Quad/Graphics Posts Decline in Net Sales, Strengthens Balance Sheet
SUSSEX, WI—August 7, 2012—Quad/Graphics Inc. has reported its financial results for its second quarter and year-to-date ending June 30, 2012.
- Second quarter net sales of $934 million.
- Adjusted EBITDA of $112 million and Adjusted EBITDA margin of 12.0 percent, as compared to 11.9 percent in 2011.
- Repayed $42 million in debt during the quarter and $132 million year-to-date.
- Completed integration of Worldcolor and confirms annual synergy savings of more than $275 million, exceeding original guidance of $225 million.
Quad’s net sales for the second quarter totaled $934 million vs. $977 million for the same period in 2011. Second quarter 2012 Adjusted EBITDA was $112 million, compared to $116 million for the same period in 2011, and Adjusted EBITDA margin was 12.0 percent as compared to 11.9 percent in 2011.
The quarterly results reflect expected volume and pricing pressures. Offsetting these impacts were incremental synergy savings totaling $21 million and lower selling, general and administrative costs.
“We are pleased with the continued progress we have made to strengthen our balance sheet, maintain strong credit metrics and generate significant cash flow during a quarter traditionally impacted by lower seasonal volumes,” said Joel Quadracci, Quad/Graphics chairman, president and CEO. “This past July marked the two-year anniversary of the Worldcolor acquisition and, with the closing of the second quarter, we also mark the completion of a successful integration process.
“In the end, we expect to exceed our original synergy guidance by more than 20 percent, achieving over $275 million of annual savings. Our one-time cost to achieve these synergies will be less than $225 million, well within the expected range of $195 million to $240 million, resulting in a ratio of approximately 80 cents of cost for every dollar of synergy. This represents a significant achievement for the Company and a proud moment for all employees who worked hard to merge these two leading companies together during a time of significant industry transformation and economic challenge,” Quadracci added.