“First quarter results were in line with our expectations and we made significant progress in advancing our strategic initiatives,” said Dan Knotts, RRD’s President and Chief Executive Officer. “During the quarter, we finalized a new strategic agreement to further expand our data analytics capabilities, we completed construction of our new facility in China, and we achieved critical milestones as we prepare to begin printing the 2020 Census in July. We also made the difficult decision to close our unprofitable print operations in Brazil and we continued to successfully execute our plans to address the inflationary cost headwinds affecting the broader print industry. Moving forward, we will remain focused on new client implementations and converting our strong sales pipeline in order to deliver planned growth in the back half of the year. And with our continued focus on reducing our cost structure, we are confident in our ability to deliver our 2019 commitments and further advance RRD as a leading provider of marketing and business communications.” Net sales in the quarter were $1.52 billion, down $185.9 million or 10.9% from the first quarter of 2018, including a $107.4 million impact from the July 2018 disposition of the Print Logistics business. Income from operations was $23.3 million in the first quarter compared to $32.2 million in the first quarter of 2018. Click Read More bellow for additional information.
First Quarter Highlights: • Increased net sales by 3.8% to $1 billion primarily driven by the acquisition of Periscope partially offset by a 0.6% organic sales decline, and realized a net loss of $23 million, or $0.45 diluted loss per share. • Achieved Non-GAAP Adjusted EBITDA of $70 million, within the Company’s anticipated Q1 2019 guidance range of $65 million to $75 million, and Non-GAAP Adjusted diluted loss per share of $0.15. “Our first quarter results were in-line with our expectations and reflect our consistent execution against strategic priorities,” said Joel Quadracci, Quad Chairman, President & Chief Executive Officer. “These priorities include making long-term strategic investments that further accelerate our Quad 3.0 transformation, such as our recent acquisition of Periscope, a leading independent creative agency that further enhances our integrated marketing solutions platform. We also continue to prepare for and work toward completing the acquisition of LSC Communications and expect the all-stock transaction to close in mid-2019. We believe this combination will strengthen our print platform to fuel our Quad 3.0 transformation and create further stability and value for our clients and shareholders. Our Quad 3.0 strategy is working as evidenced in new or expanded work with clients and is a significant driver behind our best quarterly organic sales performance since 2014.” Click Read More bellow for additional information.
Highlights: • Net sales of $845 million compared to $929 million in the first quarter of 2018 • Organic net sales decrease of 4.6% from the first quarter of 2018 • GAAP net loss of $126 million, or $3.79 per diluted share, compared to a net loss of $11 million, or $0.32 per diluted share in the first quarter of 2018. “First quarter results were consistent with our expectations,” said Thomas J. Quinlan III, LSC Communications’ Chairman, President and Chief Executive Officer. “While we continue to see weakness in demand for Magazines, Catalogs and Logistics, our Book and Office Products segments both delivered year-over-year improvement in earnings and margins for the quarter. We continue to expect to close on the previously-announced merger with Quad/Graphics, Inc. in mid-2019.” Click Read More bellow for additional information.
When economic sectors face disruption and distress, the narrative naturally focuses on affected companies-those that are innovating to stay relevant or those falling behind. It's almost always an afterthought to consider the effect of sector decline on the trade associations that serve those industries. They are organizations dedicated to education, networking and sharing game-changing ideas. But as downstream service providers, they're impacted as much or more than the companies they serve, struggling against declining membership, fracturing audiences and reduced revenue. So it was valuable to hear from the heads of four of the magazine industry's most prominent trade associations at the ACT 9 Conference in Oxford, Mississippi, last Thursday, as they described their priorities and concerns in serving a fast-changing industry. The association chiefs included Linda Thomas Brooks, CEO of the consumer magazine-media association, the MPA, Mike Marchesano, managing director of the B2B media association Connectiv, Jerry Lynch, president of the Magazine and Books Retail Association, and James Hewes, CEO of FIPP, the network for global media. Click Read More bellow for additional information.
Magazines offer busy readers a shortcut to quality, says Linda Thomas Brooks, President and CEO of MPA: The Association of Magazine Media at the first session of Samir Husni's ACT 9 at the Magazine Innovation Center at the University of Mississippi. When trust in other sources of information is going down, trust in magazine media is going up. Credible sustainable journalism becomes more important every day. Brooks began with a story about a new business dedicated to creating fake vacations to enhance social medial presence. Twitter and FB had to close fake accounts set up to divide our country. The steps between fake vacations and fake news are getting shorter, Brooks cautioned. As a result, never have magazines been more important. Magazine Media builds brands and sells product with proven verifiable results in a safe and transparent environment of quality, professional journalism that supports an economically, ecologically and socially sustainable society. This is important to us as individuals and also, even more, to us as a society. What we are fighting for is bigger than an ad page, another dollar. It's for intelligent discourse and rigorous inventory. Click Read More bellow for additional information.
First Quarter 2019 Consolidated Results (1): • Operating revenues were $663.4 million, compared to $723.0 million in the first quarter of 2018. • Unfavorable changes in foreign currency exchange rates reduced revenues by $6.0 million. • Same store operating revenues declined 9.0% year-over-year; adjusted for the day trades(2), the decline would have been 9.9% • Total digital revenues reached $245.8 million, or approximately 37% of total revenue. • Total digital advertising and marketing services revenues totaled $179.0 million, or 49% of total advertising revenues. • GAAP net loss was $11.9 million, including $17.4 million of after-tax restructuring, asset impairment charges, and other costs. Click Read More bellow for additional information.
Has a constant stream of negative press questioning recycling’s effectiveness led some consumers to worry about whether recycling is “worth it?” Fortunately, there is good news to share. Survey data released by the Paper and Packaging Board (P+PB) in its 2018 Campaign Impact Report reveals that 83 percent of consumers surveyed agree recycling paper of all kinds is still worthwhile. The P+PB Impact Report also shows that the paper and packaging industry is viewed more favorably than other materials industries including plastics and that just over 6 in 10 (62 percent) of those surveyed agree that paper’s benefits outweigh the risks when considering paperboard/packaging, paper and the environment. “What these numbers and the data in the full report suggests,” says Mary Anne Hansan, president of the Paper and Packaging Board, “is that when consumers are aware of the benefits of choosing paper and paper packaging, these materials remain valued choices.” Click Read More bellow for additional information.
For the quarter ended March 31, 2019, reported sales increased to $744 million compared to $703 million in the prior year. Core sales, excluding the negative impact from changes in currency exchange rates and positive acquisition effects, increased approximately 7%. Commenting on the quarter, Stephan Tanda, President and CEO, said, “We continued to see positive sales momentum. Our Pharma segment had an exceptionally strong quarter with broad-based demand across our portfolio of innovative drug delivery devices. Our other two segments also grew core sales over the prior year and this was in spite of a decrease in custom tooling sales in our Food + Beverage segment. Profit margins also improved over the prior year due to the mix of business, benefits from our business transformation and positive effects of a decline in resin cost.” Click Read More bellow for additional information.
Oil prices fell on Wednesday on a report of rising U.S. crude inventories, while an intensifying crisis in Venezuela and tightened U.S. sanctions on Iran added further uncertainty to markets. U.S. crude stocks rose by 6.8 million barrels to 466.4 million barrels in the week to April 26, the American Petroleum Institute, an industry group, said on Tuesday. Official figures from the U.S. government will be released at 10:30 a.m. ET (1430 GMT). Click Read More bellow for additional information.
By and large, magazines have adapted to the digital world. They’ve stabilized their workforce and continue to combat falling subscription rates. Yet, there are two areas where publishers are still adjusting to a new normal. First, the amount of content that writers, editors and publishers produce is growing exponentially. At the same time, however, the number of staffers used to produce the content has fallen, leading to the cliché that most newsrooms know all too well: “Do more with less.” With the right tools, though, neither the quality of the work nor the ability to find the best stories must suffer. The report is available at: https://www.foliomag.com/magazines-find-breakthrough-efficiencies-in-the-pitching-process/