Q2 2024 Quad/Graphics Inc Earnings Call Transcript
Key Points
- Quad/Graphics Inc (QUAD) achieved improvements in both adjusted EBITDA and adjusted EBITDA margin, with adjusted EBITDA margin increasing by 100 basis points to 8.2%.
- The company continues to expand its presence in retail media networks, a fast-growing media channel, with new partnerships and ongoing conversations with multiple supermarket chains and big-box retailers.
- Quad/Graphics Inc (QUAD) introduced 3D Commerce by Quad, an automated and scalable 3D scanning solution, enhancing its MX creative offering and driving higher sales activity for retailers.
- The company has been recognized with several awards and recognitions, including being featured on the Ad Age World's Largest Agency Companies list and receiving The SAMMY Award for its proprietary media optimization platform, Connex.
- Quad/Graphics Inc (QUAD) has a strong pipeline for new business, driven by its MX solution suite, and continues to prioritize growth in verticals and product lines with the greatest expansion opportunities.
- Net sales declined by 10% in the second quarter of 2024 compared to the same period in 2023, primarily due to lower paper, print, and agency solution sales.
- Print volumes were negatively impacted by ongoing external headwinds, including significant postal rate increases and elevated interest rates.
- Free cash flow was negative $82 million in the first half of 2024, compared to negative $45 million in the first half of 2023.
- The company experienced a 12% decline in net sales in the first half of 2024 compared to the first half of 2023, with lower educational book volume exported to the United States contributing to the decline.
- Quad/Graphics Inc (QUAD) expects ongoing macroeconomic headwinds, including postal rate increases and elevated interest rates, to continue impacting its financial performance, leading to a forecasted decline in annual net sales for 2024.
Good morning. And welcome to Quad's second-quarter 2024 conference call. During today's call, all participants will be in listen-only mode. (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. After today's presentation, there will be an opportunity to ask questions. (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
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