11.09.17
Cenveo, Inc. reported financial results for the three and nine months ended Sept. 30, 2017.
Net sales in the third quarter of 2017 were $329.5 million compared to $382.7 million in the same period last year, a decline of 13.9%.The Company generated net sales of $1.01 billion for the nine months ended Sept. 30, 2017, compared to $1.16 billion for the same period last year, a decline of 13.1%.
The sales decline for both the three and nine month periods was primarily driven by lower sales in the envelope segment, primarily due to lower direct mail demand; lower sales volumes in the commercial print group and the publisher services group; and (lower sales in the label segment, primarily due to the decision to exit the coating operation, which was completed in the second quarter of 2016.
“The operating environment we experienced during the first half of the year continued throughout the third quarter. We were again impacted by weakness in our direct mail business driven by softness from our financial institution customers due to lower customer acquisition related mailings.These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan.We are very pleased with the implementation progress and we are on pace to achieve our $65 million target that we announced earlier this year,” said Robert G. Burton Sr., chairman and CEO of Cenveo.
“We are also very pleased to announce that Cenveo has been awarded the 2020 US Census printing and mailing contract,” Burton continued. “This multi-year, $61 million contract is one of the largest printing and mailing contracts ever awarded by the US Government Publishing Office.We are excited and committed to partner with the US Census team and we are confident in our ability to deliver this significant and unique program.”
Operating loss was $0.5 million for the three months ended Sept. 30, 2017, compared to operating income of $20.2 million in the same period last year.Operating income was $22.6 million for the nine months ended Sept. 30, 2017, compared to operating income of $51.9 million for the same period last year, a decline of 56.5%.
For the three months ended Sept. 30, 2017, the company had a loss from continuing operations of $19.4 million, or $2.27 per diluted share, compared to income of $8.1 million, or $0.92 per diluted share, for the same period last year. For the nine months ended Sept. 30, 2017, the company had a loss from continuing operations of $28.9 million, or $3.38 per diluted share, compared to income of $65.1 million, or $6.84 per diluted share, for the same period last year.
Net loss was $28.1 million for the three months ended Sept. 30, 2017, compared to net income of $9.4 million for the same period last year.For the nine months ended Sept. 30, 2017, net loss was $38.6 million, compared to net income of $68.2 million for the same period last year. Adjusted EBITDA was $24.3 million for the three months ended Sept. 30, 2017, compared to $37.8 million for the same period last year. Adjusted EBITDA was $84.6 million for the nine months ended Sept. 30, 2017, compared to $102.5 million for the same period last year.
Cash flow used in operating activities of continuing operations for the third quarter 2017 was $5.1 million, compared to less than $0.1 million provided by operating activities of continuing operations for the same period last year.Cash flow used in operating activities of continuing operations for the nine months ended Sept. 30, 2017, was $6.2 million, compared to $3.3 million provided by operating activities of continuing operations for the same period last year.
“While we are disappointed with our operating results for the first nine months of the year, we remain committed to our longer term strategy of cost containment, growing our market share, and addressing our capital structure.After considering the sale of our Office Product Business, our operating results through the first nine months, and our current view of the fourth quarter, we believe we will achieve net sales of $1.315 billion to $1.330 billion and adjusted EBITDA of $110 million to $115 million for the full year 2017.Despite the lower guidance, we believe we will still generate positive adjusted free cash flow for the full year 2017,” Burton concluded.
Net sales in the third quarter of 2017 were $329.5 million compared to $382.7 million in the same period last year, a decline of 13.9%.The Company generated net sales of $1.01 billion for the nine months ended Sept. 30, 2017, compared to $1.16 billion for the same period last year, a decline of 13.1%.
The sales decline for both the three and nine month periods was primarily driven by lower sales in the envelope segment, primarily due to lower direct mail demand; lower sales volumes in the commercial print group and the publisher services group; and (lower sales in the label segment, primarily due to the decision to exit the coating operation, which was completed in the second quarter of 2016.
“The operating environment we experienced during the first half of the year continued throughout the third quarter. We were again impacted by weakness in our direct mail business driven by softness from our financial institution customers due to lower customer acquisition related mailings.These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan.We are very pleased with the implementation progress and we are on pace to achieve our $65 million target that we announced earlier this year,” said Robert G. Burton Sr., chairman and CEO of Cenveo.
“We are also very pleased to announce that Cenveo has been awarded the 2020 US Census printing and mailing contract,” Burton continued. “This multi-year, $61 million contract is one of the largest printing and mailing contracts ever awarded by the US Government Publishing Office.We are excited and committed to partner with the US Census team and we are confident in our ability to deliver this significant and unique program.”
Operating loss was $0.5 million for the three months ended Sept. 30, 2017, compared to operating income of $20.2 million in the same period last year.Operating income was $22.6 million for the nine months ended Sept. 30, 2017, compared to operating income of $51.9 million for the same period last year, a decline of 56.5%.
For the three months ended Sept. 30, 2017, the company had a loss from continuing operations of $19.4 million, or $2.27 per diluted share, compared to income of $8.1 million, or $0.92 per diluted share, for the same period last year. For the nine months ended Sept. 30, 2017, the company had a loss from continuing operations of $28.9 million, or $3.38 per diluted share, compared to income of $65.1 million, or $6.84 per diluted share, for the same period last year.
Net loss was $28.1 million for the three months ended Sept. 30, 2017, compared to net income of $9.4 million for the same period last year.For the nine months ended Sept. 30, 2017, net loss was $38.6 million, compared to net income of $68.2 million for the same period last year. Adjusted EBITDA was $24.3 million for the three months ended Sept. 30, 2017, compared to $37.8 million for the same period last year. Adjusted EBITDA was $84.6 million for the nine months ended Sept. 30, 2017, compared to $102.5 million for the same period last year.
Cash flow used in operating activities of continuing operations for the third quarter 2017 was $5.1 million, compared to less than $0.1 million provided by operating activities of continuing operations for the same period last year.Cash flow used in operating activities of continuing operations for the nine months ended Sept. 30, 2017, was $6.2 million, compared to $3.3 million provided by operating activities of continuing operations for the same period last year.
“While we are disappointed with our operating results for the first nine months of the year, we remain committed to our longer term strategy of cost containment, growing our market share, and addressing our capital structure.After considering the sale of our Office Product Business, our operating results through the first nine months, and our current view of the fourth quarter, we believe we will achieve net sales of $1.315 billion to $1.330 billion and adjusted EBITDA of $110 million to $115 million for the full year 2017.Despite the lower guidance, we believe we will still generate positive adjusted free cash flow for the full year 2017,” Burton concluded.