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Dec 31, 2023
Quad Q4 2023 Earnings Report
Quad's Q4 2023 results were impacted by lower sales, increased interest expense, and lower pension income, offset by improved manufacturing productivity and cost reduction initiatives.
Key Takeaways
Quad reported a net sales decrease of 11% to $788 million in Q4 2023, with a net loss of $22 million compared to a net loss of $9 million in Q4 2022. Adjusted EBITDA decreased to $66 million from $79 million in the same period last year, while adjusted diluted earnings per share was $0.23, down from $0.41 in Q4 2022.
Net sales decreased by 11% to $788 million due to lower paper, print, and logistics sales, as well as the divestiture of the Argentina print operations.
Net loss was $22 million, compared to a net loss of $9 million in the fourth quarter of 2022, due to lower sales and increased interest expense.
Adjusted EBITDA was $66 million, compared to $79 million in the same period in 2022.
Adjusted Diluted Earnings Per Share was $0.23, compared to $0.41 in the fourth quarter of 2022.
Revenue by Segment
Forward Guidance
Quad anticipates revenue headwinds in 2024 but expects to increase Adjusted EBITDA margin due to $60 million in cost savings. The company will use strong cash generation to reduce Net Debt and has lowered its long-term targeted Net Debt Leverage range to 1.75x to 2.25x. Quad also expects to invest in its competitive position and return capital to shareholders through reinstated quarterly dividend and opportunistic share repurchases.
Positive Outlook
- Increase Adjusted EBITDA margin due to an anticipated $60 million in cost savings from recent plant capacity and labor reduction initiatives.
- Use continued strong cash generation to further reduce Net Debt.
- Lower long-term targeted Net Debt Leverage range to 1.75x to 2.25x.
- Invest in accelerating our competitive position as an MX company.
- Return capital to shareholders through our reinstated quarterly dividend.
Challenges Ahead
- Revenue headwinds will continue into 2024.
- Expected postal rate increases for clients in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
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Avg. Return Before/After Earnings
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