Exhibit 99.1
[Cenveo logo]
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FOR IMMEDIATE RELEASE INVESTORS:
Michel P. Salbaing
Acting CEO, Senior Vice
President & CFO
Cenveo, Inc.
303-790-8023
michel.salbaing@cenveo.com
MEDIA:
Kathy Hedin
Director of Communications
Cenveo, Inc.
303-566-7494
Abernathy MacGregor
Rhonda Barnat/Mike Pascale
212-371-5999
CENVEO ANNOUNCES EFFICIENCY INITIATIVES
MEASURES EXPECTED TO RESULT IN $20 MILLION IN COST SAVINGS
COMPANY REPORTS PROGRESS IN EVALUATION OF STRATEGIC ALTERNATIVES
ENGLEWOOD, Co., June 01, 2005 - Cenveo(TM) Inc. (NYSE: CVO) today announced
that it has initiated a comprehensive program to streamline certain
management functions, increase flexibility and efficiency, and reduce
operating expenses. These initiatives will give more decision-making
authority to local managers and help them better serve the needs of the
company's customers and business partners. These initiatives are effective
immediately. The Company said that in addition to changes in certain
operating procedures, approximately 125 primarily management positions will
be eliminated throughout the organization. The Company expects these
initiatives to result in cost savings of $9 million in 2005 and annualized
savings of $20 million.
Michel Salbaing, Acting CEO of Cenveo, said, "The initiatives we are
implementing are expected to reduce total SG&A expense by approximately 7%,
help us sharpen our focus on customers and improve our strategic, operating
and financial performance. Our strategy of delivering a diverse portfolio of
products and services to answer the needs of our customers continues to
build traction as is evidenced by the growth in our strategic sales in the
current year as compared to prior periods."
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On April 18, 2005, Cenveo announced that it had, with the assistance of its
financial and legal advisors, commenced an aggressive and thorough
evaluation of strategic alternatives with the goal of maximizing shareholder
value. The Company reported today that the review is continuing and that
expressions of interest have already been received from a number of parties.
The Board reiterated that the Company will consider all of its options, and
there can be no assurance of any particular outcome from this review.
On May 6, 2005 two of the Company's directors and the Company's financial
and legal advisors met with Mr. Robert Burton, three members of his family,
Mr. Burton's legal counsel and a representative of Goodwood Capital. At the
meeting Mr. Burton reiterated his view that the Company's Board should hire
him as Chairman and CEO, place him and two of his designees on the Company's
Board and reduce the number of directors to seven, but declined to make an
acquisition proposal or proposal to make a direct investment in the Company.
The Company had previously invited Mr. Burton to participate in the
Company's formal CEO selection process and, following the meeting, the
Company also invited Mr. Burton to participate, on the same terms as other
third parties, in the Company's strategic alternatives process. Mr. Burton
declined to participate in the Board's defined processes. Mr. Burton,
however, reiterated his demand that the Board appoint him Chairman and CEO
without further exploring the Company's strategic alternatives.
Susan Rheney, Chairman of Cenveo, said, "We are pleased with the progress of
our evaluation of strategic alternatives. The Board, with the assistance of
our financial and legal advisors, will pursue these expressions of interest,
along with the evaluation of other options. Cenveo's Board and management
are absolutely committed to maximizing shareholder value and are taking all
steps necessary to do so."
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About Cenveo, Inc.
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Cenveo, Inc. (NYSE: CVO), www.cenveo.com, is one of North America's leading
providers of visual communications with one-stop services from design
through fulfillment. The Company is uniquely positioned to serve both direct
customers through its commercial segment, and distributors and resellers of
printed office products through its Quality Park resale segment. The
Company's broad portfolio of services and products include e-services,
envelopes, offset and digital printing, labels and business documents.
Cenveo currently has approximately 10,000 employees and more than 80
production locations plus five advanced fulfillment and distribution centers
throughout North America. In 2004 and 2005, Cenveo was voted among Fortune
Magazine's Most Admired Companies in the printing and publishing category
and has consistently earned one of the highest Corporate Governance
Quotients by Institutional Shareholder Services. The Company is
headquartered in Englewood, Colorado.
Cenveo and Vision Delivered are either trademarks or registered trademarks
of Cenveo, Inc.
Forward-Looking Statements
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Statements made in this release, other than those concerning historical
financial information, may be considered forward-looking statements, which
are subject to risks and uncertainties,
including without limitation: (1) general economic, business and labor
conditions, (2) the ability to implement the Company's strategic
initiatives, (3) the ability to regain profitability after substantial
losses in 2002 and 2001 and in the first quarter of 2004, (4) the majority
of Company's sales are not subject to long-term contracts, (5) the industry
is extremely competitive due to over capacity, (6) the impact of the
Internet and other electronic media on the demand for envelopes and printed
material, (7) postage rates and other changes in the direct mail industry,
(8) environmental laws may affect the Company's business, (9) the ability to
retain key management personnel, (10) compliance with recently enacted and
proposed changes in laws and regulations affecting public companies could be
burdensome and expensive, (11) the ability to successfully identify, manage
and integrate possible future acquisitions, (12) dependence on suppliers and
the costs of paper and other raw materials and the ability to pass paper
price increases onto customers, (13) the ability to meet customer demand for
additional value-added products and services, (14) changes in interest rates
and currency exchange rates of the Canadian dollar, (15) the ability to
manage operating expenses, (16) the risk that a decline in business volume
or profitability could result in a further impairment of goodwill, and (17)
the ability to timely or adequately respond to technological changes in the
Company's industry.
Discussion of additional factors that could cause actual results to differ
materially from management's projections, forecasts, estimates and
expectations is set forth under Management's Discussion and Analysis of
Results of Operations and Financial Condition in the Cenveo, Inc. Annual
Report for the fiscal year ended December 31, 2004, and in the Company's
other SEC filings. A copy of the annual report is available on the Company's
Web site at http://www.cenveo.com.