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Sep 30, 2023
Quad Q3 2023 Earnings Report
Quad reported a net sales decrease but maintained EBITDA margins and reduced debt.
Key Takeaways
Quad reported a 16% decrease in net sales to $700 million, resulting in a net loss of $3 million, or $0.06 loss per share. Adjusted EBITDA was $57 million, and adjusted diluted earnings per share was $0.11. Despite the revenue challenges, the company focused on cost management, productivity, and debt reduction, reducing net debt by $132 million over the last 12 months.
Net Sales decreased by 16% to $700 million compared to Q3 2022.
Net Loss was $3 million, or $0.06 diluted loss per share, compared to net earnings of $14 million, or $0.27 diluted earnings per share in Q3 2022.
Adjusted EBITDA was $57 million, compared to $69 million in Q3 2022.
Adjusted Diluted Earnings Per Share was $0.11, compared to $0.32 in Q3 2022.
Revenue by Segment
Forward Guidance
Quad updated its full-year 2023 financial guidance, lowering the range for Net Sales change while narrowing and maintaining the original mid-points of guidance ranges for Adjusted EBITDA and Free Cash Flow and reaffirming the year-end Debt Leverage Ratio.
Positive Outlook
- The company expects its Debt Leverage Ratio to be approximately 2.0x by the end of 2023.
- The company intends to reduce debt further in 2024.
- Quad has completed $20 million of share buybacks since the second quarter of 2022.
- The company is maintaining the midpoint of its guidance ranges for Adjusted EBITDA.
- The company is maintaining the midpoint of its guidance ranges for Free Cash Flow.
Challenges Ahead
- Annual Net Sales change is expected to decline by 7% to 9%.
- Full-Year Adjusted EBITDA is expected to be between $220 million and $240 million.
- Free Cash Flow is expected to be between $60 million and $80 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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