Quad/Graphics, a global marketing experience company, has provided an update on its full-year 2024 financial guidance and reported its third-quarter results. The company announced a reduction in its anticipated year-end Net Debt Leverage from approximately 1.8x to 1.5x due to strong cash generation. Quad/Graphics will be sharing its strategy and growth opportunities at its upcoming Investor Day on November 20, 2024, in New York City.
In the third quarter of 2024, Quad/Graphics recognized Net Sales of $675 million, compared to $700 million in the same period in 2023. The company reported a Net Loss of $25 million or $0.52 Diluted Loss Per Share for the quarter. However, it achieved Non-GAAP Adjusted EBITDA of $59 million, an increase from $57 million in the third quarter of 2023, and delivered $0.26 Adjusted Diluted Earnings Per Share.
Quad/Graphics also announced several key highlights, including the amendment and extension of its $690 million bank debt agreement to October 2029. The company built sales momentum for its in-store retail media network, In-Store Connect by Quad, and announced a collaboration with Google Cloud to power next-generation, AI-driven marketing solutions. Additionally, Quad/Graphics received $41 million in net cash proceeds from the sale of its former Saratoga Springs, New York, manufacturing facility and 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.
Joel Quadracci, Chairman, President, and CEO of Quad/Graphics, highlighted the company’s focus on differentiating itself as a marketing experience company and the expansion of its in-store retail media network. He also emphasized the collaboration with Google Cloud to launch AI-powered solutions that enable brands to create highly personalized content at scale.
Tony Staniak, Chief Financial Officer of Quad/Graphics, highlighted the company’s flexible operating model, higher labor productivity, and disciplined approach to managing its business. Staniak mentioned that despite the pressure on Net Sales, Quad/Graphics delivered higher Adjusted EBITDA Margin in the third quarter and on a year-to-date basis compared to the prior year. The company expects to reduce Net Debt by over $700 million, or 68%, compared to January 1, 2020, reaching a Net Debt Leverage of approximately 1.5x.
Quad/Graphics updated its full-year 2024 financial guidance, with Net Sales trending towards the higher end of the decline in its original guidance range. The company maintained the midpoints of its guidance ranges for Adjusted EBITDA and Free Cash Flow. It also improved the anticipated year-end 2024 Net Debt Leverage from approximately 1.8x to 1.5x.
Quad/Graphics will hold a conference call on October 29, 2024, to discuss its third-quarter results and provide further details on its financial performance and future plans.
