Slide 1: Fourth Quarter 2024 Earnings Call
ww At Quarter 2024 Earnings Call February 19, 2025 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: Net Sales, Adjusted EBITDA, Free Cash Flow, Net Debt
Net Sales Adjusted EBITDA(1) Free Cash Flow(1) Net Debt(1) Reduction since 1/1/20 Net Debt(1) as of 12/31/24 Debt Leverage Ratio(1) (1) See slide 21 for definitions of our non-GAAP measures, slide 23 for a reconciliation of Adjusted EBITDA, slide 24 for a reconciliation of Free Cash Flow and slide 2
Slide 4: Net Sales by Segment
19% 21% Integrated Solutions Integrated Solutions 31% Integrated 35% Solutions Targeted 9% Print 44% 47% International Print 12% Targeted Targeted Net Sales Print Net Sales Print International Net Sales 6% Print Estimate Books(1) 9% International 31% 23% Print Large Scale 13% Large Scale Large Scale
Slide 5: 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 6: Proprietary core dataset of 250 million consumers
Demographics Quad’s proprietary core dataset features Lifestyles 250 million consumers, mapped to a resilient identifier ⎯ their physical home Name address coupled with additional data and Financial Passions contextual insights that can be activated Behaviors across any media channel: IP address Ema
Slide 7: At-Home Connect modernizes direct mail
Ease of Use Connects audience data for automated, personalized campaigns Speed to Market Triggers direct mail At-Home Connect modernizes with 24/7 print direct mail with an intelligent, production power automated platform for fast campaign activation Seamlessly complements digital Cost Efficiency Lo
Slide 8: Expanding omnichannel retail media networks
We continue to expand our presence in omnichannel retail media networks and are onboarding our first banner in the Midwest to In-Store Connect in addition to: The Save Mart Companies Homeland Stores launched in 15 stores and launched in 15 stores, intends to expand to delivering promising additional
Slide 9: MX Wins: Packaging redesign for golf balls
MX WINS Update the client’s packaging for its flagship Pro V1 and Pro V1x golf balls MX: Intelligence Research & Testing - Accelerated Marketing Insights • Created an innovative design that visually distinguishes Titleist on-shelf from the busyness of MX: Creative competitors’ products Brand Strateg
Slide 10: MX Wins: Spirit brands media strategies
MX WINS Build brand awareness for its spirit brands through highly impactful and relevant media strategies tailored to local markets’ needs MX: Intelligence Unique Data Audience Analytics • Applied Quad’s household-based data stack to establish hyper-local MX: Media audience segments Media Planning
Slide 11: MX Wins: Targeted print for customer acquisition
MX WINS Demonstrate the effectiveness of data-driven, targeted print to grow customer acquisition and sales • Applied a combination of Quad’s MX: Intelligence proprietary, household data stack Unique Data and the client’s existing customer Audience Analytics data to determine ideal Campaign Measurem
Slide 12: Fourth Quarter and Full-Year Results
Fourth Quarter Year Ended US $ Millions (Except Per Share Data) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 STATEMENT OF OPERATIONS Net Sales $ 708.4 $ 787.9 $ 2,672.2 $ 2,957.7 Cost of Sales 549.4 633.1 2,092.2 2,381.2 Selling, General and Administrative Expenses 96.6 89
Slide 13: Free Cash Flow and Asset Sales
($ millions) $127.0 $784.8 $55.7 $108.5 $71.3 $76.8 $98.9 $31.7 $442.5 $252.5 $94.3 $86.5 $4.6 $166.0 $197.9 $342.3 $129.2 $68.7 2020 2021 2022 2023 2024 Total Free Cash Flow Asset Sales (1) See slide 21 for definitions of our non-GAAP measures and slide 24 for a reconciliation of Free Cash Flow as
Slide 14: Capital Allocation Priorities
Growth Investments Increase growth investments as a marketing experience company Shareholder Returns Increase return of capital to shareholders through dividends and share buybacks Debt Reduction Maintain low debt leverage and ensure long-term financial strength Quad 14
Slide 15: Net Debt and Debt Leverage Ratio
($ millions) $1,034 $873 -66% -71% $624 $545 $470 3.0x 3.2x $350 $300 2.4x 2.2x 2.0x 1.6x 1.5x 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Guidance Debt Leverage Ratio Net Debt (1) See slide 21 for definitions of our non-GAAP measures and slide 25 for a reconciliatio
Slide 16: Net Debt, Liquidity and Debt Composition
Net Debt(1) Blended Interest Rate Total Liquidity Including Cash on Hand as of December 31, 2024 as of December 31, 2024 as of December 31, 2024 Fixed 17% Interest Rate 39% Collars of Interest Expense Floating 44% Decreases with Lower Debt Leverage Ratio(1) Interest Rates Next Significant Debt Matur
Slide 17: 2025 Guidance
Financial Metric 2025 Guidance (Excluding European Operations) Organic Annual Net Sales Change(1) 2% to 6% decline Full-Year Adjusted EBITDA(2) $180 million to $220 million Free Cash Flow(2) $40 million to $60 million Capital Expenditures $65 million to $75 million Year-End Debt Leverage Ratio(2)(3)
Slide 18: Summary
• Featuring through-the-line marketing solutions deployed across offline and online channels • Accessing additional revenue opportunity in advertising and marketing services industry • Serving 2,500 clients across growing verticals such as retail, publishing, consumer packaged goods, finance and ins
Slide 19: Quad
Quad 19
Slide 20: Supplemental Information
Supplemental Information
Slide 21: Non-GAAP 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 22: Adjusted EBITDA Reconciliation: Fourth Quarter
Fourth Quarter Three Months Ended December 31, US $ Millions 2024 2023 Net earnings (loss) $ 4.7 $ (22.0) Interest expense 15.1 19.0 Income tax expense 0.1 6.9 Depreciation and amortization 23.1 31.1 EBITDA (non-GAAP) $ 43.0 $ 35.0 EBITDA Margin (non-GAAP) 6.1% 4.4% Restructuring, impairment and tra
Slide 23: Adjusted EBITDA Reconciliation: Full-Year
Full-Year Year Ended December 31, US $ Millions 2024 2023 Net loss $ (50.9) $ (55.4) Interest expense 64.5 70.0 Income tax expense 6.4 12.8 Depreciation and amortization 102.5 128.8 EBITDA (non-GAAP) $ 122.5 $ 156.2 EBITDA Margin (non-GAAP) 4.6% 5.3% Restructuring, impairment and transaction-related
Slide 24: Free Cash Flow Reconciliation
Year Ended December 31, US $ Millions 2024 2023 Net cash provided by operating activities $ 112.9 $ 147.6 Less: purchases of property, plant and equipment 57.2 70.8 Free Cash Flow (non-GAAP) $ 55.7 $ 76.8 Quad 24
Slide 25: Net Debt and Debt Leverage Ratio Reconciliation
US $ Millions December 31, 2024 December 31, 2023 Total debt and finance lease obligations on the balance sheets $ 379.2 $ 522.7 Less: Cash and cash equivalents 29.2 52.9 Net Debt (non-GAAP) $ 350.0 $ 469.8 Divided by: Adjusted EBITDA for the year ended (non-GAAP) $ 224.0 $ 233.7 Debt Leverage Ratio
Slide 26: Balance Sheet
US $ Millions December 31, 2024 December 31, 2023 ASSETS Cash and cash equivalents $ 29.2 $ 52.9 Receivables, less allowances for credit losses 273.2 316.2 Inventories 162.4 178.8 Prepaid expenses and other current assets 69.5 39.8 Property, plant and equipment—net 499.7 620.6 Operating lease right-
Slide 27: Adjusted Diluted EPS Reconciliation: Fourth Quarter
Fourth Quarter Three Months Ended December 31, US $ Millions (Except Per Share Data) 2024 2023 Earnings (loss) before income taxes $ 4.8 $ (15.1) Restructuring, impairment and transaction-related charges, net 19.6 30.7 Adjusted net earnings, before income taxes (non-GAAP) 24.4 15.6 Income tax expens
Slide 28: Adjusted Diluted EPS Reconciliation: Full-Year
Full-Year Year Ended December 31, US $ Millions (Except Per Share Data) 2024 2023 Loss before income taxes $ (44.5) $ (42.6) Restructuring, impairment and transaction-related charges, net 101.5 77.5 Adjusted net earnings, before income taxes (non-GAAP) 57.0 34.9 Income tax expense at 25% normalized