Quad Reports Fourth Quarter and Full-Year 2024 Results

Core Insights - Quad/Graphics, Inc. reported a reduction in net debt leverage to 1.6x and increased its quarterly dividend by 50% from $0.05 to $0.075 per share, reflecting strong financial performance and strategic progress in 2024 [1][3][11] - The company anticipates a decline in organic annual net sales of 2% to 6% for 2025, while projecting adjusted EBITDA between $180 million and $220 million [12][8] Financial Performance - For the full year 2024, Quad reported net sales of $2.7 billion, a decrease of 9.7% from $2.96 billion in 2023, primarily due to lower paper sales and print volumes [7][29] - The net loss for 2024 was $51 million, or $1.07 diluted loss per share, an improvement from a net loss of $55 million, or $1.14 diluted loss per share in 2023 [7][29] - Adjusted EBITDA for 2024 was $224 million, down from $234 million in 2023, with an adjusted EBITDA margin increase of 48 basis points to 8.4% [7][38] Cash Flow and Debt Management - The company generated $113 million in net cash from operating activities and $56 million in free cash flow for 2024, alongside $71 million from asset sales [7][8] - Net debt was reduced to $350 million at the end of 2024, a decrease of $684 million or 66% over the past five years [7][8] Strategic Initiatives - Quad is focusing on revenue diversification and enhancing its marketing experience (MX) capabilities, including the launch of At-Home Connect and In-Store Connect solutions [4][6] - The company plans to continue investing in its household-based data stack and AI optimization tools to drive new revenue streams [5][6] 2025 Guidance - The financial guidance for 2025 excludes the European operations to be divested, with expectations for adjusted EBITDA of $180 million to $220 million and a year-end debt leverage ratio of approximately 1.5x [12][8]