Cenveo, Inc. (CVO) swung to a net loss for the quarter ended Apr. 01, 2017. The company has made a net loss of $8.69 million, or $ 1.02 a share in the quarter, against a net profit of $11.20 million, or $1.20 a share in the last year period. On the other hand, adjusted net loss from continuing operations for the quarter narrowed to $0.08 million, or $0.01 a share from a loss of $1.73 million or $0.20 a share, a year ago.

Revenue during the quarter dropped 13.46 percent to $374.51 million from $432.76 million in the previous year period. Gross margin for the quarter expanded 75 basis points over the previous year period to 17.12 percent. Total expenses were 97.32 percent of quarterly revenues, up from 96.07 percent for the same period last year. That has resulted in a contraction of 125 basis points in operating margin to 2.68 percent.

Operating income for the quarter was $10.03 million, compared with $17.01 million in the previous year period.

However, the adjusted operating income for the quarter stood at $19.15 million compared to $23.51 million in the prior year period. At the same time, adjusted operating margin contracted 32 basis points in the quarter to 5.11 percent from 5.43 percent in the last year period.

"Despite headwinds impacting net sales, we achieved several accomplishments this past quarter. The continued softness in our office products envelope business and the closure of our coating operation in mid-2016 were contributors to the decline in our sales year over year. Our 2017 Profitability Improvement Plan provided sustainable savings of over $5.0 million during the quarter, which allowed us to improve our margins despite lower sales volume. The benefits of the 2017 Profitability Improvement Plan will continue in the second quarter and throughout the remainder of the year. We have now identified the remaining $10 million of our proposed $50 million of cost savings and feel good about our ability to achieve our stated goal of generating $25 million in savings for the full year. Additionally, the positive impact of our significant 2016 debt repurchases and refinancing decreased interest expense for the quarter compared to the same period last year by approximately $5.0 million," said Robert G. Burton, Sr., chairman and chief executive officer of Cenve.

The company has spent $7.48 million cash to meet investing activities during the quarter as against cash inflow of $87.41 million in the last year period. It has incurred capital expenditure of $7.48 million on net basis during the quarter, up 4.57 percent or $0.33 million from year ago period.

Cash flow from financing activities was $11.98 million for the quarter as against cash outgo of $69.33 million in the last year period.

Cash and cash equivalents stood at $3.86 million as on Apr. 01, 2017, down 56.87 percent or $5.09 million from $8.95 million on Apr. 02, 2016.

Working capital increases sharply

Cenveo, Inc. has recorded an increase in the working capital over the last year. It stood at $102.29 million as at Apr. 01, 2017, up 348.85 percent or $79.50 million from $22.79 million on Apr. 02, 2016. Current ratio was at 1.42 as on Apr. 01, 2017, up from 1.06 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 35 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 52 days for the same period last year.

Days inventory outstanding has decreased to 16 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 46 for the same period last year.