Sussex-based Quad/Graphics Inc. reported its first quarter profit was up 568 percent from the first quarter of 2016.
Quad reported first quarter net income of $25.4 million, or 49 cents per diluted share, up from $3.8 million, or 8 cents per share, in the first quarter of 2016.
Operating income was $53.6 million, up from $13 million in the year-ago quarter. Selling, general and administrative expenses decreased significantly, from $119 million to $96 million in the most recent quarter, driven by the company’s widespread layoffs. Restructuring, impairment and transaction-related charges also fell sharply, from $28.9 million to $9.2 million year-over-year. Cost of sales and depreciation and amortization also fell.
Revenue totaled $998.6 million in the first quarter, down from $1 billion in the first quarter of 2016.
Since 2010, Quad has made a number of acquisitions to consolidate the printing industry and has sought to bring production to high efficiency plants while closing outdated ones. Quad has closed 34 printing plants during that time and reduced its overall headcount by 10,000.
The company now has transitioned to a new role, partnering with customers to optimize their marketing investments.
“Our results for the first quarter of 2017 were in-line with our expectations and we are pleased with our performance,” said Joel Quadracci, chairman, president and chief executive officer of Quad. “We continued to drive EBITDA enhancement through our disciplined approach to sustainable cost reductions and productivity improvements while maintaining our focus on revenue. As we look forward to the remainder of 2017, we will continue to be the industry’s high-quality, low-cost producer to minimize the impact of industry pressures and economic uncertainty.”