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Cenveo Posts Net Loss on Net Sales Decline

May 9, 2012
STAMFORD, CT—May 9, 2012—Cenveo Inc. announced its results for the three months ended March 31, 2012.

Highlights:
  • Sales of $455.6 million
  • Operating income of $14.2 million
  • Non-Gaap operating income of $31.6 million
  • Adjusted EBITDA of $47.0 million

The company generated net sales of $455.6 million for the first quarter of 2012, compared to $477.0 million in the first 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 customer product launches in the first quarter of 2011 that did not repeat in the first

Cenveo expects the direct mail market to strengthen in the second half of 2012. It’s custom label and specialty packaging products both displayed strong growth relating to customer wins and sales channel expansion.

In the first quarter of 2012, Cenveo had a net loss of $27.2 million, compared to net income of $2.8 million in the first quarter of 2011. The 2012 results include a loss on early extinguishment of debt, net of $10.6 million related to our recent debt refinancing and restructuring, impairment and other charges of $14.0 million as a result of a print plant closure and other cost savings actions executed in the first quarter of 2012.

The company’s operating income was $14.2 million in the first quarter of 2012, compared to $19.3 million in the first quarter of 2011. The decrease was primarily due to increased restructuring, impairment and other charges as a result of a print plant closure and other cost savings actions executed in the first quarter of 2012, offset in part by our lower cost structure due to the integration of our Envelope Product Group (“EPG”) acquisition and lower compensation related expenses.

Non-GAAP operating income was $31.6 million in the first quarter of 2012, vs. $31.5 million in the first quarter of 2011. Non-GAAP operating income excludes integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges.

On a Non-GAAP basis, income from continuing operations was $3.3 million in the first quarter of 2012, as compared to $1.1 million in the first quarter of 2012. Non-GAAP income (loss) from continuing operations excludes integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges, gain on bargain purchase, loss on early extinguishment of debt, net and adjusts income taxes to reflect an estimated cash tax rate. A reconciliation of (loss) income from continuing operations to Non-GAAP income from continuing operations is presented in the attached tables.
 

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