Top 40 promotional products distributor InnerWorkings (asi/168860) saw sales and earnings decline year-over-year through the first six months of 2019, but generated a revenue rise in the second quarter – one indication of better financial performance the Chicago-based firm believes lies ahead.

Sales for the half-year tallied about $551.3 million, a decline of about 1% from the same six-month span in 2018, according to financial data released Aug. 8. Net loss was $3.63 million, or $0.07 per share. The performance was worse than in half-year 2018, when net loss was $1.9 million, or $0.04 per share. Restructuring expenses of about $7.63 million were a key factor in the 2019 loss.

Don Pearson, CFO, InnerWorkings

For the second quarter of 2019, InnerWorkings’ overall sales – which, like total half-year sales, include promotional products-related revenue and monies from other business channels – increased nearly 1% to $284 million. Net loss was about $1.17 million, or $0.02 per share, compared to $299,000, or $0.01 per share, in Q2 2018. Again, restructuring expenses weighed on earnings.

Still, InnerWorkings says it’s starting to generate positive momentum that bellwethers better days. For instance, on Aug. 1, the company closed on the acquisition of Madden Communications, a deal that brings lucrative new opportunities in the adult beverage vertical with household name brands like MillerCoors. InnerWorkings Chief Financial Officer Don Pearson pointed out other positives.

“Our second quarter adjusted EBITDA was more than twice the amount generated in the first quarter, reaching the highest level in almost two years,” Pearson said. “We expect to show positive momentum in the second half of 2019 as we begin to realize the benefits of our $15 million cost reduction plan announced in March. We expect to realize a minimum of $3 million in cost savings from the annual run rate of at least $9 million in cost savings initiatives being actioned this year, with the balance to be actioned next year. Looking further ahead, we expect the realization of these benefits, combined with the high quality revenue of recent client wins, to provide significant sustainable profitable growth in 2020 and beyond.”

For 2019, InnerWorkings expects total revenue to be in the range of $1.15 to $1.18 billion, which would represent year-on-year growth of 3% to 5%. The company upped its guidance on adjusted EBITDA, raising the predicted range to $44 million to $47 million, which compares to a prior forecast of $42 million to $46 million.

With estimated 2018 North American promotional product revenue of $144.9 million, InnerWorkings ranked 15^th on Counselor’s latest list of the largest distributors in the industry.