Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

Cenveo Reports Income Jumps on Sales Boosted by Acquisition

May 11, 2011
STAMFORD, CT—May 11, 2011—Cenveo Inc. announced results for the three months ended April 2, 2011.

Highlights:

• 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.

The results for the first quarter of 2011 include a preliminary bargain purchase gain related to the EPG acquisition. The purchase price allocation of acquired assets and liabilities assumed in the EPG acquisition and the related bargain purchase gain recognized in the company’s statement of operations are preliminary.

Robert G. Burton, Sr., Chairman and CEO, stated, “As I stated last week, we delivered a strong first quarter, and we are pleased by our operating performance which showed mid-single digit organic revenue growth across most of our products and growth of approximately 12 percent in Adjusted EBITDA. We also began our integration efforts relating to the EPG acquisition, which closed in February. We are very pleased with the results of the acquisition to date as we now are the largest and most innovative envelope company in the world. I am also encouraged by the continued momentum that we saw in our businesses as industry and economic conditions continue to improve.
 

Companies Mentioned:

COMMENTS

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