Quad/Graphics (NYSE: QUAD) reported Q1 EPS of ($0.15), $0.12 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $1 billion versus the consensus estimate of $1 billion.

• 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.
• Expect a mid-2019 close on the all-stock acquisition of LSC Communications (“LSC”), and both Quad and LSC have received the necessary shareholder approvals.
• Reaffirms full-year 2019 guidance.
• Declares quarterly dividend of $0.30 per share.

“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.”

“We remain on track for delivering our 2019 financial guidance,” said Dave Honan, Quad Executive Vice President & Chief Financial Officer. “We continue to expect a decrease in Adjusted EBITDA in the front half of the year with growth in the back half of the year due to increasing synergies and revenues related to our Quad 3.0 integrated services offering as well as sustainable cost reductions and productivity improvements from the additional investments in our employees and automation.”

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