Quad publishes its results for the 1st quarter of 2022

Quad/Graphics, Inc. reported results for the first quarter ended March 31, 2022.

Net sales were $744 million in the first quarter of 2022, reflecting revenue growth up 5% compared to the same period in 2021. Excluding the disposal of QuadExpress, a third-party logistics company (3PL ), net sales increased 9% compared to the first quarter of 2021.

The increase in net sales during the first quarter was due to increased pricing in response to inflationary pressures, print market share gains from new customers and growth in net sales from Targeted Print and AgencySolutions.

Net loss was $1 million in the first quarter of 2022, down $11 million from the first quarter of 2021, which had net income of $10 million. Adjusted EBITDA was $49 million in the first quarter of 2022, compared to $70 million last year.

These declines are primarily due to the negative impact of supply chain disruptions on our productivity, investments in hiring and training the workforce ahead of the peak production season in the second half of the year. of the year, and cost inflation, which was partially offset by revenue growth. In light of the rising rate of cost inflation, Quad has implemented a price increase, effective May 15, 2022, to help offset the impact of cost inflation on our profit margins.

Net loss was $1 million in the first quarter of 2022, down $11 million from the first quarter of 2021, which had net income of $10 million. Adjusted EBITDA was $49 million in the first quarter of 2022, compared to $70 million last year.

These declines are primarily due to the negative impact of supply chain disruptions on our productivity, investments in hiring and training the workforce ahead of the peak production season in the second half of the year. of the year, and cost inflation, which was partially offset by revenue growth. In light of the rising rate of cost inflation, we have implemented a price increase, effective May 15, 2022, to help offset the impact of cost inflation on our profit margins.

“Our continued positive sales growth momentum included market share gains in the print segment driven by new customers and net sales growth in our targeted and agency print solutions offerings,” said said Joel Quadracci, President and CEO of Quad. “Our single platform helps brands redesign their marketing experience to be more streamlined, impactful, flexible and seamless. We will continue to invest in the platform, including our talent, equipment, technology, products and services, to further expand our overall marketing offering to drive profitable growth.

“We were also not immune to macroeconomic headwinds, including continued supply chain disruptions that impacted productivity and cost inflation, such as labor work,” Quadracci added. “We continue to work diligently to mitigate these impacts and, given the pace of inflation, have implemented an additional price increase, which will take effect on May 15.”

Free cash flow decreased $92 million from a year ago to $36 million in the first quarter of 2022. Lower free cash flow was primarily due to higher working capital requirements in 2022 due to supply chain issues with longer lead times, and to prepare for the seasonally higher production period in the second half of the year.

Debt less cash and cash equivalents increased $40 million to $664 million as of March 31, 2022 from $624 million as of December 31, 2021, primarily due to investments in working capital, talent and equipment to enable continued sales growth.

“We are delighted to have delivered net sales growth of 9% excluding divestitures, as more brands and marketers recognize the unique value of our full-line marketing offering,” said Tony Staniak , CFO of Quad. “Our strong liquidity allowed us to repay the remaining $209 million of our 7.00% senior unsecured notes on May 2, 2022, as part of our multi-year debt reduction plan, which includes the reaching 2.25x debt leverage by the end of 2022.”

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