Stamford, CT – Cenveo, Inc. today announced results for the three and six months ended July 3, 2010.

For the three months ended July 3, 2010, net sales increased approximately 12.0% to $445.3 million, as compared to $397.6 million in the second quarter of 2009, primarily due to the Nashua acquisition. For the six months ended July 3, 2010, net sales increased approximately 11.0% to $899.2 million, as compared to $809.7 million in the six months ended June 27, 2009, primarily due to the Nashua acquisition and the fact that there was one more week in the six month period ended July 3, 2010 as compared to the six months ended June 27, 2009.

The Company generated operating income of $19.4 million in the second quarter of 2010, compared to an operating loss of $5.5 million in the second quarter of 2009. For the six months ended July 3, 2010, the Company generated operating income of $31.6 million, compared to an operating loss of $5.3 million in the six months ended June 27, 2009. These increases were primarily due to lower restructuring and impairment charges and the acquisition of Nashua.

For the three months ended July 3, 2010, non-GAAP operating income increased 10.1% to $37.8 million compared to $34.3 million in the same prior year period. For the six months ended July 3, 2010, non-GAAP operating income increased 39.6% to $67.6 million compared to $48.4 million in the same prior year period. These increases were primarily due to our cost savings initiatives in 2009 and early 2010 and the acquisition of Nashua. Non-GAAP operating income excludes integration, acquisition and other charges, stock-based compensation provision, restructuring and impairment charges and divested operations or assets held for sale.

Adjusted EBITDA in the second quarter of 2010 was $54.0 million compared to $53.1 million in the second quarter of 2009. Adjusted EBITDA in the second quarter of 2009 had the benefit of two one-time items (salary furlough for management and gain from a sale of a cost-method investment) that did not repeat in 2010. Excluding these two items, our Adjusted EBITDA increased approximately 15% over the same prior year period. Adjusted EBITDA for the first six months of 2010 was $99.5 million compared to $84.6 million in the same prior year period. Excluding the two items discussed above, Adjusted EBITDA for the first six months of 2010 increased approximately 27% over the same prior year period. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, excluding integration, acquisition and other charges, stock-based compensation provision, restructuring and impairment charges, divested operations or assets held for sale, (gain) loss on early extinguishment of debt, and 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 loss to Adjusted EBITDA is provided in the attached tables.

For the second quarter of 2010, the Company recorded a net loss of $8.3 million, or $0.13 per share, compared to a net loss of $18.3 million, or $0.34 per share, for the second quarter of 2009. The improvement in net loss in the second quarter of 2010 as compared to 2009 is primarily due to lower restructuring and impairment charges partially offset by a lower income tax benefit. For the first six months of 2010, the Company recorded a net loss of $19.4 million, or $0.31 per share, compared to a net loss of $22.6 million, or $0.41 per share, for the same prior year period. In addition to lower restructuring and impairment charges, the results for the first six months of 2010 include a loss of $2.6 million on early extinguishment of debt while the results for the first six months of 2009 include a gain of $16.9 million on early extinguishment of debt.

On a non-GAAP basis, income from continuing operations was $5.8 million, or $0.09 per share, for the second quarter of 2010 as compared to non-GAAP income from continuing operations of $8.8 million, or $0.16 per share, in the same prior year period. Non-GAAP income from continuing operations was $5.3 million, or $0.08 per share, for the first six months of 2010 as compared to non-GAAP income from continuing operations of $0.6 million, or $0.01 per share, in the same prior year period. Non-GAAP income from continuing operations excludes integration, acquisition and other charges, stock-based compensation provision, restructuring and impairment charges, divested operations or assets held for sale, (gain) loss on early extinguishment of debt and adjusts income taxes to reflect an estimated cash tax rate. A reconciliation of loss from continuing operations to non-GAAP income from continuing operations is presented in the attached tables.

Robert G. Burton, Sr., Chairman and Chief Executive Officer stated:
"Cenveo delivered solid results in the second quarter. We remained focused on growing our businesses, enhancing our financial strength and broadening our diversified platform. Despite a challenging environment, which we believe is slowly improving, we were able to grow our Adjusted EBITDA for the second quarter despite not having the benefit of two one-time events that occurred last year. We also continued to see strong performances from our envelope and commercial print businesses, which were once again able to show strong improvement over prior year periods."

"We were able to generate over $24 million of cash flows from operations during the quarter, and for the six months we have been able to grow our cash flows from operations approximately 34% from the same prior year period. The acquisition of content solutions provider Glyph International in the second quarter of 2010 significantly strengthens our market presence and end-to-end production capabilities in our journal and book publishing business, and we are already seeing the benefits of this combination."

Mr. Burton concluded:
"The commercial printing industry is currently going through a period of rapid consolidation and change. We have seen several large companies merge, and have also seen many printers both large and small cease to exist or enter reorganization. We will continue to monitor the environment and will look to capitalize when a situation exists that we believe would enhance our product offerings."

"For the remainder of the year, we intend to continue to execute in accordance with our plan. As we enter the seasonally stronger back half of the year, we will maintain our focus on cost management and continue to focus on gaining market share in the niche products that we serve. We expect to continue generating strong cash flow and use these funds to pay down debt or make strategic accretive acquisitions that deleverage our balance sheet and strengthen our product leadership positions. I remain confident that we have a plan to achieve our previously announced 2010 guidance, and be well positioned for 2011 and beyond."