Quad/Graphics Reports Slight Gains and Declares First Cash Dividend
SUSSEX, WI—May 10, 2011—Quad/Graphics Inc. reported results for its first quarter ending March 31, 2011, and announced the initiation of a cash dividend.
• The company announced its first cash dividend as a public company—a quarterly dividend of $0.20 per share, payable on June 10, 2011, to shareholders of record as of May 27, 2011, which equates to an annualized dividend of $0.80 per share.
• The company’s first quarter 2011 net sales increased slightly to $1.1 billion, and first quarter 2011 Adjusted EBITDA increased slightly to $140.7 million.
• Quad/Graphics continues to make significant progress on integration activities, announcing three additional plant closures since the beginning of the year for a total of 10 since the acquisition was closed and realizing a current net reduction of approximately 3,300 full-time equivalent employees.
“Our first quarter 2011 results were in line with our expectations,” said Joel Quadracci, chairman, president and CEO of Quad/Graphics. “Both sales and Adjusted EBITDA increased slightly from the prior year. We attribute the increase in Adjusted EBITDA in large part to our ability to generate synergies, manage the frictional costs associated with the integration, and effectively deal with cost pressures associated with rising commodity prices. We achieved these results while also managing declines in Worldcolor sales and addressing ongoing industry pricing pressures.”
Quadracci also announced that Quad/Graphics is paying its first cash dividend as a public company. “We are pleased to declare a cash dividend sooner than we originally planned based on the company’s confidence in the progress of the Worldcolor integration, our ability to generate strong, sustainable cash flows, and our ability to continue paying down debt,” he said. “All these factors put us in a sound financial position to provide this incremental return to our shareholders. Further, we’ll use our financial strength to continue supporting other important initiatives that drive long-term shareholder value, such as investing in profitable growth opportunities.”