Revenue during the quarter dropped 3.29 percent to $405.96 million from $419.78 million in the previous year period. Gross margin for the quarter expanded 6 basis points over the previous year period to 17.30 percent. Total expenses were 94.86 percent of quarterly revenues, down from 95.35 percent for the same period last year. This has led to an improvement of 49 basis points in operating margin to 5.14 percent.

Operating income for the quarter was $20.87 million, compared with $19.52 million in the previous year period.

However, the adjusted operating income for the quarter stood at $25.52 million compared to $29.02 million in the prior year period. At the same time, adjusted operating margin contracted 63 basis points in the quarter to 6.29 percent from 6.91 percent in the last year period.

“Our third quarter was generally in line with our expectations,” said Robert G. Burton, Sr., Chairman and Chief executive officer of Cenveo. “In our label segment, revenue was impacted by our decision to exit our coating operations, which accounted for the majority of the quarter-over-quarter revenue decline for that segment. In envelope, continued growth in our direct mail products helped mitigate softness in our wholesale and office products, which was driven by disruption and inventory rationalization in the office superstore channel. From a balance sheet perspective, we acquired through open market repurchases over half of our outstanding 7% convertible

Cash flow from investing activities was $73.46 million for the nine month period as against cash outgo of $19.45 million in the last year period. It has incurred net capital expenditure of $20.90 million on net basis during the nine month period, up 34.03 percent or $5.31 million from year ago period.

The company has spent $82.46 million cash to carry out financing activities during the nine month period as against cash inflow of $2.46 million in the last year period.

Cash and cash equivalents stood at $4.89 million as on Oct. 01, 2016, down 48.88 percent or $4.68 million from $9.57 million on Sep. 26, 2015.

Working capital drops significantly
Cenveo, Inc has witnessed a decline in the working capital over the last year. It stood at $64.39 million as at Oct. 01, 2016, down 53.32 percent or $73.54 million from $137.93 million on Sep. 26, 2015. Current ratio was at 1.20 as on Oct. 01, 2016, down from 1.39 on Sep. 26, 2015.

Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 36 days for the last year period. Days sales outstanding were almost stable at 54 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 15 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went down to 51 days for the quarter from 55 for the same period last year.