STAMFORD, CT – Cenveo, Inc. (NYSE: CVO) today announced results for the three months ended March 28, 2015.

Robert G. Burton, Sr., Chairman and Chief Executive Officer stated:

"We are very pleased with the performance of our operations during the first quarter of 2015, in which we achieved significant improvement in operating income and Adjusted EBITDA, despite the severe weather that we experienced. The stronger performance was primarily driven by our envelope operations, which are now benefiting from efficiencies realized from last year's National Envelope integration. We also saw steady operational performances out of our print group as well as our label and packaging group. Additionally, we have improved our capital structure by extinguishing over $22.6 million of the 11.5% notes to date in 2015, leaving the current remaining balance under $200 million."

The Company generated net sales of $475.1 million for the three months ended March 28, 2015, compared to $490.1 million for the same period last year, a decline of 3.1%. The decline in net sales is attributable to the consolidation of several envelope facilities during the second half of 2014 in connection with the accelerated integration of the National Envelope assets with our existing operations and two new facilities. Excluding the estimated impacts of the integration, we believe our envelope group net sales were up modestly, which is primarily attributable to product mix and pricing improvements, offset by volume declines.

Operating income was $18.2 million for the three months ended March 28, 2015, compared to operating income of $10.1 million for the same period last year. Operating income in 2014 was impacted by expenses associated with the closure and consolidation of several envelope facilities related to the integration of the National Envelope assets, which has resulted in significant margin improvement and operating efficiencies in 2015. Non-GAAP operating income was $23.8 million for the three months ended March 28, 2015, compared to $20.2 million for the same period last year. A reconciliation of operating income to non-GAAP operating income is presented in the attached tables.

For the three months ended March 28, 2015, the Company had a loss from continuing operations of $7.6 million, or $0.11 per diluted share, compared to a loss of $16.8 million, or $0.25 per diluted share, for the same period last year. Non-GAAP loss from continuing operations was $1.8 million, or $0.03 per diluted share, for the three months ended March 28, 2015, as compared to non-GAAP loss from continuing operations of $7.7 million, or $0.12 per diluted share, for the same period last year. A reconciliation of loss from continuing operations to non-GAAP loss from continuing operations is presented in the attached tables.

Adjusted EBITDA for the three months ended March 28, 2015, was $38.7 million, compared to Adjusted EBITDA of $36.8 million for the same period last year. A reconciliation of net loss to Adjusted EBITDA is presented in the attached tables.

Cash flow used by operating activities of continuing operations for the three months ended March 28, 2015, was $7.4 million, compared to a use of cash of $3.4 million for the same period last year. The use of cash in the current year is primarily due to excess cash-on-hand offsetting outstanding checks, and therefore classified as a reduction of accounts payable, due to the Company having no prime rate borrowings outstanding under the ABL facility that could be paid down as of the quarter end. The excess cash-on-hand was primarily due to a source of cash from accounts receivables due to the timing of collections from and sales to our customers, an improving operating platform and continued working capital improvements.

Robert G. Burton, Sr., Chairman and Chief Executive Officer concluded:

"As we begin the second quarter of 2015, we will look to continue executing our plan of improving margins, driving stronger cash flow and paying down our higher cost debt. We have begun to see the benefits of our prior year integration activities in our envelope operations, as we achieved margin improvement during the quarter, and we are optimistic the trend will continue throughout the remainder of the year. Given the progress we made during the first quarter and the momentum that we are seeing in the business, we reaffirm our 2015 full year financial guidance that was given on our last conference call."