Quad/Graphics Reports Net Loss of $33 Million Year to Date, $3 Million in Third Quarter
Quad/Graphics, Inc. (NYSE: QUAD) reported its results for the third quarter on Halloween and they were a little scary. Net Sales were $700 million for the quarter, a decrease of 16% compared to the same period in 2022. The company reported a Net Loss of $3 million in third quarter, bringing its total Net Loss for the year to date to $33 million.
The company attributed its weaker performance in 2023 to lower print, paper and logistics sales, as well as the 2022 divestiture of its Argentina print operations. The company also lowered its full year guidance, projecting the company’s Net Sales will decline seven to nine percent from 20222.
Tony Staniak, CFO of Quad, said, “Print volumes declined further than our projections in response to continued economic uncertainty, postal rate increases and the impact of rising interest rates on specific clients. As always, we are nimble and ready to adapt to changes and challenges, while continuing our disciplined approach to managing all aspects of our business to enhance our financial strength and create shareholder value.”
The company increased Free Cash Flow by $61 million year to date, including $27 million in the third quarter. Quad also reduced its Net Debt by $132 million over the past year.
Joel Quadracci, Chairman, President and CEO of Quad, said, “Our flexible operating model and disciplined approach to managing all aspects of our business enabled us to deliver consistent, year-over-year EBITDA margins, strong Free Cash Flow and reduce debt despite a challenging revenue environment that led us to lower our annual Net Sales guidance. With our strong balance sheet, we are able to continue making strategic investments in our business, accelerate our competitiveness as a marketing experience company, and position the business for improved growth opportunities as the economy improves, while returning capital to shareholders.”
Quadracci continued, “As we continue to scale our integrated marketing offering, print will remain a core component of our business and the largest portion of our revenue mix. While we remain confident in our ability to manage for short-term cyclical impacts as well as long-term expected organic declines in certain print product lines, such as retail inserts, we are focused on driving investment in the complementary areas of data and analytics, media, client technology and more to ensure we fulfill our clients’ ever-expanding marketing needs.”
Quad/Graphics is a $3 billion global marketing experience company that employs approximately 15,000 people in 14 countries and serves more than 2,900 clients across the retail, publishing, consumer packaged goods, financial services, healthcare, insurance and direct-to-consumer industries.