8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2009

NASHUA CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	1-05492	02-0170100
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

11 Trafalgar Square, Suite 201
Nashua, New Hampshire 03063
(Address of principal executive offices and zip code)

(603)880-2323
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 — Results of Operations and Financial Condition
	Item 9.01 — Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EX-99.1 Press Release-"Nashua Reports First Quarter 2009 Results" dated May 7, 2009

Item 2.02 — Results of Operations and Financial Condition

     On May 7, 2009, Nashua Corporation announced its financial results for the first quarter ended April 3, 2009. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

     The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 — Financial Statements and Exhibits

(d) Exhibits

     The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

Exhibit
Number	Description
99.1	Press Release — “Nashua Reports First Quarter 2009 Results” dated May 7, 2009.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	NASHUA CORPORATION
Date: May 8, 2009	By	/s/ John L. Patenaude
		John L. Patenaude
		Vice President-Finance, Chief Financial Officer and Treasurer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release — “Nashua Reports First Quarter 2009 Results” dated May 7, 2009.

EX-99.1

Exhibit 99.1

Contact:	Tom Brooker/John Patenaude	Rich Coyle
	Nashua Corporation	Sard Verbinnen
	847-318-1797/603-880-2145	212-687-8080

NASHUA REPORTS FIRST QUARTER 2009 RESULTS

     NASHUA, N.H., May 7, 2009 — Nashua Corporation (NASDAQ: NSHA), a manufacturer and marketer of labels and thermal specialty papers, today announced financial results for the first quarter ended April 3, 2009.

Net sales for the first quarter of 2009 were $62.5 million, compared to $63.9 million for the first quarter of 2008. Gross margin for the first quarter of 2009 was $8.9 million, or 14.2%, compared to $9.9 million, or 15.4%, for the first quarter of 2008. Nashua reported a loss before income taxes of $0.3 million in the first quarter of 2009 compared to a loss before income taxes of $0.6 million in the first quarter of 2008. Net loss was $0.3 million, or $0.06 per share, for the first quarter of 2009, compared to a net loss of $0.4 million, or $0.07 per share, for the first quarter of 2008. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1.0 million for the first quarter of 2009, compared to $0.9 million for the first quarter of 2008.

Business Segment Highlights

Nashua’s Label Products segment, which prints and converts product for the grocery, food service, retail, transportation, entertainment and general industrial markets, reported net sales of $27.2 million and gross margin of $2.9 million, or 10.6%, for the first quarter of 2009. For the first quarter of 2008, net sales were $26.0 million and gross margin was $3.8 million, or 14.6%.

Sales in the Label Products segment increased 4.5% from the first quarter in 2008. The increase is mainly attributable to increased sales in the automatic identification and pharmacy product lines. Gross margins in the Label Products segment were negatively impacted by employee training, repair and maintenance, and other start-up costs as a result of the consolidation of the Jacksonville, Florida manufacturing operations into the Jefferson City, Tennessee and Omaha, Nebraska plants.

Nashua’s Specialty Paper Products segment, which includes the paper coating and converting businesses, reported net sales of $35.8 million and gross margin of $5.4 million, or 15.1%, for the first quarter of 2009. For the first quarter of 2008, net sales were $38.6 million and gross margin was $5.9 million, or 15.3%.

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Specialty Paper Products segment sales declined 7.4% from the first quarter of 2008. The decline in the Specialty Paper Products segment sales is primarily attributable to lower sales in the wide format product line, which is mainly used in architectural applications, as a result of softness in the construction industry. Margins in the segment declined as a result of lower volumes.

Thomas Brooker, President and Chief Executive Officer, stated, “We are pleased with the gain in market share and new account development in the Label group. Overall business conditions remain very challenging especially in the retail and construction industries which have led to a decline in our specialty paper group. We have continued to reduce cost in both SG & A and the operational areas of our business. The consolidation in manufacturing and distribution initiated in 2008 should provide more favorable bottom line results during 2009. Our focus remains on increasing profitable sales in both new and existing accounts and productivity improvement throughout the organization.”

Use of Non-GAAP Measures

EBITDA is presented as supplemental information that management of Nashua believes may be useful to some investors in evaluating the Company because it is widely used as a measure of evaluating a company’s operating performance, as well as to evaluate its operating cash flow. EBITDA is used by management in the computation of ratios utilized for financing purposes and for planning and forecasting in future periods. EBITDA is calculated by adding back net interest expense, income tax expense, depreciation and amortization to net income. EBITDA should not be considered a substitute either for net income, as an indicator of Nashua’s operating performance, or for cash flow, as a measure of Nashua’s liquidity. In addition, because EBITDA may not be calculated in the same manner by all companies, the presentation here may not be comparable to other similarly titled measures of other companies.

About Nashua

Nashua Corporation manufactures and markets a wide variety of specialty imaging products and services to industrial and commercial customers to meet various print application needs. The Company’s products include thermal coated papers, pressure-sensitive labels, colored copier papers, bond, point of sale, ATM and wide-format papers, entertainment tickets, as well as toners, developers, and ribbons for use in imaging devices. Additional information about Nashua Corporation can be found at www.nashua.com.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “will,” “expects,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are

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not limited to, the Company’s future capital needs and resources, fluctuations in customer demand, intensity of competition from other vendors, timing and acceptance of new product introductions, delays or difficulties in programs designed to increase sales and profitability, general economic and industry conditions, and other risks set forth in the Company’s filings with the Securities and Exchange Commission, and the information set forth herein should be read in light of such risks. In addition, any forward-looking statements represent the Company’s estimates only as of the date of this press release and should not be relied upon as representing the Company’s estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if its estimates change.

First Quarter 2009 Earnings Results

NASHUA CORPORATION SUMMARY RESULTS OF OPERATIONS

Periods ended April 3, 2009 and March 28, 2008, respectively	Three Months
Dollars in thousands, except per share amounts (Unaudited)	2009			2008
Net sales	$	62,478		$	63,926
Cost of products sold		53,588			54,068
Gross margin	$	8,890		$	9,858
Gross margin %		14.2	%		15.4	%
Selling, distribution and administrative expenses		8,986			10,013
Research and development expenses		147			186
(Income) loss from equity investment		(2	)		37
Interest expense		165			163
Interest income		(1	)		(48	)
Change in fair value of interest rate swap		121			360
Other income (1)		(209	)		(264	)
Loss before income tax benefit		(317	)		(589	)
Income tax benefit		—			(236	)
Net loss	$	(317	)	$	(353	)
Earnings per share:
Net loss per common share	$	(0.06	)	$	(0.07	)
Average common shares		5,314			5,396

⁽¹⁾ Other income for the three months ended April 3, 2009 and March 28, 2008 represents income from the deferred gain from the sale of real estate and royalty income from the sale of toner formulations.

First Quarter 2009 Earnings Results

NASHUA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	April 3			December 31
Dollars in thousands	2009			2008
Assets
Cash and cash equivalents	$	—		$	1,592
Accounts receivable		25,513			27,469
Inventories		21,079			21,785
Other current assets		7,089			5,599
Total current assets		53,681			56,445
Plant and equipment, net		19,420			20,154
Goodwill, net of amortization		17,374			17,374
Intangibles, net of amortization		248			260
Other assets		4,444			5,970
Total assets	$	95,167		$	100,203
Liabilities and Shareholders’ Equity
Accounts payable	$	13,556		$	11,968
Accrued expenses		7,794			8,900
Borrowings under revolving line of credit		2,575			—
Current maturities of long-term debt		—			8,125
Current maturities of notes payable		13			18
Total current liabilities		23,938			29,011
Long-term debt		2,800			2,800
Other long-term liabilities		46,966			46,879
Total long-term liabilities		49,766			49,679
Common stock and additional capital		20,951			20,684
Retained earnings		39,388			39,705
Accumulated other comprehensive loss:
Minimum pension liability adjustment		(38,876	)		(38,876	)
Total shareholders’ equity		21,463			21,513
Total liabilities and shareholders’ equity	$	95,167		$	100,203

First Quarter 2009 Earnings Results

NASHUA CORPORATION
RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION

Periods ended April 3, 2009 and March 28, 2008, respectively	Three Months
In thousands (Unaudited)	2009			2008
Net loss	$	(317	)	$	(353	)
Add back:
Interest expense		165			163
Interest income		(1	)		(48	)
Change in fair value of interest rate swap		121			360
Income tax benefit		—			(236	)
Depreciation and amortization		985			1,051
Earnings before interest, taxes, depreciation and amortization	$	953		$	937

First Quarter 2009 Earnings Results

NASHUA CORPORATION SELECTED FINANCIAL DATA

Periods ended April 3, 2009 and March 28, 2008, respectively	Three Months
Dollars in thousands (Unaudited)	2009			2008
NET SALES
Label Products	$	27,187		$	26,026
Specialty Paper Products		35,752			38,588
All Other		1,594			1,093
Reconciling Items:
Eliminations		(2,055	)		(1,781	)
Net sales	$	62,478		$	63,926
Gross Margin
Label Products	$	2,883		$	3,805
Specialty Paper Products		5,400			5,893
All Other		607			166
Reconciling Items:
Eliminations		—			(6	)
Total gross margin		8,890			9,858
DEPRECIATION AND AMORTIZATION
Label Products	$	396		$	467
Specialty Paper Products		494			502
Reconciling Item:
Selling, Administrative and Research and Development		95			82
Total depreciation and amortization	$	985		$	1,051
INVESTMENT IN PLANT AND EQUIPMENT
Label Products	$	107		$	103
Specialty Paper Products		132			137
Reconciling Item:
Selling, Administrative and Research and Development		—			285
Total Investment in plant and equipment	$	239		$	525
PENSION AND POSTRETIREMENT EXPENSE
Label Products	$	58		$	67
Specialty Paper Products		62			48
Reconciling Item:
Selling, Administrative and Research and Development		403			168
Total pension and postretirement expense	$	523		$	283