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

Core Viewpoint - Quad/Graphics, Inc. updates its full-year 2024 financial guidance, reducing anticipated year-end Net Debt Leverage from approximately 1.8x to 1.5x due to strong cash generation and plans to share strategy and growth opportunities at its upcoming Investor Day on November 20, 2024 [1][2][6] Financial Performance - Net Sales for Q3 2024 were $675 million, a decrease of 4% compared to $700 million in Q3 2023, primarily due to lower paper and agency solutions sales [2][7] - The company reported a Net Loss of $25 million or $0.52 Diluted Loss Per Share for Q3 2024, compared to a Net Loss of $3 million in Q3 2023 [2][8] - Non-GAAP Adjusted EBITDA for Q3 2024 was $59 million, up from $57 million in Q3 2023, with an Adjusted EBITDA Margin increase of 54 basis points to 8.7% [2][8] - Year-to-date Net Sales for 2024 were $2 billion, a decrease of 9% compared to the same period in 2023 [10] Strategic Initiatives - The company amended and extended its $690 million bank debt agreement to October 2029 [2][6] - Quad is building sales momentum for its in-store retail media network, In-Store Connect by Quad, with tests launched in 15 stores [3][4] - A collaboration with Google Cloud was announced to develop AI-driven marketing solutions [4][5] Divestitures and Asset Sales - Quad received $41 million in net cash proceeds from the sale of its former Saratoga Springs manufacturing facility [2][6] - The company entered into a definitive agreement to sell the majority of its European operations for an enterprise value of €41 million (approximately $45 million) to Capmont, expected to close by year-end [2][5][6] Financial Guidance - The updated full-year 2024 financial guidance includes a projected Net Sales decline of approximately 9%, while maintaining midpoints for Adjusted EBITDA and Free Cash Flow [2][9] - The company expects to reduce Net Debt to approximately $330 million, achieving a Net Debt Leverage of 1.5x by year-end [10][6]