Revenue during the quarter dropped 4.21 percent to $998.60 million from $1,042.50 million in the previous year period. Gross margin for the quarter contracted 115 basis points over the previous year period to 21.78 percent. Total expenses were 94.63 percent of quarterly revenues, down from 98.75 percent for the same period last year. This has led to an improvement of 412 basis points in operating margin to 5.37 percent.

Operating income for the quarter was $53.60 million, compared with $13 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $121.50 million compared with $120 million in the prior year period. At the same time, adjusted EBITDA margin improved 66 basis points in the quarter to 12.17 percent from 11.51 percent in the last year period.

"Our results for the first quarter of 2017 were in-line with our expectations and we are pleased with our performance," said Joel Quadracci, Quad/Graphics chairman, president and chief executive officer. "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. Further, we expect to generate strong Free Cash Flow, which will support value-creating opportunities, including enhancing and expanding our services to provide a unique offering in the marketplace. We will also continue to redefine our company as a marketing services provider that helps brand owners market more efficiently and effectively using our strong print foundation in combination with other media channels. As always, we will continue to invest in our people and strengthen our core manufacturing platform to ensure it remains the strongest and most sustainable in the industry."

The company has spent $8.30 million cash to meet investing activities during the quarter as against cash outgo of $23.70 million in the last year period. It has incurred net capital expenditure of $12.60 million on net basis during the quarter, down 46.84 percent or $11.10 million from year ago period.

The company has spent $58 million cash to carry out financing activities during the quarter as against cash outgo of $89.50 million in the last year period.

Cash and cash equivalents stood at $6.50 million as on Mar. 31, 2017, down 36.89 percent or $3.80 million from $10.30 million on Mar. 31, 2016.

Working capital decreases marginally
Quad/Graphics has witnessed a decline in the working capital over the last year. It stood at $160.50 million as at Mar. 31, 2017, down 3.72 percent or $6.20 million from $166.70 million on Mar. 31, 2016. Current ratio was at 1.24 as on Mar. 31, 2017, up from 1.23 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 45 days for the last year period. Days sales outstanding were almost stable at 52 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 15 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding was almost stable at 38 days for the quarter, when compared with the previous year period.