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Cenveo Announces Management Appointments
Cenveo Announces Management Appointments STAMFORD, CT – (July 9, 2008) – Robert G. Burton, Chairman and Chief Executive Officer of Cenveo, Inc. (NYSE: CVO) announced several appointments...
Cenveo Provides Second Quarter 2008 Results
Cenveo Provides Second Quarter Update STAMFORD, CT – (July 7, 2008) – Robert G. Burton, Chairman and Chief Executive Officer of Cenveo, Inc. (NYSE: CVO), today gave shareholders the following update:...
Cenveo Announces First Quarter 2008 Results
Cenveo Announces First Quarter 2008 Results 1st Quarter Revenue growth of 29% Cash Flow from Operations of $54.4 million during the quarter 1st Quarter EPS of $(0.06) per share 1st Quarter Non-GAAP...
Cenveo Completes Purchase of Rex Corporation
Cenveo Completes Purchase of Rex Corporation STAMFORD, CT – (March 31, 2008) - Cenveo, Inc. (NYSE: CVO), announced today that the Company has completed its previously-announced purchase of Rex Corporation...
Cenveo Reports Unaudited Fourth Quarter
Cenveo Reports Unaudited Fourth Quarter and Full Year 2007 Results 4th Quarter EPS of $0.33 per diluted share 4th Quarter Non-GAAP EPS of $0.53 per diluted share 2007 GAAP EPS of $0.74 per diluted share...
Cenveo Announces First Quarter 2007 Results1st Quarter EPS of $0.34 per diluted share 1st Quarter Non-GAAP EPS of $0.24 per diluted share, up 140% from prior year 1st Quarter Adjusted EBITDA of $45.8 million, up 29% from prior year Integration of Printegra and Cadmus delivering expected results STAMFORD, CT – (May 9, 2007) – Cenveo, Inc. (NYSE: CVO) today announced its results for the three months ended March 31, 2007. For the first quarter, the Company reported net income of $18.7 million, or $0.34 per diluted share, as compared to net income of $112.2 million, or $2.11 per diluted share, in the first quarter of 2006. The first quarter 2007 results include income from discontinued operations, net of taxes, of $16.3 million as compared to $121.1 million in 2006, primarily related to the sale of Supremex. First quarter 2007 results include restructuring and impairment charges of $2.6 million, as compared to $13.5 million in 2006. Net sales for the quarter increased 8% to $414.7 million from $385.3 million in 2006, primarily due to the acquisitions of Cadmus and Printegra, which both closed in the first quarter of 2007. Non-GAAP net income totaled $12.9 million, or $0.24 per diluted share, in the first quarter of 2007 as compared to $5.1 million, or $0.10 per diluted share, in the first quarter of 2006. Non-GAAP net income excludes restructuring and impairment charges, integration costs, (gain) loss on sale of non-strategic businesses, loss on early extinguishment of debt, income from discontinued operations, net of taxes. A reconciliation of net income to non-GAAP net income for these adjustments is presented in the attached tables. Non-GAAP operating income in the first quarter of 2007 was $32.0 million, which produced a 7.7% margin, reflecting the continued benefits of our 2 cost savings and restructuring plan. Non-GAAP operating income excludes restructuring and impairment charges and integration costs. A reconciliation of operating income to non-GAAP operating income is presented in the attached tables. Adjusted EBITDA in the first quarter of 2007 was $45.8 million as compared to $35.5 million in the same period last year, an increase of 29%. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, excluding restructuring and impairment charges, integration costs, (gain) loss on sale of non-strategic businesses, divested operations EBITDA, loss on early extinguishment of debt, stock-based compensation expense, and income from discontinued operations, net of taxes. An explanation of the Company’s use of Adjusted EBITDA is detailed below and a reconciliation of Adjusted EBITDA to net income is provided in the attached tables. Robert G. Burton, Chairman and Chief Executive Officer stated: “We are pleased to have delivered another strong quarter of results with our non-GAAP earnings per diluted share increasing 140% from last year. Both of our business segments continue to show meaningful operational improvement and margin expansion. Our focus on controlling costs and providing customers with a one-stop solution are yielding the desired results, as we delivered strong cash flow from operations. The integration of Cadmus and Printegra is on track and meeting our expectations. We have begun the process of consolidating facilities and functions of these companies, leveraging our purchasing spend, and cross-selling our capabilities. These results give us continued confidence that the game plan we implemented in September 2005 is working. I believe that the Company’s future has never been brighter.” Mr. Burton concluded: “We accomplished much in the first quarter: We closed two highly strategic acquisitions that we believe will be accretive to earnings and will expand the breadth of our manufacturing platform; we completed the sale of our remaining stake in Supremex to pay down debt and fund our growth initiatives; we refinanced our capital structure at favorable rates to fund our acquisitions; and most importantly, we delivered on our 3 financial commitments to our shareholders. During the remainder of the year, we will build upon these successes to continue to deliver results for our customers, employees, and shareholders. We are integrating Cadmus and Printegra into our platform on a swift and aggressive time frame. We will continue to drive improved results in our core businesses by increasing productivity and efficiencies and reducing waste. I am also optimistic for our growth prospects, both organically and through acquisition. Our sales pipeline is strong and we will continue to look to grow our business by acquiring what we believe are strong companies in the niche markets we serve. With the positive results of our core business today, we continue to seek to expand our portfolio of products by acquiring additional businesses to provide additional opportunities to our customers.” Conference Call: Cenveo will host a conference call tomorrow, Thursday May 10, 2007, at 10:00 a.m. Eastern Time. The conference call will be available via webcast, which can be accessed via the Internet at www.cenveo.com. 4 Cenveo, Inc., and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) Three Months Ended March 31, 2007 2006 Net sales $ 414,714 $ 385,286 Cost of sales 331,490 309,644 Selling, general and administrative 49,484 51,014 Amortization of intangible assets 1,830 1,298 Restructuring and impairment charges 2,625 13,476 Operating income 29,285 9,854 Loss on sale of non-strategic business — 706 Interest expense, net 16,282 18,114 Loss on early extinguishment of debt 8,700 — Other expense, net 222 219 Income (loss) from continuing operations before income taxes 4,081 (9,185) Income tax expense (benefit) 1,684 (337) Income (loss) from continuing operations 2,397 (8,848) Income from discontinued operations, net of taxes 16,293 121,050 Net income $ 18,690 $ 112,202 Income (loss) per share – basic : Continuing operations $ 0.04 $ (0.17) Discontinued operations 0.31 2.28 Net income $ 0.35 $ 2.11 Income (loss) per share – diluted : Continuing operations $ 0.04 $ (0.17) Discontinued operations 0.30 2.28 Net income $ 0.34 $ 2.11 Weighted average shares: Basic 53,525 53,109 Diluted 54,572 53,109 5 Cenveo, Inc., and Subsidiaries Reconciliation of Net Income to Non-GAAP Net Income (in thousands, except per share data) (Unaudited) Three Months Ended March 31, 2007 As Reported Adjustments to Non-GAAP Non-GAAP Net sales $ 414,714 — $ 414,714 Cost of sales 331,490 — 331,490 Selling, general and administrative 49,484 (92) 49,392 Amortization of intangible assets 1,830 — 1,830 Restructuring and impairment charges 2,625 (2,625) — Operating income 29,285 2,717 32,002 Interest expense, net 16,282 — 16,282 Loss on early extinguishment of debt 8,700 (8,700) — Other expense, net 222 — 222 Income from continuing operations before taxes 4,081 11,417 15,498 Income tax expense 1,684 899 2,583 Income from continuing operations 2,397 10,518 12,915 Income from discontinued operations, net of taxes 16,293 (16,293) — Net income (loss) $ 18,690 (5,775) $ 12,915 Income per share – basic : Continuing operations $ 0.04 — $ 0.24 Discontinued operations 0.31 — — Net income $ 0.35 — $ 0.24 Income per share – diluted : Continuing operations $ 0.04 — $ 0.24 Discontinued operations 0.30 — — Net income $ 0.34 — $ 0.24 Weighted average shares: Basic 53,525 — 53,525 Diluted 54,572 — 54,572 6 Cenveo, Inc., and Subsidiaries Reconciliation of Net Income to Non-GAAP Net Income (in thousands, except per share data) (Unaudited) Three Months Ended March 31, 2006 As Reported Adjustments To Non-GAAP Non-GAAP Net sales $ 385,286 — $ 385,286 Cost of sales 309,644 — 309,644 Selling, general and administrative 51,014 — 51,014 Amortization of intangible assets 1,298 — 1,298 Restructuring and impairment charges 13,476 (13,476) — Operating income 9,854 13,476 23,330 Loss on sale of non-strategic business 706 (706) — Interest expense, net 18,114 — 18,114 Loss on early extinguishment of debt — — — Other expense, net 219 — 219 Income (loss) from continuing operations before taxes (9,185) 14,182 4,997 Income tax (benefit) expense (337) 248 (89) Income from continuing operations (8,848) 13,934 5,086 Income from discontinued operations, net of taxes 121,050 (121,050) — Net income (loss) $ 112,202 (107,116) $ 5,086 Income (loss) per share – basic : Continuing operations $ (0.17) — $ 0.10 Discontinued operations 2.28 — — Net income $ 2.11 — $ 0.10 Income (loss) per share – diluted : Continuing operations $ (0.17) — $ 0.10 Discontinued operations 2.28 — — Net income $ 2.11 — $ 0.10 Weighted average shares: Basic 53,109 — 53,109 Diluted 53,109 — 53,536 7 Cenveo, Inc., and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (in thousands) (Unaudited) Three Months Ended March 31, 2007 2006 Net Income $ 18,690 $ 112,202 Interest expense 16,282 18,114 Income taxes 1,684 (337) Depreciation 9,936 9,351 Amortization of intangible assets 1,830 1,298 Restructuring and impairment charges 2,625 13,476 Integration costs 92 — Loss on sale of non-strategic businesses — 706 Divested operations — 622 Loss on early extinguishment of debt 8,700 — Stock-based compensation expense 2,265 1,140 Discontinued operations, net of taxes (16,293) (121,050) Adjusted EBITDA, as defined $ 45,811 $ 35,522 8 CENVEO, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) March 31, 2007 December 31, 2006 Assets Current assets: Cash and cash equivalents $ 7,887 $ 10,558 Accounts receivable, net 286,603 230,098 Inventories 135,485 92,406 Assets held for sale 6,112 51,966 Prepaid and other current assets 34,141 41,413 Total current assets 470,228 426,441 Property, plant and equipment, net 382,598 251,103 Goodwill 538,587 258,136 Other intangible assets, net 170,327 31,985 Other assets, net 27,979 34,285 Total assets $ 1,589,719 $ 1,001,950 Liabilities and Shareholders’ Equity Current liabilities: Current maturities of long-term debt $ 10,818 $ 7,513 Accounts payable 145,321 116,067 Accrued compensation and related liabilities 64,159 40,242 Other current liabilities 82,729 63,609 Total current liabilities 303,027 227,431 Long-term debt 1,108,141 667,782 Deferred income taxes 25,227 4,356 Other liabilities 75,735 40,640 Shareholders’ equity: Preferred stock — — Common stock 535 535 Paid-in capital 247,345 244,894 Retained de?cit (167,746) (186,436) Accumulated other comprehensive (loss) income (2,545) 2,748 Total shareholders’ equity 77,589 61,741 Total liabilities and shareholders’ equity $ 1,589,719 $ 1,001,950 9 CENVEO, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, 2007 2006 Cash ?ows from operating activities: Net income $18,690 $112,202 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of discontinued operations, net of taxes (16,287) (115,637) Income from discontinued operations, net of taxes (6) (5,413) Depreciation and amortization, excluding amortization of deferred ?nancing costs 11,766 10,649 Amortization of deferred ?nancing costs 379 618 Loss on early extinguishment of debt 8,700 — Stock-based compensation provision 2,265 1,140 Non-cash restructuring and impairment charges (473) 3,787 Loss on sale of non-strategic business — 706 Deferred income taxes 1,621 — Other non-cash charges, net 1,431 1,233 Changes in operating assets and liabilities, excluding the effects of acquired businesses: Accounts receivable 9,102 2,399 Inventories (4,868) (1,754) Accounts payable and accrued compensation and related liabilities (1,545) 14,850 Other working capital changes 4,201 (8,265) Other, net 3,312 (4,450) Net cash provided by continuing operating activities 38,288 12,065 Net cash provided by discontinued operating activities — 2,617 Net cash provided by operating activities 38,288 14,682 Cash ?ows from investing activities: Cost of business acquisitions, net of cash acquired (329,300) — Capital expenditures (7,115) (5,502) Acquisition payments — (4,653) Proceeds from sale of property, plant and equipment 2,347 326 Net cash used in investing activities of continuing operations (334,068) (9,829) Proceeds from the sale of discontinued operations 67,228 119,380 Capital expenditures for discontinued operations — (632) Net cash provided by investing activities of discontinued operations 67,228 118,748 Net cash (used in) provided by investing activities (266,840) 108,919 Cash ?ows from ?nancing activities: Repayment of Term Loan B (324,188) — Repayment of Cadmus revolving senior bank credit facility (70,100) — Repayment of 8 3/8% senior subordinated notes (20,875) — Repayments of senior secured revolving credit facility — (123,931) Repayments of other long-term debt (166) (436) Payment of refinancing fees, redemption premiums and expenses (7,489) — Payment of debt issuance costs (886) — Proceeds from issuance of Term Loans 620,000 — Borrowings under revolving credit facility, net 29,400 — Proceeds from exercise of stock options 185 1,110 Net cash provided by (used in) ?nancing activities 225,881 (123,257) Effect of exchange rate changes on cash and cash equivalents of discontinued operations — 15 Net (decrease) increase in cash and cash equivalents (2,671) 359 Cash and cash equivalents at beginning of year 10,558 1,035 Cash and cash equivalents at end of quarter $7,887 $1,394 10 ### In addition to results presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”), the Company included in this release certain non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income and non-GAAP operating income. These non-GAAP financial measures are defined above, and should be read in conjunction with GAAP financial measures. These non-GAAP financial measures are not presented as an alternative to cash flow from operations, as a measure of our liquidity or as an alternative to reported net income as an indicator of our operating performance. The non-GAAP financial measures as used herein may not be comparable to similarly titled measures reported by competitors. We believe the use of Adjusted EBITDA, non-GAAP net income and non-GAAP operating income along with GAAP financial measures enhances the understanding of our operating results and is useful to investors in comparing our operating performance with that of our competitors and estimating our enterprise value. Adjusted EBITDA is a useful tool in evaluating the core operating results of the Company given the significant variation that can result from, for example, the timing of capital expenditures, the amount of intangible assets recorded or the differences in assets’ lives. We also use Adjusted EBITDA internally to evaluate operating performance of our segments, to allocate resources and capital to such segments, to measure performance for incentive compensation programs, and to evaluate future growth opportunities. The non-GAAP financial measures included in this press release are reconciled to their most directly comparable GAAP financial measures in the tables included herein. ### Cenveo (NYSE: CVO), headquartered in Stamford, Connecticut, is a leader in the management and distribution of print and related products and services. The Company provides its customers with low-cost solutions within its core businesses of commercial printing and packaging, envelope, form, and label manufacturing, and publisher services; offering one-stop services from design through fulfillment. With 10,000 employees worldwide, Cenveo delivers everyday for its customers through a network of production, fulfillment, content management, and distribution facilities across the globe. ___________________________ 11 Statements made in this release, other than those concerning historical financial information, may be considered “forward-looking statements,” which are based upon current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. In view of such uncertainties, investors should not place undue reliance on our forward-looking statements. Such statements speak only as of the date of this release, and we undertake no obligation to update any forward-looking statements made herein. Factors that could cause actual results to differ materially from management’s expectations include, without limitation: (1) our substantial indebtedness impairing our financial condition and limiting our ability to incur additional debt; (2) the terms of our indebtedness imposing significant restrictions on our operating and financial flexibility; (3) the potential to incur additional indebtedness, exacerbating the above factors; (4) cross default provisions in our indebtedness, which could cause all of our debt to become due and payable as a result of a default under an unrelated debt instrument; (5) our ability to successfully integrate acquisitions; (6) intense competition in our industry; (7) the absence of long-term customer agreements in our industry, subjecting our business to fluctuations; (8) factors affecting the U.S. postal services impacting demand for our products; (9) increases in paper costs and decreases in its availability; (10) our history of losses and ability to return to consistent profitability; (11) the availability of the Internet and other electronic media affecting demand for our products; (12) our labor relations; (13) compliance with environmental rules and regulations; (14) dependence on key management personnel; and (15) general economic, business and labor conditions. This list of factors is not exhaustive, and new factors may emerge or changes to the foregoing factors may occur that would impact the Company’s business. Additional information regarding these and other factors can be found in Cenveo, Inc.’s periodic filings with the SEC, which are available at http://www.cenveo.com. ______________ _________ Inquiries from analysts and investors should be directed to Robert G. Burton, Jr. at (203) 595-3005. |