Quad/Graphics Reports Volume Declines Continued
“This acquisition supports our disciplined strategy to grow profitably in promising, higher-growth geographies and end markets where we can be a leader through a diverse product offering, and a superior and efficient operating platform,” Quadracci said. “It also represents a significant step toward realizing our goal of creating the most efficient, productive and integrated printing platform in Latin America to serve clients already in or looking to enter this promising marketplace.
“We are proud to be printers and innovators, and are confident in print’s ability to drive business results for publishers and marketers,” he continued. “Although there are many factors beyond our control, we will work to create additional shareholder value by evaluating the best manner in which to deploy our capital while continuing to remove costs from our structure to be in line with softer volumes, industry pricing pressures and ongoing uncertainty in the economy.”
For the three months ended Sept. 30, 2011, net sales inclusive of Canadian operations were $1.186 billion, compared to net sales of $1.209 billion in the same period in 2010. Also inclusive of the Canadian operations, adjusted EBITDA and adjusted EBITDA margin were $173.6 million and 14.6 percent, compared to $159.2 million and 13.2 percent in the same period in 2010.
Excluding the Canadian operations, which are treated as a discontinued operation for accounting purposes, continuing operations net sales were $1.109 billion compared to $1.129 billion in the same period in 2010. Continuing operations adjusted EBITDA and adjusted EBITDA margin were $173.5 million and 15.6 percent, compared to $153.2 million and 13.6 percent in the same period in 2010.
Net loss attributable to common shareholders in the three months ended Sept. 30, 2011, was $(22.4) million, as compared to $(232.5) million in the same period in 2010. The third-quarter net loss includes restructuring, impairment and transaction-related charges of $48.3 million and $74.0 million in 2011 and 2010, respectively, and a $34.0 million loss on debt extinguishment in 2011. Excluding the effects of restructuring, impairment and transaction-related charges and loss on debt extinguishment, and utilizing a 40 percent normalized effective tax rate in both years, net earnings would have been $37.8 million or $0.80 diluted earnings per share for the three months ended Sept. 30, 2011, as compared to $24.9 million in the same period in 2010.