Cenveo Posts Gains, Names Burton Jr. President
STAMFORD, CT—Boosted by the February acquisition of MeadWestvaco Corp.’s Envelope Product Group (EPG) and growth from the company’s direct envelope group, which benefited from strong direct mail volumes, Cenveo Inc. saw net sales increase approximately 11.2 percent to $495.2 million for the quarter ending July 2, compared to $445.3 million for the three months ending July 3, 2010.
In addition, the company’s board of directors has appointed Robert “Rob” Burton Jr. to the position of president. His father, Robert “Bob” Burton, is chairman and CEO of Cenveo.
For the six months ending July 2, net sales increased approximately 11.0 percent to $998.3 million, compared to $899.2 million for the six months ending July 3, 2010. For the six months ended July 2, 2011, the company generated operating income of $51.5 million, compared to $31.6 million for the same period of the previous year. These increases were driven by the acquisition of EPG and organic growth in the company’s direct envelope, custom label, content, commercial print and specialty packaging product lines.
The company generated operating income of $29.4 million for the quarter, compared to $19.4 million for the three months ending July 3, 2010. This increase was a result of lower restructuring and impairment charges, a lower operating cost structure than the prior year and contributions from the EPG acquisition. Non-GAAP operating income increased 7.5 percent to $40.6 million, compared to $37.8 million for the same period in 2010.
“Cenveo had another strong quarter with continued operational and financial improvement, meaningful net debt pay down of $20 million and significant progress integrating EPG into our operations,” said Bob Burton. “Once again we saw organic revenue growth in our direct envelope and custom label businesses which, combined with our continued focus on costs, led to improvements in our revenues, operating income and adjusted EBITDA.”