The company generated net sales of $432.8 million for the three months ended April 2, 2016, compared to $429.7 million for the same period last year, an increase of 0.7%. The increase in net sales was driven by higher sales from direct mail envelope and commercial print products, partially offset by lower sales from our label operations.
“We are very pleased with our performance during the first quarter, in which we achieved organic revenue and Adjusted EBITDA growth compared to last year,” said Robert G. Burton Sr., chairman and CEO. “Our envelope business continued to deliver margin expansion, and direct mail volumes remained strong. We also saw growth in our print business as our diversified product offerings drove year-over-year growth.
“We are also pleased with the significant progress that we have made in addressing our capital structure as evidenced by the extinguishment of over $44 million in debt during the recent quarter and the exchange offer announced this morning,” Burton added. “We believe the closing of the exchange offer, combined with other capital structure solutions, will help achieve several of our short-term objectives.”
Operating income was $17.0 million for the three months ended April 2, 2016, compared to operating income of $17.8 million for the same period last year, a decline of 4.4%. The decline was primarily due to restructuring charges related to plans to exit coating operations and the write down of an investment in the label segment, which were meaningfully offset by our improved operating performance within the envelope and commercial print businesses.
Adjusted EBITDA was $35.0 million and $34.5 million for the three months ended April 2, 2016 and March 28, 2015, respectively. The increase over the prior year is primarily attributable to operating improvements in the envelope and print operations given higher sales volumes and prior year consolidation plans and cost actions.
Cash flow used in operating activities of continuing operations for the three months ended April 2, 2016 was $11.4 million, compared to a use of cash of $15.5 million for the same period last year.
During the first quarter of 2016, Cenveo completed the sale of the Packaging Business for cash proceeds of $94.6 million.