Quad/Graphics misses by $0.03, beats on revenue
Apr. 30, 2019 4:31 PM ET|About: Quad/Graphics, Inc. (QUAD)|By: Niloofer Shaikh, SA News Editor
Quad/Graphics (NYSE:QUAD): Q1 Non-GAAP EPS of -$0.15 misses by $0.03; GAAP EPS of -$0.45.
Revenue of $1B (+3.4% Y/Y) beats by $20.42M.
Press Release
Net sales increased 3.8% during the first quarter ended March31, 2019, to $1billion, primarily from the impact of the Periscope acquisition. Organic sales declined 0.6% after excluding a 4.4% acquisition sales impact. The organic results reflect ongoing print industry volume and pricing pressures partially offset by an increase in paper sales.
Net Loss attributable to Quad common shareholders during the first quarter of 2019 was $22.5million, or $0.45 Loss Per Share, as compared to a loss of $3.5million, or $0.07 per share, in 2018. Excluding the loss on debt extinguishment in 2019, an employee stock ownership plan contribution in 2018 and restructuring costs, Non-GAAP Adjusted Diluted Loss Per Share for the first quarter of 2019 was $0.15 per share compared to earnings of $0.58 per share in the first quarter 2018. First quarter 2019 Non-GAAP Adjusted EBITDA came in as expected at $70million compared to $110million in the first quarter of 2018, and Adjusted EBITDA Margin was 7.0% compared to 11.4% in 2018. The Adjusted EBITDA variance to prior-year primarily reflects $22million in non-recurring benefits in 2018 that did not repeat at the same level in 2019, an $8million impact from strategic investments made to increase hourly production employees' wages and the impact from the organic print sales decline of 0.6%, partially offset by the earnings impact from the growth in Quad's integrated services revenues.
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