Quad Q2 2020 Earnings Report

Quad's performance was strong despite the economic impact of COVID-19, with proactive cost alignment and productivity improvements leading to higher Adjusted EBITDA margin and increased cash flow.

Key Takeaways

Quad reported a 38% decrease in net sales to $585 million, but improved Adjusted EBITDA margin to 10.2%. The company generated positive cash flow and reduced net debt by $125 million over the last 12 months.

Aggressively implemented risk-mitigating and cost-reduction efforts while growing print segment share through its integrated marketing solutions for clients.

Generated positive cash flow during the second quarter and increased year-to-date net cash provided by operating activities by $51 million and increased Free Cash Flow by $79 million, compared to the first half of 2019.

Reduced net debt by $125 million over last 12 months to end the quarter with a Debt Leverage Ratio of 3.18x, net of excess cash.

Maintained significant liquidity as of June 30, 2020, including $70 million of cash on hand and up to $465 million in unused capacity under Quad’s revolving credit agreement.

Previous year: -$0.09

+415.0%

Adjusted EBITDA Margin

10.2%

Previous year: 8.5%

+20.0%