Net sales in the first quarter were $1.17 billion, down $43.8 million or 3.6% from the first quarter of 2020. The decrease includes a $6.5 million impact from the previous closure of our operations in Chile and an increase of nearly $15 million due to changes in foreign exchange. The current period continued to be negatively impacted by the ongoing impact of the COVID-19 pandemic and last year’s Census project, which was completed mid-2020. Organic net sales declined 4.3%. The Business Services segment was up 3.2% on a GAAP basis and 2.4% on a non-GAAP organic basis while the Marketing Solutions segment was down 22.5% on a GAAP and non-GAAP organic basis from the first quarter of 2020. The Business Services segment experienced growth in several of our strategic focus areas including Packaging, Labels and Supply Chain Management, while net sales in Marketing Services were negatively affected by last year’s Census project. Income from operations was $25.1 million in the first quarter of 2021 compared to income from operations of $33.1 million in the first quarter of last year.

Quad/Graphics, Inc. is introducing ​​Betty, a new creative agency named after the late Betty Quadracci, fearless trailblazer and co-founder of Quad. The new offering will integrate all of Quad’s creative business lines to uniquely combine its boutique tactics, unmatched 24/7 global production power and commitment to delivering smart, scalable ideas, powered by an in-house network of talented strategists, creatives, content makers, and production and post-production experts.​ Betty’s robust solutions include: *Brand Strategy and Design: *Campaign Ideation: *Premedia, Retail and Adaptive Design: *Content Creation. All former Quad Creative, Periscope and Content Studios leadership and staff are ​​moving to Betty, including Cari Bucci-Hulings​,​ who has assumed the role of President, and Mike Caguin, its Chief Creative Officer. Favorite Child will retain its name as Quad’s brand design practice while remaining part of the larger Betty agency.​

CJK Group, Inc. announced that an agreement has been completed to acquire the business of Worzalla in Stevens Point, WI. This acquisition will bring additional capacity to our Sheridan division’s printing operations and the facility will be renamed Sheridan Worzalla. “Worzalla has a tremendous market reputation and a well-defined niche in the Children’s and Trade book publishing markets,” remarked Chris Kurtzman, CEO of CJK Group. “The addition of the Worzalla operation expands the spectrum of printing services for Sheridan’s clients, nicely augmenting our current strengths in the Trade, Education, Academic, Religious, and Automotive publishing markets.” The newly named Sheridan Worzalla facility is now the third Sheridan location in Wisconsin. Founded in 1892, Worzalla has over 130 years of experience in creating high-quality books for publishers around the world. The operation is housed in a 365,000 square foot facility and employs approximately 340 employees.