STAMFORD, Conn., Feb. 22, 2017 /PRNewswire/ -- Cenveo, Inc.
(NYSE: CVO) reported financial results for the fourth quarter and
full year ended December 31, 2016.
The reported results for all periods presented exclude the
operating results of the Company's packaging operating segment and
its top-sheet lithographic print operation ("Packaging Business"),
which have been classified in the Company's consolidated financial
statements as discontinued operations. Additionally, the
comparative results discussed below were meaningfully impacted by a
13 week fiscal fourth quarter and 52 week fiscal year in 2016, as
compared to a 14 week fiscal fourth quarter and 53 week fiscal year
in 2015.
Fourth Quarter 2016 vs. Fourth Quarter 2015
Overview
- Net sales of $417.2 million
compared to $479.0 million.
- Net loss of $0.2 million
compared to a net loss of $17.5
million.
- Adjusted EBITDA of $32.5
million compared to $44.1
million.
- Cash flow provided by operating activities of continuing
operations of $36.0 million compared
to $14.7 million.
Full Year 2016 vs. Full Year 2015 Overview
- Net sales of $1.66 billion
compared to $1.74 billion.
- Net income of $67.9 million
compared to a net loss of $30.9
million.
- Adjusted EBITDA of $143.9
million compared to $158.0
million.
- Cash flow provided by operating activities of continuing
operations of $49.4 million compared
to $16.2 million.
Management Commentary
"Despite most of our businesses performing to our expectation,
our fourth quarter results were negatively impacted by significant
sales volume declines and increased price pressures within our
office product envelope and related wholesale envelope product
lines," said Robert G. Burton, Sr.,
Chairman and CEO of Cenveo. "This was driven by measures undertaken
by our customers in response to a regulatory decision mid-way
through 2016. This trend accelerated throughout the fourth quarter
as we saw sales in the office products business decline more than
20% from the same period in 2015.
"As a result of these substantial changes in the marketplace, we
have taken significant action to bring our cost structure in line
with our ongoing revenue base. Late in the fourth quarter of 2016,
we initiated a two-year, company-wide profitability improvement
plan which we expect will yield $50
million of combined cost savings and margin improvement,
$25 million of which we expect to
realize in 2017. This program is designed to reduce our fixed cost
infrastructure, lower SG&A costs, reduce back office headcount
and further streamline our geographic footprint by bringing
multiple products under one roof."
Financial Results
Net sales in the fourth quarter of 2016 were $417.2 million compared to $479.0 million in the same period last year, a
12.9% decline. Net sales were $1.66
billion for the full year 2016 compared to $1.74 billion for the full year 2015, a 4.7%
decline. The sales declines were primarily driven by: (i) lower
sales in the envelope segment, primarily due to lower demand in
office product and wholesale envelope product lines due to cost
savings and inventory rationalization efforts by those customers,
offset by higher sales in the direct mail envelope product line;
(ii) lower sales as a result of one less week in the fourth quarter
of 2016 versus 2015; and (iii) 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.
Operating income in the fourth quarter declined 33.2% to
$16.6 million, compared to
$24.8 million in the same period last
year. For the full year, operating income declined 9.3% to
$76.0 million from $83.8 million in 2015. The decrease was primarily
due to lower gross profit due to lower office product envelope
customer demand, continued pricing pressures associated with print
related products, and the impact of the decision to exit the
coating operation, which were partially offset by lower selling,
general and administrative expenses. Non-GAAP operating income in
the fourth quarter of 2016 was $21.3
million compared to non-GAAP operating income of
$27.6 million for the same period
last year. Non-GAAP operating income was $94.3 million for the full year 2016, compared to
$105.1 million in 2015. A
reconciliation of all non-GAAP figures are reported in the tables
below.
Loss from continuing operations during the fourth quarter of
2016 was $1.8 million, or
$(0.21) per diluted share, compared
to a loss of $4.4 million, or
$(0.51) per diluted share, in the
fourth quarter of 2015. For the full year 2016, income from
continuing operations was $70.8
million, or $7.63 per diluted
share, compared to a loss of $19.5
million, or $(2.30) per
diluted share, in 2015. The reduced
loss in the fourth quarter of 2016 was primarily driven
by income tax expense recognized during 2015 in conjunction with
the sale of the Packaging Business. For the full year, the
significant increase was primarily driven by gains on the early
extinguishment of debt of $82.5
million, partially offset by the aforementioned declines in
customer demand. Non-GAAP income from continuing operations in the
fourth quarter of 2016 was $0.3
million, or $0.03 per diluted
share, compared to income of $5.7
million, or $0.52 per diluted
share, in the same period last year. Non-GAAP income from
continuing operations for the full year 2016 was $7.8 million, or $0.82 per diluted share, compared to income of
$10.7 million, or $0.97 per diluted share, in 2015.
Net loss in the fourth quarter of 2016 was $0.2 million compared to a net loss of
$17.5 million for the same period
last year. Net income for the full year of 2016 was $67.9 million, compared to a net loss of
$30.9 million in 2015.
Adjusted EBITDA was $32.5 million
in the fourth quarter of 2016 compared to $44.1 million for the same period last year. For
the full year 2016, Adjusted EBITDA was $143.9 million compared to $158.0 million in 2015.
During the fourth quarter 2016, cash flow provided by operating
activities of continuing operations was $36.0
million compared to $14.7
million for the same period last year. For the full year
2016, cash flow provided by operating activities of continuing
operations was $49.4 million compared
to $16.2 million in 2015. The
improvement was primarily due to changes in working capital,
particularly the timing of sales and collections from customers and
the timing of payments to vendors, as well as the success of
various inventory management programs.
At December 31, 2016, cash and
cash equivalents totaled
$5.5 million, compared to
$7.8 million at January 2, 2016. Total principal debt outstanding
declined 14.6% to $1.05 billion from
$1.23 billion at January 2, 2016. The Company also has announced
and is in the process of redeeming the remaining outstanding
principal balance of its 11.5% notes, and anticipates this
transaction will be completed on February
27, 2017. Additionally, the Company expects the
remaining $5.5 million principal
balance of its 7% convertible notes will be retired prior to or at
maturity in May 2017 using cash flow
from operations or availability under its ABL facility.
2017 Outlook
Burton, Sr. continued: "As all of our focus is now on 2017, we
are looking to follow up our 2016 balance sheet improvements with
significant operational improvements. As of today, we have
identified approximately $40 million
of our two-year $50 million
profitability improvement plan and are evaluating our options to
achieve at least the additional $10
million of cost savings and profitability initiatives. Of
the targeted $50 million of combined
cost savings and margin improvements, we have already implemented
over 30% and expect to see the full benefits of the plan by the end
of 2018.
"Taking into consideration the timing of the profitability
improvement plan, anticipated continued softness through the first
half of 2017 within our office product and wholesale envelope
product lines, and other current marketplace dynamics, we are
issuing initial 2017 guidance for net sales of approximately
$1.6 billion and Adjusted EBITDA of
approximately $150 million. We also believe that successful
implementation of our profitability improvement plan will position
us to achieve an annualized run rate of approximately $180
million in Adjusted EBITDA by the end of 2018."
Certain components of the guidance provided above are
presented on a non-GAAP basis only, without accompanying
reconciliation to directly comparable GAAP information because
the items that impact the
preparation of a reconciliation could not reasonably be
predicted. Accordingly, a reconciliation could not be accomplished
without "unreasonable
efforts." In particular, the Company does not have
access to certain information that would be necessary to provide
such reconciliation, including non-recurring items that are not
indicative of the Company's ongoing operations. Such items
include, but are not limited to, integration, acquisition and other
charges, impairment of intangible assets, restructuring and other
charges, (gain) loss on early extinguishment of debt, net and other
similar gains or losses not reflective of the Company's ongoing
operations.
Conference Call
Cenveo will host a conference call tomorrow, Thursday, February 23, 2017 at 9:00 a.m. Eastern Time. The conference call will
be available via webcast, which can be accessed on the investor
relations section of the Company's website at www.cenveo.com.
During the call, Cenveo will refer to a supplementary slide
presentation, which can also be accessed on the investor relations
section of the website.
About Cenveo
Cenveo (NYSE: CVO), world headquartered in Stamford, Connecticut, is a leading global
provider of print and related resources, offering world-class
solutions in the areas of custom labels, envelopes, commercial
print, content management and publisher solutions. The company
provides a one-stop offering through services ranging from design
and content management to fulfillment and distribution. With a
worldwide distribution platform, we pride ourselves on delivering
quality solutions and service every day to our customers. For more
information please visit us at www.cenveo.com.
Use of Non-GAAP Measures
In addition to results presented in accordance with accounting
principles generally accepted in the U.S. ("GAAP"), we use certain
non-GAAP financial measures, including Adjusted EBITDA, non-GAAP
income (loss) from continuing operations, non-GAAP operating
income, non-GAAP operating income margin, and adjusted free cash
flow. Non-GAAP operating income is defined as operating
income excluding integration, acquisition and other charges,
stock-based compensation provision, and restructuring and other
charges. Non-GAAP operating income margin is calculated by dividing
non-GAAP operating income into net sales. Non-GAAP income
(loss) from continuing operations excludes integration, acquisition
and other charges, stock-based compensation provision, impairment
of intangible assets, restructuring and other charges, (gain) loss
on early extinguishment of debt, net, and an adjustment to income
taxes to reflect an estimated cash tax rate. Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation,
amortization, integration, acquisition and other charges,
stock-based compensation provision, restructuring and other
charges, impairment of intangible assets, gain on bargain purchase,
(gain) loss on early extinguishment of debt, net, and (loss) income
from discontinued operations, net of taxes. Adjusted free cash flow
is defined as Adjusted EBITDA less cash interest, cash taxes, and
capital expenditures, net of proceeds from the sale of plant,
property and equipment. These are non-GAAP financial measures, as
defined herein, and should be read in conjunction with GAAP
financial measures. A reconciliation of income (loss) from
continuing operations to non-GAAP income (loss) from continuing
operations, operating income to non-GAAP operating income, and net
income (loss) to Adjusted EBITDA is presented in the tables below.
These non-GAAP financial measures are not presented as an
alternative to cash flows from continuing operations, as a measure
of our liquidity or as an alternative to reported net loss 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 income (loss)
from continuing operations, non-GAAP operating income, non-GAAP
operating income margin and adjusted free cash flow alongside 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. 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.
Forward-Looking Statements
Statements made in this release, other than those concerning
historical financial information, may be considered
"forward-looking statements," examples of which include statements
relating to our 2017 outlook and future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. These
forward-looking statements 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 which could cause actual
results to differ materially from management's expectations
include, without limitation: (i) our substantial level of
indebtedness could materially adversely affect our financial
condition, liquidity and ability to service or refinance our debt,
and prevent us from fulfilling our business obligations; (ii) our
ability to pay the principal of, or to reduce or refinance, our
outstanding indebtedness; (iii) the terms of our indebtedness
imposing significant restrictions on our operating and financial
flexibility; (iv) additional borrowings available to us could
further exacerbate our risk exposure from debt; (v)
United States and global economic
conditions have adversely affected us and could continue to
adversely affect us; (vi) our ability to successfully integrate
acquired businesses with our business; (vii) a decline in our
consolidated profitability or profitability within one of our
individual reporting units could result in the impairment of our
assets, including goodwill and other long-lived assets; (viii) the
industries in which we operate our business are highly competitive
and extremely fragmented; (ix) a general absence of long-term
customer agreements in our industry, subjecting our business to
quarterly and cyclical fluctuations; (x) factors affecting
the United States postal services
impacting demand for our products; (xi) the availability of the
Internet and other electronic media adversely affecting our
business; (xii) increases in paper costs and decreases in the
availability of raw materials; (xiii) increases in energy and
transportation costs; (xiv) our labor relations; (xv) our
compliance with environmental laws; (xvi) our dependence on
key management personnel; and (xvii) any failure, interruption or
security lapse of our information technology systems. 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 www.cenveo.com.
Inquiries from analysts and investors should be directed to
Ayman Zameli at (203) 595-3063.
Cenveo, Inc. and
Subsidiaries
Condensed
Consolidated Statements of Comprehensive (Loss)
Income
(in thousands,
except per share data)
(unaudited)
|
|
|
|
For the Three
Months Ended
|
For the Years
Ended
|
|
|
December 31,
2016
|
|
January 2,
2016
|
|
December 31,
2016
|
|
January 2,
2016
|
Net sales
|
|
$
|
417,244
|
|
|
$
|
478,960
|
|
|
$
|
1,660,001
|
|
|
$
|
1,741,779
|
|
Cost of
sales
|
|
353,624
|
|
|
400,872
|
|
|
1,386,746
|
|
|
1,450,876
|
|
Selling, general and
administrative expenses
|
|
41,992
|
|
|
50,190
|
|
|
179,525
|
|
|
186,749
|
|
Amortization of
intangible assets
|
|
1,383
|
|
|
2,029
|
|
|
5,744
|
|
|
7,785
|
|
Restructuring and
other charges
|
|
3,670
|
|
|
1,047
|
|
|
11,954
|
|
|
12,576
|
|
Operating
income
|
|
16,575
|
|
|
24,822
|
|
|
76,032
|
|
|
83,793
|
|
Interest expense,
net
|
|
19,828
|
|
|
24,804
|
|
|
85,753
|
|
|
100,805
|
|
(Gain) loss on early
extinguishment of debt, net
|
|
(2,153)
|
|
|
693
|
|
|
(82,481)
|
|
|
1,252
|
|
Other expense
(income), net
|
|
481
|
|
|
(2,423)
|
|
|
(2,344)
|
|
|
(3,196)
|
|
(Loss) income from
continuing operations before income taxes
|
|
(1,581)
|
|
|
1,748
|
|
|
75,104
|
|
|
(15,068)
|
|
Income tax
expense
|
|
198
|
|
|
6,113
|
|
|
4,258
|
|
|
4,393
|
|
(Loss) income from
continuing operations
|
|
(1,779)
|
|
|
(4,365)
|
|
|
70,846
|
|
|
(19,461)
|
|
Income (loss) from
discontinued operations, net of taxes
|
|
1,538
|
|
|
(13,159)
|
|
|
(2,897)
|
|
|
(11,390)
|
|
Net (loss)
income
|
|
(241)
|
|
|
(17,524)
|
|
|
67,949
|
|
|
(30,851)
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
Changes in
pension and other employee benefit accounts, net of
taxes
|
|
(6,711)
|
|
|
(7,555)
|
|
|
756
|
|
|
(3,438)
|
|
Currency
translation adjustment, net
|
|
(197)
|
|
|
(1,163)
|
|
|
1,945
|
|
|
(4,295)
|
|
Total other
comprehensive (loss) income
|
|
(6,908)
|
|
|
(8,718)
|
|
|
2,701
|
|
|
(7,733)
|
|
Comprehensive (loss)
income
|
|
$
|
(7,149)
|
|
|
$
|
(26,242)
|
|
|
$
|
70,650
|
|
|
$
|
(38,584)
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income per share – basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.21)
|
|
|
$
|
(0.51)
|
|
|
$
|
8.31
|
|
|
$
|
(2.30)
|
|
Discontinued
operations
|
|
0.18
|
|
|
(1.56)
|
|
|
(0.34)
|
|
|
(1.34)
|
|
Net (loss)
income
|
|
$
|
(0.03)
|
|
|
$
|
(2.07)
|
|
|
$
|
7.97
|
|
|
$
|
(3.64)
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per
share – diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.21)
|
|
|
$
|
(0.51)
|
|
|
$
|
7.63
|
|
|
$
|
(2.30)
|
|
Discontinued
operations
|
|
0.18
|
|
|
(1.56)
|
|
|
(0.31)
|
|
|
(1.34)
|
|
Net (loss)
income
|
|
$
|
(0.03)
|
|
|
$
|
(2.07)
|
|
|
$
|
7.32
|
|
|
$
|
(3.64)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
8,552
|
|
|
8,484
|
|
|
8,527
|
|
|
8,479
|
|
Diluted
|
|
8,552
|
|
|
8,484
|
|
|
9,492
|
|
|
8,479
|
|
CENVEO, INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
For The Years
Ended
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
67,949
|
|
|
$
|
(30,851)
|
|
Adjustments to reconcile net income
(loss) to net cash provided by operating activities:
|
|
|
|
(Gain) loss on sale
of discontinued operations, net of taxes
|
(69)
|
|
|
4,987
|
|
Loss from
discontinued operations, net of taxes
|
2,966
|
|
|
6,403
|
|
Depreciation
|
41,456
|
|
|
41,904
|
|
Amortization of
intangible assets
|
5,744
|
|
|
7,785
|
|
Non-cash interest
expense, net
|
9,003
|
|
|
10,057
|
|
Deferred income
taxes
|
1,280
|
|
|
2,743
|
|
Gain on sale of
assets
|
(4,330)
|
|
|
(5,356)
|
|
Non-cash
restructuring and other charges, net
|
3,638
|
|
|
5,936
|
|
(Gain) loss on early
extinguishment of debt, net
|
(82,481)
|
|
|
1,252
|
|
Provisions for bad
debts
|
1,415
|
|
|
2,567
|
|
Provisions for
inventory obsolescence
|
2,826
|
|
|
2,359
|
|
Stock-based
compensation provision
|
1,468
|
|
|
1,636
|
|
Changes in operating
assets and liabilities, excluding the effects of acquired
businesses:
|
|
|
|
Accounts
receivable
|
18,397
|
|
|
(3,953)
|
|
Inventories
|
16,820
|
|
|
(5,130)
|
|
Accounts payable and
accrued compensation and related liabilities
|
(33,781)
|
|
|
(16,363)
|
|
Other working capital
changes
|
(2,534)
|
|
|
3,103
|
|
Other, net
|
(384)
|
|
|
(12,853)
|
|
Net cash
provided by operating activities of continuing
operations
|
49,383
|
|
|
16,226
|
|
Net cash (used
in) provided by operating activities of discontinued
operations
|
(10,512)
|
|
|
15,968
|
|
Net cash
provided by operating activities
|
38,871
|
|
|
32,194
|
|
Cash flows from
investing activities:
|
|
|
|
Cost of business
acquisitions, net of cash acquired
|
—
|
|
|
(1,996)
|
|
Capital
expenditures
|
(41,137)
|
|
|
(25,928)
|
|
Proceeds from sale of
property, plant and equipment
|
8,330
|
|
|
8,558
|
|
Proceeds from sale of
assets
|
2,000
|
|
|
2,180
|
|
Net cash used
in investing activities of continuing operations
|
(30,807)
|
|
|
(17,186)
|
|
Net cash
provided by (used in) investing activities of discontinued
operations
|
95,866
|
|
|
(2,282)
|
|
Net cash
provided by (used in) investing activities
|
65,059
|
|
|
(19,468)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
issuance of 4% senior secured notes due 2021
|
50,000
|
|
|
—
|
|
Payment of financing
related costs and expenses and debt issuance discounts
|
(11,576)
|
|
|
(1,596)
|
|
Proceeds from
issuance of other long-term debt
|
—
|
|
|
12,500
|
|
Repayments of other
long-term debt
|
(5,578)
|
|
|
(16,545)
|
|
Repayment of 11.5%
senior notes due 2017
|
(24,725)
|
|
|
(22,720)
|
|
Repayment of 7%
senior exchangeable notes due 2017
|
(45,903)
|
|
|
—
|
|
Repayment of 8.500%
junior secured priority notes due 2022
|
(4,550)
|
|
|
—
|
|
Purchase and
retirement of common stock upon vesting of restricted stock
units
|
(346)
|
|
|
(216)
|
|
Borrowings under
asset-based revolving credit facility due 2021
|
474,300
|
|
|
468,300
|
|
Repayments under
asset-based revolving credit facility due 2021
|
(540,800)
|
|
|
(454,800)
|
|
Net cash used
in financing activities of continuing operations
|
(109,178)
|
|
|
(15,077)
|
|
Net cash used
in financing activities of discontinued operations
|
(8)
|
|
|
(473)
|
|
Net cash used
in financing activities
|
(109,186)
|
|
|
(15,550)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
232
|
|
|
(1,213)
|
|
Net decrease
in cash and cash equivalents
|
(5,024)
|
|
|
(4,037)
|
|
Cash and cash
equivalents at beginning of period
|
10,556
|
|
|
14,593
|
|
Cash and cash
equivalents at end of period
|
5,532
|
|
|
10,556
|
|
Less cash and cash
equivalents of discontinued operations
|
—
|
|
|
(2,771)
|
|
Cash and cash
equivalents of continuing operations at end of period
|
$
|
5,532
|
|
|
$
|
7,785
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
Cash paid for
interest
|
$
|
79,267
|
|
|
$
|
91,455
|
|
Cash paid for taxes,
net
|
4,698
|
|
|
739
|
|
Non-cash origination
of capital leases
|
1,280
|
|
|
2,518
|
|
Cenveo, Inc. and
Subsidiaries
Condensed
Consolidated Balance Sheets
(in
thousands)
(unaudited)
|
|
|
2016
|
|
2015
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
5,532
|
|
|
$
|
7,785
|
|
Accounts receivable,
net
|
234,187
|
|
|
254,042
|
|
Inventories,
net
|
101,950
|
|
|
121,615
|
|
Prepaid and other
current assets
|
41,576
|
|
|
46,731
|
|
Assets of
discontinued operations - current
|
—
|
|
|
48,566
|
|
Total current
assets
|
383,245
|
|
|
478,739
|
|
|
|
|
|
Property, plant and
equipment, net
|
207,679
|
|
|
210,578
|
|
Goodwill
|
175,209
|
|
|
175,338
|
|
Other intangible
assets, net
|
124,831
|
|
|
130,450
|
|
Other assets,
net
|
21,995
|
|
|
24,070
|
|
Assets of
discontinued operations - long-term
|
—
|
|
|
62,851
|
|
Total
assets
|
$
|
912,959
|
|
|
$
|
1,082,026
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Current
maturities of long-term debt
|
$
|
31,727
|
|
|
$
|
5,373
|
|
Accounts
payable
|
175,896
|
|
|
200,120
|
|
Accrued
compensation and related liabilities
|
24,684
|
|
|
31,961
|
|
Other current
liabilities
|
82,899
|
|
|
88,814
|
|
Liabilities of
discontinued operations - current
|
—
|
|
|
22,268
|
|
Total current
liabilities
|
315,206
|
|
|
348,536
|
|
|
|
|
|
Long-term
debt
|
986,939
|
|
|
1,203,250
|
|
Other
liabilities
|
199,971
|
|
|
198,926
|
|
Liabilities of
discontinued operations - long-term
|
—
|
|
|
1,153
|
|
Commitments and
contingencies
|
|
|
|
Shareholders'
deficit:
|
|
|
|
Preferred stock, $0.01 par value; 25 shares
authorized, no shares issued
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 15,000 and 12,500 shares authorized, 8,553 and 8,484
shares issued and outstanding as of the years ended 2016 and 2015,
respectively
|
86
|
|
|
85
|
|
Paid-in
capital
|
382,271
|
|
|
372,240
|
|
Retained
deficit
|
(868,285)
|
|
|
(936,234)
|
|
Accumulated other
comprehensive loss
|
(103,229)
|
|
|
(105,930)
|
|
Total shareholders'
deficit
|
(589,157)
|
|
|
(669,839)
|
|
Total liabilities and
shareholders' deficit
|
$
|
912,959
|
|
|
$
|
1,082,026
|
|
Cenveo, Inc. and
Subsidiaries
Reconciliation of Operating Income to Non-GAAP Operating Income
(in thousands)
(unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
|
December 31,
2016
|
|
January 2,
2016
|
|
December 31,
2016
|
|
January 2,
2016
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
16,575
|
|
|
$
|
24,822
|
|
|
$
|
76,032
|
|
|
$
|
83,793
|
|
Integration,
acquisition and other charges
|
|
834
|
|
|
1,608
|
|
|
4,881
|
|
|
7,095
|
|
Stock-based
compensation provision
|
|
238
|
|
|
155
|
|
|
1,468
|
|
|
1,636
|
|
Restructuring and
other charges
|
|
3,670
|
|
|
1,047
|
|
|
11,954
|
|
|
12,576
|
|
Non-GAAP operating
income
|
|
$
|
21,317
|
|
|
$
|
27,632
|
|
|
$
|
94,335
|
|
|
$
|
105,100
|
|
Cenveo, Inc. and
Subsidiaries
Reconciliation of (Loss) Income from Continuing Operations to
Non-GAAP Income from
Continuing Operations and Related Per Share Data
(in thousands, except per share data)
(unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
|
December 31,
2016
|
|
January 2,
2016
|
|
December 31,
2016
|
|
January 2,
2016
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
|
(1,779)
|
|
|
$
|
(4,365)
|
|
|
$
|
70,846
|
|
|
$
|
(19,461)
|
|
Integration,
acquisition and other charges
|
|
834
|
|
|
1,608
|
|
|
4,881
|
|
|
7,095
|
|
Stock-based
compensation provision
|
|
238
|
|
|
155
|
|
|
1,468
|
|
|
1,636
|
|
Restructuring and
other charges
|
|
3,670
|
|
|
1,047
|
|
|
11,954
|
|
|
12,576
|
|
(Gain) loss on early
extinguishment of debt, net
|
|
(2,153)
|
|
|
693
|
|
|
(82,481)
|
|
|
1,252
|
|
Income tax (benefit)
expense
|
|
(570)
|
|
|
5,586
|
|
|
(440)
|
|
|
3,656
|
|
Interest expense on
7% Notes, net of taxes
|
|
56
|
|
|
977
|
|
|
1,572
|
|
|
3,908
|
|
Non-GAAP income from
continuing operations
|
|
$
|
296
|
|
|
$
|
5,701
|
|
|
$
|
7,800
|
|
|
$
|
10,662
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per
share – diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.20)
|
|
|
$
|
(0.40)
|
|
|
$
|
7.46
|
|
|
$
|
(1.77)
|
|
Integration,
acquisition and other charges
|
|
0.09
|
|
|
0.15
|
|
|
0.52
|
|
|
0.65
|
|
Stock-based
compensation provision
|
|
0.03
|
|
|
0.01
|
|
|
0.15
|
|
|
0.15
|
|
Restructuring and
other charges
|
|
0.42
|
|
|
0.10
|
|
|
1.26
|
|
|
1.14
|
|
(Gain) loss on early
extinguishment of debt, net
|
|
(0.25)
|
|
|
0.06
|
|
|
(8.69)
|
|
|
0.11
|
|
Income tax (benefit)
expense
|
|
(0.07)
|
|
|
0.51
|
|
|
(0.05)
|
|
|
0.33
|
|
Interest expense on
7% Notes, net of taxes
|
|
0.01
|
|
|
0.09
|
|
|
0.17
|
|
|
0.36
|
|
Non-GAAP income from
continuing operations
|
|
$
|
0.03
|
|
|
$
|
0.52
|
|
|
$
|
0.82
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
8,727
|
|
|
10,998
|
|
|
9,492
|
|
|
10,992
|
|
Cenveo, Inc. and
Subsidiaries
Reconciliation of
Net (Loss) Income to Adjusted EBITDA
(in
thousands)
(unaudited)
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
|
December 31,
2016
|
|
January 2,
2016
|
|
December 31,
2016
|
|
January 2,
2016
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(241)
|
|
|
$
|
(17,524)
|
|
|
$
|
67,949
|
|
|
$
|
(30,851)
|
|
Interest expense,
net
|
|
19,828
|
|
|
24,804
|
|
|
85,753
|
|
|
100,805
|
|
Income tax
expense
|
|
198
|
|
|
6,113
|
|
|
4,258
|
|
|
4,393
|
|
Depreciation
|
|
10,272
|
|
|
12,027
|
|
|
41,456
|
|
|
41,904
|
|
Amortization of
intangible assets
|
|
1,383
|
|
|
2,029
|
|
|
5,744
|
|
|
7,785
|
|
Integration,
acquisition and other charges
|
|
834
|
|
|
1,608
|
|
|
4,881
|
|
|
7,095
|
|
Stock-based
compensation provision
|
|
238
|
|
|
155
|
|
|
1,468
|
|
|
1,636
|
|
Restructuring and
other charges
|
|
3,670
|
|
|
1,047
|
|
|
11,954
|
|
|
12,576
|
|
(Gain) loss on early
extinguishment of debt, net
|
|
(2,153)
|
|
|
693
|
|
|
(82,481)
|
|
|
1,252
|
|
(Income) loss from
discontinued operations, net of taxes
|
|
(1,538)
|
|
|
13,159
|
|
|
2,897
|
|
|
11,390
|
|
Adjusted EBITDA, as
defined
|
|
$
|
32,491
|
|
|
$
|
44,111
|
|
|
$
|
143,879
|
|
|
$
|
157,985
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cenveo-reports-fourth-quarter-and-full-year-2016-results-300412036.html
SOURCE Cenveo, Inc.