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.)

STAMFORD, CT—Nov. 9, 2011—Cenveo Inc.announced results for the three and nine months ended Oct. 1, 2011.

Third-Quarter Highlights:

  • Net Sales of $500.6 million, up 10 percent from 2010.
  • Net Income of $2.8 million.
  • Non-GAAP Operating Income of $44.3 million, up 12 percent from 2010.
  • Adjusted EBITDA of $61.6 million, up 8.9 percent from 2010.

For the three months, net sales increased approximately 10 percent to $500.6 million, compared to $455.1 million for the three months ended Oct. 2, 2010, primarily due to the acquisition of MeadWestvaco Corp.’s Envelope Product Group, which closed in February, and growth from the company’s direct envelope group, which benefited from strong direct mail volumes.

For the nine months ended Oct. 1, 2011, net sales increased approximately 10.7 percent to $1.50 billion, compared to $1.35 billion for the nine months ended Oct. 2, 2010. This increase was driven by the acquisition of EPG and organic growth in the company’s direct envelope, custom label, content management, and specialty packaging product lines.

The company generated operating income of $35.7 million for the three months ended Oct. 1, 2011, compared to an operating loss of $156.1 million for the three months ended Oct. 2, 2010. This increase was a result of lower restructuring and impairment charges, a lower operating cost structure than prior year and contributions from the EPG acquisition.

Non-GAAP operating income increased 12 percent to $44.3 million, compared to $39.5 million for the three months ended Oct. 2, 2010. For the nine months ended Oct. 1, 2011, the company generated operating income of $87.2 million, compared to an operating loss of $124.6 million for the nine months ended Oct. 2, 2010. This increase was a result of lower restructuring and impairment charges, a lower operating cost structure than prior year and contributions from the EPG acquisition.

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