Commercial printer company and personnel news from Printing Impressions’ November 2012 edition.
Cenveo Inc. has started buying back its 7.875-percent notes before they mature in 2013 as part of its mission to deleverage the printing and packaging company, which may be headed toward a sale. During Cenveo’s Aug. 9 second-quarter earnings call, the company’s chairman and CEO, Robert G. Burton Sr., addressed the potential sale of the company. “We’ll decide if we’re going to sell the company, and by the way, we’ve had people knocking on the door for the last several years,” he told listeners.
Documents filed with the Securities and Exchange Commission show that the company has gradually retired its 7.875-percent
NEW YORK—Standard & Poor’s (S&P) Ratings Services placed all ratings for Stamford, CT-based Cenveo Inc., including the "B" corporate credit rating, on CreditWatch with negative implications.
Standard & Poor’s Ratings Services placed all ratings for Cenveo Inc., including the ‘B’ corporate credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects Standard & Poor's expectation that the company may not have enough liquidity to pay down its 7.875-percent senior notes by mid-2013.
“Over the next year, we expect the company’s leverage to remain high and liquidity to remain limited, with significant debt maturities in 2013. For these reasons, we consider Cenveo's financial profile ‘highly leveraged.’ We view the company's business risk profile as ‘weak’ because of Cenveo’s participation in the highly competitive and cyclical printing markets.
Cenveo will outfit its manufacturing facilities with SoftSolutions’ Flex intelligent shop floor management system to provide trustworthy data, standard workflows, real-time control, enterprise-wide performance standards and KPI’s. “We have had great success in several facilities within our print segment and anticipate similar results across our envelope, labels, and packaging business segments,” Pete Popovics, Cenveo’s vice president of safety and environmental affairs, stated.
EUREKA, MO—A fulfillment company that provided binding work for Cenveo Inc. closed down last week without any warning, KTVI-TV Channel 2 reported. Infinity Fulfillment Group shuttered Aug. 23, leaving 60 employees out of work and owed three weeks' pay.
Sixty people are out of work, with no pay in Eureka, MO. The company (Infinity Fulfillment Group) closed with no warning; they’re owed three weeks pay, workers said. Until the final hour, they’d been working seven-day weeks, after taking a 10-percent pay cut.
Cenveo generated net sales of $438.9 million for the second quarter of 2012, compared to $469.9 million for the same quarter of 2011. The decrease was primarily due to lower sales in its print and envelope product lines as a result of lower direct mail volumes from our financial services customers.
Commercial Printing Industry News Briefs from Printing Impressions’ July 2012 edition, including items on Vistaprint, RR Donnelley, Tidewater Direct, QuadDirect, Cenveo and Hiedelberg.
CHAMBERSBURG, PA—U.S. Government Printing Office (GPO) work to private sector printers increased modestly from the fourth quarter of 2011 through the first quarter of 2012, and industry officials express some hope that this begins to reverse a trend of declining work from the GPO.