Cenveo Inc. generated net sales of $432.3 million for the three months ended March 30, 2013, compared to $455.6 million for the same period last year. Net sales from the company's label and packaging segment were relatively flat for the first quarter of 2013 due to its decision to exit low margin business within its packaging platform along with a disruption due to a temporary loss of a press as a result of a fire in one of its packaging facilities.
Cenveo Inc.'s subsidiary, Cenveo Corp., has completed the refinancing of its existing senior secured Term B Loan and Revolving Credit Facility with an amended and restated $360 million Term B Loan facility, through Bank of America. "We were pleased to be able to take advantage of the strong credit markets to refinance our next two maturities," said Robert G. Burton, Sr., Chairman and CEO of Cenveo.
Cenveo Inc. generated net sales of $451.8 million for the three months ended December 29, 2012, compared to $486.5 million for the same period last year. The decrease in net sales was primarily due to lower sales in our print and envelope product lines as a result of lower direct mail volumes from our financial services customers, the closure and consolidations of a print plant and two envelope plants and our decision to exit certain low margin business.
Direct mail is still considered the marketing channel of choice by a vast number of marketers across verticals ranging from telecom and utilities to nonprofit, publishing and financial services. According to the Direct Marketing Association's “2012 Response Rate Report,” the rates for letter-sized direct mail (3.4 percent) were 30 times higher than those for email (0.12 percent). The belief that direct mail is dead or dying will have to be suspended for the time being.
