Cenveo Posts Gains Primarily Due to Acquisition

Cenveo’s financial results for the three and nine months ended Oct. 1, 2011. (Double click to enlarge.)

For the nine months ended Oct. 1, 2011, non-GAAP operating income increased 11.5 percent to $119.4 million, compared to $107.1 million for the nine months ended Oct. 2, 2010. Non-GAAP operating income excludes integration, acquisition and other charges, stock-based compensation provision, restructuring and impairment charges and divested operations or assets held for sale. A reconciliation of operating income to non-GAAP operating income is presented in the attached tables.

For the three months ended Oct. 1, 2011, the company recorded net income of $2.8 million, compared to a net loss of $157.2 million for the three months ended Oct. 2, 2010. The improvement in net income was primarily due to lower restructuring and impairment charges and lower interest expense in the third quarter of 2011, compared to the third quarter of 2010, partially offset by higher income tax expense in the third quarter of 2011, compared to the third quarter of 2010.

For the nine months ended Oct. 1, 2011, the company recorded net income of $6.0 million, compared to a net loss of $176.6 million for the nine months ended Oct. 2, 2010. The improvement in net income was primarily due to lower restructuring and impairment charges, a preliminary bargain purchase gain related to the EPG acquisition and lower interest expense in the first nine months of 2011, compared to the first nine months of 2010, partially offset by higher income tax expense in the first nine months of 2011, compared to the first nine months of 2010 and a loss on early extinguishment of debt in the first nine months of 2010.

On a non-GAAP basis, income from continuing operations increased 97.2 percent to $16.3 million, or $0.26 per share, for the three months ended Oct. 1, 2011, compared to $8.3 million, or $0.13 per share, for the three months ended Oct. 2, 2010.

Companies:
Related Content
Comments