Cenveo’s Net Sales Fall, but Income Figures Show Mixed Results

Operating income was $43.2 million for the first six months of 2012, compared to $45.5 million for the first six months of 2011. The decrease in operating income was primarily due to increased restructuring, impairment and other charges as a result of the closure and consolidation of a print plant and other cost savings actions executed in the first quarter of 2012, increased pension expense and lower recoveries, offset in part by our lower cost structure due to the integration of our EPG acquisition and lower compensation related expenses.

Non-GAAP operating income was $67.9 million for the first six months of 2012, compared to $68.8 million for the first six months of 2011. Non-GAAP operating income excludes integration, acquisition and other charges, stock-based compensation provision, restructuring, impairment and other charges.

For the second quarter of 2012, Cenveo had income from continuing operations of less than $0.1 million, compared to a loss from continuing operations of $1.6 million. On a Non-GAAP basis, income from continuing operations was $8.4 million for the second quarter of 2012, as compared to $7.5 million for the second quarter of 2011.

For the first six months of 2012, the company had a loss from continuing operations of $22.5 million compared to loss from continuing operations of $0.5 million for the first six months of 2011.

Adjusted EBITDA for the second quarter of 2012 was $53.1 million, compared to Adjusted EBITDA for the second quarter of 2011 of $53.5 million. Adjusted EBITDA for the first six months of 2012 was $100.1 million, compared to Adjusted EBITDA for the first six months of 2011 of $100.9 million.

Robert G. Burton, Sr., chairman and CEO stated, “Our second quarter results were in line with our expectations as we continued to execute well despite a challenging economic back drop. We were able to generate over $33 million in cash flow from operating activities of continuing operations, pay down debt and materially address our notes maturing in December 2013 by retiring $50.0 million of these notes.

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