Volume and pricing pressures pushed revenue down for Sussex-based Quad/Graphics, but improved operations allowed the company to post a profit after a $35 million loss during the same period last year.
The company’s first quarter 2016 included net income of $3.8 million and earnings per diluted share of 8 cents, up from a loss of 74 cents per share last year.
It was the first quarter that Quad had reported a profit since the fourth quarter of 2014.
However, revenue for the company’s 2016 first quarter was down 4 percent to $1.04 billion.
“We are pleased with our first quarter 2016 results, which reflect our ongoing efforts focused on productivity improvement and sustainable cost reduction,” said Joel Quadracci, Quad/Graphics chairman, president and chief executive officer. “We remain disciplined in how we manage all aspects of our business to minimize the impacts of ongoing industry and economic uncertainties.”
The company undertook a $100 million cost restructuring plan starting in November 2015 that included plant closures along with efforts to streamline its organizational structure, reduce costs and improve productivity.
During the first quarter of 2016, the company incurred $28.9 million in restructuring, impairment and transaction-related costs.
Quadracci said the company has also worked to strengthen its balance sheet by paying down debt and generate free cash flow, while also developing new products and services to help clients.
“Our strategic actions to implement sustainable operational efficiencies and improve the earnings power of the business have positioned Quad/Graphics to be a significant free cash flow generator in 2016 and beyond,” said Dave Honan, Quad/Graphics executive vice president and chief financial officer.
The company is set to discuss its results in more detail during its quarterly conference call Wednesday.
