Last June, Chanhassen, Minnesota-based IWCO Direct announced a two-year, $50 million expansion plan, the largest in the 52-year history of the the direct marketing solutions provider. Part of those expenditures includes the installation of high-speed inkjet printing presses, largely in response to changing direct mail client needs for more highly personalized, data-driven campaigns, produced in shorter runs with rapid turn times. This new omnichannel market reality has also required IWCO Direct CEO John Ashe and his executive team to make difficult decisions about how to optimize the company's existing production facilities and remove excess capacity. As part of this, the 330 workers employed at IWCO Direct's Little Falls, Minn., lithographic printing, letter shop, and commingling plant were told last week that the 200,000-sq.-ft., leased facility — located 100 miles north of Minneapolis in a town of 8,500 residents nestled along the banks of the Mississippi River — will close by Jan. 2, 2022.
4Q 2017 Highlights:
• Net sales of $999 million compared to $919 million in the fourth quarter of 2016
• GAAP net loss of $58 million, or $1.68 per diluted share compared to net income of $9 million, or $0.26 per diluted share in the fourth quarter of 2016
• Non-GAAP net income of $17 million, or $0.50 per diluted share, compared to $15 million, or $0.48 per diluted share in the fourth quarter of 2016
• Non-GAAP adjusted EBITDA of $85 million, or 8.5% of net sales, compared to $80 million, or 8.7% of net sales, in the fourth quarter of 2016
• Net cash provided by operating activities of $147 million compared to $95 million in the fourth quarter of 2016
• Non-GAAP free cash flow of $138 million compared to $82 million in the fourth quarter of 2016
“We are very pleased with our free cash flow generation in the fourth quarter, and despite continued challenging industry conditions, we delivered increases in non-GAAP adjusted EBITDA and non-GAAP earnings per share,” said Thomas J. Quinlan III, LSC Communications’ Chairman and Chief Executive Officer. “As we enter 2018, we are confident that LSC Communications is well positioned to further differentiate its industry-leading customer solutions and continue to deliver a solid balance sheet, strong cash flow and improved earnings.”
Fourth quarter net sales were $999 million, up $80 million, or 8.7%, from the fourth quarter of 2016. After adjusting for acquisitions, changes in foreign exchange rates, and pass-through paper sales, organic net sales decreased 4.6% from the fourth quarter of 2016. The organic decrease in net sales was due to lower volume and price declines in the Print segment and price declines in the Office Products segment.
Fourth quarter 2017 net loss was $58 million, or $1.68 per diluted share, compared to net income of $9 million, or $0.26 per diluted share, in the fourth quarter of 2016. The effective tax rate for the fourth quarter of 2017 reflected $24 million of one-time provisional tax expense related to the enactment of the Tax Cuts and Jobs Act, which will be further detailed in the 2017 Form 10-K, as well as the impact from non-deductible goodwill impairment charges. The fourth quarter 2017 net loss included after tax charges of $75 million and fourth quarter 2016 net income included after- tax charges of $6 million, both of which are excluded from the presentation of non-GAAP net income.
Non-GAAP adjusted EBITDA in the fourth quarter of 2017 was $85 million, or 8.5% of net sales, compared to $80 million, or 8.7% of net sales, in the fourth quarter of 2016. The increase in non-GAAP adjusted EBITDA was primarily due to on-going productivity and cost control initiatives, as well as the impact from acquisitions, partially offset by volume declines, product mix and price pressure in the Print segment and price pressure in the Office Products segment.
Non-GAAP net income totaled $17 million, or $0.50 per diluted share, in the fourth quarter of 2017 compared to non-GAAP net income of $15 million, or $0.48 per diluted share in the fourth quarter of 2016. Reconciliations of net income to non-GAAP adjusted EBITDA and non-GAAP net income are presented in the attached schedules.
On February 15, 2018 the Company’s Board of Directors approved an initial share repurchase authorization of up to $20 million of common stock under which the Company may buy back LSC Communications’ shares at its discretion from February 15, 2018 through August 15, 2019. The Company expects to fund the repurchases, if any, from a combination of cash on hand, cash flow and borrowings under its credit facility. Shares may be repurchased from time to time in open market transactions and/or in privately negotiated transactions at the company’s discretion, subject to market conditions and other factors, and in accordance with applicable regulatory requirements. The company may commence, suspend or discontinue purchases of common stock under this authorization at any time or periodically without prior notice. Shares of stock repurchased will be held as treasury shares. The timing and actual number of shares repurchased will depend on a variety of factors including price and other conditions.
more detail at: http://investor.lsccom.com/news-releases/2018/02-22-2018-113056388