Quad 88 July 31, 2024 2nd Quarter 2024 Earnings Call Call Participants & Forward-Looking Statements Chairman, President & Chief Executive Officer Chief Financial Officer This communication 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, ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $634 million, a 10% decline compared to Q2 2023, with year-to-date net sales at $1.3 billion, a 12% decline from the first half of 2023 [18][19] - Adjusted EBITDA for Q2 2024 was $52 million, up from $50 million in Q2 2023, with an adjusted EBITDA margin increase of 100 basis points to 8.2% [20] - Adjusted diluted earnings per share increased to $0.12 in Q2 2024 from $0.02 in Q2 2023, with year-to-date adjusted diluted earnings per share at $0.22 compared to $0.17 in 2023 [21] Business Line Data and Key Metrics Changes - Print volumes were negatively impacted by external headwinds, including postal rate increases and elevated interest rates, leading to a decline in paper, print, and agency solution sales [4][18] - Magazines and catalogs increased as a portion of net sales mix by 3% due to recent segment share wins, such as AARP [19] - The company launched "In-Store Connect" to enhance retail media networks, partnering with Save Mart and Homeland Stores to drive consumer engagement [6][28] Market Data and Key Metrics Changes - Latin American net sales decreased by 2% primarily due to lower educational book volume exported to the U.S. [19] - The retail media networks are expected to grow significantly, with eMarketer predicting ad spend in omnichannel retail media networks to exceed $100 billion by 2027 [5] Company Strategy and Development Direction - The company is focusing on expanding its presence in retail media networks and enhancing its marketing experience offerings through integrated service excellence [5][6] - The launch of "Betty," a creative agency, aims to provide fully integrated, flexible creative solutions to meet market demands [7][8] - The company is committed to managing costs as variable and optimizing its manufacturing platform for efficiency [4] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic headwinds, including postal rate increases and elevated interest rates, impacting sales guidance [26] - The company expects a seasonal ramp-up in sales during the second half of 2024, driven by restructuring benefits and increased sales during peak periods [48] - Management expressed confidence in the pipeline for new business and the potential for growth in verticals with significant expansion opportunities [17] Other Important Information - The company anticipates generating over $740 million in free cash flow and proceeds from asset sales from 2020 to 2024, aiming to reduce net debt by over $600 million during the same period [22] - The company reaffirmed its full-year guidance, expecting a net sales decline of 5% to 9% for 2024 [26][27] Q&A Session Summary Question: What is the pipeline for your retail media networks? - Management indicated that the retail media networks are developing quickly, with significant interest from retailers to capitalize on the opportunity [31][32] Question: How do you view competition in the retail media network landscape? - Management acknowledged competition but emphasized their unique full-service offering, which includes content creation and digital screen deployment [37][38] Question: Can you provide an update on asset sales? - Management confirmed that four properties are for sale, with ongoing interest and a belief that they will eventually sell [51][54] Question: How is the competitive environment affecting your business? - Management noted that while there are pressures, they have gained segment share and are well-positioned to help clients offset postal rate increases [55][56]

This quarterly report represents an earnings surprise of 71.43%. A quarter ago, it was expected that this printing company would post earnings of $0.02 per share when it actually produced earnings of $0.10, delivering a surprise of 400%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the ...

FOR IMMEDIATE RELEASE • 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. • Declared quarterly dividend of $0.05 per share. • 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 prin ...

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 During the second quarter, Quad continued to focus on differentiating itself as a marketing experience company. Post this Recognized Net Sales of $634 million in the second q ...

SUSSEX, Wis., July 23, 2024 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a global marketing experience company, today announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.05 per share. The dividend is payable on September 6, 2024, to shareholders of record as of August 19, 2024. For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com. Quad (NYSE: QUAD) is ...

SUSSEX, Wis., July 17, 2024 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a global marketing experience company, announced today that it will release its second quarter and year-to-date 2024 financial results after the close of regular market trading on Tuesday, July 30, 2024. The Company will host a conference call at 8:30 a.m. ET on Wednesday, July 31, 2024, to discuss the aforementioned results. Participants can pre-register for the webcast by navigating to https://dpregiste ...

SUSSEX, Wis., July 9, 2024 /PRNewswire/ -- Quad/Graphics Inc. (NYSE: QUAD), a global marketing experience company, is joining forces with Homeland Stores, an Oklahoma-based supermarket chain, for the ongoing roll-out of its innovative in-store retail media network, In-Store Connect, at 15 Homeland banner stores this year. By adding another regional grocer to its In-Store Connect roster, Quad is continuing to build a nationwide in-store retail media network. Quad elevates the shopping experience by installin ...

Quad/Graphics (QUAD) shares soared 6.6% in the last trading session to close at $5.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% gain over the past four weeks. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Quad/Graphics is part o ...

Swiftly to provide Quad's In-Store Connect with CPG content as part of a seamlessly integrated omnichannel experience for brands and retailers SUSSEX, Wis. and MILLBRAE, Calif., June 18, 2024 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD), a global marketing experience company, has partnered with Swiftly, a leading retail technology and media company, to distribute engaging brand content on In-Store Connect by Quad, an in-store retail media network (RMN). The collaboration supports Quad's ongoing focus to ...