The Company was the 3rd largest distributor of books and magazines in the country, servicing all major retailers.

The Company operated four Distribution Centers.

Industry consolidation resulted in three major distributors and small regional competitors.

FDP was engaged by the Board of Directors to perform an operational review of the Company and to assess strategic options. FDP’s review and analyses included:

–Assessing the channels of distribution and the leverage of the publishers and retailers;

–Reviewing management’s pricing strategy;

–Performing a detailed analysis of profitability by customer;

–Evaluating a downsizing strategy supported by the review of same store sales increases/decreases and new store openings by customer, and profitability by market segment; and

–Analyzing warehouse operations and freight logistics to reduce operating expenses.

FDP worked closely with management to prioritize strategic initiatives and develop tactics to improve profitability:

–Initiated a significant price increase for select customers;

–Implemented a fuel surcharge price increase for select customers;

–Advised management on obtaining price reductions from major publishers; and

–Promoted an aggressive sales calling effort that resulted in substantial new volume.

Assisted management in the implementation of an expense reduction program.

FDP identified and implemented $8 million in strategic and tactical initiatives to restore profitability.

FDP recommended to the Board that the magazine business be sold, after evaluating market competition, trends and assessing the current, inadequate return on investment.

FDP identified the buyer and advised management on the sale of the division.