LSC Communications, Inc. (OTC: LKSDQ) today reported financial results for the second quarter of 2020.
Financial Highlights:
*Net sales of $532 million compared to $869 million in the second quarter of 2019
*Organic net sales decrease of 29.1% from the second quarter of 2019
*GAAP net loss of $63 million, or $1.86 per diluted share, compared to net loss of $25 million, or $0.72 per diluted share, in the second quarter of 2019
*Non-GAAP net loss of $16 million, or $0.46 per diluted share, compared to non-GAAP net income of $3 million, or $0.09 per diluted share, in the second quarter of 2019
*Non-GAAP adjusted EBITDA of $15 million, or 2.8% of net sales, compared to $53 million, or 6.1% of net sales, in the second quarter of 2019
*Cash balance of $97 million as of June 30, 2020, providing sufficient liquidity to continue to fund ongoing operations
*No drawings under our debtor-in-possession (“DIP”) credit facility
“As we faced the unprecedented impacts of the COVID-19 pandemic during the entire second quarter, our focus has been on ensuring the health and safety of our employees, while continuing to meet our customers’ needs,” said Thomas J. Quinlan III, LSC Communications’ Chairman, President and Chief Executive Officer. “Our financial results for the quarter show that our aggressive actions to restructure our manufacturing footprint, reduce cost, and drive sustainable productivity improvement are working even in the face of the significant COVID impacts on our sales. I am also pleased with the progress of our court-supervised restructuring process to strengthen LSC’s financial position for the future. Our liquidity position remains strong, with nearly $100 million of cash on hand and full availability under our DIP facility. I want to thank our employees for their continued focus and dedication during these challenging times.”
Second quarter net sales were $532 million, down $337 million, or 38.8%, from the second quarter of 2019. After adjusting for dispositions, changes in foreign exchange rates and pass-through paper sales, organic net sales decreased 29.1% from the second quarter of 2019. The decrease in organic net sales was seen across all segments and largely driven by the significant impact of COVID-19 in addition to the ongoing impact of digital substitution on magazine and catalog volume.
The second quarter 2020 net loss was $63 million, or $1.86 per diluted share, compared to net loss of $25 million, or $0.72 per diluted share, in the second quarter of 2019.
details at: https://investor.lsccom.com/news-releases/2020/07-30-2020-210518327