Cenveo Reports Income Jumps on Sales Boosted by Acquisition
STAMFORD, CT—May 11, 2011—Cenveo Inc. announced results for the three months ended April 2, 2011.
• Net Sales of $503.1 million, up 11 percent from 2010,
• Operating Income of $22.2 million, up 82 percent from 2010,
• Non-GAAP Operating Income of $34.5 million, up 16 percent from 2010, and
• Adjusted EBITDA of $51.1 million, up 12 percent from 2010.
For the first quarter of 2011, net sales increased approximately 11 percent to $503.1 million, as compared to $453.9 million in the first quarter of 2010. This increase was driven by the acquisition of MeadWestvaco Corp.’s Envelope Product Group (“EPG”), which closed in February, and mid-single-digit percentage organic growth in Cenveo’s custom label, commercial print and specialty packaging products.
The company generated operating income of $22.2 million in the first quarter of 2011, compared to $12.2 million in the first quarter of 2010, an increase of approximately 82 percent. Non-GAAP operating income increased approximately 16 percent to $34.5 million in the first quarter of 2011, compared to $29.8 million in the first quarter of 2010, as a result of both the benefits of the company’s focus on cost containment and increased utilization in certain businesses.
Cenveo recorded net income of $2.8 million compared to a net loss of $11.1 million for the first quarter of 2010. The results for the first quarter of 2011 include a preliminary bargain purchase gain of $10.5 million related to the EPG acquisition while the results for the first quarter of 2010 include a loss on early extinguishment of debt of $2.6 million.
On a Non-GAAP basis, income from continuing operations was $4.0 million, as compared to a Non-GAAP loss from continuing operations of $0.5 million in the same prior-year period.
Adjusted EBITDA in the first quarter of 2011, grew approximately 12 percent to $51.1 million, compared to $45.5 million in the first quarter of 2010. This increase is primarily attributable to stronger performance across the majority of the company’s product lines and minimal contribution from EPG given the timing of our integration plan.