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Dec 31, 2022
Quad Q4 2022 Earnings Report
Quad reported an increase in net sales and adjusted EBITDA, driven by pricing and international growth.
Key Takeaways
Quad reported a 4% increase in net sales to $885 million and an adjusted EBITDA increase to $79 million for the fourth quarter of 2022. The company's adjusted diluted earnings per share increased to $0.41. However, the company reported a net loss of $9 million for the quarter.
Net Sales increased by 4% due to increased pricing and growth in international locations and Targeted Print offerings.
Net Loss improved by $12 million compared to Q4 2021, driven by increased earnings from Net Sales growth and higher productivity.
Adjusted EBITDA increased by $19 million due to production labor staffing initiatives.
Adjusted Diluted Earnings Per Share increased primarily due to higher recurring earnings and share repurchases.
Revenue by Segment
Forward Guidance
Quad anticipates continued growth in Agency Solutions in 2023, but expects a decrease in Net Sales and Adjusted EBITDA from lower print volumes due to economic uncertainty. The company plans to use Free Cash Flow to reduce Net Debt Leverage to 2.0x by the end of 2023.
Positive Outlook
- Continued growth in Agency Solutions offerings.
- Focus on using Free Cash Flow to reduce debt.
- Targeting Net Debt Leverage of 2.0x by the end of 2023.
- Expect to have paid off $564 million of debt since January 1, 2020.
- Ongoing investments in growth as a marketing experience company.
Challenges Ahead
- Economic uncertainty impacting client spending.
- Expected decrease in Net Sales from lower print volumes.
- Expected decrease in Adjusted EBITDA from lower print volumes.
- Decrease in Net Sales and Adjusted EBITDA from lower print volumes will exceed the benefits from ongoing Agency growth.
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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