Quad Reports Third Quarter and Year-to-Date 2024 Results
Quad (NYSE: QUAD) reported Q3 2024 financial results with Net Sales of $675 million, down 4% from $700 million in 2023, and a Net Loss of $25 million. The company achieved Non-GAAP Adjusted EBITDA of $59 million, up from $57 million in Q3 2023, and increased Adjusted EBITDA Margin by 54 basis points to 8.7%. Key developments include amending a $690 million bank debt agreement, expanding its In-Store Connect retail media network, and announcing plans to sell European operations for €41 million. The company updated its 2024 guidance, projecting approximately 9% decline in Net Sales and reducing anticipated year-end Net Debt Leverage from 1.8x to 1.5x.
Quad (NYSE: QUAD) ha riportato i risultati finanziari del Q3 2024, con vendite nette di 675 milioni di dollari, in calo del 4% rispetto ai 700 milioni del 2023, e una perdita netta di 25 milioni di dollari. L'azienda ha registrato un EBITDA Adjusted Non-GAAP di 59 milioni di dollari, in aumento rispetto ai 57 milioni del Q3 2023, e ha incrementato il margine EBITDA Adjusted di 54 punti base, raggiungendo l'8,7%. Tra gli sviluppi chiave c'è la modifica di un accordo sul debito bancario di 690 milioni di dollari, l'espansione della sua rete di media retail In-Store Connect e l'annuncio di piani per vendere le operazioni europee per 41 milioni di euro. L'azienda ha aggiornato le previsioni per il 2024, prevedendo un declino di circa il 9% nelle vendite nette e una riduzione dell'indebitamento netto atteso a fine anno, da 1,8x a 1,5x.
Quad (NYSE: QUAD) reportó resultados financieros del Q3 2024 con ventas netas de 675 millones de dólares, un descenso del 4% desde los 700 millones en 2023, y una pérdida neta de 25 millones de dólares. La compañía logró un EBITDA Ajustado No-GAAP de 59 millones de dólares, un aumento respecto a los 57 millones en el Q3 2023, y aumentó el Margen EBITDA Ajustado en 54 puntos básicos, alcanzando el 8,7%. Los desarrollos clave incluyen la modificación de un acuerdo de deuda bancaria de 690 millones de dólares, la expansión de su red de medios minoristas In-Store Connect, y el anuncio de planes para vender sus operaciones en Europa por 41 millones de euros. La compañía actualizó su guía para 2024, proyectando aproximadamente un 9% de disminución en ventas netas y reduciendo el apalancamiento de deuda neta esperado a fin de año de 1.8x a 1.5x.
Quad (NYSE: QUAD)는 2024년 3분기 재무 결과로 순매출 6억 7500만 달러를 보고했으며, 2023년 7억 달러에서 4% 감소했으며, 순손실은 2500만 달러입니다. 이 회사는 3분기 2023년의 5700만 달러에서 증가한 5900만 달러의 비GAAP 조정 EBITDA를 달성하였고, 조정 EBITDA 마진을 54베이시스 포인트 증가시켜 8.7%에 도달했습니다. 주요 개발 사항으로는 6억 9000만 달러의 은행 부채 계약 수정, In-Store Connect 소매 미디어 네트워크 확장, 4100만 유로에 유럽 사업 매각 계획 발표가 포함됩니다. 이 회사는 2024년 가이던스를 업데이트하여 순매출이 약 9% 감소할 것으로 예상하고 연말 순 부채 비율을 1.8배에서 1.5배로 낮출 계획을 밝혔습니다.
Quad (NYSE: QUAD) a annoncé ses résultats financiers pour le T3 2024, avec des ventes nettes de 675 millions de dollars, en baisse de 4% par rapport à 700 millions en 2023, et une perte nette de 25 millions de dollars. La société a réalisé un EBITDA ajusté hors GAAP de 59 millions de dollars, en hausse par rapport à 57 millions de dollars au T3 2023, et a augmenté la marge EBITDA ajustée de 54 points de base pour atteindre 8,7 %. Parmi les développements clés figurent la modification d'un accord de dette bancaire de 690 millions de dollars, l'expansion de son réseau de médias de détail In-Store Connect et l'annonce de projets de vente de ses opérations européennes pour 41 millions d'euros. L'entreprise a mis à jour ses prévisions pour 2024, anticipant une baisse d'environ 9% des ventes nettes et réduisant l'effet de levier de la dette nette prévu à la fin de l'année, de 1,8x à 1,5x.
Quad (NYSE: QUAD) hat die finanziellen Ergebnisse des 3. Quartals 2024 mit Nettoumsätzen von 675 Millionen US-Dollar veröffentlicht, was einem Rückgang von 4% gegenüber 700 Millionen US-Dollar im Jahr 2023 entspricht, und einem Nettverlust von 25 Millionen US-Dollar. Das Unternehmen erzielte ein Non-GAAP-adjustiertes EBITDA von 59 Millionen US-Dollar, eine Steigerung gegenüber 57 Millionen US-Dollar im 3. Quartal 2023, und erhöhte die Adjusted EBITDA-Marge um 54 Basispunkte auf 8,7%. Zu den wesentlichen Entwicklungen gehören die Änderung eines Bankverbindlichkeitenvertrags über 690 Millionen US-Dollar, die Erweiterung seines In-Store Connect Einzelhandelsmediennetzwerks und die Ankündigung von Plänen zum Verkauf der europäischen Operationen für 41 Millionen Euro. Das Unternehmen aktualisierte seine Prognosen für 2024 und rechnet mit einem Rückgang der Nettoumsätze um etwa 9% sowie einer Reduzierung des erwarteten Nettoverschuldungsgrads vom 1,8-fachen auf das 1,5-fache zum Jahresende.
- Adjusted EBITDA increased to $59 million from $57 million YoY
- Adjusted EBITDA Margin improved by 54 basis points to 8.7%
- Received $41 million from sale of Saratoga Springs facility
- Secured €41 million deal to sell European operations
- Extended $690 million bank debt agreement to 2029
- Expected reduction in Net Debt Leverage to 1.5x by year-end
- Net Sales declined 4% YoY to $675 million
- Net Loss of $25 million compared to $3 million loss in Q3 2023
- Year-to-date Net Sales down 9% compared to 2023
- Year-to-date Net Loss increased to $56 million from $33 million
- Negative Free Cash Flow of $92 million in first nine months
Insights
Quad's Q3 2024 results present a mixed financial picture with some concerning trends but also positive developments. Net Sales declined 4% to
The planned sale of European operations for
While revenue pressures persist, operational efficiency improvements and cost management are helping protect profitability. The strategic pivot toward marketing experience solutions, including retail media networks and AI initiatives with Google Cloud, positions the company for potential future growth despite current challenges.
The transformation from traditional print to marketing experience (MX) company shows promising strategic direction through key initiatives. The expansion of In-Store Connect retail media network and Google Cloud AI collaboration represent significant moves into higher-growth digital marketing segments.
However, the
The maintenance of Adjusted EBITDA and Free Cash Flow guidance despite lower revenue suggests strong operational execution, but sustained top-line pressure could eventually impact profitability. Investors should monitor the November 20th Investor Day for more detailed growth strategy insights and execution plans for the MX transformation.
Updates full-year 2024 financial guidance, including reducing anticipated year-end Net Debt Leverage from approximately 1.8x to 1.5x due to strong cash generation
Company to share strategy and growth opportunities at its upcoming Investor Day on November 20, 2024
SUSSEX, Wis., Oct. 28, 2024 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a global marketing experience company, today reported results for the third quarter ended September 30, 2024.
Recent Highlights
- Recognized Net Sales of
$675 million $700 million $25 million $0.52 - Achieved Non-GAAP Adjusted EBITDA of
$59 million $57 million $0.26 - Increased Adjusted EBITDA Margin by 54 basis points to
8.7% in the third quarter of 2024 compared to the same period in 2023. - Amended and extended
$690 million - Built sales momentum for its in-store retail media network, In-Store Connect by Quad.
- Announced collaboration with Google Cloud to power next-generation, AI-driven marketing solutions.
- Received
$41 million Saratoga Springs, New York , manufacturing facility. - Entered into a definitive agreement to sell the majority of its European operations for an enterprise value of
€41 million (approximately$45 million - Declared quarterly dividend of
$0.05 - Updates full-year 2024 financial guidance, including Net Sales trending to the higher end of decline in its original guidance range, while maintaining guidance midpoints for Adjusted EBITDA and Free Cash Flow and improving anticipated year-end 2024 Net Debt Leverage from approximately 1.8x to 1.5x.
Joel Quadracci, Chairman, President and CEO of Quad, said: "During the third quarter, we continued our focus on differentiating ourselves as a marketing experience, or MX, company, including investments in innovative solutions that align with our growth priorities. I am pleased to report that our in-store retail media network is expanding and producing measurable results for both retailers and consumer brands. Already, we have launched a test phase of In-Store Connect by Quad in 15 stores with The Save Mart Companies and are rolling out testing phases with two additional grocery chains by year end.
"In the third quarter, we also announced an exciting collaboration with Google Cloud to launch AI-powered solutions that will enable brands to create highly personalized content at scale across multiple marketing channels. By combining our data expertise with Google Cloud's advanced AI capabilities, we not only will improve audience targeting, but will also reimagine how brands connect with consumers through streamlined, automated solutions that drive impactful results without compromising their unique brand voice.
"As always, we remain focused on delivering superior service to our clients while driving profitability, further enhancing Quad's financial strength and creating shareholder value. Last week, we announced our agreement to sell the majority of our European operations, which represents just
"We look forward to sharing a more comprehensive update on our strategy and growth opportunities at our upcoming Investor Day on November 20, 2024, in
Added Tony Staniak, Chief Financial Officer of Quad: "Our flexible operating model, higher labor productivity and disciplined approach to managing all aspects of our business enabled us to deliver higher Adjusted EBITDA Margin in the third quarter and on a year-to-date basis compared to the prior year, despite Net Sales pressure. We also continued to be a strong cash generator, including realizing
Third Quarter 2024 Financial Results
- Net Sales were
$675 million 4% compared to the same period in 2023 primarily due to lower paper and agency solutions sales, including the loss of a large grocery client. - Net Loss was
$25 million $3 million $28 million $47 million $21 million Saratoga Springs, New York , facility) and the impact from lower Net Sales, partially offset by benefits from increased manufacturing productivity, savings from cost reduction initiatives, and lower depreciation and amortization. - Adjusted EBITDA was
$59 million $57 million - Adjusted Diluted Earnings Per Share was
$0.26 $0.11
Year-to-Date 2024 Financial Results
- Net Sales were
$2 billion 9% compared to the same period in 2023 primarily due to lower paper sales and lower print volumes, including the impact from client mix and increased gravure volume that has a lower unit price with a higher profit margin, as well as lower agency solutions sales, including the loss of a large grocery client. - Net Loss was
$56 million $33 million $35 million $50 million $21 million Saratoga Springs, New York , facility) and the impact from lower Net Sales, partially offset by benefits from increased manufacturing productivity, savings from cost reduction initiatives, and lower depreciation and amortization. - Adjusted EBITDA was
$161 million $7 million - Adjusted Diluted Earnings Per Share was
$0.49 $0.28 11% of its outstanding shares since the second quarter of 2022. - Net Cash Used in Operating Activities was
$46 million $41 million $92 million $18 million $142 million $162 million - Net Debt was
$490 million $470 million $584 million $92 million $69 million $330 million $9 million $193 million
Dividend
Quad's next quarterly dividend of
2024 Guidance
The Company updates its full-year 2024 financial guidance as follows:
Financial Metric | Original 2024 Guidance Range | Updated 2024 Guidance Range |
Annual Net Sales Change | Approximately | |
Full-Year Adjusted EBITDA | ||
Free Cash Flow | ||
Capital Expenditures | Approximately | |
Year-End Debt Leverage Ratio (1) | Approximately 1.8x | Approximately 1.5x |
(1) Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance. |
Conference Call and Webcast Information
Quad will hold a conference call at 8:30 a.m. ET on Tuesday, October 29, 2024, hosted by Joel Quadracci, Quad Chairman, President and CEO, and Tony Staniak, Quad CFO. The full earnings release and slide presentation will be concurrently available on the Investors section of Quad's website at http://www.quad.com/investor-relations. As part of the conference call, Quad will conduct a question and answer session.
Participants can pre-register for the webcast by navigating to https://dpregister.com/sreg/10193063/fd9659683c. Participants will be given a unique PIN to access the call on October 29. Participants may pre-register at any time, including up to and after the call start time.
Alternatively, participants may dial in on the day of the call as follows:
U.S. Toll-Free: 1-877-328-5508- International Toll: 1-412-317-5424
An audio replay of the call will be posted on the Investors section of Quad's website shortly after the conference call ends. In addition, telephone playback will also be available until November 29, 2024, accessible as follows:
U.S. Toll-Free: 1-877-344-7529- International Toll: 1-412-317-0088
- Replay Access Code: 9141656
About Quad
Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients' objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.
Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the
For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company's future results, financial condition, sales, earnings, free cash flow, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company and can generally be identified by the use of words or phrases such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "foresee," "project," "believe," "continue" or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.
The factors that could cause actual results to materially differ include, among others: the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creates downward pricing pressures and potential under-utilization of assets; the impact of increased business complexity as a result of the Company's transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets and technologies, such as artificial intelligence; the impact of changes in postal rates, service levels or regulations, including delivery delays; the impact of fluctuations in costs (including labor and labor-related costs, energy costs, freight rates and raw materials, including paper and the materials to manufacture ink) and the impact of fluctuations in the availability of raw materials, including paper, parts for equipment and the materials to manufacture ink; the impact macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as cost and labor pressures, distribution challenges and the price and availability of paper, have had, and may continue to have, on the Company's business, financial condition, cash flows and results of operations (including future uncertain impacts); the inability of the Company to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of a data-breach of sensitive information, ransomware attack or other cyber incident on the Company; the fragility and decline in overall distribution channels; the failure to attract and retain qualified talent across the enterprise; the impact of digital media and similar technological changes, including digital substitution by consumers; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the impact of risks associated with the operations outside of
Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as non-GAAP), specifically Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense (benefit), depreciation and amortization and restructuring, impairment and transaction-related charges, net. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Free Cash Flow is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. Debt Leverage Ratio is defined as total debt and finance lease obligations less cash and cash equivalents (Net Debt) divided by the last twelve months of Adjusted EBITDA. Adjusted Diluted Earnings Per Share is defined as earnings (loss) before income taxes excluding restructuring, impairment and transaction-related charges, net, and adjusted for income tax expense at a normalized tax rate, divided by diluted weighted average number of common shares outstanding.
The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies. Reconciliation to the GAAP equivalent of these non-GAAP measures are contained in tabular form on the attached unaudited financial statements.
Investor Relations Contact
Don Pontes
Executive Director of Investor Relations
916-532-7074
dwpontes@quad.com
Media Contact
Claire Ho
Director of Marketing Communications
414-566-2955
cho@quad.com
QUAD/GRAPHICS, INC. | |||
Three Months Ended September 30, | |||
2024 | 2023 | ||
Net sales | $ 674.8 | $ 700.2 | |
Cost of sales | 527.6 | 560.8 | |
Selling, general and administrative expenses | 88.4 | 82.5 | |
Depreciation and amortization | 24.4 | 32.0 | |
Restructuring, impairment and transaction-related charges, net | 39.3 | 11.2 | |
Total operating expenses | 679.7 | 686.5 | |
Operating income (loss) | (4.9) | 13.7 | |
Interest expense | 17.0 | 17.7 | |
Net pension income | (0.2) | (0.5) | |
Loss before income taxes | (21.7) | (3.5) | |
Income tax expense (benefit) | 3.0 | (0.8) | |
Net loss | $ (24.7) | $ (2.7) | |
Loss per share | |||
Basic and diluted | $ (0.52) | $ (0.06) | |
Weighted average number of common shares outstanding | |||
Basic and diluted | 47.8 | 48.0 | |
QUAD/GRAPHICS, INC. | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Net sales | $ 1,963.8 | $ 2,169.8 | |
Cost of sales | 1,542.8 | 1,748.1 | |
Selling, general and administrative expenses | 260.2 | 255.0 | |
Depreciation and amortization | 79.4 | 97.7 | |
Restructuring, impairment and transaction-related charges, net | 81.9 | 46.8 | |
Total operating expenses | 1,964.3 | 2,147.6 | |
Operating income (loss) | (0.5) | 22.2 | |
Interest expense | 49.4 | 51.0 | |
Net pension income | (0.6) | (1.3) | |
Loss before income taxes | (49.3) | (27.5) | |
Income tax expense | 6.3 | 5.9 | |
Net loss | $ (55.6) | $ (33.4) | |
Loss per share | |||
Basic and diluted | $ (1.17) | $ (0.68) | |
Weighted average number of common shares outstanding | |||
Basic and diluted | 47.6 | 48.8 | |
QUAD/GRAPHICS, INC. | |||
(UNAUDITED) | December 31, | ||
ASSETS | |||
Cash and cash equivalents | $ 12.5 | $ 52.9 | |
Receivables, less allowances for credit losses | 305.6 | 316.2 | |
Inventories | 201.7 | 178.8 | |
Prepaid expenses and other current assets | 72.1 | 39.8 | |
Total current assets | 591.9 | 587.7 | |
Property, plant and equipment—net | 512.7 | 620.6 | |
Operating lease right-of-use assets—net | 82.7 | 96.6 | |
Goodwill | 100.3 | 103.0 | |
Other intangible assets—net | 10.6 | 21.8 | |
Other long-term assets | 90.6 | 80.0 | |
Total assets | $ 1,388.8 | $ 1,509.7 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Accounts payable | $ 336.6 | $ 373.6 | |
Other current liabilities | 259.9 | 237.6 | |
Short-term debt and current portion of long-term debt | 77.2 | 151.7 | |
Current portion of finance lease obligations | 0.8 | 2.5 | |
Current portion of operating lease obligations | 23.6 | 25.4 | |
Total current liabilities | 698.1 | 790.8 | |
Long-term debt | 423.4 | 362.5 | |
Finance lease obligations | 1.4 | 6.0 | |
Operating lease obligations | 66.1 | 77.2 | |
Deferred income taxes | 4.0 | 5.1 | |
Other long-term liabilities | 144.9 | 148.6 | |
Total liabilities | 1,337.9 | 1,390.2 | |
Shareholders' equity | |||
Preferred stock | — | — | |
Common stock | 1.4 | 1.4 | |
Additional paid-in capital | 841.3 | 842.7 | |
Treasury stock, at cost | (27.9) | (33.1) | |
Accumulated deficit | (637.2) | (573.9) | |
Accumulated other comprehensive loss | (126.7) | (117.6) | |
Total shareholders' equity | 50.9 | 119.5 | |
Total liabilities and shareholders' equity | $ 1,388.8 | $ 1,509.7 | |
QUAD/GRAPHICS, INC. | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
OPERATING ACTIVITIES | |||
Net loss | $ (55.6) | $ (33.4) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 79.4 | 97.7 | |
Impairment charges | 65.9 | 15.8 | |
Amortization of debt issuance costs and original issue discount | 1.2 | 1.5 | |
Stock-based compensation | 5.9 | 4.6 | |
Gain on the sale of an investment | (4.1) | — | |
Gains on the sale or disposal of property, plant and equipment, net | (22.2) | (0.5) | |
Deferred income taxes | 0.1 | — | |
Changes in operating assets and liabilities | (116.5) | (44.6) | |
Net cash provided by (used in) operating activities | (45.9) | 41.1 | |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (45.7) | (59.5) | |
Cost investment in unconsolidated entities | (0.2) | (0.7) | |
Proceeds from the sale of property, plant and equipment | 46.5 | 7.9 | |
Proceeds from the sale of an investment | 22.2 | — | |
Loan to an unconsolidated entity | — | (0.6) | |
Other investing activities | (0.9) | (4.5) | |
Net cash provided by (used in) investing activities | 21.9 | (57.4) | |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt | 52.8 | 0.6 | |
Payments of current and long-term debt | (137.0) | (37.5) | |
Payments of finance lease obligations | (2.1) | (1.8) | |
Borrowings on revolving credit facilities | 1,113.3 | 1,136.1 | |
Payments on revolving credit facilities | (1,034.0) | (1,082.8) | |
Purchases of treasury stock | — | (10.2) | |
Equity awards redeemed to pay employees' tax obligations | (2.1) | (1.7) | |
Payment of cash dividends | (7.0) | (0.1) | |
Other financing activities | (0.2) | (0.5) | |
Net cash provided by (used in) financing activities | (16.3) | 2.1 | |
Effect of exchange rates on cash and cash equivalents | (0.1) | — | |
Net decrease in cash and cash equivalents | (40.4) | (14.2) | |
Cash and cash equivalents at beginning of period | 52.9 | 25.2 | |
Cash and cash equivalents at end of period | $ 12.5 | $ 11.0 | |
QUAD/GRAPHICS, INC. | |||||
Net Sales | Operating | Restructuring, | |||
Three months ended September 30, 2024 | |||||
United States Print and Related Services | $ 579.1 | $ 51.2 | $ (12.7) | ||
International | 95.7 | (46.5) | 51.9 | ||
Total operating segments | 674.8 | 4.7 | 39.2 | ||
Corporate | — | (9.6) | 0.1 | ||
Total | $ 674.8 | $ (4.9) | $ 39.3 | ||
Three months ended September 30, 2023 | |||||
United States Print and Related Services | $ 608.0 | $ 18.9 | $ 10.7 | ||
International | 92.2 | 4.2 | 0.6 | ||
Total operating segments | 700.2 | 23.1 | 11.3 | ||
Corporate | — | (9.4) | (0.1) | ||
Total | $ 700.2 | $ 13.7 | $ 11.2 | ||
Nine months ended September 30, 2024 | |||||
United States Print and Related Services | $ 1,702.3 | $ 75.3 | $ 28.2 | ||
International | 261.5 | (40.8) | 53.5 | ||
Total operating segments | 1,963.8 | 34.5 | 81.7 | ||
Corporate | — | (35.0) | 0.2 | ||
Total | $ 1,963.8 | $ (0.5) | $ 81.9 | ||
Nine months ended September 30, 2023 | |||||
United States Print and Related Services | $ 1,854.1 | $ 38.0 | $ 41.8 | ||
International | 315.7 | 20.2 | 4.2 | ||
Total operating segments | 2,169.8 | 58.2 | 46.0 | ||
Corporate | — | (36.0) | 0.8 | ||
Total | $ 2,169.8 | $ 22.2 | $ 46.8 | ||
______________________________ | |
(1) | Restructuring, impairment and transaction-related charges, net are included within operating income (loss). |
QUAD/GRAPHICS, INC. | |||
Three Months Ended September 30, | |||
2024 | 2023 | ||
Net loss | $ (24.7) | $ (2.7) | |
Interest expense | 17.0 | 17.7 | |
Income tax expense (benefit) | 3.0 | (0.8) | |
Depreciation and amortization | 24.4 | 32.0 | |
EBITDA (non-GAAP) | $ 19.7 | $ 46.2 | |
EBITDA Margin (non-GAAP) | 2.9 % | 6.6 % | |
Restructuring, impairment and transaction-related charges, net (1) | 39.3 | 11.2 | |
Adjusted EBITDA (non-GAAP) | $ 59.0 | $ 57.4 | |
Adjusted EBITDA Margin (non-GAAP) | 8.7 % | 8.2 % | |
______________________________ | |
(1) | Operating results for the three months ended September 30, 2024 and 2023, were affected by the following restructuring, impairment and transaction-related charges, net: |
Three Months Ended September 30, | |||
2024 | 2023 | ||
Employee termination charges (a) | $ 2.2 | $ 1.6 | |
Impairment charges (b) | 52.2 | 5.2 | |
Transaction-related charges (c) | 0.9 | 0.5 | |
Integration costs (d) | 0.1 | — | |
Other restructuring charges (income) (e) | (16.1) | 3.9 | |
Restructuring, impairment and transaction-related charges, net | $ 39.3 | $ 11.2 | |
______________________________ | |
(a) | Employee termination charges were related to workforce reductions through facility consolidations and separation programs. |
(b) | Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction and strategic divestiture activities, including |
(c) | Transaction-related charges consisted of professional service fees related to business acquisition and divestiture activities. |
(d) | Integration costs were primarily costs related to the integration of acquired companies. |
(e) | Other restructuring charges (income) primarily include costs to maintain and exit closed facilities, as well as lease exit charges, and are presented net of a |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Net loss | $ (55.6) | $ (33.4) | |
Interest expense | 49.4 | 51.0 | |
Income tax expense | 6.3 | 5.9 | |
Depreciation and amortization | 79.4 | 97.7 | |
EBITDA (non-GAAP) | $ 79.5 | $ 121.2 | |
EBITDA Margin (non-GAAP) | 4.0 % | 5.6 % | |
Restructuring, impairment and transaction-related charges, net (1) | 81.9 | 46.8 | |
Adjusted EBITDA (non-GAAP) | $ 161.4 | $ 168.0 | |
Adjusted EBITDA Margin (non-GAAP) | 8.2 % | 7.7 % | |
______________________________ | |
(1) | Operating results for the nine months ended September 30, 2024 and 2023, were affected by the following restructuring, impairment and transaction-related charges, net: |
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Employee termination charges (a) | $ 19.1 | $ 16.6 | |
Impairment charges (b) | 65.9 | 15.8 | |
Transaction-related charges (c) | 1.8 | 1.1 | |
Integration costs (d) | 0.3 | 1.0 | |
Other restructuring charges (income) (e) | (5.2) | 12.3 | |
Restructuring, impairment and transaction-related charges, net | $ 81.9 | $ 46.8 | |
______________________________ | |
(a) | Employee termination charges were related to workforce reductions through facility consolidations and separation programs. |
(b) | Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction and strategic divestiture activities, including |
(c) | Transaction-related charges consisted of professional service fees related to business acquisition and divestiture activities. |
(d) | Integration costs were primarily costs related to the integration of acquired companies. |
(e) | Other restructuring charges (income) primarily include costs to maintain and exit closed facilities, as well as lease exit charges, and are presented net of a |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Net cash provided by (used in) operating activities | $ (45.9) | $ 41.1 | |
Less: purchases of property, plant and equipment | 45.7 | 59.5 | |
Free Cash Flow (non-GAAP) | $ (91.6) | $ (18.4) | |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. | |||
(UNAUDITED) | December 31, | ||
Total debt and finance lease obligations on the condensed consolidated balance sheets | $ 502.8 | $ 522.7 | |
Less: Cash and cash equivalents | 12.5 | 52.9 | |
Net Debt (non-GAAP) | $ 490.3 | $ 469.8 | |
Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1) | $ 227.1 | $ 233.7 | |
Debt Leverage Ratio (non-GAAP) | 2.16 x | 2.01 x | |
______________________________ | |
(1) | The calculation of Adjusted EBITDA for the trailing twelve months ended September 30, 2024, and December 31, 2023, was as follows: |
Add | Subtract | Trailing Twelve | |||||
Year Ended | Nine Months Ended | ||||||
December 31, | (UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||
Net loss | $ (55.4) | $ (55.6) | $ (33.4) | $ (77.6) | |||
Interest expense | 70.0 | 49.4 | 51.0 | 68.4 | |||
Income tax expense | 12.8 | 6.3 | 5.9 | 13.2 | |||
Depreciation and amortization | 128.8 | 79.4 | 97.7 | 110.5 | |||
EBITDA (non-GAAP) | $ 156.2 | $ 79.5 | $ 121.2 | $ 114.5 | |||
Restructuring, impairment and transaction-related | 77.5 | 81.9 | 46.8 | 112.6 | |||
Adjusted EBITDA (non-GAAP) | $ 233.7 | $ 161.4 | $ 168.0 | $ 227.1 | |||
______________________________ | |
(a) | Financial information for the year ended December 31, 2023, is included as reported in the Company's 2023 Annual Report on Form 10-K filed with the SEC on February 22, 2024. |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. | |||
Three Months Ended September 30, | |||
2024 | 2023 | ||
Loss before income taxes | $ (21.7) | $ (3.5) | |
Restructuring, impairment and transaction-related charges, net | 39.3 | 11.2 | |
Adjusted net earnings, before income taxes (non-GAAP) | 17.6 | 7.7 | |
Income tax expense at | 4.4 | 1.9 | |
Adjusted net earnings (non-GAAP) | $ 13.2 | $ 5.8 | |
Basic weighted average number of common shares outstanding | 47.8 | 48.0 | |
Plus: effect of dilutive equity incentive instruments (non-GAAP) | 2.7 | 2.7 | |
Diluted weighted average number of common shares outstanding (non-GAAP) | 50.5 | 50.7 | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.26 | $ 0.11 | |
Diluted loss per share (GAAP) | $ (0.52) | $ (0.06) | |
Restructuring, impairment and transaction-related charges, net per share | 0.78 | 0.22 | |
Income tax expense (benefit) from condensed consolidated statement of operations per share | 0.06 | (0.02) | |
Income tax expense at | (0.09) | (0.04) | |
Effect of dilutive equity incentive instruments | 0.03 | 0.01 | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.26 | $ 0.11 | |
______________________________ | |
(1) | Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net and (ii) discrete income tax items. |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Loss before income taxes | $ (49.3) | $ (27.5) | |
Restructuring, impairment and transaction-related charges, net | 81.9 | 46.8 | |
Adjusted net earnings, before income taxes (non-GAAP) | 32.6 | 19.3 | |
Income tax expense at | 8.2 | 4.8 | |
Adjusted net earnings (non-GAAP) | $ 24.4 | $ 14.5 | |
Basic weighted average number of common shares outstanding | 47.6 | 48.8 | |
Plus: effect of dilutive equity incentive instruments (non-GAAP) | 2.5 | 2.1 | |
Diluted weighted average number of common shares outstanding (non-GAAP) | 50.1 | 50.9 | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.49 | $ 0.28 | |
Diluted loss per share (GAAP) | $ (1.17) | $ (0.68) | |
Restructuring, impairment and transaction-related charges, net per share | 1.63 | 0.92 | |
Income tax expense from condensed consolidated statement of operations per share | 0.13 | 0.12 | |
Income tax expense at | (0.16) | (0.09) | |
Effect of dilutive equity incentive instruments | 0.06 | 0.01 | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.49 | $ 0.28 | |
______________________________ | |
(1) | Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net and (ii) discrete income tax items. |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
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SOURCE Quad
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