In This Article:
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Net Sales (Q4 2024): $708 million, a decline of 10.1% compared to Q4 2023.
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Net Sales (Full Year 2024): $2.7 billion, a 9.7% decline compared to 2023.
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Adjusted EBITDA (Q4 2024): $63 million, compared to $66 million in Q4 2023.
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Adjusted EBITDA Margin (Q4 2024): Increased 50 basis points to 8.8% from 8.3% in Q4 2023.
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Adjusted EBITDA (Full Year 2024): $224 million, compared to $234 million in 2023.
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Adjusted EBITDA Margin (Full Year 2024): Improved by 48 basis points to 8.4% from 7.9% in 2023.
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Adjusted Diluted EPS (Q4 2024): $0.36, increased from $0.23 in Q4 2023.
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Adjusted Diluted EPS (Full Year 2024): $0.85, increased from $0.52 in 2023.
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Free Cash Flow (2024): $56 million, compared to $77 million in 2023.
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Net Debt Reduction (2024): Reduced by $120 million; 66% reduction since January 1, 2020.
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Quarterly Dividend Increase: 50% increase to $0.075 per share, or $0.30 per share annually.
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Net Debt Leverage (End of 2024): 1.6x, with a target of 1.5x by end of 2025.
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2025 Guidance - Net Sales Decline: Expected decline of 2% to 6% compared to 2024.
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2025 Guidance - Adjusted EBITDA: Expected between $180 million and $220 million.
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2025 Guidance - Free Cash Flow: Expected between $40 million and $60 million.
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Quad/Graphics Inc (NYSE:QUAD) increased its adjusted EBITDA margin by 48 basis points to 8.4% in 2024, reflecting improved profitability.
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The company generated $56 million of free cash flow and $71 million from asset sales, strengthening its balance sheet.
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Quad/Graphics Inc (NYSE:QUAD) reduced its net debt by $684 million since January 1, 2020, achieving a 66% reduction.
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The company increased its quarterly dividend by 50% to $0.075 per share, demonstrating a commitment to returning capital to shareholders.
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Quad/Graphics Inc (NYSE:QUAD) is making strategic investments in AI and data capabilities, enhancing its marketing solutions and creating new revenue opportunities.
Negative Points
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Net sales declined by 10.1% in Q4 2024 and 9.7% for the full year, primarily due to lower paper sales and print volumes.
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The company experienced a loss of a large grocery client, impacting its sales and revenue outlook.
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Postal rate increases and elevated interest rates adversely affected print volumes and financial services direct mailings.
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Quad/Graphics Inc (NYSE:QUAD) expects a further decline in net sales by 2% to 6% in 2025, excluding the divestiture of its European operations.
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Free cash flow is projected to decrease to a range of $40 million to $60 million in 2025, down from $56 million in 2024, due to higher capital expenditures and lower sales.