STAMFORD, Conn., May 7 -- Cenveo, Inc. today announced results for the three months ended March 29, 2008.
For the first quarter, sales increased 29% to $534.3 million in 2008 from $414.7 million in 2007, primarily due to contributions from our 2007 acquisitions. The Company reported a net loss of $3.4 million, or $(0.06) per share, as compared to net income of $18.1 million, or $0.34 per diluted share, in the first quarter of 2007. First quarter 2008 results include restructuring, impairment, and other charges of $9.7 million, of which $6.7 million relates to the internal review initiated by the Company's audit committee at the end of 2007. This compares to $2.6 million of restructuring and impairment charges in 2007. The first quarter 2008 results include a loss from discontinued operations, net of taxes, of $0.7 million, as compared to income from discontinued operations, net of taxes, of $16.3 million in 2007, related to the Company's sale of its remaining interest in the Supremex Income fund.
Non-GAAP net income from continuing operations totaled $8.1 million or $0.15 per diluted share in the first quarter of 2008. Non-GAAP net income from continuing operations excludes restructuring, impairment and other charges, integration, acquisition and other charges, stock-based compensation expense and loss on early extinguishment of debt. A reconciliation of net income from continuing operations to non-GAAP net income from continuing operations for these adjustments is presented in the attached tables.
Adjusted EBITDA in the first quarter of 2008 was $54.1 million as compared to $45.8 million in the same period last year, an increase of 18%. 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. An explanation of the Company's use of Adjusted EBITDA is detailed below and a reconciliation of net income to Adjusted EBITDA is provided in the attached tables.
Robert G. Burton, Chairman and Chief Executive Officer stated:
"We are pleased with our strong cash flow generation and solid operational performance during the first quarter despite an extremely challenging economic environment. We were able to generate over $54 million of cash flows from continuing operations during the quarter, representing an 83% increase from last year. I am also pleased that we were able to decrease our debt by approximately $49 million during the quarter, further solidifying our balance sheet. We continued to focus on improving our cost structure and driving incremental revenues across our platform. During the quarter we also implemented a $25 million cost containment plan focusing on headcount reduction, increasing productivity and improving efficiencies to further drive incremental margins.
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