Financial Performance - Net sales for 2019 were $3.9 billion, a decrease from $4.0 billion in 2018 [11] - Adjusted EBITDA for 2019 was $334.9 million, compared to $427.8 million in 2018 [12] - Free cash flow for 2019 was $105.8 million, down from $164.3 million in 2018 [12] - Debt and finance lease obligations stood at $1.1 billion as of December 31, 2019 [14] Sales Breakdown - Large Scale Print accounted for 30% of 2019 net sales, down from 33% in 2018 [11] - Targeted Print represented 39% of 2019 net sales, an increase from 37% in 2018 [11] - Integrated Solutions accounted for 21% of 2019 net sales, up from 20% in 2018 [11] 2020 Guidance - The company projects net sales of $3.5 to $3.7 billion for 2020 [17] - Adjusted EBITDA is expected to be between $285 and $315 million in 2020 [17] - Free cash flow is projected to be $100 to $130 million for 2020 [17]

4th Quarter 2020 Earnings Call February 24, 2021 () 12499 E AR S Y Call Participants & Forward-Looking Statements Joel Quadracci Chairman, President & Chief Executive Officer Dave Honan Executive Vice President & Chief Financial Officer Forward-Looking Statements 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 ...

Leadership Appointments - Kelly Roe and Nicole Meyer have been appointed as group creative directors at Betty, a Quad agency, to enhance the agency's creative output by leveraging new technologies and trends [1][2] - Roe will also serve as the creative lead for Betty's Chicago office, focusing on key accounts and mentoring talent [2][3] - Meyer has been promoted from creative director to group creative director after over a decade with the agency, where she has significantly contributed to various brands and industries [4][5] Experience and Background - Kelly Roe brings over 20 years of experience from top agencies, having worked with major brands like Mars Wrigley and Visa, and has received numerous awards including Cannes Lions and Effies [3][4] - Nicole Meyer has worked on notable campaigns for brands such as Arizona Office of Tourism and Target, and has received recognition from various prestigious outlets and awards [5][6] Agency Vision and Culture - Roe expressed enthusiasm for Betty's creative ambition and strategic clarity, aiming to create culturally resonant work that drives business [4] - Meyer highlighted her journey at Betty as an evolving experience, emphasizing the agency's growth and the opportunity to create breakthrough work [5][7] - Both leaders will report to Senior Vice President, Executive Creative Director Heath Pochucha, who praised their distinct creative energies and leadership styles [6][7] Company Overview - Betty, a Quad agency, specializes in strategy, creative, design, and content, aiming to deliver inventive ideas that drive results for clients [8] - Quad operates as a marketing experience company, providing integrated marketing and print services to approximately 2,100 clients across various industries [9][10]

Company Overview - Quad/Graphics, Inc. is a marketing experience company that addresses complex marketing challenges for clients through its MX Solutions Suite, which integrates creative, production, and media solutions across various channels [3][4] - The company employs approximately 11,000 people across 11 countries and serves around 2,100 clients, including leading blue-chip companies in sectors such as retail, consumer packaged goods, financial services, and health [4] Upcoming Investor Conferences - Quad will participate in the 19th Annual Barrington Research Virtual Spring Investment Conference on May 29, 2025, with 1×1 virtual meetings [1] - The company will also attend the Wolfe Research Small and Mid-Cap Conference on June 4, 2025, for virtual meetings and in-person meetings on June 5, 2025, at Wolfe Research's New York Headquarters [1] - Additionally, Quad will take part in the UBS SMID-Cap Multisector Virtual Conference on June 24, 2025, with 1×1 virtual meetings [1]

Core Insights - The study by Quad and The Harris Poll reveals a significant consumer shift towards valuing physical, in-real-life (IRL) brand experiences, indicating a need for brands to blend online and offline touchpoints to enhance engagement [1][4][10] Consumer Preferences - 81% of Gen Z express a desire for easier disconnection from digital devices, highlighting a trend towards IRL experiences [2][7] - 78% of Americans prefer a completely in-person social life over a digital-only one, with 84% of Gen Z and Millennials valuing brands that integrate technology with physical experiences [7][8] - 76% of surveyed Americans believe that physical retail experiences foster deeper connections with brands [8] Marketing Strategies - The survey suggests that brands should adopt omnichannel marketing strategies to create impactful sensory interactions, meeting consumers both in-store and online [2][3] - Positive tactile experiences can enhance brand value, with in-store exposure being critical for driving purchases [5][10] - Print marketing remains effective, with 65% of Americans looking forward to receiving catalogs, and 71% feeling that print conveys authenticity [8][9] Retail Trends - The concept of "Retail Tourism" is emerging, with 63% of respondents planning trips specifically to visit retail stores or brands [12] - Consumers are increasingly seeking unique, Instagrammable store designs, with 62% of Gen Z and Millennials stating that such designs influence their shopping decisions [18] Brand Engagement - 78% of Gen Z and Millennials report that physical mail prompts them to visit physical stores, indicating the importance of integrating various marketing channels [9] - The research emphasizes the importance of tactile experiences in marketing, coining the term "Return on Touch" to describe the potential benefits for brands [10]

Core Insights - Quad/Graphics, Inc. has announced a strategic partnership with Vistar Media to enhance programmatic buying for consumer packaged goods (CPG) brands on its In-Store Connect platform, facilitating automated ad purchases and optimizations in retail environments [1][4][5] Group 1: Partnership and Technology Integration - The integration of Vistar's advanced ad server and supply-side platform into Quad's In-Store Connect allows advertisers to purchase in-store ad inventory with precision and flexibility, utilizing real-time programmatic bidding [2][5] - This partnership aims to transform brick-and-mortar stores into dynamic advertising channels, bridging online precision with in-store influence, thereby delivering measurable results for both advertisers and retailers [4][5] Group 2: Market Expansion and Reach - Since its launch in 2024, Quad's In-Store Connect has expanded its regional footprint to include various retail locations, providing access to millions of shoppers and planning further expansion across additional retail brands [5] - The In-Store Connect solution leverages strategically placed digital signage and kiosks to enhance brand awareness and engagement at critical retail moments, driving increased brand recall and conversion rates [4][5] Group 3: Company Overview - Quad is a marketing experience company that offers a comprehensive range of marketing and print services, integrating creative, production, and media solutions across online and offline channels [6][7] - The company employs approximately 11,000 people across 11 countries and serves around 2,100 clients, focusing on various industry verticals including retail and consumer packaged goods [7]

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock performance [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices and quality customers [2] - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, where a high value reflects efficient inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process identified stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to eight candidates [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Stocks - **Quad Graphics (QUAD)**: Specializes in print and multichannel solutions, with an average four-quarter earnings surprise of 71.8% [7] - **ONESPAN (OSPN)**: Develops security software and e-signature solutions, achieving an average four-quarter earnings surprise of 38.6% [8] - **ChampionX (CHX)**: Provides chemistry solutions and technologies for oil and gas production, with an average four-quarter earnings surprise of 9% [9] - **BancFirst (BANF)**: A bank holding company offering commercial banking services, with an average four-quarter earnings surprise of 7% [10]

Core Insights - QuadMed, a subsidiary of Quad, Inc., has been recognized as the 2025 Best in KLAS in the Employer-Sponsored Health Care Services category, highlighting its commitment to enhancing health care experiences through improved outcomes and cost reduction [1][2][3] Company Overview - QuadMed is evolving from a provider of worksite health and wellness solutions to a comprehensive health care experience company, emphasizing whole-person care and relationship-driven services [2][4] - The company has over 30 years of experience in partnering with employers to provide direct access to health care for employees and their families, focusing on improving health, productivity, and cost efficiency [6] Brand Evolution - The new brand reflects QuadMed's commitment to removing barriers in health care access and delivering better outcomes for both members and employers [4][5] - The brand evolution is described as a reaffirmation of the company's identity and future direction, aiming to expand its reach to more employers nationwide [5] Recognition and Validation - The KLAS award serves as external validation of QuadMed's mission to innovate and deliver value in health care, emphasizing the importance of excellence in the evolving health care landscape [3][11] - KLAS recognizes organizations that excel in delivering value and innovation, underscoring the significance of QuadMed's achievement in this competitive field [3]

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Quad/Graphics, Inc. include statements of operations, comprehensive income (loss), balance sheets, cash flows, and shareholders' equity, with detailed notes [Condensed Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Presents revenues, expenses, and net earnings (loss) for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net sales | | | | Products | $ 494.8 | $ 507.2 | | Services | 134.6 | 147.6 | | Total net sales | 629.4 | 654.8 | | Cost of sales | | | | Products | 414.4 | 426.5 | | Services | 85.6 | 94.8 | | Total cost of sales | 500.0 | 521.3 | | Operating expenses | | | | Selling, general and administrative expenses | 83.5 | 83.1 | | Depreciation and amortization | 19.7 | 28.6 | | Restructuring, impairment and transaction-related charges, net | 6.6 | 32.5 | | Total operating expenses | 609.8 | 665.5 | | Operating income (loss) | 19.6 | (10.7) | | Interest expense | 12.4 | 15.2 | | Net pension expense (income) | 0.4 | (0.2) | | Earnings (loss) before income taxes | 6.8 | (25.7) | | Income tax expense | 1.0 | 2.4 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Earnings (loss) per share | | | | Basic | $ 0.12 | $ (0.60) | | Diluted | $ 0.11 | $ (0.60) | | Weighted average number of common shares outstanding | | | | Basic | 48.0 | 47.2 | | Diluted | 50.7 | 47.2 | [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Details net earnings (loss) and other comprehensive income components for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Other comprehensive income | | | | Translation adjustments | 40.9 | (0.4) | | Interest rate derivatives adjustments | (0.4) | 1.1 | | Pension benefit plan adjustments | 0.3 | 0.3 | | Other comprehensive income, before tax | 40.8 | 1.0 | | Income tax impact related to items of other comprehensive income | — | (0.3) | | Other comprehensive income, net of tax | 40.8 | 0.7 | | Comprehensive income (loss) | $ 46.6 | $ (27.4) | [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Provides a snapshot of assets, liabilities, and shareholders' equity at March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | ASSETS | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 8.1 | $ 29.2 | | Receivables, less allowances for credit losses | 303.9 | 273.2 | | Inventories | 161.4 | 162.4 | | Prepaid expenses and other current assets | 37.7 | 69.5 | | Total current assets | 511.1 | 534.3 | | Property, plant and equipment—net | 492.0 | 499.7 | | Operating lease right-of-use assets—net | 75.0 | 78.9 | | Goodwill | 100.3 | 100.3 | | Other intangible assets—net | 6.2 | 7.2 | | Other long-term assets | 61.9 | 78.6 | | Total assets | $ 1,246.5 | $ 1,299.0 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Accounts payable | $ 329.6 | $ 356.7 | | Other current liabilities | 149.2 | 289.2 | | Short-term debt and current portion of long-term debt | 30.3 | 28.0 | | Current portion of finance lease obligations | 0.8 | 0.8 | | Current portion of operating lease obligations | 23.2 | 24.0 | | Total current liabilities | 533.1 | 698.7 | | Long-term debt | 438.8 | 349.1 | | Finance lease obligations | 1.1 | 1.3 | | Operating lease obligations | 57.8 | 61.4 | | Deferred income taxes | 3.7 | 3.2 | | Other long-term liabilities | 124.6 | 135.4 | | Total liabilities | 1,159.1 | 1,249.1 | | Shareholders' equity | | | | Common stock, Class A | 1.0 | 1.0 | | Common stock, Class B | 0.4 | 0.4 | | Additional paid-in capital | 840.9 | 842.8 | | Treasury stock, at cost | (31.4) | (28.0) | | Accumulated deficit | (633.1) | (635.1) | | Accumulated other comprehensive loss | (90.4) | (131.2) | | Total shareholders' equity | 87.4 | 49.9 | | Total liabilities and shareholders' equity | $ 1,246.5 | $ 1,299.0 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Outlines cash flows from operating, investing, and financing activities for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | OPERATING ACTIVITIES | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | | | | Depreciation and amortization | 19.7 | 28.6 | | Impairment charges | 0.3 | 12.6 | | Amortization of debt issuance costs and original issue discount | 0.4 | 0.3 | | Stock-based compensation | 1.6 | 1.8 | | Loss on the sale of a business | 0.5 | — | | Gain on the sale or disposal of property, plant and equipment, net | — | (0.9) | | Deferred income taxes | 0.1 | 0.3 | | Changes in operating assets and liabilities - net of divestitures | (117.4) | (66.8) | | Net cash used in operating activities | (89.0) | (52.2) | | INVESTING ACTIVITIES | | | | Purchases of property, plant and equipment | (11.3) | (17.9) | | Cost investment in unconsolidated entities | (0.2) | (0.2) | | Proceeds from the sale of property, plant and equipment | 0.1 | 1.7 | | Other investing activities | (2.7) | 0.5 | | Net cash used in investing activities | (14.1) | (15.9) | | FINANCING ACTIVITIES | | | | Payments of current and long-term debt | (6.3) | (101.0) | | Payments of finance lease obligations | (0.4) | (0.8) | | Borrowings on revolving credit facilities | 398.1 | 468.3 | | Payments on revolving credit facilities | (300.6) | (389.1) | | Proceeds from issuance of long-term debt | — | 52.8 | | Purchases of treasury stock | (3.3) | — | | Equity awards redeemed to pay employees' tax obligations | (3.6) | (2.1) | | Payment of cash dividends | (3.5) | (2.4) | | Other financing activities | — | (0.2) | | Net cash provided by financing activities | 80.4 | 25.5 | | Effect of exchange rates on cash and cash equivalents | (0.1) | (0.1) | | Net decrease in cash and cash equivalents, including cash classified as held for sale | (22.8) | (42.7) | | Less: net decrease in cash classified as held for sale | (1.7) | — | | Net decrease in cash and cash equivalents | (

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $629 million, a decrease of 2% compared to Q1 2024, excluding the divestiture of European operations [23] - Adjusted EBITDA was $46 million in Q1 2025, down from $51 million in Q1 2024, with the adjusted EBITDA margin declining from 7.7% to 7.2% [24] - Adjusted diluted earnings per share doubled to $0.20 in Q1 2025 from $0.10 in Q1 2024, primarily due to higher net earnings and lower interest expense [26] - Free cash flow was negative $100 million in Q1 2025, compared to negative $70 million in Q1 2024, mainly due to timing of working capital [26] Business Line Data and Key Metrics Changes - Organic net sales decline was primarily due to lower paper, logistics, and agency solution sales, including the loss of a large grocery client [23] - Revenue as a percentage of total sales increased by 3% in Latin America and 2% in targeted print offerings, offset by a 4% decrease in large scale print offerings [23] Market Data and Key Metrics Changes - The company is closely monitoring the impacts of tariffs and recessionary pressures on clients' businesses, with tariffs affecting less than 11% of procurement spend [6][7] - The U.S. Postal Service announced a 10% increase in postage costs expected to take effect on July 13, which may impact many mailing clients [8] Company Strategy and Development Direction - The company is focused on becoming a marketing experience (MX) company, integrating creative production and media across digital and physical channels [5] - Strategic investments are being made in innovative solutions and talent while managing economic uncertainties [5] - The acquisition of Enru's co-mail assets aims to enhance postal optimization solutions and increase co-mail volumes [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of dislocation in the market due to tariffs, there hasn't been a significant pullback in client marketing plans [40][41] - The company expects organic net sales to decline by 2% to 6% in 2025, with adjusted EBITDA anticipated to be between $180 million and $220 million [31][34] - Management is optimistic about the potential for new client acquisitions and the effectiveness of integrated marketing solutions [47][48] Other Important Information - The company completed the sale of its European operations for approximately $42 million [28] - The company has increased its dividend by 50% from 2024 and has repurchased 1.2 million shares of Class A common stock year-to-date in 2025 [29] Q&A Session Summary Question: How has the external environment impacted demand outlook? - Management indicated that while there are some adjustments in marketing plans due to tariffs, there hasn't been a significant pullback in demand [40][41] Question: What are the implications of the upcoming postal rate increase? - Management noted that clients have built the 10% increase into their plans, and there is potential for opportunities to offset this increase through testing of price elasticity [43][46] Question: Can you elaborate on the acquisition of Enru and its benefits? - The acquisition brings additional capabilities in high-density mailing and equipment upgrades, enhancing the company's co-mailing solutions [50][51] Question: What is the current status of in-store connect clients? - The company has expanded its in-store connect presence to over 45 stores, with plans for further growth in the mid-market grocery space [52][53] Question: How is the company leveraging AI in its marketing efforts? - The rollout of Audience Builder 2.0 is enhancing the ability to utilize the data stack for targeted marketing, showing strong performance in responsiveness [68][70]