Quad/Graphics Reports Mixed Results for Quarter, Fiscal Year

“Our cash flow during the fourth quarter was very strong and allowed us to pay down $179 million of debt and continue to strengthen our balance sheet,” added John Fowler, executive vice president and CFO. “Of the $179 million, approximately $132 million was cash generated from operating activities and $60 million was from the reduction in restricted cash and collateral at Worldcolor, offset by the assumption of $13 million of debt in the HGI acquisition.

“This debt pay down results from our efforts to deleverage our balance sheet and, over time, return to investment grade. We view cash flow generation as one of the most important measures of a printing company’s financial success and it has been a focus of how we’ve managed our business over many years.”

The company continues to make significant progress in the integration.

“We moved quickly, but deliberately, to focus on each and every customer as we transitioned work to new plants,” said Quadracci. “Moving each title is a very exacting process as no two titles and no two issues within a title are the same. We focused heavily on sustainable, repeatable processes, training and multi-point communication, and ensured that there were appropriate timelines and resources in place. During our busiest season of the year, we transitioned nearly 400 titles from closing facilities onto our more efficient and modern platform with minimal disruption to customers.

“To date, we retained 97 percent of revenues associated with those transitioned titles and are very pleased with and thankful for our customers’ support throughout this process. We believe that our high retention rate is a significant achievement and speaks to the thoughtful planning and preparation that has gone into our integration. We also successfully managed the costs and timeline as we ramped down the plants we are closing.”

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