Q3 2024 Quad/Graphics Inc Earnings Call Transcript
Key Points
- Quad/Graphics Inc (QUAD) achieved improvements in both adjusted EBITDA and adjusted EBITDA margin, with the margin increasing by 54 basis points to 8.7%.
- The company continues to be a strong cash generator, using funds to pay down debt, strengthen the balance sheet, and return capital to shareholders through dividends.
- Quad/Graphics Inc (QUAD) is reducing anticipated year-end net debt leverage from approximately 1.8x to 1.5x, aided by the sale of European operations.
- The company is leveraging its proprietary household-based data stack and AI-driven solutions in partnership with Google Cloud to enhance audience targeting and content personalization.
- Quad/Graphics Inc (QUAD) is expanding its marketing experience offerings, such as In-Store Connect, which has shown promising results in retail environments like The Save Mart Companies.
- Third quarter net sales declined by 4% compared to the same period in 2023, primarily due to lower paper and agency solution sales.
- Year-to-date net sales were down 9% compared to 2023, impacted by lower paper sales, lower print volumes, and the loss of a large grocery client.
- Free cash flow was negative $92 million in the first nine months of 2024, compared to negative $18 million in the same period of 2023.
- The company anticipates a decline of approximately 9% in annual net sales, trending towards the higher end of its guidance range.
- Quad/Graphics Inc (QUAD) faces challenges from cumulative postal rate increases over the past three years, impacting volumes and client budgets.
Good morning, and welcome to Quad's third-quarter 2024 conference call. (Operator Instructions) A slide presentation accompanies today's webcast and participants are invited to follow along, advancing the slides themselves. To access the webcast, follow the instructions posted in the Earnings release. Alternatively, you can access the slide presentation on the Investors section of Quad's website under the Events and Presentations link. (Operator Instructions) Please note this event is being recorded.
I will now turn the conference over to Katie Krebsbach, Quad's Investor Relations Manager. Katie, please go ahead.
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Thank you, operator, and good morning, everyone. With me today are Joel Quadracci, Quad's Chairman, President and Chief Executive Officer; and Tony Staniak, Quad's Chief Financial Officer. Joel will lead today's call with a business update and Tony will follow with a summary of Quad's third quarter and year-to-date 2024 financial results
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