LSC Communications, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported net sales of $1,015 million compared to $935 million last year. Profit from operations was $41 million compared to loss of $18 million last year. Income before income taxes was $31 million compared to loss of $26 million last year. Net loss was $4 million compared to $3 million last year. Basic and diluted net loss per share was $0.12 compared to $0.07 last year. Non-GAAP adjusted EBITDA was $90 million against $96 million a year ago. Free cash flow negative was $15 million compared $35 million last year. Capital expenditures were $15 million against $35 million a year ago. Non-GAAP net income of $25 million, or $0.74 per diluted share, compared to non-GAAP net income of $25 million, or $0.73 per diluted share in the third quarter of 2017. The decrease in non-GAAP adjusted EBITDA was primarily due to volume declines and product mix, increased labor costs and the negative impact on productivity related to workforce turnover, partially offset by acquisition synergies and cost control initiatives.

For the nine months the company reported net sales of $2,887 million compared to $2,604 million last year. Income from operations was $53 million compared to loss of $4 million last year. Income before income taxes was $29 million compared to loss of $22 million last year. Net loss was $7 million compared to income of $1 million last year. Basic and diluted loss per share was $0.21 compared to earnings of $0.03 last year. Non-GAAP adjusted EBITDA was $220 million against $243 million a year ago. Free cash flow negative was $78 million compared positive of $7 million last year. Capital expenditures $52 million compared $51 million last year. Net cash used in operating activities was $26 million compared net cash provided by operating activities of $28 million last year. Non-GAAP net loss was $38 million or $1.10 per diluted share against income of $50 million or $1.47 per diluted share a year ago.

The company's updated full-year guidance for 2018, is updated for the impact of the expectation for continued increased labor and material costs for the remainder of the year: the company now expects net sales of $3.80 billion to $3.85 billion compared to previous guidance of $3.75 billion to $3.85 billion; Non-GAAP adjusted EBITDA of $270 million to $290 million compared to previous guidance of $310 million to $340 million; Depreciation and amortization of $135 million to $140 million compared to previous guidance of $135 million to $145 million; Interest expense approximately $78 million compared to previous guidance of $76 million to $78 million; Non-GAAP effective tax rate of 29% to 31% compared to previous guidance of 27% to 31%; Capital expenditures of $70 million to $75 million compared to previous guidance of $65 million to $75 million; and Free cash flow of $80 million to $110 million compared to previous guidance of $110 million to $140 million.