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Dec 31, 2019
Quad Q4 2019 Earnings Report
Quad's Q4 2019 results exceeded expectations due to strong customer service and strategic execution.
Key Takeaways
Quad/Graphics reported Q4 2019 results that exceeded expectations, driven by excellent customer service, aggressive cost management, and increased manufacturing productivity. The company's strategic priorities and investments in hourly production employees' wages contributed to strong quality and on-time delivery. Quad is focused on transforming into a marketing solutions partner and offsetting print industry volume declines.
Net sales were $1.1 billion, a decrease of 4.9% compared to 2018.
Net earnings attributable to Quad common shareholders were $8 million, or $0.15 diluted earnings per share, compared to a net loss of $21 million in 2018.
Adjusted EBITDA was $96 million, compared to $118 million in 2018, with an Adjusted EBITDA margin of 9.0%.
The company reduced its Debt Leverage Ratio to 3.1x in the fourth quarter.
Revenue by Segment
Forward Guidance
Quad provided its 2020 financial guidance, anticipating net sales between $3.5 billion and $3.7 billion, adjusted EBITDA between $285 million and $315 million, and free cash flow between $100 million and $130 million.
Positive Outlook
- Disciplined cost management efforts.
- Drive earnings growth.
- Drive Free Cash Flow growth.
- Reduce leverage.
- Further strengthen balance sheet.
Challenges Ahead
- Ongoing print industry volume pressures.
- Ongoing print industry pricing pressures.
- Net Sales between $3.5 to $3.7 billion.
- Adjusted EBITDA between $285 to $315 million.
- Free Cash Flow between $100 to $130 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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