Second quarter net sales were $943 million, up $95 million, or 11.2%, from the second quarter of 2017. Organic net sales decreased 2.0% from the second quarter of 2017. This organic net sales change represents continued improvement compared to the company’s 2017 organic net sales trends. This improvement was largely driven by sales performance in the Office Products segment and Book reporting unit.
“We are pleased with our second quarter results as we continued to experience favorable organic revenue trends and saw an improved sales mix,” said Thomas J. Quinlan III, LSC Communications’ chairman, CEO and president. “Our investment in growth areas, including our Print Logistics acquisition, will bring additional value to our customers. Additionally, we recently announced entering into an agreement to sell our European printing business, which will allow us to increase strategic focus on our North America operations and customers and provide us with additional financial flexibility.”
Second quarter 2018 net income was $8 million, or $0.23 per diluted share, compared to net income of $5 million, or $0.12 per diluted share, in the second quarter of 2017.
Non-GAAP adjusted EBITDA in the second quarter of 2018 was $77 million, or 8.2% of net sales, compared to $82 million, or 9.7% of net sales, in the second quarter of 2017. The decrease in non-GAAP adjusted EBITDA margin was primarily due to sales mix, pricing pressure and the impact of lower margins related to recent acquisitions partially offset by on-going productivity and cost control initiatives.