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Cenveo Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 8, 2012 04:35PM

Cenveo Inc. (CVO) filed Quarterly Report for the period ended 2012-06-30. Cenveo, Inc. has a market cap of $124.3 million; its shares were traded at around $1.93 with a P/E ratio of 3.3 and P/S ratio of 0.1.



Highlight of Business Operations:

Net sales decreased $52.4 million, or 5.5%, in the first six months of 2012, as compared to the first six months of 2011, due to lower sales from our print and envelope segment of $50.2 million and our label and packaging segment of $2.2 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 $29.7 million, or 8.2%, in the second quarter of 2012, as compared to the second quarter of 2011. Net sales for our envelope operations decreased $17.4 million primarily due to: (i) lower sales volumes from our direct mail customers, primarily financial institutions, related to lower demand for customer solicitations and (ii) lower sales volumes from our office product and our journals and periodical customers due to our decision to exit lower margin business. These decreases in our envelope net sales were offset slightly by higher sales due to our ability to pass along material price increases to our customers. Net sales for our commercial printing operations declined $12.3 million, primarily due to: (i) lower sales volumes due to the closure and consolidation of a print plant into our existing operations 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.

Segment net sales for our print and envelope segment decreased $50.2 million, or 6.9%, in the first six months of 2012, as compared to the first six months of 2011. Net sales for our commercial printing operations declined $34.1 million, primarily due to: (i) lower sales volumes due to the closure and consolidation of a print plant into our existing operations, customer product launches that occurred in the first six months of 2011, but did not repeat in the first six months 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 decreased $16.1 million primarily due to: (i) lower sales volumes from our direct mail customers, primarily financial institutions, related to lower demand for customer solicitations and (ii) lower sales volumes from our office product and our journals and periodical customers due to our decision to exit certain lower margin business. These decreases in our envelope net sales were offset by: (i) higher sales from 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 six months in 2011, and (ii) higher sales due to our ability to pass along material price increases to our customers.

Segment net sales for our label and packaging segment decreased $1.3 million, or 1.2%, in the second quarter of 2012, as compared to the second quarter of 2011. Net sales from our label operations declined $1.2 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 decreased $0.1 million, primarily due to our decision to exit certain low margin customer accounts, offset in part by new sales opportunities and our ability to pass along material price increases to our customers.

Segment net sales for our label and packaging segment decreased $2.2 million, or 1.0%, in the first six months of 2012, as compared to the first six months of 2011. Net sales from our label operations declined $2.6 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 $0.5 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.

Read the The complete Report



Stocks Discussed: CVO,
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