LSC Communications, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Revises Earnings Guidance for the Full Year 2018
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.