Cenveo, Inc (CVO) saw its loss narrow to $0.24 million, or $0.03 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $17.52 million, or $2.07 a share. On an adjusted basis, earnings per share were at $0.03 for the quarter compared with $0.52 in the same period last year. Revenue during the quarter dropped 12.89 percent to $417.24 million from $478.96 million in the previous year period. Gross margin for the quarter contracted 106 basis points over the previous year period to 15.25 percent. Total expenses were 96.03 percent of quarterly revenues, up from 94.82 percent for the same period last year. That has resulted in a contraction of 121 basis points in operating margin to 3.97 percent.
Operating income for the quarter was $16.58 million, compared with $24.82 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.32 million compared to $27.63 million in the prior year period. At the same time, adjusted operating margin contracted 66 basis points in the quarter to 5.11 percent from 5.77 percent in the last year period.
“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 Chief execdutive officer 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.
Operating cash flow improves
Cenveo, Inc has generated cash of $38.87 million from operating activities during the year, up 20.74 percent or $6.68 million, when compared with the last year. Cash flow from investing activities was $65.06 million from investing activities during the year as against cash outgo of $19.47 million in the last year. It has incurred net capital expenditure of $30.81 million on net basis during the year, up 102.81 percent or $15.62 million from year ago.
The company has spent $109.19 million cash to carry out financing activities during the year as against cash outgo of $15.55 million in the last year period.
Cash and cash equivalents stood at $5.53 million as on Dec. 31, 2016, down 28.94 percent or $2.25 million from $7.78 million on Jan. 02, 2016.
Working capital drops significantly
Cenveo, Inc has witnessed a decline in the working capital over the last year. It stood at $68.04 million as at Dec. 31, 2016, down 47.74 percent or $62.16 million from $130.20 million on Jan. 02, 2016. Current ratio was at 1.22 as on Dec. 31, 2016, down from 1.38 on Jan. 02, 2016.
Debt comes down
Cenveo, Inc has recorded a decline in total debt over the last one year. It stood at $1,018.67 million as on Dec. 31, 2016, down 15.72 percent or $189.96 million from $1,208.62 million on Jan. 02, 2016. Total debt was 111.58 percent of total assets as on Dec. 31, 2016, compared with 111.92 percent on Jan. 02, 2016. Interest coverage ratio deteriorated to 0.84 for the quarter from 1 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
