Cenveo earns eight-figure U.S. Census contract
Updated 7:01 pm, Thursday, November 9, 2017
STAMFORD — Printing company Cenveo announced this week that it has been awarded the printing and mailing contract for the 2020 U.S. Census — a two-year, $61 million contract that ranks as one of the largest deals made by the U.S. Government Publishing Office.
The contract will involve the manufacturing and fulfillment of 1.6 billion pieces, including letters, envelopes, inserts, questionnaires and postcards, company officials said. Most of the work will be done at Cenveo’s printing and binding facilities in southern California.
“Cenveo’s award of the 2020 U.S. Census is a reflection of our core capabilities and expertise, manufacturing and fulfillment,” Robert Burton Sr., Cenveo’s CEO and chairman, said in a statement. “We are well-positioned to execute and manage all aspects of this program successfully and with the level of quality and security expected. We are honored to be a part of this program that will achieve a lasting impact to the future of our country.”
Also this week, company subsidiary Cenveo Corp. announced the sale of its office-products envelope business, Quality Park Products, to Chicago-based LSC Communications.
Terms of the deal, which involves the sale of two U.S. facilities, were not disclosed.
“This divestiture allows Cenveo to focus on our core operations including labels, direct envelopes, print and content management,” Burton said. “We remain committed to executing our plan of operating niche growth businesses while using our cash flow to invest in and grow our higher margin product groups and de-leveraging our balance sheet.”
The Census contract and Quality Park Products sale were not included in Cenveo’s third-quarter earnings released Thursday because the past quarter closed Sept. 30.
In the third quarter, Cenveo turned in revenues of about $330 million, a 14 percent drop from the same period last year. It recorded a loss of $28 million.
“The operating environment we experienced during the first half of the year continued throughout the third quarter,” Burton said. “We were again impacted by weakness in our direct mail business driven by softness from our financial institution customers due to lower customer acquisition related mailings.
The company is aiming to produce major savings through a new “profitability improvement plan.” The initiative is on track to hit its $65 million target, company officials said.
Cenveo shares closed Thursday at $1.22, up about 1 percent from their closing price Wednesday.
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