Cenveo Announces Second Quarter 2013 Results
Robert G. Burton, Sr., chairman and chief executive officer, stated:
Our second quarter performance was mixed. Our labels and packaging operations had a solid quarter with positive revenue growth up 2.5 percent despite continued disruption from the press fire that occurred earlier this year. I am very proud of our team's performance during this difficult period of time and I remain optimistic about our future prospects in our packaging business as the replacement press became fully operational in late June. We continue to expect that the performance of our print operations will begin to stabilize as we enter the back-half of the year as important industry verticals, such as managed care and travel and leisure enter seasonally stronger periods. In the meantime, we continue to remain vigilant on costs and increasing sales within this segment. Our envelope operations have continued to see significant improvement in direct mail as credit card mailing volumes have increased over 20 percent in the first half of the year, the strongest performance we have experienced since 2011. Despite this improvement in volume, we have experienced pricing pressures due to industry competitive dynamics.
As discussed in Cenveo’s last conference call, the company initiated reviews of all strategic options for some of its operating assets. Its recent focus has narrowed on divesting certain underperforming assets or assets that do not fit its future strategic plans. Cenveo continues to be in discussions with multiple parties for certain assets and expect to conclude any present opportunities over the coming months. More importantly, the company began evaluating distressed assets within certain industries that it operates and may look to potentially integrate them into its existing platform. While no assurances can be made that any transaction will be consummated, Cenveo expects that any potential transaction currently being contemplated regarding these distressed assets would be in the best interests of our customers and shareholders as it must be deleveraging to our capital structure and must be accretive to earnings and cash flow per share.