ENGLEWOOD, Colo., Nov. 2 -- Cenveo, Inc., announced its results for the third quarter and nine months ended September 30, 2005. For the third quarter, the Company incurred a net loss of $64.1 million, or $1.28 per share compared to net income of $2.5 million, or $0.05 per share, in the third quarter of 2004. The third-quarter 2005 results included restructuring and other charges ($15.2 million), asset impairments ($2.1 million), loss on sale of non-strategic businesses ($0.8 million), and proxy contest related expenses ($7.0 million) totaling $25.1 million. In addition, the Company recorded a non-cash valuation allowance of $35.3 million to eliminate the remaining net U.S. deferred tax asset due to the decision not to implement identified tax strategies that could have been used to realize the net tax benefit. Net sales for the quarter were slightly higher at $430.8 million compared with to $428.1 million in 2004. EBITDA (earnings before interest, taxes, depreciation and amortization) excluding restructuring and other charges, asset impairments, loss on sale of non-strategic businesses, and proxy contest related expenses for the third quarter of 2005 was $31.5 million compared to EBITDA of $33.5 million in the same period last year. An explanation of the Company's use of EBITDA for comparison purposes is provided below. Net cash used in operating activities in the quarter ended September 30, 2005 was $17.7 million compared to $18.7 million provided during the same period last year. For the nine months ended September 30, 2005, the Company reported a net loss of $97.2 million, or $1.99 per share. This compares to a net loss of $16.1 million, or $0.34 per share for the same period in 2004. The results for the nine months ended September 30, 2005 include restructuring and other charges ($22.1 million), asset impairments of ($9.8 million), loss on sale of non-strategic businesses ($2.0 million), and proxy contest related expenses ($7.6 million) totaling $41.5 million. In addition, the Company recorded an additional valuation allowance of $35.3 million against its net U.S. deferred tax asset. EBITDA, excluding restructuring and other charges, asset impairments, loss on sale of non-strategic businesses, and proxy contest related expenses for the nine months ended September 30, 2005 was $89.7 million versus EBITDA of $92.8 million for the prior year. Net sales for the first nine months of 2005 were $1.30 billion compared to $1.26 billion in 2004. Net cash used in operating activities in the nine months ended September 30, 2005 was $27.3 million compared to $14.0 million provided during the same period last year. Robert G. Burton, Chairman and Chief Executive Officer stated: "Looking back at Cenveo's results for the first nine months of the year, it is clear that the financial results of the Company are completely unacceptable. Turning our performance around, and doing so quickly and effectively, is my number one mandate. Even before I was appointed the senior manager of the Company, I felt that there was an opportunity to reduce the Company's overall cost structure by $75 million in a two year period. Over the past two months, we have analyzed the Company's business and reviewed each cost center to identify excess costs and areas for improvement. I now feel comfortable that after initiating a number of significant actions in support of my commitment, we are well on our way to achieving at least $75 million of cost reductions by the end of 2006. This accelerated timeline is in large part due to the tremendous job the entire team has done. Specific items identified, already implemented or scheduled for implementation in the future include the following: * Centralization of general and administrative functions * Consolidation of the Company's vendor base and implementation of Company-wide purchasing initiatives * Streamlining I.T. processes and infrastructure * Corporate and field Human Resources staff rationalization * Plant consolidation and rationalization * Elimination of all discretionary spending In addition, I believe that significant incremental cost savings can be achieved. I have challenged the entire organization to identify an additional $25 million of savings by the end of 2006 to bring our cost structure in line with our competitors." Mr. Burton continued: "We have also decided to evaluate the sale of our Canadian operations. Our longstanding success in Canada combined with current market conditions, presents a unique opportunity that may help us to realize the substantial value of our Canadian assets. Although, there can be no assurance that we will be able to complete such a sale on acceptable terms, we believe that a successful transaction would enable us to de-leverage the balance sheet and provide an opportunity to redeploy capital that will generate additional growth opportunities domestically." Mr. Burton concluded: "As we head into the fourth quarter and the upcoming year, I am optimistic about the direction of the Company. We have already identified over $75 million in cost savings to be implemented throughout 2006, and it will be my personal objective to achieve an additional $25 million more. While getting there will not be easy, the new management team is on its way to building an organization that can consistently deliver results. Our twenty-five newly hired managers have worked with us in the past and fully understand that current results are unsatisfactory. They are focused, working hard and committed to delivering results that our customers, employees and shareholders expect."