Slide 1: Third Quarter 2024 Earnings Call
ww 3" Quarter 2024 Earnings Call October 29, 2024 Lit Quad&
Slide 2: Forward-Looking Statements
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company’s future results, financial condition,
Slide 3: Quad's MX Suite of products and services
From offline to online, across Creative, Production and Media, fueled by Intelligence and Tech, Quad’s MX Suite of products and services is flexibly tailored for the unique needs of the marketer Brand Strategy & Design In-Store & Packaging Omnichannel Data & Analytics Content Creation & Print & Mana
Slide 4: Expanding presence in omnichannel retail media networks
We continue to expand our presence in omnichannel retail media networks and have signed a third, regional grocer to In-Store Connect in addition to: The Save Mart Companies Homeland Stores is on activated our solution in 15 track to deploy In-Store stores, with all participating Connect in several b
Slide 5: Household data reach and audience capabilities
121M Ho us Reach of Adult eh US Population old s Generative AI Reach of US Content and Households Consumers Personalization 2 0, 00 +A 0 Continuously Re-validated Household Data Points ttr ib u te s Quad 5
Slide 6: MX: Media and MX: Creative client example
• Update client’s marketing strategy to maintain reach while adhering to new heightened privacy regulations for healthcare marketers MX: Media • Completed creative refresh for Paid Media various advertising formats and SEO Strategy increased usage of video content MX: Creative • Refined paid media s
Slide 7: MX: Intelligence, Media and Creative client example
• Leverage Quad as a strategic partner to craft and execute a scalable and personalized customer acquisition plan MX: Intelligence • Applied household data and advanced Unique Data analytics to identify and reach high- Audience Analytics potential audience targets MX: Media • Designed and optimized
Slide 8: Net Sales mix
Integrated Integrated Solutions Solutions 10% 10% Agency Solutions 18% Agency Solutions 19% Catalogs Catalogs 9% 10% 2% Logistics 2% Logistics QuadMed Targeted QuadMed Targeted Print Print 11% 11% 6% Europe (1) Direct Marketing 5% Europe (1) Direct Marketing Latin Latin America Net Sales 8% America
Slide 9: Third Quarter and Year-to-Date results
Third Quarter Year-to-Date US $ Millions (Except Per Share Data) September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 STATEMENT OF OPERATIONS Net Sales $ 674.8 $ 700.2 $ 1,963.8 $ 2,169.8 Cost of Sales 527.6 560.8 1,542.8 1,748.1 Selling, General and Administrative Expenses 88
Slide 10: Free Cash Flow and Asset Sales
($ millions) $173.7(3) $831.5 $60.0 $108.5 $113.7 $76.8 $446.8 $98.9 $31.7 $252.5 $94.3 $4.6 $86.5 $166.0 $197.9 $384.7 $129.2 $68.7 2020 2021 2022 2023 2024 Updated Total Guidance Free Cash Flow Asset Sales (1) See slide 17 for definitions of our non-GAAP measures and slide 20 for a reconciliation
Slide 11: Net Debt and Debt Leverage Ratio
($ millions) 3.1x 3.0x 2.8x 2.4x 2.4x 2.3x 2.4x 2.4x 2.4x 2.2x 2.2x 2.0x $684 $715 $624 $664 $632 ~1.5x $604 $584 $545 $544 $532 $470 $490 ~$330 $174 ~$152 $106 $95 $34 $27 -$36 -$21 -$23 -$12 -$10 -$79 -$70 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 U
Slide 12: Net Debt, interest rate and liquidity
Net Debt(1) Blended Interest Rate Total Liquidity Including Cash on Hand as of September 30, 2024 as of September 30, 2024 as of September 30, 2024 Floating Debt Leverage Ratio(1) Next Significant Debt Maturity as of September 30, 2024 of $193 Million Fixed (1) See slide 17 for definitions of our no
Slide 13: Original and Updated 2024 Guidance
Financial Metric Original 2024 Guidance Updated 2024 Guidance Annual Net Sales Change 5% to 9% decline Approximately 9% decline Full-Year Adjusted EBITDA(1) $205 to $245 million $215 to $235 million Free Cash Flow(1) $50 to $70 million $50 to $70 million Capital Expenditures $60 to $70 million Appro
Slide 14: Key takeaways
• Featuring through-the-line marketing solutions deployed across offline and online channels • Accessing additional revenue opportunity in advertising and marketing services industry • Serving 2,700 clients across growing verticals such as retail, publishing, consumer packaged goods, finance and ins
Slide 15: Quad
Quad 15
Slide 16: Supplemental Information
Supplemental Information
Slide 17: Non-GAAP financial measures definitions
• In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this presentation also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow,
Slide 18: Third Quarter Adjusted EBITDA reconciliation
Third Quarter Three Months Ended September 30, US $ Millions 2024 2023 Net loss $ (24.7) $ (2.7) Interest expense 17.0 17.7 Income tax expense (benefit) 3.0 (0.8) Depreciation and amortization 24.4 32.0 EBITDA (non-GAAP) $ 19.7 $ 46.2 EBITDA Margin (non-GAAP) 2.9% 6.6% Restructuring, impairment and
Slide 19: Year-to-Date Adjusted EBITDA reconciliation
Year-to-Date Nine Months Ended September 30, US $ Millions 2024 2023 Net loss $ (55.6) $ (33.4) Interest expense 49.4 51.0 Income tax expense 6.3 5.9 Depreciation and amortization 79.4 97.7 EBITDA (non-GAAP) $ 79.5 $ 121.2 EBITDA Margin (non-GAAP) 4.0% 5.6% Restructuring, impairment and transaction-
Slide 20: Free Cash Flow reconciliation
Nine Months Ended September 30, US $ Millions 2024 2023 Net cash provided by (used in) operating activities $ (45.9) $ 41.1 Less: purchases of property, plant and equipment 45.7 59.5 Free Cash Flow (non-GAAP) $ (91.6) $ (18.4) Quad 20
Slide 21: Net Debt and Debt Leverage Ratio reconciliation
US $ Millions September 30, 2024 December 31, 2023 Total debt and finance lease obligations on the balance sheets $ 502.8 $ 522.7 Less: Cash and cash equivalents 12.5 52.9 Net Debt (non-GAAP) $ 490.3 $ 469.8 Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1) $ 227.1 $ 233.7 Debt Lever
Slide 22: Condensed balance sheet
US $ Millions September 30, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 12.5 $ 52.9 Receivables, less allowances for credit losses 305.6 316.2 Inventories 201.7 178.8 Prepaid expenses and other current assets 72.1 39.8 Property, plant and equipment—net 512.7 620.6 Operating lease right
Slide 23: Third Quarter Adjusted Diluted EPS reconciliation
Third Quarter Three Months Ended September 30, US $ Millions (Except Per Share Data) 2024 2023 Loss before income taxes $ (21.7) $ (3.5) Restructuring, impairment and transaction-related charges, net 39.3 11.2 Adjusted net earnings, before income taxes (non-GAAP) 17.6 7.7 Income tax expense at 25% n
Slide 24: Year-to-Date Adjusted Diluted EPS reconciliation
Year-to-Date Nine Months Ended September 30, US $ Millions (Except Per Share Data) 2024 2023 Loss before income taxes $ (49.3) $ (27.5) Restructuring, impairment and transaction-related charges, net 81.9 46.8 Adjusted net earnings, before income taxes (non-GAAP) 32.6 19.3 Income tax expense at 25% n