Quad/Graphics Reports Volume Declines Continued
The company is focused on creating value for its clients and shareholders through innovative solutions that increase efficiencies and cost savings, and provide multichannel marketing opportunities to grow revenue.
“During the quarter, we introduced a new distributive co-mail model to help our clients achieve extensive distribution efficiencies and postage savings,” Quadracci said. “We have 30 percent more co-mail volume than we did one year ago, and volume is essential to maximizing postage savings, which is critical because postage is our clients’ largest production cost category. In addition, our clients benefit from our proprietary co-mail optimization software that enhances savings opportunities.
“In the quarter, we also introduced a number of interactive print solutions to help our clients more effectively connect print with new and engaging mobile technologies, including augmented reality and near field communication,” he added.
The company continues to manage its outstanding debt and pension liability to maintain a strong balance sheet that provides it with flexibility to adjust to changing economic conditions.
“We completed a very successful debt refinancing during the quarter that provided us with an improved maturity schedule, reduced cost of borrowing and additional financial flexibility,” Fowler explained. “Our quarter-end leverage ratio of 2.46 times during our peak season for working capital remains within our targeted range of 2.0 to 2.5 times and demonstrates the continued financial strength of our business. We believe our business will continue to generate significant cash flow to support our disciplined capital deployment strategy.
“The priorities for that capital will be adjusted based on current circumstances and what we think is best for shareholder value creation. For example, during the quarter we began to execute a share repurchase program, and we also have maintained our cash dividend to shareholders, which demonstrates our commitment to providing returns.”
In September, the company completed its acquisition of Transcontinental’s Mexican business.