Open Enrollment | Subscribe to Printing Impressions HERE
Follow us on

Cenveo Posts Mixed, but Mostly Flat or Lower Financial Results

November 8, 2012

Adjusted EBITDA for the third quarter of 2012 was $57.0 million, compared to $58.2 million in 2011. Adjusted EBITDA for the first nine months of 2012 was $157.1 million, compared to $159.1 million for the same period of 2011.

Financing and 2013 Maturity update:

Cenveo has been evaluating several alternatives to retire  its outstanding notes with a December 2013 maturity. In particular, it is in discussions with prospective lenders regarding arrangements that would provide the company with an unsecured loan in order to achieve full retirement of these notes by the end of 2012. While there can be no assurance that Cenveo will be able to reach an agreement with such lenders on acceptable terms, management is optimistic that it will be able to announce a solution shortly.

Robert G. Burton, Sr., chairman and CEO, stated, “Our third quarter results showed sequential improvement as most of our operations performed to our expectations. We achieved this performance despite the well-known top line challenges stemming from continued softness in direct mail from our financial services customers. We have been able to largely offset the weakness in direct mail by continuing to focus on our cost structure as evidenced by our improved operating margins and by solid performances across most of our operations.

“Our label products performed well with strong e-commerce revenue and product expansion driving anticipated growth especially across our custom label products, which showed 5 percent sales growth this quarter,” Burton continued. “Our print products were led by improving performance out of our commercial print group, which again showed margin improvement, and continued profit growth in our content management product line. Our envelope operations have been impacted by continued weakness in the direct mail market throughout the first nine months of the year.

“While some of this weakness was anticipated, we have yet to see any meaningful rebound in customer ordering patterns in regards to the credit card market to date. However, we have been successful in replacing a portion of this volume with more transactional envelope business, driven by market share gains. We do believe that we will see a return to more normalized volume in the direct market in 2013.”

Burton concluded, “As we enter the final quarter of 2012, we are pleased to be in position to put our 2013 maturity behind us before entering our fiscal 2013 year, and we can now focus 100 percent of our efforts back on operating and growing the business. Despite the challenging macro environment we have faced so far this year, we have been able to continue to drive cash flow, pay down debt and expand our operating margins. We expect that the momentum across each of our business segments to carry over into next year. We remain entirely focused on executing our game plan and remain excited about opportunities ahead of us in 2013 and beyond.”

About Cenveo
Cenveo (NYSE: CVO), headquartered in Stamford, CT, is a leading global provider of print and related resources, offering world-class solutions in the areas of custom labels, specialty packaging, envelopes, commercial print, content management and publisher solutions. The company provides a one-stop offering through services ranging from design and content management to fulfillment and distribution. With approximately 7,900 employees worldwide, we pride ourselves on delivering quality solutions and service every day for our more than 100,000 customers.

Source: Cenveo.

Companies Mentioned:


Click here to leave a comment...
Comment *
Most Recent Comments: