Tuesday, March 11, 2014
From the myprintresource business management web-page:
"Formerly PBMS, Novitex Unveils its New Strategy"
BY PAUL RIZZUTO ON MAR 10, 2014
When Apollo Global Management acquired Pitney Bowes Management Services (PBMS) from Pitney Bowes for $400 million in late 2013, it was unclear what direction Apollo would take the company. Now we know. The newly-formed company—Novitex Enterprise Solutions—unveiled its strategy last month through a press release and updated content on the company’s website. We had a chance to catch up with their Head of Business Development, Irina Novoselsky.
Here is what you should know about Novitex:
Provider of the end-to-end service solution, Integrated Document Life Cycle™ (IDLC™), a 360-degree view of the document, as it travels in and out of the enterprise
Headquartered in Stamford, CT, USA with 10,000+ employees
InfoTrends estimates revenue in the range of $700 million to $1 billion
Substantial Fortune 500 client base
Claims to have a 30% market share of managed documents
Read the remainder of the article at this link:
Posted by Joel Salus at 7:14 AM
Sunday, March 9, 2014
Below, you will find a “Google-Translate” translation of the latest bankruptcy-matter-filing issued by Service Point Solutions. As I’ve previously stated whenever I’ve used Google-Translate to translate SPS documents from Spanish to English, translations are far from perfect. This document was found on CNMV, the web-site of the Spanish equivalent of the U.S. SEC.
Before I begin the translated version, I’m going to give you a link to the Spanish-language version of this document. (This is the “official” document). Here’s that link:
Okay, here’s the translated version of this document:
SERVICE POINT SOLUTIONS SA Barcelona Mercantile Registry , General Section , Volume 28655 , Folio 79 , Page 141673 , Inscription 2nd , CIF A- 28354132
Iñigo de la Lastra Director- General Department of Secondary Markets CNMV Barcelona, March 7, 2014
Sir, Hereby, SERVICE POINT SOLUTIONS SA informs you , for the purpose of giving compliance with the provisions of Article 82 of Law 24 /1988 and provisions Market Matching the following :
FACT: We inform you that as of March 6, 2014 BANKRUPTCY SLP AUREN society took possession the office of trustee of the following business entities : Service Point Solutions, SA, Service Point Nederland BV, Facility Management Service Point Iberica, SA, Postkamer Beheer BV, Service Point Holdings Netherlands BV, Service Point Nordic AB, Service Point Belgium NV and Globalgrafixnet, SA. BANKRUPTCY AUREN SLP, was appointed Insolvency Administrator of the institutions referred by the Commission National Securities Market and the Court itself Mercantile number 8 Barcelona, under the provisions of the Order of voluntary insolvency of such companies issued by the Court Mercantil No. 8 Barcelona on 20 February 2014.
The bankruptcy proceeding was brought in order to achieve viability and continuity of business group, both internationally and in the Spanish subsidiary, and in this sense they are working different alternatives.
Posted by Joel Salus at 7:25 AM
Blog Publisher’s comments appear at the very end of this post.
Below, you will find a “Google-Translate” translation of the latest financial-results-report issued by Service Point Solutions. As I’ve previously stated whenever I’ve used Google-Translate to translate SPS reports from Spanish to English, translations are far from perfect (and, they read kind of weird, to the point where it is easy – very easy - to get a headache when you read them!) This report was found on CNMV, the web-site of the Spanish equivalent of the U.S. SEC.
Before I begin the translated version, I’m going to give you a link to the Spanish-language version of the report. (This is the “official” report). Here’s that link:
Okay, let’s get on with the translated version of the report:
Second Semester 2013
February 28, 2014
(Semester results approved by the Board
SPS Administration on February 27, 2013)
During the fourth quarter of 2013, Service Point Solutions and banks that are part of its syndicated financing failed to reach agreement on refinancing your debt, and the company was doomed to pre-bankruptcy process. The results of this quarter reflect the depreciation of the assets they have left the scope of consolidation of the Group.
As of October 24, 2013, Service Point Solutions, SA reported a Fact Relevant to the CNMV the rejection of any of the proposals submitted to the financial institutions up to that time, acceleration and acceleration of the credits, to not extend the "standstill" and the implementation of the enforcement of security corresponding to a significant part of the Group's businesses (subsidiaries operating in the UK, the U.S., Norway and Sweden). The same day, the Board of Directors of the company took the decision to submit the application provided for in Article 5a of the Bankruptcy Act.
SPS maintains as of today the ownership of the shares of companies mentioned above, but as they are already controlled by an administrator (Ernst & Young LLP), SPS does not receive the economic and financial information and therefore proceeded to the deconsolidation of same from October 1, 2013. For this reason the data for the fourth quarter of 2013 are not comparable with the same period last year. From 1 October 2014, the Group's consolidation perimeter includes only business in Belgium, Holland, Spain and Germany (the latter has ceased to form part of the scope of consolidation during the first quarter of 2014) plus the header group.
During the fourth quarter of 2013 the results of the subsidiaries have not intervened to line with the second and third quarter, showing a positive development, especially levels of profitability. Throughout the year 2013, the company has continued implementation of measures to restore profitability and create a cost base more flexible for the future. The main management actions have been carried out in the area costs, which have been implemented significant reductions of costs whose impact is being visible and in the last semester. Also the customer relationship has been shown relatively positive despite the environment of pre-bankruptcy process and then bankruptcy and therefore the Group's operating profit in the fourth quarter was positive, compared with a loss of 1.5 million euros in the same period last year.
Point of Service Sales in the fourth quarter amounted to 16.7 €, 68% below those obtained in the same period last year, mainly due to changes in consolidated
The operating costs of these companies have been reduced by 26% compared to same quarter of 2012, demonstrating that the company is well on its expense reduction initiatives, resulting in a significant improvement in results next year. EBITDA for the quarter was 1.7 M €, in contrast to a profit 2.0 M € reported in the same period of 2012. A proforma level, ie comparing the same consolidated EBITDA has increased from a loss of € 0.3M in 2012 1.7 M €. At year cumulative EBITDA is only 2% smaller than the 2012, with an smaller perimeter.
The full year net income continues to record losses of 144.5 M €, very higher than the previous year. The significant decline in net income accumulated compared to the same period in 2012 is primarily due to record impairment of goodwill in the Netherlands, Spain and Germany for total amount of 38.6 M €, and an impact on the output of consolidated subsidiaries intervened approximately 90M €.
During the fourth quarter and even to this date, the company has continued actively working with potential investors, which in turn have made offers to financial institutions in order to cancel all syndicated debt, and parallel working on the viability of the companies under their control.
Two. Evolution Fourth Quarter 2013
Shown in Table, the main magnitudes of Service Point during the fourth quarter of 2012 and 2013 (Income statement, fourth quarter data, in thousands of euros):
Point of Service Sales in the fourth quarter amounted to 16.7 €, 68% below those obtained in the same period last year, mainly due to changes in scope of consolidation and changes to billing terms of some contracts with customers in the Netherlands (which have no impact at margins). Without such impacts fourth quarter sales have dropped by 7%.
The operating costs of these companies have been reduced by 26% compared to same quarter of 2012, demonstrating that the company is well on its expense reduction initiatives, resulting in a significant improvement in results next year. The measures already implemented to date represent an annualized savings more than five million. EBITDA for the quarter was € 1.7M, which contrasts a profit of € 2.0M reported in the same period of 2012. A proforma level, i.e., comparing the same consolidated EBITDA has increased from a loss of € 0.3M in 2012 to 1.7M €. At year cumulative EBITDA is only 2% lower than 2012, with a smaller perimeter.
In all geographical areas, the focus is on enhancing trade opportunities future and new contracts, to achieve a positive trend in the following months.
As has been reported in several Highlights, over recent months company has been working on solutions to restructure its syndicated debt. From the date of application of Article 5a placement of the Bankruptcy Act on 24 October 2013, the composition of the Board of Directors of the Company has changed completely. Steps to meet legally established in the Bankruptcy Act, and not having yet reached a definitive agreement with financial institutions, the new Council of Directors appointed by co-option and ratified at the Extraordinary Meeting Shareholders held on February 24, 2014, decided to present the 4th February, the voluntary petition in bankruptcy of the Company. He also filed for voluntary bankruptcy seven subsidiaries domiciled in Spain, Netherlands, Belgium and Sweden.
The order of declaration of bankruptcy on February 20, 2014 was issued.
Also, to meet the legally established steps in the German Insolvency Act, the decision to submit the February 1 application of insolvency was made creditors of the German Society.
The fourth quarter shows a clear improvement in operating results compared to the same period last year, thanks to the results of the subsidiaries under the control of the Group.
The losses primarily reflect the costs of depreciation of assets operated by the banks.
Operating profit was positive, reflecting the business under the control of the Group maintained an upward trend and future plans include a feasibility positive basis for future development.
The Group continues to work on finding and implementing solutions to the situation bankruptcy in which is located.
On February 27, 2014, the Board approved the results of SPS prepared for the fourth quarter based on the facts known to the company that date and not reflected in the Group's accounts for the possible impact the company if not were to find a solution syndicated debt restructuring. The effect on the balance sheet and income statement of the situation is impossible to quantify at present.
Blog Publisher’s comments:
Well, early on, soon after SP USA was shut down and, through word of mouth, it became readily apparent that SPS’ lenders had taken control of various SPS operating subsidiaries (namely, SP USA, SP UK, SP Norway, and SP Sweden), I predicted that SPS’ financial results reports would be a complete mess, and, true to that prediction, that’s so.
Apparently, the results of the operating subsidiaries lenders took control of have been stripped out of SPS’ most recent financial-results-report; the most recent financial-results-report, apparently, reports only the financial results of the SPS group that remains under the umbrella of SPS (namely, SP Spain, SP Germany, SP Netherlands and SP Belgium. All of these operations are in bankruptcy proceedings.) The ENORMOUS “net-income” loss shown in the report (over 140 million Euros!!!) is apparently the result of SPS’ loss on the write-down of goodwill and assets on the SPS operations taken over by lenders and similar write-downs on goodwill and assets of continuing SPS-controlled operations.
Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men ,
Couldn't put Humpty together again
One of the dumbest decisions ever to grace the reprographics industry worldwide – the shutdown of SP USA. That business was worth something, it could have been sold as an on-going operation, but, nonetheless, someone made a stupid decision to shut it down and walk away.
What’s going on with the other SPS operations that were taken over by the lenders? Well, apparently, those operations are being “administered” by Ernst & Young, as administrator, on behalf of the lenders who took control of SP UK, SP Norway and SP Sweden. I can’t imagine that lenders want to own reprographics businesses, so look for those businesses to be sold off, one by one (or, possibly, as a group, but I seriously doubt that.) The rumor mill reports that negotiations are underway to sell SP UK. But, that’s only a rumor, there’s been no confirmation of that.
Posted by Joel Salus at 6:58 AM