LSC Communications (NYSE:LKSD) Q1 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 10:00 am ET


LSC Communications (NYSE:LKSD) Q1 2018 Earnings Conference Call - Final Transcript


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Welcome to the LSC Communications First Quarter 2018 Earnings Conference Call. My name is John and I will be your operator for today's call. We have just a few announcements before we begin. The slides will advance automatically throughout the presentation. If your screen freezes or the slides do not appear to be advancing as they should, please try exiting and restarting the session as it may be an issue with your connectivity. At the bottom of your screen you will find a help icon for technical assistance. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions) Please note that this conference is being recorded.

And now I will turn the call over to Janet Halpin. You may begin.

Janet Halpin

Thank you, John. Good morning, everyone, and thank you for joining LSC Communications first quarter 2018 results conference call. This morning, we've released our earnings report, a copy of which can be found in the Investors section of our website at During this call, we will refer to forward-looking statements that are subject to uncertainty. For a complete discussion, please refer to the cautionary statement included in our earnings release and further detailed in our Form 10-K filed on February 22, 2018, as well as LSC Communications periodic filings with the SEC.

Further, we will discuss non-GAAP financial information. We believe the presentation of non-GAAP results provides you with useful supplementary information concerning the Company's ongoing operations and is an appropriate way for you to evaluate the Company's performance. They are however, provided for informational purposes only. Please refer to the reconciliation of GAAP to non-GAAP results included in the earnings release schedule, as well as, the appendix to the webcast presentation that is posted to the LSC website.

We are joined this morning by Tom Quinlan, Drew Coxhead and Kent Hansen. I will now turn the call over to Tom.

Thomas Quinlan

Thank you, Janet and thanks to everyone for joining us today. We are pleased with the overall revenue trends in the quarter especially in the print seg and books in particular. As we anticipated and discussed on our last call, margins were pressed in the quarter, but we do expect margin improvements as we move through 2018 with integration synergies, cost actions taken earlier this year, and an improved sales mix as significant drivers.

We remained focus on LSC's strategies to drive growth and long-term value creation as we discussed in detail in our Investor Meeting in March. Since that meeting, we have continued to make progress on those plans. And, I will provide a few updates before Drew reviews the quarter's financial results in more detail.

In our book division, we will continue to enrich our leading solutions that provide convenience and scale driven efficiencies for our publishing clients. Specific growth opportunity in this segment where we've gained traction is in our order to cash capability. By providing publishers with access to our state-of-the-art technology platform, as well as