Slide 1: 1st Quarter 2020 Earnings Call
1st Quarter 2020 Earnings Call May 6, 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
Slide 3: COVID-19 Safe-at-Work Program
COVID-19 Safe-at-Work Program Learn More >> Providing for the health and safety of Quad’s employees, while continuing to meet the needs of our clients Crisis Management Team Rapid Response Team Communication Strategy • Cross-functional centralized team of leaders. • Team of Quad HR professionals, su
Slide 4: Innovation: To Help Our Employees
Innovation To Help Our Employees Hand Sanitizer Face Masks Quad’s CRT ink manufacturing division Quad’s Direct Marketing applied their chemistry group designed knowledge to disposable, non-medical formulate hand face masks that are sanitizer, which we are being mass-produced on producing and using i
Slide 5: Innovation: To Help Our Clients
Innovation To Help Our Clients Stand-Alone Shopping Cart Checkout Register Floor Graphics Displays Wraps Shield & Signs 5
Slide 6: Decisive Actions to Control Costs, Conserve Cash & Protect Liquidity
Decisive Actions to Control Costs, Conserve Cash & Protect Liquidity Suspended international and domestic Temporarily reduced Board of Directors travel. fees by 50%. We temporarily Delayed most capital expenditures reduced costs by and expect 2020 capital expenditures Suspended use of vacations to b
Slide 7: Financial Overview
Financial Overview First Quarter US $ Millions March 31, 2020 March 31, 2019 STATEMENT OF OPERATIONS (excluding discontinued operations) Net Sales $ 822.5 $ 961.0 Cost of Sales 647.7 788.3 Selling, General and Administrative Expenses 99.6 94.5 Adjusted EBITDA(1) $ 75.4 $ 78.4 Adjusted EBITDA Margin(
Slide 8: Debt Capital Structure as of March 31, 2020
Debt Capital Structure as of March 31, 2020 We believe our available liquidity, strength of banking relationships, agile approach to cost management, and our ability to help our clients pre- and post-pandemic provides substantial financial flexibility to adjust to the current uncertainty in our oper
Slide 9: Thank You
Thank You = cu
Slide 10: Supplemental Information
Supplemental Information
Slide 11: 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 12: Adjusted EBITDA
Adjusted EBITDA First Quarter Three Months Ended March 31, US $ Millions 2020 2019 Net loss attributable to Quad common shareholders $ (12.4) $ (22.5) Interest expense 18.1 21.8 Income tax benefit (1.2) (7.2) Depreciation and amortization 47.4 54.2 EBITDA [Non-GAAP] $ 51.9 $ 46.3 EBITDA Margin [Non-
Slide 13: Free Cash Flow
Free Cash Flow First Quarter Three Months Ended March 31, US $ Millions 2020 2019 Net cash provided by (used in) operating activities $ 44.7 $ (58.6) Less: purchases of property, plant and equipment (29.0) (45.3) Plus: LSC-related payments(1) — 3.3 Free Cash Flow [Non-GAAP] $ 15.7 $ (100.6) (1) LSC-
Slide 14: Debt Leverage Ratio
Debt Leverage Ratio US $ Millions March 31, 2020 December 31, 2019 Total debt and finance lease obligations on the balance sheets $ 1,192.5 $ 1,112.2 Divided by: Trailing twelve months Adjusted EBITDA [Non-GAAP] (1) $ 331.9 $ 334.9 Debt Leverage Ratio [Non-GAAP] 3.59x 3.32x Debt Leverage Ratio — Net
Slide 15: Balance Sheet
Balance Sheet US $ Millions March 31, 2020 December 31, 2019 ASSETS Cash and cash equivalents $ 207.8 $ 78.7 Receivables, less allowances for doubtful accounts 401.8 456.1 Inventories 188.9 210.5 Prepaid expenses and other current assets 66.8 109.0 Property, plant and equipment—net 1,006.7 1,036.5 O
Slide 16: Adjusted Diluted Earnings (Loss) Per Share
Adjusted Diluted Earnings (Loss) Per Share First Quarter Three Months Ended March 31, US $ Millions (Except Per Share Data) 2020 2019 Loss from continuing operations before income taxes and equity in loss of unconsolidated entity $ (9.8) $ (19.8) Restructuring, impairment and transaction-related cha