Quad Graphics, Inc · NYSE:QUAD
Quad Graphics — Q3 2021 Earnings Presentation
21 slides from Quad Graphics's earnings presentation, Nov 3, 2021
Slide 1: 3rd Quarter 2021 Earnings Call
3rd Quarter 2021 Earnings Call November 3, 2021
Slide 2: Call Participants & Forward-Looking Statements
Call Participants & Forward-Looking Statements Forward-Looking Statements This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- Joel Quadracci looking statements include statements regarding, among other
Slide 3: Our Key Competitive Advantages
Our Key Competitive Advantages Strategic priorities are powered by three key competitive advantages that distinguish Quad as a Marketing Solutions Partner: 3
Slide 4: Commitment to Innovation
Commitment to Innovation Opportunity • Improved the effectiveness and execution of client’s consumer loyalty program personalization strategy across 20+ grocery banners nationwide Quad Solution • Leveraged technology portal to assign personalized offers and content to loyalty members OUTCOME • Analy
Slide 5: Commitment to Innovation
Commitment to Innovation Opportunity • Partnered with large retailer and the Sustainable Packaging Coalition to study how consumers perceive food freshness labels on packaging as part of an effort to reduce food waste Quad Solution • Conducted research using biometric technology, such as eye trackin
Slide 6: Commitment to Platform Excellence
Commitment to Platform Excellence Attract Offer interesting work with competitive compensation and benefits while providing a safe and inclusive environment Retain Support positive coaching and training and development programs so employees understand the next step on their career journey with us 6
Slide 7: Commitment to Culture & Social Purpose
Commitment to Culture & Social Purpose Environmental Social Governance 7
Slide 8: Financial Overview
Financial Overview Third Quarter Year-to-Date September 30, September 30, September 30, September 30, US $ Millions 2021 2020 2021 2020 STATEMENT OF OPERATIONS (excluding discontinued operations) Net Sales $ 706.1 $ 679.3 $ 2,105.8 $ 2,086.3 Cost of Sales 574.1 543.3 1,688.1 1,651.9 Selling, General
Slide 9: Debt Capital Structure
Debt Capital Structure 23% 3.14x Floating 5% 77% Debt Leverage Ratio (1) Blended Interest Rate as of September 30, 2021 as of September 30, 2021 Fixed $27 million $463 million May 2022 Cash on Hand Unused Capacity under Revolver Next Significant Debt Maturity of as of September 30, 2021 as of Septem
Slide 10: Debt Reduction
Debt Reduction 0% $1,200 0% -9% $800 -15% -23% $1,034 $938 $400 $799 -33% -30% $688 $0 -45% 12/31/2019 9/30/2020 9/30/2021 Year End 2021 Guidance Net Debt ($ Millions) Net Debt Reduction (% Change vs 12/31/2019) We expect to reduce Net Debt (1) by approximately $350 million, or 33%, over the past tw
Slide 11: 2021 Outlook
2021 Outlook Full-Year 2021 Current Outlook Annual Net Sales Change (1) 1% to 3% increase Full-Year Adjusted EBITDA (2) $240 to $260 million Year-End Debt Leverage Ratio (2)(3) Approximately 2.75x Due to strong financial performance, as well as continued sales momentum into the fourth quarter, we re
Slide 12: Thank You
Thank You
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 Third Quarter Three Months Ended September 30, US $ Millions 2021 2020 Net earnings attributable to Quad common shareholders $ 14.3 $ 1.6 Interest expense 15.0 17.9 Income tax expense (benefit) 2.3 (12.0) Depreciation and amortization 38.7 44.8 EBITDA [Non-GAAP] $ 70.3 $ 52.3 EBITDA
Slide 16: Adjusted EBITDA
Adjusted EBITDA Year-to-Date Nine Months Ended September 30, US $ Millions 2021 2020 Net earnings (loss) attributable to Quad common shareholders $ 58.9 $ (34.3) Interest expense 45.1 52.2 Income tax expense (benefit) 4.1 (17.5) Depreciation and amortization 119.3 138.9 EBITDA [Non-GAAP] $ 227.4 $ 1
Slide 17: Free Cash Flow
Free Cash Flow Year-to-Date Nine Months Ended September 30, US $ Millions 2021 2020 Net cash provided by operating activities $ 22.1 $ 107.4 Less: purchases of property, plant and equipment (41.6) (50.7) Free Cash Flow [Non-GAAP] $ (19.5) $ 56.7 The above calculation of Free Cash Flow includes the c
Slide 18: Debt Leverage Ratio
Debt Leverage Ratio US $ Millions, Except Ratio September 30, 2021 December 31, 2020 Total debt and finance lease obligations on the balance sheets $ 826.1 $ 928.2 Less: Cash and cash equivalents 27.4 55.2 Net Debt [Non-GAAP] $ 798.7 $ 873.0 Divided by: trailing twelve months Adjusted EBITDA [Non-GA
Slide 19: Balance Sheet
Balance Sheet US $ Millions September 30, 2021 December 31, 2020 ASSETS Cash and cash equivalents $ 27.4 $ 55.2 Receivables, less allowance for credit losses 392.5 399.1 Inventories 240.9 170.2 Prepaid expenses and other current assets 82.2 54.7 Property, plant and equipment—net 746.6 884.2 Operatin
Slide 20: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Third Quarter Three Months Ended September 30, US $ Millions (Except Per Share Data) 2021 2020 Earnings (loss) from continuing operations before income taxes and equity in (earnings) loss of $ 16.4 $ (8.9) unconsolidated entity Restructuring, impairment and transa
Slide 21: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Year-to-Date Nine Months Ended September 30, US $ Millions (Except Per Share Data) 2021 2020 Earnings (loss) from continuing operations before income taxes and equity in (earnings) loss of $ 62.9 $ (37.5) unconsolidated entity Restructuring, impairment and transac