CENVEO, INC

CIK:0000920321|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Apr. 01, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Income Statement [Abstract]
Net sales	$ 329,511	$ 353,817	$ 382,675	$ 1,010,850	$ 1,162,903
Cost of sales	277,588	$ 292,389	314,783	840,996	965,553
Selling, general and administrative expenses	41,183		44,082	123,397	133,042
Amortization of intangible assets	1,209		1,325	3,830	4,201
Restructuring and other charges	10,025		2,326	20,040	8,196
Operating (loss) income	(494)		20,159	22,587	51,911
Interest expense, net	19,472		20,318	58,144	65,925
Loss (gain) on early extinguishment of debt, net	38		(7,442)	146	(80,328)
Other expense (income), net	293		(1,763)	(77)	(2,893)
(Loss) income from continuing operations before income tax (benefit) expense	(20,297)		9,046	(35,626)	69,207
Income tax (benefit) expense	(854)		987	(6,704)	4,060
(Loss) income from continuing operations	(19,443)		8,059	(28,922)	65,147
(Loss) income from discontinued operations, net of taxes	(8,607)		1,372	(9,671)	3,043
Net (loss) income	(28,050)		9,431	(38,593)	68,190
Other comprehensive income (loss):
Changes in pension and other employee benefit accounts, net of taxes	4,665		2,507	7,854	7,467
Currency translation adjustment, net	(98)		557	410	2,142
Total other comprehensive income	4,567		3,064	8,264	9,609
Comprehensive (loss) income	$ (23,483)		$ 12,495	$ (30,329)	$ 77,799
(Loss) income per share – basic:
Continuing operations per share - basic	$ (2.27)		$ 0.94	$ (3.38)	$ 7.65
Discontinued operations per share - basic	(1.00)		0.16	(1.13)	0.36
Net (loss) income per share - basic	(3.27)		1.10	(4.51)	8.01
(Loss) income per share – diluted:
Continuing operations per share - diluted	(2.27)		0.92	(3.38)	6.84
Discontinued operations per share - diluted	(1.00)		0.16	(1.13)	0.31
Net (loss) income per share - diluted	$ (3.27)		$ 1.08	$ (4.51)	$ 7.15
Weighted average shares outstanding:
Basic shares	8,578		8,552	8,564	8,518
Diluted shares	8,578		8,967	8,564	9,745

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Cash flows from operating activities: [Abstract]
Net (loss) income	$ (38,593)	$ 68,190
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Loss on sale of discontinued operations, net of taxes	0	1,948
Loss (income) from discontinued operations, net of taxes	9,671	(4,991)
Depreciation and amortization, excluding non-cash interest expense	34,571	34,200
Non-cash interest expense, net	5,906	6,963
Deferred income taxes	(5,372)	1,068
Gain on sale of assets	(205)	(4,468)
Non-cash restructuring and other charges, net	16,336	3,450
Non-cash loss (gain) on early extinguishment of debt, net	43	(78,113)
Stock-based compensation provision	619	1,230
Other non-cash charges	3,568	3,526
Changes in operating assets and liabilities:
Accounts receivable	22,772	14,816
Inventories	(13,094)	3,917
Accounts payable and accrued compensation and related liabilities	(17,817)	(34,744)
Other working capital changes	(18,881)	(14,417)
Other, net	(5,688)	704
Net cash (used in) provided by operating activities of continuing operations	(6,164)	3,279
Net cash (used in) provided by operating activities of discontinued operations	(3,447)	2,076
Net cash (used in) provided by operating activities	(9,611)	5,355
Cash flows from investing activities:
Capital expenditures	(19,922)	(29,118)
Proceeds from sale of property, plant and equipment	1,265	8,272
Premiums for company owned life insurance policies, net	(410)	(245)
Proceeds from sale of assets	0	2,000
Net cash used in investing activities of continuing operations	(19,067)	(19,091)
Net cash (used in) provided by investing activities of discontinued operations	(201)	92,309
Net cash (used in) provided by investing activities	(19,268)	73,218
Cash flows from financing activities:
Proceeds from issuance of 4% secured notes due 2021	0	50,000
Payment of financing-related costs and expenses and debt issuance discounts	(398)	(12,182)
Proceeds from issuance of other long-term debt	11,646	0
Repayments of other long-term debt	(4,756)	(4,115)
Repayment of 11.5% senior notes due 2017	(20,465)	(4,725)
Repayment of 7% senior exchangeable notes due 2017	(5,493)	(40,207)
Purchase and retirement of common stock upon vesting of restricted stock units	(55)	(341)
Borrowings under asset-based revolving credit facility due 2021	311,054	368,600
Repayments under asset-based revolving credit facility due 2021	(261,966)	(441,700)
Net cash provided by (used in) financing activities of continuing operations	29,567	(84,670)
Net cash used in financing activities of discontinued operations	0	(8)
Net cash provided by (used in) financing activities	29,567	(84,678)
Effect of exchange rate changes on cash and cash equivalents	86	443
Net increase (decrease) in cash and cash equivalents	774	(5,662)
Cash and cash equivalents at beginning of period	5,532	10,556
Cash and cash equivalents at end of period	6,306	4,894
Supplemental cash flow disclosures:
Cash paid for interest	63,590	71,924
Cash paid for taxes, net	868	3,931
Non-cash origination of capital leases	$ 5,305	$ 1,187

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 6,306	$ 5,532
Accounts receivable, net	172,967	196,989
Inventories, net	91,370	80,767
Prepaid and other current assets	37,886	40,688
Assets of discontinued operations - current	59,768	59,269
Total current assets	368,297	383,245
Property, plant and equipment, net	191,169	198,912
Goodwill	173,605	173,409
Other intangible assets, net	108,298	119,763
Other assets, net	21,798	21,886
Assets of discontinued operations - long-term	6,850	15,744
Total assets	870,017	912,959
Current liabilities:
Current maturities of long-term debt	8,597	31,727
Accounts payable	153,177	166,030
Accrued compensation and related liabilities	18,889	23,909
Other current liabilities	50,536	66,900
Liabilities of discontinued operations - current	24,249	26,640
Total current liabilities	255,448	315,206
Long-term debt	1,050,441	986,939
Other liabilities	182,898	199,847
Liabilities of discontinued operations - long-term	151	124
Commitments and contingencies
Shareholders’ deficit:
Preferred stock	0	0
Common stock	86	86
Paid-in capital	382,836	382,271
Retained deficit	(908,221)	(869,628)
Accumulated other comprehensive loss	(93,622)	(101,886)
Total shareholders’ deficit	(618,921)	(589,157)
Total liabilities and shareholders’ deficit	$ 870,017	$ 912,959