Cenveo Announces 3Q 2015 Results

Cenveo announced its results for the third quarter of 20125,. The company generated net sales of $419.8 million for the three months ended Sept. 26, 2015, compared to $435.6 million for the same period last year, a decline of 3.6%. The company generated net sales of $1.26 billion for the nine months ended Sept. 26, 2015, compared to $1.31 billion for the same period last year, a decline of 3.4%.
 
The decline in net sales is attributable to the consolidation of several envelope facilities during 2014 in connection with the accelerated integration of the National Envelope assets with existing operations and two new envelope facilities, and continued pricing pressure in our print business.
 
Operating income was $19.5 million for the three months ended Sept. 26, 2015, compared to operating income of $10.2 million for the same period last year, an improvement of 90.7%. Operating income was $59.0 million for the nine months ended September 26, 2015, compared to operating income of $31.5 million for the same period last year, an improvement of 87.0%.
 
For the three months ended September 26, 2015, the company had a loss from continuing operations of $3.6 million, or $0.05 per diluted share, compared to a loss of $14.0 million, or $0.21 per diluted share, for the same period last year. For the nine months ended September 26, 2015, the company had a loss from continuing operations of $15.1 million, or $0.22 per diluted share, compared to a loss of $71.7 million, or $1.07 per diluted share, for the same period last year.
 
Cenveo, Inc. announced results for three and nine months ended Sept. 26, 2015. The reported results exclude the operating results of the Packaging operating segment as well as Cenveo’s one top-sheet lithographic print operation, collectively referred to as the Packaging Business, as it has been classified in our consolidated financial statements as discontinued operations.
 
“We are pleased with our results for the third quarter, as we had several key accomplishments, including strong growth in operating income and Adjusted EBITDA, and solid cash flow from operations,” said Robert G. Burton Sr., chairman and CEO. “Our envelope operations delivered significant operational improvement as we continue to see the benefits of our consolidation efforts that were implemented last year.
 
“Combined with solid direct mail volumes and price increases, our envelope business delivered adjusted EBITDA margins of approximately 11% for the quarter,” Burton added. “Our print and label businesses performed generally in line with our expectations, which allowed the company to grow our adjusted EBITDA for the quarter by approximately 18% compared to last year.”
 
Cash flow provided by operating activities for the nine months ended September 26, 2015 was $14.8 million, compared to a use of cash of $7.3 million for the same period last year.