Cenveo Provides Fourth Quarter Update
26 January 2010 - 9:18AM
PR Newswire (US)
STAMFORD, Conn., Jan. 25 /PRNewswire-FirstCall/ -- Cenveo, Inc.
(NYSE: CVO) today provided the following financial guidance for its
fourth quarter ended January 2, 2010. (Logo:
http://www.newscom.com/cgi-bin/prnh/20070618/CENVEOLOGO) We affirm
that our Adjusted EBITDA for the fourth quarter of 2009 is expected
to be greater than our $56.3 million Adjusted EBITDA for the third
quarter of 2009. Based on our preliminary results, we estimate that
for the fourth quarter of 2009 we will have net sales of between
approximately $445.0 million and $460.0 million. We further
estimate that, as of January 2, 2010, our total outstanding
long-term debt, including current maturities, was approximately
$1.23 billion. Robert G. Burton, Chairman and Chief Executive
Officer stated: "We are very pleased with the company's performance
during the fourth quarter, and our ability to deliver on our
financial commitments, despite the challenges in the macro
environment. As you know, I committed on our last investor call
that our fourth quarter Adjusted EBITDA would be greater than our
third quarter Adjusted EBITDA of $56.3 million. I am also
encouraged by the momentum that we saw in our businesses as we
ended the year with strong performance in the month of December.
These trends have continued as we begin 2010, and I continue to
remain optimistic that we are on track to achieve our previously
communicated goal of $250 million in Adjusted EBITDA for 2010." Mr.
Burton continued: "The proposed notes offering announced today is a
major step toward achieving one of the goals we communicated to our
investors, namely extending our debt maturities and maintaining our
strong liquidity position. Consistent with our philosophy of
accessing the capital markets on an opportunistic basis, we believe
that raising long term capital at current interest rates should
help create attractive returns for shareholders in the long run."
Cenveo, Inc. and Subsidiaries -----------------------------
Reconciliation of Net Income to Adjusted EBITDA
------------------------------------------------------ (in
thousands) -------------- (unaudited) ----------- Three Months
Ended ------------------ October 3, 2009 --------------- Net income
$1,073 ----------------- ------ Interest expense, net 29,037
--------------------- ------ Income tax expense 4,131
---------------------------- ----- Depreciation 13,659 ------------
------ Amortization of intangible assets 2,587
-------------------------- ----- Integration, acquisition and other
charges 2,822 ---------------------------- ----- Stock-based
compensation provision 3,961 ------------------------ -----
Restructuring, impairment and other charges 8,537
----------------------------- ----- (Income) from discontinued
operations, net of taxes (9,505) -------------------------------
------ Adjusted EBITDA, as defined $56,302
--------------------------- ------- In addition to results
presented in accordance with accounting principles generally
accepted in the U.S. ("GAAP"), included in this release is a
certain Non-GAAP financial measure, specifically Adjusted EBITDA.
This Non-GAAP financial measure is defined as earnings before
interest, taxes, depreciation and amortization, excluding
integration, acquisition and other charges, stock-based
compensation provision, restructuring, impairment and other
charges. This Non-GAAP financial measure should be read in
conjunction with GAAP financial measures. A reconciliation of
income to Adjusted EBITDA is presented in the attached table. This
Non-GAAP financial measure is not presented as an alternative to
cash flows from operations, as a measure of our liquidity or as an
alternative to reported net income as an indicator of our operating
performance. This Non-GAAP financial measure is used herein may not
be comparable to similarly titled measures reported by competitors.
We believe the use of Adjusted EBITDA along with GAAP financial
measures enhances the understanding of our operating results and
may be useful to investors in comparing our operating performance
with that of our competitors and estimating our enterprise value.
Adjusted EBITDA is also 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 the 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. Cenveo (NYSE:CVO), headquartered in
Stamford, Connecticut, is a leader in the management and
distribution of print and related products and solutions. The
Company provides its customers with low-cost alternatives within
its core businesses of labels and forms manufacturing, packaging
and publisher offerings, envelope production, and printing;
supplying one-stop solutions from design through fulfillment.
Cenveo delivers everyday for its customers through a network of
production, fulfillment, content management, and distribution
facilities across the globe. 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 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 publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Factors that
could cause actual results to differ materially from management's
expectations include, without limitation: (i) a decline of our
consolidated or individual reporting units operating performance as
a result of the current economic environment could affect the
results of our operations and financial position, including the
impairment of our goodwill and other long-lived assets; (ii) our
substantial indebtedness could impair our financial condition and
prevent us from fulfilling our business obligations; (iii) our
ability to service or refinance our debt; (iv) the terms of our
indebtedness imposing significant restrictions on our operating and
financial flexibility; (v) additional borrowings are available to
us that could further exacerbate our risk exposure from debt; (vi)
our ability to successfully integrate acquisitions; (vii) intense
competition in our industry; (viii) the general absence of
long-term customer agreements in our industry, subjecting our
business to quarterly and cyclical fluctuations; (ix) factors
affecting the U.S. postal services impacting demand for our
products; (x) the availability of the Internet and other electronic
media affecting demand for our products; (xi) increases in paper
costs and decreases in its availability; (xii) our labor relations;
(xiii) our compliance with environmental rules and regulations; and
(xiv) our dependence on key management personnel. This list of
factors is not exhaustive, and new factors may emerge or changes to
the foregoing factors may occur that would impact our 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. http://www.newscom.com/cgi-bin/prnh/20070618/CENVEOLOGO
http://photoarchive.ap.org/ DATASOURCE: Cenveo, Inc. CONTACT:
Investors, Robert G. Burton, Jr. of Cenveo, Inc., +1-203-595-3005
Web Site: http://www.cenveo.com/
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