products from our facilities strategically located across the US.

MARKETING, DISTRIBUTION AND CUSTOMERS

Because of the highly fragmented nature of the general commercial
printing and envelope businesses, and the diversity in customer needs and
preferences, we market most of our general commercial printing and
envelopes locally and regionally. Given the project-oriented nature of
these markets, sales to particular customers may vary significantly from
year to year depending upon the number and size of their communications
plans. Our customer supply agreements are typically on an order-by-order
basis or for a specified period of time. The sales force is supported by a
technical service team that provides customers with highly customized
printing solutions. Most of our facilities have customer service
representatives that work with the sales team and the customers to manage
orders efficiently and effectively. In some cases, the customer service
representatives have direct responsibility for accounts.

Our marketing efforts for commercial printing differ between two broad
product areas: high impact color products, such as auto brochures, annual
reports and high-end catalogs, and general commercial work. We market high
impact printing primarily on a regional basis, through sales
representatives working out of sales offices across the United States. We
utilize a team approach to customer service relationships that we believe
is unique in the printing industry.

We believe our commercial segment has one of the largest sales forces
in the industry, with approximately 600 sales representatives as of
December 31, 2003. Most of our commercial printing and envelope products
are sold through sales representatives who work closely with customers from
the initial concept through prepress, proofing and production. Because our
sales representatives are our primary contacts with our customers, our goal
is to attract, train and retain an experienced, qualified sales force in
each of our businesses. Sales representatives typically are compensated by
commission, which generally depends on order size and type, prepress work,
reruns or rework and overall profitability of the job. For our growing list
of enterprise customers we have account teams, some members of which are
situated on the customer's premises.

We market the majority of our envelopes and packaging products through
sales representatives, who generally work with customers from the initial
product design stage through product delivery to ensure that finished
products meet the customers' applications and marketing needs. Products not
marketed by our own sales representatives are sold through distributors to
better serve selected wholesale markets, geographic regions without direct
sales representation and certain specialty markets.

Our reorganization into two business segments supports our "Total
Customer Solutions" initiative, through which we offer our customers a full
spectrum of products and services from design through fulfillment including
e-services, direct mail and digital printing capabilities. Our Total
Customer

Solutions sales and service teams are organized to focus on vertical
markets including travel and leisure, health services, financial services
and technology and to offer customers in these markets customized solutions
to their visual communications needs.

In our resale segment, our products are marketed primarily under the
"PrintXcel" brand through distributors who act as intermediaries between us
and the end-users of its products. We also market our office products under
the "Quality Park" brand to office products retailers. The resale segment
sells most of its products through five major channels; independent
solution providers, outsource for "direct" solution providers, commercial
printers, ad specialty dealers and quick printers. Our resale segment sells
its products primarily through catalogs, telemarketing and the Internet to
over 20,000 value-added resellers who distribute our products to end-users.

We coordinate sales efforts among geographic regions within our
operating segments, and among the operating businesses themselves, in order
to compete for national account business, enhance the internal
dissemination of successful new product ideas, efficiently allocate our
production equipment, share technical expertise and increase company-wide
selling of specialty products manufactured at selected facilities.

Our customer base totals approximately 40,000. The customers of our
commercial segment include Fortune 500 companies, graphic designers and
advertising agencies, regional and local businesses, insurance and finance
companies, government agencies and not-for-profit organizations. The
customers of our resale segment total over 20,000 office products
distributors and office products retail businesses as well as the U.S.
Postal Service. None of our customers accounted for more than 4% of revenue
in 2003.

PRINTING AND MANUFACTURING

Our commercial segment operates 66 manufacturing facilities throughout
the US and Canada. Our 36 commercial printing plants combine advanced
prepress technology with high-quality web and sheet-fed lithographic
presses, digital presses and extensive binding and finishing operations.
Our 30 envelope plants produce envelopes from either flat sheets or rolls
of paper. The paper is folded into an envelope, which is glued at the seams
and on the flap, and then printed as required. Web machines are typically
used for larger runs with multiple colors and numerous features. Die cut
machines, which require a preliminary step to provide die cut envelope
blanks from paper sheets, are used primarily for smaller orders typically
including customized value-added features. The manufacturing process used
is dependent upon the size of a particular order, custom features required,
machine availability and delivery requirements. Many of our commercial
facilities operate seven days a week, 24 hours a day to meet customer
requirements.

In our resale segement, we operate twenty facilities in the United
States. We design and print business forms and labels and envelopes for a
wide range of businesses. A majority of these products orders are delivered
to us "camera ready," and we perform prepress and plate making functions
and print on web presses. Ten of our resale facilities manufacture stock
envelopes that are sold to office products retail chains.
 

Ticker

CVO