The facility closures shouldn’t immediately give magazine publishers cause for concern, as LSC assures them they have the infrastructure and capability to fulfill their business needs, a company spokesperson tells Folio:.
Among those who may be concerned are the company’s 19,500 employees, but no word yet on how the restructuring plan will impact the staff.
Prior to its Chapter 11 announcement, the company said it had $105 million in cash on hand, so it has nearly doubled it’s liquid capital in light of the additional cash it secured. According to its filing, the company reports holdings of $1.6 billion in assets and $972 million in liabilities. It’s most outstanding debt is roughly $50 million in employee pensions, plus more than a handful of vendors who have outstanding payables in the seven-figure range. The Chapter 11 restructuring plan does not include its subsidiaries in Mexico and Canada, which are, however, included in its asset valuation.
Further, the company’s publicly held stock (LKSD) has been devalued significantly over the past five years. Falling from over $37 in 2016 to 3.4 cents per share at time of press, with a market cap now of just $1.09 million, despite revenues that reach over $3 billion annually. Comparatively, its primary competitors Quad/Graphics (QUAD) and RR Donnelley (RRD), are also steeply trending downward, but are trading much higher at $3.35 and $1.41, respectively.
While they restructure after closing some plants down and become lean and mean and back to running we could see a surge like no other here....I am banking on it....risk/reward is unreal here
