Bowne & Co. Reports First Quarter 2009 Results

NEW YORK, NY, May 11 (MARKET WIRE) --
Bowne & Co., Inc. (NYSE: BNE), a global leader in shareholder and
marketing communications services, today announced first quarter
operating results. The Company also announced today that it has
implemented additional initiatives to achieve approximately $20 million in
annualized cost savings through a further reduction in its work force
representing 8% of total headcount. The benefits of these initiatives will
be realized in 2009 and beyond.

Revenue was $169.1 million in the first quarter of 2009 compared to $208.8
million in 2008, a decline of $39.7 million, or 19.0%. Operating loss was
($2.4) million in the first quarter of 2009 compared to operating income
of $2.9 million last year. Loss from continuing operations was ($1.9)
million or ($0.07) per diluted share, compared to income of $1.3 million,
or $0.05 per diluted share in the first quarter of 2008. Net loss was
($2.0) million compared to income of $0.7 million for the same period
last year. Total diluted loss per share, including discontinued
operations, was ($0.07) per share in the 2009 first quarter compared to
diluted earnings of $0.03 per share for the comparable period in the
prior year.

In the first quarter of 2009, the Company generated gross profit of $59.0
million, with a 34.9% gross margin contribution, compared to $70.6 million
and a 33.8% gross margin contribution in the prior year period. Segment
profit was $12.9 million in the first quarter of 2009 compared to $12.6
million in the first quarter of 2008. Segment profit margin in the first
quarter of 2009 was 7.7%, compared to 6.1% in the first quarter of 2008.
The increase in operating margins in 2009 is a direct result of the
Company's cost savings measures, which have resulted in a more efficient
operating model.

Pro forma income from continuing operations totaled $2.1 million in the
first quarter of 2009 compared to $3.0 million in the first quarter last
year, resulting in diluted earnings per share of $0.08 in the first
quarter of 2009 compared to $0.11 last year. (See page 8, Pro Forma
Supplemental Income Information for a reconciliation of these non-GAAP
financial measures to our Condensed Consolidated Statements of
Operations.)

"We are very pleased with our improvements in operating margins and
segment profit," said David J. Shea, Chairman and Chief Executive
Officer. "Our efforts to reduce costs and improve the efficiency and
flexibility of our operations are having a positive impact on operating
results despite the continued recessionary environment."

Additional comments on the operating results in the first quarter of 2009
are provided below.

Revenue:

Capital markets services revenue was $25.6 million in the first quarter,
which is $24.7 million, or 49%, lower than the comparable 2008 period, and
represents the lowest quarterly level since the mid-1990s. This decrease
is directly related to the overall decline in IPO and M&A activity. There
were only two priced IPOs during the first quarter of 2009 compared to 26
in the same period last year, and M&A activity declined 22% as compared
to the first quarter of 2008. Included in the capital market services
revenue is VDR revenue, which was $2.9 million in the first quarter of
2009 compared to $3.0 million last year.

Shareholder reporting services revenue, which includes compliance
reporting, investment management services and translations services
revenue, decreased 11%, or $11.3 million, to $94.2 million during the
quarter ended March 31, 2009, compared to $105.5 million in the comparable
quarter of 2008. Compliance reporting revenue decreased by approximately
$8.1 million as overall 10-K filings in the industry declined by 16%, or
1,400 fewer filings, while our compliance market share improved slightly.
Investment management services revenue decreased by $2.6 million,
primarily the result of pricing pressure, non-recurring work completed in
2008, and the timing of certain jobs in 2009 compared to 2008.

Marketing communications services revenue decreased $1.7 million, or 4%,
to $41.8 million during the first quarter of 2009, compared to $43.5
million in the same period last year. The decline is primarily due to the
loss of certain accounts during 2008 in connection with the transition of
acquired businesses, and lower activity levels and volumes from existing
clients as companies reduced their marketing spending in the current
economic downturn. This decline is partially offset by the addition of
revenue from the acquisition of the Rapid Solutions Group digital
business, which was acquired in April 2008.

Segment Profit: Segment profit increased by $0.3 million or 2.4% despite
the significant decrease in revenue during the quarter, and segment profit
margin improved to 7.7% from 6.1% in the prior year's first quarter. This
improvement in segment profit and margin is the direct result of the
Company's cost reduction initiatives that resulted in a more efficient
operating model. Also contributing to this improvement are the results
from the Company's recent acquisitions, as the Company realizes the
benefit of the integration and consolidation of the acquired businesses
into Bowne's existing operations.

Cost Reduction Initiatives: Bowne continues to be proactive in reducing
its fixed costs and consolidating operations, which have positioned the
Company to respond to changing economic conditions and to compete more
effectively.

During the first quarter of 2009, the Company reduced its work force,
which resulted in annualized cost reductions of $13 million. Last week,
the Company implemented a further reduction in its work force of
approximately 250 positions, which resulted in additional annualized cost
reductions estimated at $20 million. These work force reductions included
a broad range of enterprise-wide functions and are a continuation of the
cost savings initiatives implemented during the past few years.

Balance Sheet and Cash Flow: During the quarter ended March 31, 2009, cash
and marketable securities decreased $1.1 million from December 31, 2008.
Net cash used in operating activities was $20.6 million for the quarter
ended March 31, 2009, compared to $33.5 million for the quarter ended
March 31, 2008.

Average days sales outstanding was 72 days for the quarter ended March 31,
2009 compared to 67 days for the quarter ended March 31, 2008.
Work-in-process inventory was $25.9 million at March 31, 2009 compared to
$28.2 million at March 31, 2008.

As previously announced, on March 31, 2009, the Company amended its $150.0
million credit facility and extended its maturity to May 2011. The amended
facility was restructured as an asset-based loan consisting of term loans
of $27.0 million and a revolving credit facility of $123.0 million. The
amended facility provides the Company with flexibility to manage through
the current recessionary environment and positions it to capture revenue
opportunities quickly when the markets return.

As of March 31, 2009 the Company had $79.4 million outstanding under its
$123 million revolving credit facility, $27.0 million of term loans
outstanding, and $8.3 million outstanding under the Company's Convertible
Subordinated Debentures. The Company was in compliance with its debt
covenants as of March 31, 2009, and expects to remain in compliance
throughout the remainder of 2009.

Business Outlook: Given the volatility in the capital markets and the
nature of its business, the Company is not adjusting its annual guidance
at this time. This is consistent with the Company's policy of not
adjusting annual guidance unless it believes the actual results will be
materially outside the range provided. The Company expects overall
operating performance will be in the range of the full-year guidance
previously provided in March.

Forward-Looking Statements: The Company notes that forward-looking
statements of future performance made in this release are based upon
current expectations and are subject to factors that could cause actual
results to differ materially from those suggested here, including demand
for and acceptance of the Company's services, new technological
developments, competition and general economic or market conditions,
particularly in the domestic and international capital markets.

Bowne & Co., Inc. will hold its earnings conference call to review its
2009 first quarter results on Tuesday, May 12, 2009, at 11 a.m. Eastern
Time. To join the Webcast, log on to http://www.bowne.com. To access the
call via telephone, please dial (877) 407-0778 (domestic) or (201)
689-8565 (international), conference ID # 322246.

About Bowne & Co., Inc.

Bowne & Co., Inc. (NYSE: BNE) provides shareholder and marketing
communications services around the world. Dealmakers rely on Bowne to
handle critical capital markets communications with speed and accuracy.
Compliance professionals turn to Bowne to prepare and file regulatory and
shareholder communications online and in print. Investment managers and
third party fund administrators count on Bowne's integrated solutions to
streamline their document processes and produce high quality
communications for their shareholders. Marketers look to Bowne to create
and distribute customized, one-to-one communications on demand. With
2,800 employees in 55 offices around the globe, Bowne has met the
ever-changing demands of its clients for more than 230 years. For more
information, please visit www.bowne.com.

[Tables follow]

BOWNE & CO., INC.
(NYSE: BNE)
Condensed Consolidated Statements of Operations
(unaudited)

(in thousands, except per share information) For the Quarters Ended
March 31,
------------------------
2009 2008
---------- ----------

Revenue $ 169,105 $ 208,767
Expenses:
Cost of revenue (110,070) (138,163)
Selling and administrative (46,085) (57,962)
Depreciation (7,401) (6,630)
Amortization (1,367) (588)
Restructuring, integration and asset
impairment charges(1) (6,585) (2,555)
---------- ----------
(171,508) (205,898)
---------- ----------
Operating (loss) income (2,403) 2,869
Interest expense (867) (2,283)
Other income, net 743 766
---------- ----------
(Loss) income from continuing operations
before income taxes (2,527) 1,352
Income tax benefit (expense) 659 (64)
---------- ----------
(Loss) income from continuing operations (1,868) 1,288
Net loss from discontinued operations (92) (578)
---------- ----------
Net (loss) income $ (1,960) $ 710
========== ==========

(Loss) earnings per share from continuing operations:
Basic $ (0.07) $ 0.05
Diluted $ (0.07) $ 0.05
Loss per share from discontinued operations:
Basic $ (0.00) $ (0.02)
Diluted $ (0.00) $ (0.02)
Total (loss) earnings per share:
Basic $ (0.07) $ 0.03
Diluted $ (0.07) $ 0.03
Weighted-average shares outstanding:
Basic 27,853 27,051
Diluted 27,853 27,820

Dividends per share(2) $ 0.055 $ 0.055

(1) 2009 includes approximately $5.5 million in costs related to workforce
reductions and facility consolidations, and approximately $1.1 million
related to the integration of acquired businesses. 2008 includes
$1.1 million in costs related to the integration of the acquisitions of
Alliance Data MB (November 2007) and GCom2 Solutions (February 2008).

(2) Dividends for the quarter ended March 31, 2009 were paid in shares of
Bowne Common Stock. Dividends for the quarter ended March 31, 2008 were
paid in cash.

BOWNE & CO., INC.
(NYSE: BNE)
Condensed Consolidated Balance Sheets

Mar. 31, Dec. 31,
(in thousands) 2009 2008
----------- -----------
(unaudited)
Assets
Cash and cash equivalents $ 10,409 $ 11,524
Marketable securities 183 193
Accounts receivable, net 143,647 116,773
Inventories 35,721 27,973
Prepaid expenses and other current assets 40,925 45,990
----------- -----------
Total current assets 230,885 202,453
----------- -----------

Property, plant and equipment, net 125,384 130,149
Goodwill and other intangibles, net 90,955 92,195
Other assets 63,423 55,952
----------- -----------
Total assets $ 510,647 $ 480,749
=========== ===========

Liabilities and Stockholders' Equity
Current portion of long-term debt and short-term
borrowings $ 12,157 $ 842
Accounts payable and accrued liabilities 114,140 109,042
----------- -----------
Total current liabilities 126,297 109,884
----------- -----------

Long-term debt 103,798 88,352
Deferred employee compensation 76,452 75,868
Deferred rent and other 19,598 20,062
Stockholders' equity 184,502 186,583
----------- -----------
Total liabilities and stockholders' equity $ 510,647 $ 480,749
=========== ===========

BOWNE & CO., INC.
(NYSE: BNE)
Condensed Consolidated Statements of Cash Flows
(unaudited)

Quarters Ended March 31,
-----------------------
(in thousands) 2009 2008
---------- ----------

Cash flows from operating activities:
Net (loss) income $ (1,960) $ 710
Net loss from discontinued operations 92 578
Depreciation and amortization 8,768 7,218
Changes in other assets and liabilities, net of
acquisitions, discontinued operations and
certain non-cash transactions (27,384) (40,764)

Net cash used in operating activities of
discontinued operations (157) (1,204)
---------- ----------

Net cash used in operating activities (20,641) (33,462)
---------- ----------

Cash flows from investing activities:
Purchase of property, plant and equipment (2,798) (3,942)
Purchase of marketable securities - (5,000)
Proceeds from the sale of marketable securities
and other 35 31,628
Acquisition of businesses, net of cash acquired (195) (47,134)
---------- ----------
Net cash used in investing activities (2,958) (24,448)
---------- ----------

Cash flows from financing activities:
Payments of borrowings under revolving credit
facility and capital lease obligations (5,209) (277)
Proceeds from borrowings under revolving credit
facility, net of debt issuance costs 27,976 21,000
Proceeds from stock options exercised - 10
Payment of cash dividends - (1,447)
Other - 210
---------- ----------
Net cash provided by financing activities 22,767 19,496
---------- ----------

Effects of exchange rates on cash flows and cash
equivalents (283) (2,961)

Net decrease in cash and cash equivalents (1,115) (41,375)
Cash and Cash Equivalents, beginning of period 11,524 64,941
---------- ----------
Cash and cash equivalents, end of period $ 10,409 $ 23,566
========== ==========

BOWNE & CO., INC.
(NYSE: BNE)
Segment Information
(unaudited)

Management uses segment profit to evaluate Company performance.
Segment profit is defined as gross profit (revenue less cost of revenue)
less selling and administrative expenses. Segment performance is evaluated
exclusive of interest, income taxes, depreciation, amortization,
restructuring, integration and asset impairment charges, and other
expenses and other income. Segment profit is measured because management
believes that such information is useful in evaluating the Company's
results relative to other entities that operate within our industry. Our
segment profit is also used as the primary financial measure for purposes
of evaluating financial performance under the Company's annual incentive
plan.

(in thousands) For The Quarters Ended
March 31,
2009 2008
---------- ----------

Capital markets services revenue:
Transactional $ 22,681 $ 47,270
Virtual data room 2,890 3,044
---------- ----------
Total capital markets services revenue 25,571 50,314
Shareholder reporting services revenue:
Compliance reporting 45,348 53,448
Investment management 45,498 48,066
Translation services 3,387 4,033
---------- ----------
Total shareholder reporting services revenue 94,233 105,547
Marketing & communications services revenue 41,769 43,480
Commercial printing and other revenue 7,532 9,426
---------- ----------
Total revenue 169,105 208,767
Cost of revenue (110,070) (138,163)
---------- ----------
Gross profit 59,035 70,604
Selling and administrative expenses (46,085) (57,962)
---------- ----------
Segment profit $ 12,950 $ 12,642
========== ==========

BOWNE & CO., INC.
(NYSE: BNE)
PRO FORMA SUPPLEMENTAL INCOME INFORMATION
Reconciliation to Condensed Consolidated Statements of Operations
(unaudited)

Pro forma supplemental income information, which is not prepared in
accordance with generally accepted accounting principles, excludes
restructuring, integration and asset impairment charges and tax benefits
associated with tax refunds. The Company believes that the presentation of
this supplemental information is useful to investors to evaluate
performance in comparison to prior year's results. This pro forma
supplemental information is an alternative to, and not a replacement
measure of, operating performance as determined in accordance with
generally accepted accounting principles.

For the Quarters
Ended March 31,
------------------
(in thousands, except per share information) 2009 2008
-------- ---------
Net (loss) income from continuing operations $ (1,868) $ 1,288
Add back: (net of pro forma tax effect)
Restructuring, integration and asset impairment
charges(1) 3,959 1,740
-------- ---------
Income from continuing operations, pro forma $ 2,091 $ 3,028
======== =========
(Loss) earnings per share from continuing operations:
Basic $ (0.07) $ 0.05
Diluted $ (0.07) $ 0.05
Earnings per share from continuing operations--pro
forma:
Basic $ 0.08 $ 0.11
Diluted $ 0.08 $ 0.11
Weighted-average shares outstanding:
Basic 27,853 27,051
Diluted 27,853 27,820

(1) In 2009, restructuring, integration and asset impairment charges of
$6.6 million is net of tax benefit of $2.6 million. In 2008, the
restructuring, integration and asset impairment charges of $2.6
million is net of tax benefit of $0.9 million.

Investor Relations Contact:
John J. Walker
SVP & Chief Financial Officer
212-658-5804
john.walker@bowne.com

Media Contact:
Pamela Blum
212-658-5884
Director of Corporate Communications
pamela.blum@bowne.com

Bowne & Co., Inc.
55 Water Street
New York, NY 10041
(212) 924-5500
Fax: (212) 658-5871

Copyright 2009, Market Wire, All rights reserved.

-0-