STAMFORD, Conn., May 10 -- Cenveo, Inc. today announced its results for the three months ended March 31, 2006. For the first quarter, the Company reported net income of $112.2 million, or $2.10 per diluted share compared to a net loss of $22.6 million, or $0.47 per diluted share in the first quarter of 2005. The first quarter 2006 results include restructuring and impairment charges of $13.5 million, and the gain on sale of non-strategic businesses of $123.4 million, primarily relating to our initial sale of a 63.5% interest in Supremex. Net sales for the quarter decreased to $426.7 million from $449.6 million in 2005, primarily due to the Company's decision to close or sell several non-strategic businesses. Non-GAAP net income totaled $10.5 million, or $0.20 per diluted share in the first quarter of 2006. Non-GAAP net income excludes restructuring and impairment charges, and gain on sale of non-strategic businesses. A reconciliation of net income to Non-GAAP net income for these adjustments is presented in an attached table. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, excluding restructuring, impairment, and other charges, gain/loss on sale of non-strategic businesses, divested operations, and stock compensation expense on the adoption of SFAS 123R) in the first quarter of 2006, was $45.0 million compared to Adjusted EBITDA of $28.0 million in the same period last year, an increase of 61%. An explanation of the Company's use of Adjusted EBITDA is provided below. Robert G. Burton, Chairman and Chief Executive Officer stated: "I am very pleased to report that we achieved substantial operating improvement during the first quarter. Each of our business units met or exceeded budget, resulting in across-the-board improvement in operating margins and an increase in Adjusted EBITDA of 61% versus the prior year. We are also seeing the benefits of effectively leveraging our size with suppliers by driving our purchasing volume to a few strategic business partners, consolidating our back-office functions, and lowering our overhead costs. This continued focus on costs, combined with improved performance from our operations, allowed us to realize over $17 million in cost savings in the first quarter." Mr. Burton continued: "As I stated previously, Cenveo had a strong quarter of operational improvement, highlighted by gains across all of our businesses, particularly with solid performance from our envelope, forms and label segment which showed strong sales and profit gains. We have also made positive improvements in our commercial print segment, which showed dramatic year over year profitability improvement during the quarter. We significantly improved our capital structure with the successful sale of our Canadian envelope business. The total transaction value was approximately $290 million, of which we received approximately $210 million in cash, and a 28.6% retained interest that is currently worth over $80 million at today's market price. As we move further into the year, we will continue to look at improving our capital structure to help position us for future growth opportunities as we expand our platform." Mr. Burton concluded: "Our strong management team and focused operating strategies continue to drive our momentum, positioning the Company favorably to deliver on our previously communicated financial commitments for the rest of the year. I continue to remain very optimistic about the Company's prospects for 2006 and beyond. Our team is committed to creating shareholder value and delivering results that our customers, employees and shareholders expect."