Top 40 distributor InnerWorkings (asi/168860) recorded a net loss of $2.5 million, or $0.05 loss per diluted share, on total company sales that declined 3% year-over-year to $267.2 million during the first quarter of 2019, the Chicago-based firm reported late Thursday.

Executives said that $3.9 million in restructuring charges related to a sweeping cost reduction plan played a key role in propelling the loss in Q1, which ended March 31^st. InnerWorkings’ first quarter 2019 loss was worse than the loss registered in Q1 2018, which was $1.68 million, or $0.03 loss per diluted share.

Rich Stoddart, InnerWorkings

During the first quarter, InnerWorkings generated gross profit of $61.2 million, or 22.9% of gross revenue. That was down from $66.1 million, or 24.1% of revenue, in the same period of last year. Adjusted EBITDA faltered too, falling from $7.4 million in Q1 2018 to $6.6 million in this year’s first three months.

Despite the rough showing, InnerWorkings believes better days are ahead. The firm predicts that annual 2019 revenue will be in a range of $1.15 to $1.18 billion, representing growth of 3% to 5% compared to 2018. Adjusted EBITDA is forecasted to line up between $42 to $46 million, and non-GAAP diluted earnings will tally $0.20 to $0.24, the company says. New client wins and executing the ongoing cost reduction plan will help propel InnerWorkings in 2019 and beyond, executives maintained.

“We have been awarded more new business in the first four months of 2019 than we had at this point in any prior year,” said CEO Rich Stoddart. “We expect to continue positive momentum through 2019, solidly positioning us on our path toward profitable growth.”

With estimated 2017 North American promotional product revenue of $147 million, InnerWorkings ranked 15^th on Counselor’s latest list of the largest distributors in the industry. The new list debuts in July.