Copy Express of Lexington recently purchased the five-color RMGT 940ST-5+CC+LED-UV with coater offset press from Graphco. This is the first RMGT 940 press to be installed in the United States and the first RMGT 940 with coater to be delivered worldwide. Copy Express has seen tremendous growth in recent years, with president and owner Mark Hicks noting that he has made strategic acquisitions over the last several years to facilitate that expansion. “That’s how I grow as quickly as I want,” he notes. The combined company — which has consolidated under the Copy Express brand — is now the largest commercial printer in the area, counting most of the ad agencies, major corporations and universities among their growing client list. Click Read More below for additional detail.
Second Quarter 2017 vs. Second Quarter 2016 Overview
- Net sales of $355.0 million compared to $410.1 million.
- Net loss of $1.9 million compared to net income of $47.6 million.
- Adjusted EBITDA(1) of $30.2 million compared to $37.5 million.
- Q2 2016 included one-time benefits of $6.0 million in connection with the exit of our coating operation
- Net cash provided by operating activities of continuing operations of $0.7 million compared to $7.7 million.
- Gross margin of 16.1% compared to 16.7%.
- Interest expense of $19.5 million compared to $21.5 million.
(1) Adjusted EBITDA is a Non-GAAP Measure. See Use of Non-GAAP Measures and the tables that follow for a reconciliation of GAAP to Non-GAAP Measures.
“Given the challenging operating environment we experienced during the first half of the year, we are generally pleased with our Adjusted EBITDA performance for the quarter compared to the prior year, which included one-time benefits in connection with the closure of our coating operation. Our consolidated results for the second quarter of 2017 were adversely impacted by weakness in our direct mail business primarily driven by softness from our financial institution customers due to lower customer acquisition related mailings.
These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan. To date, we are very pleased with the implementation progress and we are now on pace to exceed our original $50 million target that we announced earlier this year. During the second quarter 2017, we retired the remaining portion of our 7% Convertible Notes to complete our 2017 refinancing initiative. Also, as we previously announced, Cenveo will be transferring its stock exchange listing to the Nasdaq Global Market (“NASDAQ”) from The New York Stock Exchange (“NYSE”). Cenveo shares will begin trading as a Nasdaq-listed security on August 8, 2017, and will continue to trade under the symbol CVO,” said Robert G. Burton, Sr., Chairman and CEO of Cenveo.
Net sales in the second quarter of 2017 were $355.0 million compared to $410.1 million in the same period last year, a decline of 13.4%. The Company generated net sales of $736.9 million for the six months ended July 1, 2017, compared to $850.6 million for the same period last year, a decline of 13.4%. The sales decline was primarily driven by: (i) lower sales in the envelope segment, primarily due to lower demand in office product and wholesale envelope product lines primarily due to marketplace trends and lower direct mail demand primarily from our financial institution customers; (ii) lower sales volumes in the commercial print group and the publisher services group, primarily driven by lower customer demand and continued pricing pressures; and (iii) lower sales in the label segment, primarily due to the decision to exit our coating operation which was completed in the second quarter of 2016, and lower sales driven by product mix changes.