02.13.15
Cenveo, Inc. announced results for the three and 12 months ended Dec. 27, 2014.
The company generated net sales of $498.9 million for the three months ended Dec. 27, 2014, compared to $509.9 million for the same period last year, a decline of 2.1%. The decline in net sales for the fourth quarter is attributable to the consolidation of several envelope facilities during 2014 in connection with the accelerated integration of the National Envelope assets into our operations.
The company generated net sales of $1.9 billion for the year ended Dec. 27, 2014, compared to $1.8 billion for the same period last year, an increase of 9.6%. The increase in net sales for the full year is primarily due to sales generated from the integration of the National Envelope assets, as National Envelope was only included in the company’s 2013 results beginning on Sept. 16, 2013, the date of acquisition, as well as Cenveo’s ability to pass along paper price increases to certain customers in our envelope operations.
“Our fourth quarter results were in line with our prior guidance as we substantially completed the integration of the National Envelope assets,” said Robert G. Burton Sr., chairman and CEO. “We expect to see the benefits of the integration through improved operational performance across our envelope platform in 2015. As previously discussed, we believe we experienced approximately $20 million of disruption-related costs and lost profits during 2014 to complete the integration. Despite this disruption, we were able to generate over $31.2 million in cash flow from continuing operations during the fourth quarter and $51.2 million over the past six months.
“We were also encouraged by strong performances by our print and custom label businesses during the quarter, with both businesses showing organic growth of approximately 5% and 2%, respectively, compared to the same period last year. Additionally, our direct mail business remains strong as mailers continue to utilize our national footprint,” Burton added.
Operating income was $11.0 million for the three months ended Dec. 27, 2014, compared to an operating loss of $15.7 million for the same period last year. Operating income was $43.8 million for the year ended December 27, 2014, compared to $29.4 million for the same period last year. Results in both the fourth quarter of 2013 and the year ended 2013 were impacted by the $33.4 million impairment charge related to the retirement of certain trade names. Additionally, operating income in 2014 was impacted by expenses associated with the closure and consolidation of several envelope plants related to the integration of the National Envelope assets, and the impact of the higher cost structure of National Envelope.
For the three months ended Dec. 27, 2014, the company had a loss from continuing operations of $19.4 million, or $0.29 per diluted share, compared to a loss of $59.5 million, or $0.90 per diluted share, for the same period last year. For the year ended Dec. 27, 2014, the Company had a loss from continuing operations of $86.3 million, or $1.29 per diluted share, compared to a loss of $85.5 million, or $1.32 per diluted share, for the same period last year.
Adjusted EBITDA for the three months ended Dec. 27, 2014, was $36.6 million, compared to Adjusted EBITDA of $52.1 million for the same period last year. For the 12 months ended Dec. 27, 2014, Adjusted EBITDA was $159.6 million, compared to $167.2 million for the same period last year.
Cash flow provided by operating activities of continuing operations for the three months ended Dec. 27, 2014, was $31.2 million, compared to $11.6 million for the same period last year. Cash flow provided by operating activities of continuing operations for the twelve months ended Dec. 27, 2014, was $25.8 million, compared to $22.3 million for the same period last year.
“As we turn our focus to 2015, we are looking to build upon the momentum created by actions taken over the past year by improving margins, driving stronger cash flow and paying down our higher cost debt,” Burton concluded.
The company generated net sales of $498.9 million for the three months ended Dec. 27, 2014, compared to $509.9 million for the same period last year, a decline of 2.1%. The decline in net sales for the fourth quarter is attributable to the consolidation of several envelope facilities during 2014 in connection with the accelerated integration of the National Envelope assets into our operations.
The company generated net sales of $1.9 billion for the year ended Dec. 27, 2014, compared to $1.8 billion for the same period last year, an increase of 9.6%. The increase in net sales for the full year is primarily due to sales generated from the integration of the National Envelope assets, as National Envelope was only included in the company’s 2013 results beginning on Sept. 16, 2013, the date of acquisition, as well as Cenveo’s ability to pass along paper price increases to certain customers in our envelope operations.
“Our fourth quarter results were in line with our prior guidance as we substantially completed the integration of the National Envelope assets,” said Robert G. Burton Sr., chairman and CEO. “We expect to see the benefits of the integration through improved operational performance across our envelope platform in 2015. As previously discussed, we believe we experienced approximately $20 million of disruption-related costs and lost profits during 2014 to complete the integration. Despite this disruption, we were able to generate over $31.2 million in cash flow from continuing operations during the fourth quarter and $51.2 million over the past six months.
“We were also encouraged by strong performances by our print and custom label businesses during the quarter, with both businesses showing organic growth of approximately 5% and 2%, respectively, compared to the same period last year. Additionally, our direct mail business remains strong as mailers continue to utilize our national footprint,” Burton added.
Operating income was $11.0 million for the three months ended Dec. 27, 2014, compared to an operating loss of $15.7 million for the same period last year. Operating income was $43.8 million for the year ended December 27, 2014, compared to $29.4 million for the same period last year. Results in both the fourth quarter of 2013 and the year ended 2013 were impacted by the $33.4 million impairment charge related to the retirement of certain trade names. Additionally, operating income in 2014 was impacted by expenses associated with the closure and consolidation of several envelope plants related to the integration of the National Envelope assets, and the impact of the higher cost structure of National Envelope.
For the three months ended Dec. 27, 2014, the company had a loss from continuing operations of $19.4 million, or $0.29 per diluted share, compared to a loss of $59.5 million, or $0.90 per diluted share, for the same period last year. For the year ended Dec. 27, 2014, the Company had a loss from continuing operations of $86.3 million, or $1.29 per diluted share, compared to a loss of $85.5 million, or $1.32 per diluted share, for the same period last year.
Adjusted EBITDA for the three months ended Dec. 27, 2014, was $36.6 million, compared to Adjusted EBITDA of $52.1 million for the same period last year. For the 12 months ended Dec. 27, 2014, Adjusted EBITDA was $159.6 million, compared to $167.2 million for the same period last year.
Cash flow provided by operating activities of continuing operations for the three months ended Dec. 27, 2014, was $31.2 million, compared to $11.6 million for the same period last year. Cash flow provided by operating activities of continuing operations for the twelve months ended Dec. 27, 2014, was $25.8 million, compared to $22.3 million for the same period last year.
“As we turn our focus to 2015, we are looking to build upon the momentum created by actions taken over the past year by improving margins, driving stronger cash flow and paying down our higher cost debt,” Burton concluded.