New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Cenveo Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 9, 2012 06:00PM

Cenveo Inc. (CVO) filed Quarterly Report for the period ended 2012-03-31. Cenveo Inc has a market cap of $179.5 million; its shares were traded at around $2.58 with a P/E ratio of 4.8 and P/S ratio of 0.1.



Highlight of Business Operations:

Net sales decreased $21.4 million, or 4.5%, in the first quarter of 2012, as compared to the first quarter of 2011, due to lower sales from our print and envelope segment of $20.6 million and our label and packaging segment of $0.8 million. See Segment Operations below for a detailed discussion of the primary factors affecting the change in our net sales by reportable segment.

Segment net sales for our print and envelope segment decreased $20.6 million, or 5.7%, in the first quarter of 2012, as compared to the first quarter of 2011. Net sales for our commercial printing operations declined $22.4 million, primarily due to: (i) lower sales volumes due to customer product launches that occurred in the first quarter of 2011, but did not repeat in the first quarter of 2012 and continued declines in the circulation of journals and periodicals, and (ii) lower sales due to price pressures that continue to exist within the print industry. Net sales of our envelope operations increased $1.9 million primarily due to: (i) the integration of EPG into our operations, including the impact of work transitioned from our existing operations to EPG and vice versa, as EPG was not included in our results for a full quarter in the first quarter of 2011, and (ii) higher sales due to our ability to pass along material price increases to our customers. The increases in our envelope net sales were substantially offset by lower sales volumes from our direct mail customers, primarily financial institutions, related to lower demand for customer solicitations.

Segment net sales for our label and packaging segment decreased $0.8 million, or 0.7%, in the first quarter of 2012, as compared to the first quarter of 2011. Net sales from our label operations declined $1.4 million, primarily due to our decision to exit certain low margin business within our long-run label customer accounts, offset in part by increased sales from our custom label business, primarily due to initiatives taken to enhance our e-commerce solution for our customers. Net sales from our packaging operations increased $0.6 million, primarily due to our ability to pass along material price increases to our customers, offset in part by lower sales due to our decision to exit certain low margin customer accounts.

Net Cash Used in Operating Activities of Continuing Operations. Net cash used in operating activities of continuing operations was $16.9 million in the first three months of 2012, which was primarily due to a use of working capital of $30.7 million, offset by our net loss adjusted for non-cash items of $16.5 million. The use of working capital primarily resulted from: (i) a decrease in other working capital changes primarily due to the timing of interest payments on our outstanding debt and a payment of a litigation settlement, (ii) a decrease in accounts payable due to the timing of vendor payments, and (iii) an increase in our inventories primarily due to the purchase of paper in advance of a price increase and the need to maintain finished good inventory levels to meet customer contract requirements. These increases were offset in part by a decrease in accounts receivables due to the timing of collections from and sales to our customers.

Net cash used in operating activities of continuing operations was $7.1 million in the first three months of 2011, which was primarily due to a use of working capital of $15.1 million, offset by our net income adjusted for non-cash items of $11.2 million. The use of working capital primarily resulted from: (i) a decrease in other working capital changes primarily due to the timing of interest payments on our outstanding debt and (ii) an increase in our inventories due to timing of work performed for our customers. These increases were offset in part by: (i) a decrease in accounts receivables due to the timing of collections from and sales to our customers and (ii) an increase in accrued compensation related liabilities due to the timing of employer related tax payments.

Read the The complete Report



Stocks Discussed: CVO,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial