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Cenveo Reports Larger Loss on Small Uptick in Sales

March 3, 2011
STAMFORD, CT—March 2, 2011—Cenveo, Inc. announced results for the three months and full year ended Jan. 1, 2011. For the quarter, its net sales were $460.4 million, as compared to $456.8 million for the same period in the previous year. For the three months, the company reported a net loss of $9.8 million, as compared to a net loss of $9.4 million for the quarter in 2010. The net loss includes non-cash restructuring charges of $12 million, primarily related to real estate actively being marketed for sale and the company’s decision to exit two multi-employer pension funds as well as a loss on early extinguishment of debt of $7.0 million relating to the refinancing of its credit facility.

On a Non-GAAP basis, income from continuing operations was $14.1 million for the three months ended Jan. 1, 2011. Non-GAAP income from continuing operations excludes integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges, divested operations or assets held for sale, (gain) loss on early extinguishment of debt and adjusts income taxes to reflect an estimated cash tax rate.

Adjusted EBITDA for the quarter was $60.3 million. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges, divested operations or assets held for sale, (gain) loss on early extinguishment of debt, and income (loss) from discontinued operations, net of taxes.

For the full year ended Jan. 1, 2011, net sales were $1.8 billion, as compared to $1.7 billion for the same period in the previous year. The increase in the company’s net sales was primarily due to the inclusion of Nashua in the company’s results for a full year in 2010, partially offset by the loss of sales from plant closures and consolidation that occurred in 2009 and early 2010.

Cenveo recorded a net loss of $186.4 million as compared to a net loss of $30.9 million for the year ended Jan. 2, 2010. Net loss for the year just ended includes $181.4 million of non-cash goodwill and other long-lived asset impairment charges related to our PSG reporting unit and a $9.6 million loss on early extinguishment of debt related to the company’s two financing transactions. The year ended Jan. 2, 2010 included gains on early extinguishment of debt of $16.9 million. On a Non-GAAP basis, income from continuing operations was $27.7 million or $0.44 per diluted share for the full year.

Adjusted EBITDA for the year ended Jan. 1, 2011 was $216.3 million, as compared t $201.7 million for the year ended Jan. 2, 2010.
 

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