Cenveo, a global leader in printing and packaging, has announced its first quarter 2015 results. The company has posted net sales of $475.1 million and an operating income of $18.2 million, up 80.6% from Q1 2014.

In addition, Cenveo has announced an adjusted EBITDA of $38.7 million, up 5.2% from Q1 2014. It has also extinguished $22.6 million of the 11.5% notes during this year to date, $15.8 million during Q1 2015.

“We are very pleased with the performance of our operations during the first quarter of 2015, in which we achieved significant improvement in operating income and adjusted EBITDA, despite the severe weather that we experienced,” says Robert G. Burton, Sr., chairman and CEO. “The stronger performance was primarily driven by our envelope operations, which are now benefiting from efficiencies realized from last year’s National Envelope integration. We also saw steady operational performances out of our print group as well as our label and packaging group. Additionally, we have improved our capital structure by extinguishing over $22.6 million of the 11.5% notes to date in 2015, leaving the current remaining balance under $200 million.”

The net sales figure is down from $490.1 million for the same period last year, a decline of 3.1%. The decline in net sales is attributable to the consolidation of several envelope facilities during the second half of 2014 in connection with the accelerated integration of the National Envelope assets with Cenveo’s existing operations and two new facilities.  Excluding the estimated impacts of the integration, it believes the envelope group’s net sales were up modestly, which is primarily attributable to product mix and pricing improvements, offset by volume declines.

Operating income was $18.2 million for the three month period that ended on March 28, 2015, compared to operating income of $10.1 million for the same period last year. Expenses associated with the closure and consolidation of several envelope facilities related to the integration of the National Envelope assets, which has resulted in significant margin improvement and operating efficiencies in 2015, impacted operating income in 2014. Non-GAAP operating income was $23.8 million for the period ending on March 28, 2015, compared to $20.2 million for the same timeframe last year.  A reconciliation of operating income to non-GAAP operating income is presented in the attached tables.

“As we begin the second quarter of 2015, we will look to continue executing our plan of improving margins, driving stronger cash flow and paying down our higher cost debt,” adds Burton. “We have begun to see the benefits of our prior year integration activities in our envelope operations, as we achieved margin improvement during the quarter, and we are optimistic the trend will continue throughout the remainder of the year. Given the progress we made during the first quarter and the momentum that we are seeing in the business, we reaffirm our 2015 full year financial guidance that was given on our last conference call.”