Slide 1: 2nd Quarter 2020 Earnings Call
2nd Quarter 2020 Earnings Call August 5, 2020
Slide 2: Call Participants & Forward-Looking Statements
Call Participants & Forward-Looking Statements Forward-Looking Statements Joel Quadracci 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 t
Slide 3: COVID-19 Update
COVID-19 Update Our business continuity plan in response to the pandemic focuses on: Maintaining the Providing Ensuring the Innovating New Health and High-Quality, Long-Term Financial Integrated Well-Being of On-Time Delivery Health of the Solutions Employees for Clients Company 3
Slide 4: Key Actions to Advance our Strategic Transformation
Key Actions to Advance our Strategic Transformation 1 Optimize our product portfolio to focus the company on the greatest revenue-generating opportunities 2 Invest in talent and technology to drive new business and further expand our offerings Innovate new integrated solutions that help our clients
Slide 5: Recent Success Story
Recent Success Story NATIONAL RETAILER OF HOME, YARD, FARM AND ANIMAL SUPPLIES OPPORTUNITY • Previously established an onsite presence at the client for page production of IMPACT its weekly printed inserts • Evolved the onsite engagement into a strategic partnership by observing and • Serving as thi
Slide 6: Recent Success Story
Recent Success Story NATIONAL AFTERMARKET PARTS RETAILER OPPORTUNITY • Initiated a workflow audit that led to more strategic conversations with the IMPACT client around packaging quality and consistency, and private label brand management • Overseeing global print management to ensure product qualit
Slide 7: Recent Success Story
Recent Success Story OPPORTUNITY • MYMOVE wanted to reinvent the marketing services it offers to its customers through a higher level of versioning and customization IMPACT • MYMOVE consolidated all print and technology solutions with QUAD SOLUTION Quad, awarding us an exclusive five- • Created a pl
Slide 8: Our Goal
Our Goal Diversity Equity Inclusion Achieve a workforce Ensure that Create a safe and that reflects the procedures, open environment communities where processes and where all Quad we live / work and distribution of employees can the clients who resources are bring their truest trust us with their im
Slide 9: Financial Overview
Financial Overview Second Quarter Year-to-Date US $ Millions June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 STATEMENT OF OPERATIONS (excluding discontinued operations) Net Sales $ 584.5 $ 948.9 $ 1,407.0 $ 1,909.9 Cost of Sales 460.9 771.5 1,108.6 1,559.8 Selling, General and Administrative
Slide 10: Update on Decisive Actions to Control Costs, Conserve Cash & Protect Liquidity
Update on Decisive Actions to Control Costs, Conserve Cash & Protect Liquidity Permanent reductions in direct, Manufacturing facility furloughs indirect and selling & administrative and the permanent closure of our headcount by over 1,100 employees We temporarily Taunton, Massachusetts plant reduced
Slide 11: Debt Capital Structure as of June 30, 2020
Debt Capital Structure as of June 30, 2020 37% 3.18x Floating 4.9% 63% Net Debt Leverage Ratio(1) Blended Interest Rate as of June 30, 2020 as of June 30, 2020 Fixed $70 million $465 million May 2022 Cash on Hand Unused Capacity under $500 Million Next Significant Debt Maturity as of June 30, 2020 R
Slide 12: Thank You
Thank You = cunt
Slide 13: Supplemental Information
Supplemental Information
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures • 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 EBIT
Slide 15: Adjusted EBITDA
Adjusted EBITDA Second Quarter Three Months Ended June 30, US $ Millions 2020 2019 Net loss attributable to Quad common shareholders $ (23.5) $ (14.8) Interest expense 16.2 25.8 Income tax benefit (4.3) (3.2) Depreciation and amortization 46.7 52.9 EBITDA [Non-GAAP] $ 35.1 $ 60.7 EBITDA Margin [Non-
Slide 16: Adjusted EBITDA
Adjusted EBITDA Year-to-Date Six Months Ended June 30, US $ Millions 2020 2019 Net loss attributable to Quad common shareholders $ (35.9) $ (37.3) Interest expense 34.3 47.6 Income tax benefit (5.5) (10.4) Depreciation and amortization 94.1 107.1 EBITDA [Non-GAAP] $ 87.0 $ 107.0 EBITDA Margin [Non-G
Slide 17: Free Cash Flow
Free Cash Flow Year-to-Date Six Months Ended June 30, US $ Millions 2020 2019 Net cash provided by operating activities $ 67.2 $ 16.3 Less: purchases of property, plant and equipment (38.0) (74.6) Plus: LSC-related payments(1) — 8.5 Free Cash Flow [Non-GAAP] $ 29.2 $ (49.8) (1) LSC-related payments
Slide 18: Debt Leverage Ratio
Debt Leverage Ratio US $ Millions June 30, 2020 December 31, 2019 Total debt and finance lease obligations on the balance sheets $ 1,047.6 $ 1,112.2 Divided by: Trailing twelve months Adjusted EBITDA [Non-GAAP] (1) $ 310.8 $ 334.9 Debt Leverage Ratio [Non-GAAP] 3.37x 3.32x Debt Leverage Ratio — Net
Slide 19: Balance Sheet
Balance Sheet US $ Millions June 30, 2020 December 31, 2019 ASSETS Cash and cash equivalents $ 70.2 $ 78.7 Receivables, less allowances for credit losses 331.1 456.1 Inventories 169.5 210.5 Prepaid expenses and other current assets 88.3 109.0 Property, plant and equipment—net 977.9 1,036.5 Operating
Slide 20: Adjusted Diluted Earnings (Loss) Per Share From Continuing Operations
Adjusted Diluted Earnings (Loss) Per Share From Continuing Operations Second Quarter Three Months Ended June 30, US $ Millions (Except Per Share Data) 2020 2019 Loss from continuing operations before income taxes and equity in loss of unconsolidated entity $ (18.8) $ (5.6) Restructuring, impairment
Slide 21: Adjusted Diluted Earnings (Loss) Per Share From Continuing Operations
Adjusted Diluted Earnings (Loss) Per Share From Continuing Operations Year-to-Date Six Months Ended June 30, US $ Millions (Except Per Share Data) 2020 2019 Loss from continuing operations before income taxes and equity in loss of unconsolidated entity $ (28.6) $ (25.4) Restructuring, impairment and