Quad/Graphics(QUAD)2025-02-18 22:25Financial Performance - Recognized Net Sales of 3.0 billion in 2023[5] - Reported a Net Loss of 55 million in 2023[5] - Achieved Non-GAAP Adjusted EBITDA of 234 million in 2023, with an Adjusted EBITDA Margin increase of 48 basis points to 8.4%[5] - Net sales for Q4 2024 were 787.9 million in Q4 2023[27] - The net loss for the year ended December 31, 2024, was 55.4 million in 2023[30] - Adjusted EBITDA for the year ended December 31, 2024, was not explicitly stated but is a key non-GAAP measure used by the company to assess performance[23] - Total net sales for the three months ended December 31, 2024, were 787.9 million in the same period of 2023[36] - The operating income for the three months ended December 31, 2024, was 3.5 million in the same period of 2023, representing a significant improvement[36] - Adjusted EBITDA for the year ended December 31, 2024, was 233.7 million in 2023, with an adjusted EBITDA margin of 8.4% compared to 7.9%[42] - Free cash flow for the year ended December 31, 2024, was 76.8 million in 2023, indicating a decrease in cash generation capabilities[44] Debt and Cash Management - Delivered 56 million of Free Cash Flow in 2024[5] - Reduced Net Debt to 684 million or 66% over the past five years[5] - Cash and cash equivalents decreased to 52.9 million at the end of 2023[32] - The company reported a total debt of 362.5 million in 2023[32] - Net debt as of December 31, 2024, was 469.8 million in 2023, reflecting improved financial leverage[47] - The debt leverage ratio improved to 1.56x as of December 31, 2024, down from 2.01x in the previous year, indicating better debt management[47] - Anticipates further reducing Net Debt Leverage to approximately 1.5x by the end of 2025[5] Operational Highlights - Increased quarterly dividend by 50% from 0.075 per share, effective March 14, 2025[2] - Introduced 2025 guidance with expected Organic Net Sales decline of 2% to 6% and Adjusted EBITDA guidance of 220 million[13] - Launched At-Home Connect, an automated direct mail platform, enhancing consumer engagement[8] - Progressed on the sale of European operations to Capmont, expected to complete in early 2025[5] Expenses and Charges - Total operating expenses for Q4 2024 were 784.4 million in Q4 2023, resulting in an operating income of 3.5 million in Q4 2023[27] - Selling, general and administrative expenses increased to 344.5 million in 2023[30] - The company incurred restructuring, impairment, and transaction-related charges of 77.5 million in 2023, indicating increased costs related to restructuring efforts[42] Shareholder Information - The weighted average number of common shares outstanding increased to 47.6 million in 2024 from 48.4 million in 2023[30] - The basic weighted average number of common shares outstanding for the year 2024 was 47.6 million, down from 48.4 million in 2023[54] - Adjusted diluted earnings per share (non-GAAP) rose to 0.23 in Q4 2023, marking a 56.5% increase[51] - Adjusted diluted earnings per share (non-GAAP) for the year 2024 was 0.52 in 2023, indicating a 63.5% increase[54] Tax and Regulatory - The income tax expense at a 25% normalized tax rate for the year 2024 was 8.7 million in 2023[54] - The company emphasizes the importance of non-GAAP measures for evaluating performance and liquidity, which may differ from those used by other companies[55] Macroeconomic Impact - The company highlighted the impact of macroeconomic conditions, including inflation and elevated interest rates, on its business operations and financial results[21]