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Quad Reports Second Quarter and Year-to-Date 2024 Results

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Company continues to drive its marketing experience strategy, launching multiple innovative service offerings

SUSSEX, Wis., July 30, 2024 /PRNewswire/ — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a global marketing experience company, today reported results for the second quarter ended June 30, 2024.

Recent Highlights

Recognized Net Sales of $634 million in the second quarter of 2024 compared to $703 million in 2023 and realized a Net Loss of $3 million or $0.06 Diluted Loss Per Share for the second quarter of 2024.Achieved Non-GAAP Adjusted EBITDA of $52 million in the second quarter of 2024, increased from $50 million in the second quarter of 2023, and delivered $0.12 Adjusted Diluted Earnings Per Share for the second quarter of 2024.Increased Adjusted EBITDA Margin by 100 basis points to 8.2% in the second quarter of 2024 compared to the same period in 2023.Introduced Betty, a creative agency that delivers best-in-class strategy and creative, backed by Quad’s global production resources for speed and scale.Launched 3D Commerce by Quad, the first commercially available automated and scalable 3D scanning solution in the North American market for creating photorealistic 3D assets.Expanded partnerships for In-Store Connect by Quad, the company’s in-store retail media network.Generated $22 million of cash proceeds from sale of minority investment in Manipal Technologies, a leading print services and end-to-end business solutions provider headquartered in India.Declared quarterly dividend of $0.05 per share.Reaffirms full-year 2024 financial guidance.

During the second quarter, Quad continued to focus on differentiating itself as a marketing experience company.

Joel Quadracci, Chairman, President and CEO of Quad, said: “During the second quarter, we continued our focus on differentiating ourselves as a marketing experience company, including investments in innovative solutions and superior talent. We joined all of our creative business lines under a single agency called Betty, pairing the strategic creative services of an Agency of Record with our global production platform to offer highly scalable content at elevated speeds without sacrificing brand consistency or quality. We further enhanced our creative capabilities with the launch of 3D Commerce by Quad, the first commercially available automated and scalable 3D scanning solution in North America for creating photorealistic 3D assets for a range of applications, including product videos and virtual try-ons. Meanwhile, we advanced our In-Store Connect retail media network, or RMN, through a partnership with Swiftly, a prominent retail technology and media company whose industry-leading platform will help us bring the best elements of digital commerce into physical store environments. We continue to build sales momentum behind In-Store Connect. The Save Mart Companies, the largest private regional grocer on the West Coast, is in the process of activating our in-store RMN solution, and Homeland Stores, a large Oklahoma grocery chain, is scheduled to debut it in October. Additionally, we are in active conversations with more than a dozen other supermarket chains.

“As always, we remain focused on enhancing Quad’s financial strength and creating shareholder value and will continue to prioritize growth while further reducing debt in 2024.”

Added Tony Staniak, Chief Financial Officer: “During the second quarter, our Adjusted EBITDA margin increased by 100 basis points primarily due to higher manufacturing productivity and cost savings from completed restructuring actions that are ultimately expected to generate $60 million of savings in 2024. We generate cash from Free Cash Flow driven by our cost discipline as well as proceeds from asset sales, including $22 million in the second quarter of 2024 from the sale of our minority investment in Manipal Technologies. Net Sales declined in the second quarter reflecting pressure from ongoing external headwinds, including significant postal rate increases and the impact of elevated interest rates on financial services clients. Despite lower Net Sales, with our margin improvement and strong cash generation we are reaffirming our full-year guidance, including approximately 1.8x debt leverage, and we will continue to invest in accelerating our competitive position as a marketing experience company while returning capital to shareholders through our quarterly dividend. We also expect to be opportunistic in terms of our future share repurchases.”

Second Quarter 2024 Financial Results

Net Sales were $634 million in the second quarter of 2024, a decrease of 10% compared to the same period in 2023 primarily due to lower print volumes, a higher mix of lower unit price gravure versus offset print in our magazine and catalog offerings from segment share wins, and lower paper and agency solutions sales, including the loss of a large grocery client.Net Loss was $3 million in the second quarter of 2024 compared to $6 million in the same period in 2023. The improvement is primarily due to benefits from increased manufacturing productivity, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies, partially offset by the impact from lower Net Sales.Adjusted EBITDA was $52 million in the second quarter of 2024 compared to $50 million in the same period in 2023, primarily due to the same reasons as the improvement in Net Loss.Adjusted Diluted Earnings Per Share was $0.12 in the second quarter of 2024 compared to $0.02 in the same period in 2023, primarily due to higher Adjusted Net Earnings and the beneficial impact from the Company repurchasing Class A shares totaling approximately 11% of its outstanding shares since the second quarter of 2022.

Year-to-Date 2024 Financial Results

Net Sales were $1.3 billion in the six months ended June 30, 2024, a decrease of 12% compared to the same period in 2023 primarily due to lower print volumes, a higher mix of lower unit price gravure versus offset print in our magazine and catalog offerings from segment share wins, and lower paper and agency solutions sales, including the loss of a large grocery client.Net Loss was $31 million, or $0.65 Diluted Loss Per Share, in the six months ended June 30, 2024, compared to Net Loss of $31 million, or $0.62 Diluted Loss Per Share, in the same period in 2023. The impact from lower Net Sales and higher restructuring and impairment charges from recent plant closures was offset by benefits from improved manufacturing productivity, lower depreciation and amortization, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies.Adjusted EBITDA was $102 million in the six months ended June 30, 2024, a decrease of $8 million compared to the same period in 2023. The decrease was due to lower Net Sales, partially offset by benefits from improved manufacturing productivity, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies.Adjusted Diluted Earnings Per Share was $0.22 in the six months ended June 30, 2024, compared to $0.17 in the same period in 2023.Net Cash Used in Operating Activities was $48 million in the six months ended June 30, 2024, compared to Net Cash Provided by Operating Activities of $0.3 million in the six months ended June 30, 2023. Free Cash Flow was negative $82 million in the six months ended June 30, 2024, compared to negative $45 million in the same period in 2023. During the six months ended June 30, 2023, the Company realized non-recurring cash flow benefits from reducing inventories enabled by an improved supply chain environment. As a reminder, the Company historically generates most of its Free Cash Flow in the fourth quarter of the year.Net Debt was $532 million at June 30, 2024, compared to $470 million at December 31, 2023, and $604 million at June 30, 2023. Compared to December 31, 2023, Net Debt increased primarily due to the negative $82 million of Free Cash Flow in the six months ended June 30, 2024, less the $22 million of proceeds from the sale of the Company’s minority investment in Manipal Technologies. Quad continues to expect to reduce Net Debt to approximately $405 million, achieving a 1.8x Debt Leverage Ratio, at the end of this year.

Dividend

Quad’s next quarterly dividend of $0.05 per share will be payable on September 6, 2024, to shareholders of record as of August 19, 2024.

2024 Guidance

The Company’s full-year 2024 financial guidance ranges are unchanged and are as follows:

Financial Metric

2024 Guidance

Annual Net Sales Change

5% to 9% decline

Full-Year Adjusted EBITDA

$205 million to $245 million

Free Cash Flow

$50 million to $70 million

Capital Expenditures

$60 million to $70 million

Year-End Debt Leverage Ratio (1)

Approximately 1.8x

(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 Wednesday, July 31, to discuss second quarter and year-to-date 2024 financial results. The call will be hosted by Joel Quadracci, Quad Chairman, President and CEO, and Tony Staniak, Quad CFO. 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/10191016/fd1a26f188. Participants will be given a unique PIN to gain access to the call, bypassing the live operator. 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: 1-877-328-5508International 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 be available until August 31, 2024, accessible as follows:

U.S. Toll-Free: 1-877-344-7529International Toll: 1-412-317-0088Replay Access Code: 1737252

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 U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one the largest commercial printers in North America, according to Printing Impressions.

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 the United States (“U.S.”), including trade restrictions, currency fluctuations, the global economy, costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents, and geopolitical events like war and terrorism; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the impact negative publicity could have on our business and brand reputation; significant capital expenditures and investments may be needed to sustain and grow the Company’s platforms, processes, systems, client and product technology, marketing and talent, and to remain technologically and economically competitive; the impact of the various restrictive covenants in the Company’s debt facilities on the Company’s ability to operate its business, as well as the uncertain negative impacts macroeconomic conditions may have on the Company’s ability to continue to be in compliance with these restrictive covenants; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment and other intangible assets; the impact of regulatory matters and legislative developments or changes in laws, including changes in cybersecurity, privacy and environmental laws; the impact on the holders of Quad’s class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company’s most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

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. 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 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2024 and 2023
(in millions, except per share data)
(UNAUDITED)

Three Months Ended June 30,

2024

2023

Net sales

$                  634.2

$                  703.1

Cost of sales

493.9

569.8

Selling, general and administrative expenses

88.7

83.3

Depreciation and amortization

26.4

32.0

Restructuring, impairment and transaction-related charges

10.1

9.6

Total operating expenses

619.1

694.7

Operating income

15.1

8.4

Interest expense

17.2

17.0

Net pension income

(0.2)

(0.4)

Loss before income taxes

(1.9)

(8.2)

Income tax expense (benefit)

0.9

(2.1)

Net loss

$                    (2.8)

$                    (6.1)

Loss per share

Basic and diluted

$                  (0.06)

$                  (0.12)

Weighted average number of common shares outstanding

Basic and diluted

47.7

49.3

 

QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2024 and 2023
(in millions, except per share data)
(UNAUDITED)

Six Months Ended June 30,

2024

2023

Net sales

$               1,289.0

$               1,469.6

Cost of sales

1,015.2

1,187.3

Selling, general and administrative expenses

171.8

172.5

Depreciation and amortization

55.0

65.7

Restructuring, impairment and transaction-related charges

42.6

35.6

Total operating expenses

1,284.6

1,461.1

Operating income

4.4

8.5

Interest expense

32.4

33.3

Net pension income

(0.4)

(0.8)

Loss before income taxes

(27.6)

(24.0)

Income tax expense

3.3

6.7

Net loss

$                  (30.9)

$                  (30.7)

Loss per share

Basic and diluted

$                  (0.65)

$                  (0.62)

Weighted average number of common shares outstanding

Basic and diluted

47.4

49.2

 

QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2024 and December 31, 2023
(in millions)

(UNAUDITED)
June 30, 2024

December 31,
2023

ASSETS

Cash and cash equivalents

$                    12.8

$                    52.9

Receivables, less allowances for credit losses

294.2

316.2

Inventories

174.5

178.8

Prepaid expenses and other current assets

37.2

39.8

Total current assets

518.7

587.7

Property, plant and equipment—net

586.5

620.6

Operating lease right-of-use assets—net

88.6

96.6

Goodwill

100.3

103.0

Other intangible assets—net

14.0

21.8

Other long-term assets

59.8

80.0

Total assets

$               1,367.9

$               1,509.7

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts payable

$                  333.2

$                  373.6

Other current liabilities

170.3

237.6

Short-term debt and current portion of long-term debt

82.1

151.7

Current portion of finance lease obligations

2.2

2.5

Current portion of operating lease obligations

24.0

25.4

Total current liabilities

611.8

790.8

Long-term debt

455.5

362.5

Finance lease obligations

5.4

6.0

Operating lease obligations

71.2

77.2

Deferred income taxes

5.1

5.1

Other long-term liabilities

139.8

148.6

Total liabilities

1,288.8

1,390.2

Shareholders’ equity

Preferred stock

Common stock

1.4

1.4

Additional paid-in capital

839.6

842.7

Treasury stock, at cost

(27.7)

(33.1)

Accumulated deficit

(610.0)

(573.9)

Accumulated other comprehensive loss

(124.2)

(117.6)

Total shareholders’ equity

79.1

119.5

Total liabilities and shareholders’ equity

$               1,367.9

$               1,509.7

 

QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2024 and 2023
(in millions)
(UNAUDITED)

Six Months Ended June 30,

2024

2023

OPERATING ACTIVITIES

Net loss

$                  (30.9)

$                  (30.7)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

55.0

65.7

Impairment charges

13.7

10.6

Amortization of debt issuance costs and original issue discount

0.8

1.0

Stock-based compensation

4.4

3.3

Gain on the sale of an investment

(4.1)

Gain on the sale or disposal of property, plant and equipment, net

(1.4)

(0.3)

Deferred income taxes

(0.1)

2.7

Changes in operating assets and liabilities

(85.7)

(52.0)

Net cash provided by (used in) operating activities

(48.3)

0.3

INVESTING ACTIVITIES

Purchases of property, plant and equipment

(33.5)

(45.2)

Cost investment in unconsolidated entities

(0.2)

(0.5)

Proceeds from the sale of property, plant and equipment

4.8

7.5

Proceeds from the sale of an investment

22.2

Other investing activities

0.5

(4.5)

Net cash used in investing activities

(6.2)

(42.7)

FINANCING ACTIVITIES

Proceeds from issuance of long-term debt

52.8

0.6

Payments of current and long-term debt

(119.3)

(24.2)

Payments of finance lease obligations

(1.6)

(1.0)

Borrowings on revolving credit facilities

776.0

771.4

Payments on revolving credit facilities

(686.4)

(711.4)

Purchases of treasury stock

(5.0)

Equity awards redeemed to pay employees’ tax obligations

(2.1)

(1.7)

Payment of cash dividends

(4.7)

(0.1)

Other financing activities

(0.2)

(0.3)

Net cash provided by financing activities

14.5

28.3

Effect of exchange rates on cash and cash equivalents

(0.1)

0.2

Net decrease in cash and cash equivalents

(40.1)

(13.9)

Cash and cash equivalents at beginning of period

52.9

25.2

Cash and cash equivalents at end of period

$                    12.8

$                    11.3

 

QUAD/GRAPHICS, INC.
SEGMENT FINANCIAL INFORMATION
For the Three and Six Months Ended June 30, 2024 and 2023
(in millions)
(UNAUDITED)

Net Sales

Operating

Income (Loss)

Restructuring,

Impairment and

Transaction-Related

Charges (1)

Three months ended June 30, 2024

United States Print and Related Services

$                      544.3

$                        25.4

$                            9.3

International

89.9

2.3

0.8

Total operating segments

634.2

27.7

10.1

Corporate

(12.6)

Total

$                      634.2

$                        15.1

$                          10.1

Three months ended June 30, 2023

United States Print and Related Services

$                      588.5

$                        11.8

$                            8.6

International

114.6

8.3

1.0

Total operating segments

703.1

20.1

9.6

Corporate

(11.7)

Total

$                      703.1

$                          8.4

$                            9.6

Six months ended June 30, 2024

United States Print and Related Services

$                   1,123.2

$                        24.1

$                          40.9

International

165.8

5.7

1.6

Total operating segments

1,289.0

29.8

42.5

Corporate

(25.4)

0.1

Total

$                   1,289.0

$                          4.4

$                          42.6

Six months ended June 30, 2023

United States Print and Related Services

$                   1,246.1

$                        19.1

$                          31.1

International

223.5

16.0

3.6

Total operating segments

1,469.6

35.1

34.7

Corporate

(26.6)

0.9

Total

$                   1,469.6

$                          8.5

$                          35.6

______________________________

(1)

    Restructuring, impairment and transaction-related charges are included within operating income (loss).

 

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Three Months Ended June 30, 2024 and 2023
(in millions, except margin data)
(UNAUDITED)

Three Months Ended June 30,

2024

2023

Net loss

$                (2.8)

$                (6.1)

Interest expense

17.2

17.0

Income tax expense (benefit)

0.9

(2.1)

Depreciation and amortization

26.4

32.0

EBITDA (non-GAAP)

$                41.7

$                40.8

EBITDA Margin (non-GAAP)

6.6 %

5.8 %

Restructuring, impairment and transaction-related charges (1)

10.1

9.6

Adjusted EBITDA (non-GAAP)

$                51.8

$                50.4

Adjusted EBITDA Margin (non-GAAP)

8.2 %

7.2 %

______________________________

(1)

  Operating results for the three months ended June 30, 2024 and 2023, were affected by the following restructuring, impairment and transaction-related charges:

Three Months Ended June 30,

2024

2023

Employee termination charges (a)

$                      3.2

$                      1.9

Impairment charges (b)

1.1

1.1

Transaction-related charges (c)

0.4

Integration costs (d)

0.1

0.5

Other restructuring charges (e)

5.3

6.1

Restructuring, impairment and transaction-related charges

$                    10.1

$                      9.6

 ______________________________

(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 activities, as well as operating lease right-of-use assets.

(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 primarily include costs to maintain and exit closed facilities, as well as lease exit charges.

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Six Months Ended June 30, 2024 and 2023
(in millions, except margin data)
(UNAUDITED)

Six Months Ended June 30,

2024

2023

Net loss

$              (30.9)

$              (30.7)

Interest expense

32.4

33.3

Income tax expense

3.3

6.7

Depreciation and amortization

55.0

65.7

EBITDA (non-GAAP)

$                59.8

$                75.0

EBITDA Margin (non-GAAP)

4.6 %

5.1 %

Restructuring, impairment and transaction-related charges (1)

42.6

35.6

Adjusted EBITDA (non-GAAP)

$              102.4

$              110.6

Adjusted EBITDA Margin (non-GAAP)

7.9 %

7.5 %

______________________________

(1)

Operating results for the six months ended June 30, 2024 and 2023, were affected by the following restructuring, impairment and transaction-related charges:

Six Months Ended June 30,

2024

2023

Employee termination charges (a)

$                    16.9

$                    15.0

Impairment charges (b)

13.7

10.6

Transaction-related charges (c)

0.9

0.6

Integration costs (d)

0.2

1.0

Other restructuring charges (e)

10.9

8.4

Restructuring, impairment and transaction-related charges

$                    42.6

$                    35.6

______________________________

(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 activities, as well as operating lease right-of-use assets.

(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 primarily include costs to maintain and exit closed facilities, as well as lease exit charges.

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
FREE CASH FLOW
For the Six Months Ended June 30, 2024 and 2023
(in millions)
(UNAUDITED)

Six Months Ended June 30,

2024

2023

Net cash provided by (used in) operating activities

$                  (48.3)

$                      0.3

Less: purchases of property, plant and equipment

33.5

45.2

Free Cash Flow (non-GAAP)

$                  (81.8)

$                  (44.9)

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
NET DEBT AND DEBT LEVERAGE RATIO
As of June 30, 2024 and December 31, 2023
(in millions, except ratio)

(UNAUDITED)
June 30, 2024

December 31,
2023

Total debt and finance lease obligations on the condensed consolidated balance sheets

$                545.2

$                522.7

Less: Cash and cash equivalents

12.8

52.9

Net Debt (non-GAAP)

$                532.4

$                469.8

Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1)

$                225.5

$                233.7

Debt Leverage Ratio (non-GAAP)

                    2.36 x

                    2.01 x

______________________________

(1)

The calculation of Adjusted EBITDA for the trailing twelve months ended June 30, 2024, and December 31, 2023, was as follows:

Add

Subtract

Trailing Twelve
Months Ended

Year Ended

Six Months Ended

December 31,

2023(a)

(UNAUDITED)
June 30, 2024

(UNAUDITED)
June 30, 2023

(UNAUDITED)
June 30, 2024

Net loss

$                 (55.4)

$                 (30.9)

$                 (30.7)

$                     (55.6)

Interest expense

70.0

32.4

33.3

69.1

Income tax expense

12.8

3.3

6.7

9.4

Depreciation and amortization

128.8

55.0

65.7

118.1

EBITDA (non-GAAP)

$                 156.2

$                   59.8

$                   75.0

$                    141.0

Restructuring, impairment and transaction-related charges

77.5

42.6

35.6

84.5

Adjusted EBITDA (non-GAAP)

$                 233.7

$                 102.4

$                 110.6

$                    225.5

______________________________

(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 the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Three Months Ended June 30, 2024 and 2023
(in millions, except per share data)
(UNAUDITED)

Three Months Ended June 30,

2024

2023

Loss before income taxes

$                    (1.9)

$                    (8.2)

Restructuring, impairment and transaction-related charges

10.1

9.6

Adjusted net earnings, before income taxes (non-GAAP)

8.2

1.4

Income tax expense at 25% normalized tax rate

2.1

0.4

Adjusted net earnings (non-GAAP)

$                      6.1

$                      1.0

Basic weighted average number of common shares outstanding

47.7

49.3

Plus: effect of dilutive equity incentive instruments (non-GAAP)

2.4

1.7

Diluted weighted average number of common shares outstanding (non-GAAP)

50.1

51.0

Adjusted diluted earnings per share (non-GAAP) (1)

$                    0.12

$                    0.02

Diluted loss per share (GAAP)

$                  (0.06)

$                  (0.12)

Restructuring, impairment and transaction-related charges per share

0.20

0.19

Income tax expense (benefit) from condensed consolidated statement of operations per share

0.02

(0.04)

Income tax expense at 25% normalized tax rate per share

(0.04)

(0.01)

Adjusted diluted earnings per share (non-GAAP) (1)

$                    0.12

$                    0.02

______________________________

(1)

Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges
and (ii) discrete income tax items.

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Six Months Ended June 30, 2024 and 2023
(in millions, except per share data)
(UNAUDITED)

Six Months Ended June 30,

2024

2023

Loss before income taxes

$                  (27.6)

$                  (24.0)

Restructuring, impairment and transaction-related charges

42.6

35.6

Adjusted net earnings, before income taxes (non-GAAP)

15.0

11.6

Income tax expense at 25% normalized tax rate

3.8

2.9

Adjusted net earnings (non-GAAP)

$                    11.2

$                      8.7

Basic weighted average number of common shares outstanding

47.4

49.2

Plus: effect of dilutive equity incentive instruments (non-GAAP)

2.5

1.9

Diluted weighted average number of common shares outstanding (non-GAAP)

49.9

51.1

Adjusted diluted earnings per share (non-GAAP) (1)

$                    0.22

$                    0.17

Diluted loss per share (GAAP)

$                  (0.65)

$                  (0.62)

Restructuring, impairment and transaction-related charges per share

0.85

0.70

Income tax expense from condensed consolidated statement of operations per share

0.07

0.13

Income tax expense at 25% normalized tax rate per share

(0.08)

(0.06)

Effect of dilutive equity incentive instruments

0.03

0.02

Adjusted diluted earnings per share (non-GAAP) (1)

$                    0.22

$                    0.17

______________________________

(1)

Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges
and (ii) discrete income tax items.

In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share.  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.

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Wondershare to Showcase AI-Powered Business Workflows with PDFelement at Microsoft AI Tour Hong Kong

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HONG KONG, April 21, 2026 /PRNewswire/ — Wondershare, a global leader in productivity and creativity software, will participate in the Microsoft AI Tour Hong Kong on April 22, 2026, at the Grand Hyatt Hong Kong. At Booth E10, the company will showcase its AI-powered business workflow solutions across its product portfolio, highlighting Wondershare PDFelement as a key focus, and inviting attendees to experience how intelligent workflows can transform modern business operations.

As Microsoft’s flagship global AI event, the Microsoft AI Tour brings together industry leaders, partners, and innovators to explore how artificial intelligence is reshaping business landscapes. At the Hong Kong stop, Wondershare will highlight its deepening collaboration with Microsoft, showcasing how its product ecosystem works seamlessly within Microsoft’s AI and cloud technologies to enable more efficient, secure, and scalable workflows.

This collaboration comes at a pivotal time for Hong Kong’s rapidly evolving AI landscape. Hong Kong is rapidly emerging as a key AI innovation hub, driven by strong policy support and accelerating enterprise adoption. Despite this momentum, many organizations still face challenges such as fragmented AI adoption, integration complexity, and data security concerns. In collaboration with Microsoft, Wondershare addresses these challenges by enabling connected, end-to-end AI workflows that deliver practical and measurable productivity gains.

Under the theme “Streamline Workflows. Power Content with AI.”, Wondershare presents a unified approach to AI-driven productivity. At the center of this ecosystem is Wondershare PDFelement, enabling smarter and more efficient document workflows within enterprise environments and helping businesses adopt AI in practical, everyday scenarios. Supporting this vision, Wondershare’s broader product portfolio—including EdrawMax, EdrawMind, Filmora, and Reelmate—extends AI-powered capabilities across diagramming, mind mapping, video creation, and premium comic content creation, forming a connected, end-to-end workflow, all of which will also be showcased on-site at the event.

Through live, interactive demonstrations, attendees visiting Booth E10 will be able to explore Wondershare’s full product ecosystem and gain hands-on insight into how AI can enhance productivity across a wide range of business scenarios.

Wondershare warmly invites all participants to visit the booth and discover how AI-powered workflows can unlock new possibilities for business growth.

About Wondershare:

Wondershare is a globally recognized software company founded in 2003, known for its innovative solutions in creativity and productivity. Driven by the mission “Creativity Simplified”, Wondershare offers a range of tools, including PDFelement for document management; EdrawMax, EdrawMind for diagraming, Filmora and SelfyzAI for video editing. With over 2 billion cumulative active users across all products and a presence in over 200 countries and regions, Wondershare empowers the next generation of creators with intuitive software and trendy creative resources, continually expanding the possibilities of creativity worldwide.

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Cohesity Appoints Nigel Lee as Technical Sales Leader, Asia Pacific and Japan (APJ)

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SINGAPORE, April 21, 2026 /PRNewswire/ — Cohesity, today announced Nigel Lee as Technical Sales Leader for Asia Pacific and Japan (APJ). Based in Singapore, Lee will lead the company’s technical sales strategy, pre-sales organisation, and solution engineering execution across the region, reporting to Mark Nutt, SVP & GM, International at Cohesity, and reflects Cohesity’s increased investment in the region as a strategic priority.

In this newly created role, Lee will strengthen technical engagement with customers and partners, and drive adoption of Cohesity’s AI-driven data security and cyber resilience platform across APJ.

Lee brings 29 years of experience leading pre-sales, sales engineering, and go-to-market changes across Asia Pacific. He has a strong record of building high-performing teams, driving enterprise growth, and engaging C-level stakeholders in complex markets.

“APJ is a strategically important region for Cohesity, and Nigel’s leadership, passion and deep expertise make him exceptionally well positioned to lead our technical sales organisation,” said Mark Nutt, SVP & GM, International, Cohesity. “As we continue to invest in the region, his ability to align technical strategy with the rapidly developing customer requirements caused by the ever-changing threat and compliance landscape will be critical to accelerating our growth and ensuring our customers’ ongoing business resilience.”

Previously, Lee was Director of Data Storage Solutions, Asia Pacific at Lenovo, where he led the regional business and transformed the go-to-market to drive growth. He also held senior regional and global roles at NetApp.

“Across the region, organisations are under increasing pressure to secure, manage, and unlock value from their data as AI adoption accelerates and cyber threats evolve. Cohesity is uniquely positioned to simplify this complexity through a unified, AI-driven data security platform,” said Nigel Lee, Technical Sales Leader, Asia Pacific and Japan at Cohesity. “Having spent my career scaling organisations and embedding solution expertise early in the customer journey, I’m excited to join at this pivotal time and look forward to working with our teams, partners, and customers to drive meaningful, outcome-led growth.”

Lee holds an Executive MBA from Kellogg-HKUST and a Bachelor of Computer Science.

About Cohesity 

Cohesity protects, secures, and provides insights into the world’s data. As the leader in AI-powered data security, Cohesity helps organisations strengthen resilience, accelerate recovery, and reduce IT costs. With Zero Trust security and advanced AI/ML, Cohesity Data Cloud is trusted by customers in more than 140 countries, including 70% of the Global 500. Cohesity is also backed by industry leaders such as NVIDIA, Amazon, Google, IBM, Cisco, and HPE.

Cohesity is certified as a Great Place to Work in multiple countries. Follow Cohesity on LinkedIn and visit www.cohesity.com to learn more.    

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EcoMatcher Unveils Tree Personas

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A New Nature Interface for Engaging with Your Trees, in Any Language

HONG KONG, April 21, 2026 /PRNewswire/ — EcoMatcher, a Certified B Corporation that enables companies to plant and track trees transparently, today announced Tree Personas, a new Nature Interface designed to make tree gifting and sustainability engagement more personal, interactive, and memorable.

With Tree Personas, companies can assign a distinct digital personality to each gifted tree, enabling recipients to virtually visit their tree in TreeTracker 3D, chat with it through TreeChat+ in their own language, and learn about its growth, local environment, and real-world impact.

Tree Personas build on EcoMatcher’s earlier TreeChat, which introduced chatbot-powered conversations with trees, only in English. While TreeChat enabled interaction, Tree Personas shape how a tree communicates in any language – from curious and playful to calm and reflective – while all environmental data, location, and impact metrics remain authentic and unchanged.

EcoMatcher describes Tree Personas as a Nature Interface — a new category of digital interface that allows people to interact with real ecosystems through digital companions connected to living trees. The company believes Nature Interfaces can help reconnect people with nature in an increasingly digital world.

Rather than passively receiving information about a planted tree, users can build an ongoing relationship with it — asking questions, learning about its ecosystem, and following its growth over time. Even when users are away, Tree Personas continue to evolve digitally, encouraging people to return and discover new reflections, observations, and updates.

“Trees are essential for life on Earth, yet most people rarely have a personal connection with them,” said Bas Fransen, CEO of EcoMatcher. “Tree Personas turn planted trees into interactive companions that help people learn about nature and build deeper connections with the ecosystems that support us.”

Meet the First Tree Personas

EcoMatcher introduces three Tree Personas available to companies gifting trees, all inspired by real ecological stages and behaviours of trees:

Twiggles: A young, curious tree highlighting small discoveries in nature.Oakly: A grounded, thoughtful tree sharing ecosystems insights.Seren: A calm, reflective tree encouraging deeper connections with nature.

Companies can also collaborate with EcoMatcher to create custom Tree Personas aligned with their brand values, sustainability goals, or storytelling needs.

EcoMatcher will share more about the background and opportunities of Tree Personas during its upcoming Demo Day on April 27. To sign up, visit www.ecomatcher.com/demo.

About EcoMatcher

EcoMatcher is a Certified B Corporation that enables companies to integrate transparent tree planting into their business. Through its technology platform, organizations can plant trees, track them digitally, and engage employees and customers in sustainability. EcoMatcher’s customers include Dubai Islamic Bank, Grab, Infosys, and Singlife.

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