STAMFORD, Conn., July 7, 2008 -- Robert G. Burton, Chairman and Chief Executive Officer of Cenveo, Inc., today gave shareholders the following update:
"As we close the second quarter, I am pleased with the Company's performance and results despite a challenging economic environment. We executed our game plan by focusing on reducing costs, winning share in the marketplace, and delivering for our customers. By successfully implementing these action items, I remain comfortable with the previously communicated guidance of $64 million of adjusted EBITDA for the second quarter, which represents a 15% increase from the same period last year. We continue to focus on deploying the free cash flow we generate to pay down debt and invest in our business. As we were able to in the first quarter of this year, we paid down our debt balance in the second quarter despite closing the Rex acquisition and paying our largest quarterly cash interest payments.
We have recently strengthened our already strong senior management team. Dean Cherry, who has worked with me for more than 20 years, adds depth and experience to our envelope, commercial print and packaging operations. These players are all industry veterans, all of whom have worked with me at prior industry related companies. As we look towards the back half of the year, I remain optimistic on the Company's prospects and financial goals despite the economic headwinds we continue to face. We expect to continue to execute on our game plan of controlling costs and growing our business organically and selectively through strategic additions. I look forward to sharing with our shareholders all of the Company's recent positive successes in more detail on our conference call on August 7th."
In addition to results presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"), included in this release is the Non-GAAP financial measure Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, excluding restructuring, impairment and other charges, integration, acquisition and other charges, loss on early extinguishment of debt, stock-based compensation expense, and income (loss) from discontinued operations, net of taxes and should be read in conjunction with GAAP financial measures. This Non-GAAP financial measure is not presented as an alternative to cash flow from operations, as a measure of our liquidity or as an alternative to reported net income as an indicator of our operating performance. The Non-GAAP financial measure as used herein may not be comparable to similarly titled measures reported by competitors.
We believe the use of Adjusted EBITDA, along with GAAP financial measures enhances the understanding of our operating results and may be useful to investors in comparing our operating performance with that of our competitors and estimating our enterprise value. Adjusted EBITDA is also a useful tool in evaluating the core operating results of the Company given the significant variation that can result from, for example, the timing of capital expenditures, the amount of intangible assets recorded or the differences in assets' lives. We also use Adjusted EBITDA internally to evaluate operating performance of our segments, to allocate resources and capital to such segments, to measure performance for incentive compensation programs, and to evaluate future growth opportunities.
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