Cenveo Announces 4Q, Full Year 2013 Results

The company generated net sales of $509.9 million for the three months ended Dec. 28, 2013, compared to $437.7 million for the same period last year, an increase of 16.5%. The company generated net sales of $1.8 billion for the year ended Dec. 28, 2013, compared to $1.7 billion for the prior year. The increase in net sales was primarily due to the acquisition of certain assets of National Envelope in the third quarter, as National Envelope was not included in Cenveo’s 2012 results, as well as organic growth within the envelope and label and packaging segments, partially offset by a decline in sales in print operations as a result of lower demand and pricing pressures.

Operating loss was $15.7 million for the three months ended Dec. 28, 2013, compared to operating income of $31.7 million for the same period last year. The decrease in operating income was primarily due to a $33.4 million impairment charge related to the retirement of certain trade names, lower sales from print operations, and higher input costs within several of our segments. For the year ended Dec. 28, 2013, operating income was $29.4 million, compared to $101.2 million for the prior year. The decrease in operating income was primarily due to a $33.4 million impairment charge related to the retirement of certain trade names, lower sales from our print operations and acquisition-related costs due to the acquisition of certain assets of National Envelope. These decreases were offset in part by higher gross margins in Cenveo’s envelope operations from volume increases.

Adjusted EBITDA for the three months ended Dec. 28, 2013 was $52.1 million, compared to adjusted EBITDA of $55.3 million for the same period last year. Adjusted EBITDA for the year ended Dec. 28, 2013, was $167.2 million, compared to $202.7 million, for the same period last year. 

“We are very pleased with our fourth quarter performance and the continuation of the positive operational trends we experienced for the past couple of quarters,” said Robert G. Burton Sr., chairman and CEO. “In the fourth quarter, we delivered 3.5% organic revenue growth from both our envelope and label and packaging segments. Direct mail continued to perform well as we saw strong growth in credit card mailings during the quarter. Recent leadership changes and selected capital investments are showing results in our print and label and packaging operations. The integration of National Envelope continues to progress well and remains on track with our expectations, as many cost actions have been implemented to date and we are relatively complete with the anticipated working capital build associated with the transaction.

“I am very excited about our prospects for 2014 given the momentum in our business and the strength of our current team,” Burton added. “We spent the majority of last year re-focusing and building our operations for the future and in 2014 we expect to begin to see the positive results of our efforts. Between the continued investment in capital and technology across our platform, the acquisition of certain assets of National Envelope and related investment of working capital, we have a strong foundation for success in 2014 and beyond.”