08.03.17
Cenveo, Inc. reported financial results for the three and six months ended July 1, 2017.
Net sales in the second quarter of 2017 were $355.0 million compared to $410.1 million in the same period last year, a decline of 13.4%. The Company generated net sales of $736.9 million for the six months ended July 1, 2017, compared to $850.6 million for the same period last year, a decline of 13.4%.
The sales decline was primarily driven by lower sales in the envelope segment, primarily due to lower demand in office product and wholesale envelope product lines primarily due to marketplace trends and lower direct mail demand primarily from our financial institution customers; lower sales volumes in the commercial print group and the publisher services group, primarily driven by lower customer demand and continued pricing pressures; and lower sales in the label segment, primarily due to the decision to exit our coating operation which was completed in the second quarter of 2016, and lower sales driven by product mix changes.
“Given the challenging operating environment we experienced during the first half of the year, we are generally pleased with our adjusted EBITDA performance for the quarter compared to the prior year, which included one-time benefits in connection with the closure of our coating operation,” said Robert G. Burton, Sr., chairman and CEO of Cenveo. “Our consolidated results for the second quarter of 2017 were adversely impacted by weakness in our direct mail business primarily driven by softness from our financial institution customers due to lower customer acquisition related mailings.
“These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan,” Martin added. “To date, we are very pleased with the implementation progress and we are now on pace to exceed our original $50 million target that we announced earlier this year.”
Net loss was $1.9 million for the three months ended July 1, 2017, compared to net income of $47.6 million for the same period last year. For the six months ended July 1, 2017, net loss was $10.5 million, compared to net income of $58.8 million for the same period last year. Adjusted EBITDA was $30.2 million for the three months ended July 1, 2017, compared to $37.5 million for the same period last year. Adjusted EBITDA was $61.4 million for the six months ended July 1, 2017, compared to $72.4 million for the same period last year.
Cash flow provided by operating activities of continuing operations for the second quarter 2017 was $7.1 million, compared to $19.2 million for the same period last year. Cash flow provided by operating activities of continuing operations for the six months ended July 1, 2017, was $0.7 million, compared to $7.7 million for the same period last year.
At July 1, 2017, cash and cash equivalents totaled $7.1 million, compared to $5.5 million at December 31, 2016. Total outstanding long-term debt, including current maturities, was approximately $1.0 billion as of July 1, 2017, an increase of $20.6 million from December 31, 2016.
Net sales in the second quarter of 2017 were $355.0 million compared to $410.1 million in the same period last year, a decline of 13.4%. The Company generated net sales of $736.9 million for the six months ended July 1, 2017, compared to $850.6 million for the same period last year, a decline of 13.4%.
The sales decline was primarily driven by lower sales in the envelope segment, primarily due to lower demand in office product and wholesale envelope product lines primarily due to marketplace trends and lower direct mail demand primarily from our financial institution customers; lower sales volumes in the commercial print group and the publisher services group, primarily driven by lower customer demand and continued pricing pressures; and lower sales in the label segment, primarily due to the decision to exit our coating operation which was completed in the second quarter of 2016, and lower sales driven by product mix changes.
“Given the challenging operating environment we experienced during the first half of the year, we are generally pleased with our adjusted EBITDA performance for the quarter compared to the prior year, which included one-time benefits in connection with the closure of our coating operation,” said Robert G. Burton, Sr., chairman and CEO of Cenveo. “Our consolidated results for the second quarter of 2017 were adversely impacted by weakness in our direct mail business primarily driven by softness from our financial institution customers due to lower customer acquisition related mailings.
“These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan,” Martin added. “To date, we are very pleased with the implementation progress and we are now on pace to exceed our original $50 million target that we announced earlier this year.”
Net loss was $1.9 million for the three months ended July 1, 2017, compared to net income of $47.6 million for the same period last year. For the six months ended July 1, 2017, net loss was $10.5 million, compared to net income of $58.8 million for the same period last year. Adjusted EBITDA was $30.2 million for the three months ended July 1, 2017, compared to $37.5 million for the same period last year. Adjusted EBITDA was $61.4 million for the six months ended July 1, 2017, compared to $72.4 million for the same period last year.
Cash flow provided by operating activities of continuing operations for the second quarter 2017 was $7.1 million, compared to $19.2 million for the same period last year. Cash flow provided by operating activities of continuing operations for the six months ended July 1, 2017, was $0.7 million, compared to $7.7 million for the same period last year.
At July 1, 2017, cash and cash equivalents totaled $7.1 million, compared to $5.5 million at December 31, 2016. Total outstanding long-term debt, including current maturities, was approximately $1.0 billion as of July 1, 2017, an increase of $20.6 million from December 31, 2016.