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Cenveo Posts Mixed, but Mostly Flat or Lower Financial Results

November 8, 2012
STAMFORD, CT—Nov. 7, 2012—Cenveo Inc. has posted its financial results for the three and nine months ended Sept. 29, 2012.

The company generated net sales of  $451.3 million in the third quarter of 2012, compared to  $475.8 million for the third quarter of 2011. The decrease in net sales was primarily due to lower sales in our print and envelope product lines as a result of lower direct mail volumes from financial services customers, the closure and consolidation of a print plant in the first quarter of 2012 and the decision to exit certain low margin businesses.

Cenveo generated net sales of $1.3 billion for the first  nine months of 2012, compared to $1.4 billion for the first nine months of 2011. Net sales from our label and packaging business lines remained relatively flat for the quarter and for the nine months of 2012 despite the decision to exit low margin businesses within those platforms, which has been offset largely by the company’s e-commerce initiatives and new account wins in its packaging business.

Operating income was $35.0 million for the latest quarter, compared to $33.2 million for the third quarter of 2011. The increase in operating income was primarily due to our lower cost structure as a result of the integration of our Envelope Product Group (EPG) acquisition and lower compensation related expenses, offset by lower byproduct recoveries and increased pension expense. Non-GAAP operating income was $42.4 million, compared to $41.6 million for the third quarter of 2011.

Operating income was $78.2 million for the first nine months of 2012, compared to $78.8 million for the first  nine months of 2011. The decrease in operating income was primarily due to increased restructuring, impairment and other charges as a result of the closure and consolidation of a print plant in the first quarter of 2012 and other cost savings actions, lower byproduct recoveries and increased pension expense, offset in part by our lower cost structure due to the integration of our EPG acquisition and lower compensation related expenses.

Non-GAAP operating income was  $110.3 million for the first  nine months of 2012, compared to $110.4 million for the first  nine months of 2011. Non-GAAP operating income excludes integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges.

For the third quarter of 2012, Cenveo had income from continuing operations of $4.7 million, compared to $1.3 million for the third quarter of 2011. Non-GAAP, income from continuing operations was $13.6 million vs. $13.7 million for the third quarter of 2011.

For the first nine months of 2012, the company had a loss from continuing operations of $17.9 million, compared to income from continuing operations of $0.7 million for the first nine months of  2011. Non-GAAP, income from continuing operations was  $26.3 million for the most recent nine months vs. $22.3 million for the first nine months of 2011.
 

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