Cenveo Announces 1Q 2015 Results

Cenveo, Inc. announced results for the three months ended March 28, 2015.
 
The company generated net sales of $475.1 million for the three months ended March 28, 2015, compared to $490.1 million for the same period last year, a decline of 3.1%. The decline in net sales is attributable to the consolidation of several envelope facilities during the second half of 2014 in connection with the accelerated integration of the National Envelope assets with Cenveo’s existing operations and two new facilities.
 
“We are very pleased with the performance of our operations during the first quarter of 2015, in which we achieved significant improvement in operating income and Adjusted EBITDA, despite the severe weather that we experienced,” Robert G. Burton Sr., chairman and CEO of Cenveo, said. “The stronger performance was primarily driven by our envelope operations, which are now benefiting from efficiencies realized from last year’s National Envelope integration. We also saw steady operational performances out of our print group as well as our label and packaging group. Additionally, we have improved our capital structure by extinguishing over $22.6 million of the 11.5% notes to date in 2015, leaving the current remaining balance under $200 million.”
 
Operating income was $18.2 million for the three months ended March 28, 2015, compared to operating income of $10.1 million for the same period last year. For the three months ended March 28, 2015, the company had a loss from continuing operations of $7.6 million, or $0.11 per diluted share, compared to a loss of $16.8 million, or $0.25 per diluted share, for the same period last year.
 
Adjusted EBITDA for the three months ended March 28, 2015, was $38.7 million, compared to Adjusted EBITDA of $36.8 million for the same period last year.
 
“As we begin the second quarter of 2015, we will look to continue executing our plan of improving margins, driving stronger cash flow and paying down our higher cost debt,” Burton noted. “We have begun to see the benefits of our prior year integration activities in our envelope operations, as we achieved margin improvement during the quarter, and we are optimistic the trend will continue throughout the remainder of the year.”