STAMFORD, Conn., Feb. 28 -- Cenveo, Inc. today announced its results for the three months and full year ended December 31, 2006. For the fourth quarter, the Company reported net income of $27.9 million, or $0.51 per diluted share as compared to a net loss of $37.8 million, or $(0.71) per diluted share, in the fourth quarter of 2005. The fourth quarter 2006 results include restructuring and impairment charges of $5.7 million, as compared to $37.8 million in 2005. Net sales for the quarter decreased to $384.2 million from $407.4 million in 2005, primarily due to the Company's decision to close or divest non-strategic businesses since the fourth quarter of 2005. In December 2006, the Company decided to sell its remaining units in the Supremex Income Fund prior to the end of the first quarter of 2007 and, accordingly, the operating revenues and expenses of Supremex have been classified as discontinued operations for all periods presented, beginning in the fourth quarter of 2006. Non-GAAP net income totaled $16.8 million or $0.31 per diluted share in the fourth quarter of 2006. Non-GAAP net income excludes restructuring, impairment and other charges, gain (loss) on sale of non strategic businesses, loss on early extinguishment of debt, the income tax benefit on the recognition of deferred tax assets, and discontinued operations, net of taxes. A reconciliation of net income to Non-GAAP net income for these adjustments is presented in the attached tables. Non-GAAP operating income in 2006 was $31.8 million or an 8.3% margin reflecting the benefits of our restructuring efforts which continue to drive margin improvement. Non-GAAP operating income excludes restructuring, impairment and other charges. A reconciliation of operating income to non-GAAP operating income is presented in the attached tables. Adjusted EBITDA means earnings before interest, taxes, depreciation and amortization, excluding restructuring, impairment, and other charges, gain (loss) on sale of non-strategic businesses, divested operations EBITDA, additional stock compensation expense on the adoption of SFAS 123R, loss on early extinguishment of debt, and income (loss) from discontinued operations, net of taxes, and Adjusted EBITDA in the fourth quarter of 2006, was $43.2 million as compared to $35.6 million in the same period last year, an increase of 22%. An explanation of the Company's use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income is provided in the attached tables. For the year, the Company reported net income of $118.7 million, or $2.23 per diluted share as compared to a net loss of $135.1 million, or $(2.70) per diluted share. The results for 2006 include restructuring, impairment, and others charges of $41.1 million, income from discontinued operations, net of taxes of $140.5 million, and the loss on early extinguishment of debt of $32.7 million. Net sales for the year decreased to $1.51 billion from $1.59 billion in 2005, primarily due to the Company's decision to close or divest non- strategic businesses. Non-GAAP operating income was $107.8 million in 2006 or a 7.1% margin. A reconciliation of operating income to non-GAAP operating income is presented in the attached tables. For the year, Adjusted EBITDA was $152.9 million as compared to $96.5 million in the same period last year, an increase of 59%. An explanation of the Company's use of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income is provided in the attached tables. For the year, Non-GAAP net income totaled $44.8 million or $0.83 per diluted share as compared to the previously issued guidance of $0.76 per diluted share. A reconciliation of net income to Non-GAAP net income for these adjustments is presented in the attached tables. Robert G. Burton, Chairman and Chief Executive Officer stated: "As I committed when I arrived at Cenveo in September of 2005, 2006 was going to be the year in which Cenveo got back to basics. We have done this by aggressively controlling our costs, restructuring our operating platform, divesting non-core operations, intensifying our focus on our customers, making or announcing several strategic acquisitions, and increasing our accountability to our shareholders. While we accomplished a lot in a very short timeframe, our mission to realize Cenveo's full potential is not complete. I feel that 2006 was a significant first step in re-establishing ourselves as a printing industry leader and a management team that is responsive to the needs of our customers, employees, and shareholders." Mr. Burton continued: "Cenveo had a solid year of operating improvement in 2006, highlighted by substantial progress in our commercial printing segment and continued improved performance in our envelope, forms and labels group. In 2006, we also improved our capital structure, including our debt and leverage statistics, by selling our Canadian subsidiary Supremex and other certain assets and by focusing on our working capital. These operational improvements and focus on our capital structure has resulted in a substantial improvement in our free cash flow. We expect to continue to see stronger results across our business units in 2007. Our operating margins continue to expand, our cash flows continue to improve, and our one-stop shopping sales platform will drive incremental sales growth." "We also announced several strategic acquisitions since our arrival in 2005. Acquiring Rx Technology back in July 2006 added strength to and supplemented our label operations. Rx is a growing operation that complements our existing business while contributing to our various cross-selling initiatives. In February 2007, we completed the acquisition of Printegra, which was a highly strategic acquisition in the short run printing marketplace that fits very well with our current product offerings. This acquisition creates the opportunity for Cenveo to better serve its customers and allows us to offer Printegra's customers Cenveo's extensive range of products and services. In December 2006, we entered into a definitive merger agreement with Cadmus Communications Corporation, which will form the third largest printing company in North America. Cadmus, with its highly regarded reputation for excellence and strategically niched product offering, is a perfect complement to broaden Cenveo's product line. These accretive acquisitions position the Company nicely for future growth." Mr. Burton concluded: "2006 is now behind us. It was a year of positive traction but a year that overall was still not up to this company's full potential. 2007 is the year at hand and we are focusing everyday on showing marked improvement over 2006. We have developed an aggressive action plan to further deliver results for our customers, employees, and shareholders. We look to quickly integrate our recently announced acquisitions and use our business plan to improve the quality of our revenues everyday through organic and acquisition growth, while simultaneously reducing costs and improving manufacturing productivity. We will use our strong cash flow to pay down debt and invest in our business via capital expenditures and acquisition. I am very pleased with the progress the Company has made since our management team arrived. We have executed on our turnaround plan and have consistently delivered on our financial commitments each quarter. We understand what our customers and shareholders expect from us in 2007, and we are as committed as ever to deliver."