Cenveo Posts Mixed, but Mostly Flat or Lower Financial Results

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.

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.

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