Quad/Graphics Reaffirms 2014 Annual Guidance

  Quad/Graphics Reaffirms 2014 Annual Guidance

Business Wire

SUSSEX, Wis. -- April 7, 2014

Quad/Graphics, Inc. (NYSE: QUAD) (“Quad/Graphics” or the “Company”), today
announced it is reaffirming its 2014 annual guidance for net sales, Adjusted
EBITDA and Free Cash Flow.

For the year ending December 31, 2014, the Company reaffirms:

  *Net sales to be in the range of $4.6billion to $4.8billion;
  *Adjusted EBITDA to be in the range of $520million to $550million; and
  *Free Cash Flow to be in the range of $155million and $165million.

Earlier today, the Company announced a definitive agreement whereby
Quad/Graphics will acquire Brown Printing Company (“Brown”). The transaction
is subject to customary regulatory clearances and is expected to close in the
second half of 2014.The reaffirmed guidance above does not include any
potential 2014 impact from the Company’s acquisition of Brown.

“We are pleased to reaffirm our full-year 2014 guidance,” said David Honan,
Vice President and Chief Financial Officer. “As always, we remain focused on
maintaining strong Free Cash Flow as well as a strong and flexible balance
sheet, which affords us the flexibility to pay down debt, continue disciplined
investment in our business, pursue compelling acquisition opportunities like
Brown, and return capital as part of creating long-term value for our
shareholders.”

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding, among other things,
our current expectations about the Company’s future results, financial
condition, revenue, earnings, free cash flow, margins, objectives, goals,
strategies, beliefs, intentions, plans, estimates, prospects, projections and
outlook of the Company and can generally be identified by the use of words or
phrases such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,”
“plan,” “foresee,” “project,” “believe,” “continue” or the negatives of these
terms, variations on them and other similar expressions. These forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause actual results to be materially different from those expressed
in or implied by such forward-looking statements. Forward-looking statements
are based largely on the Company’s expectations and judgments and are subject
to a number of risks and uncertainties, many of which are unforeseeable and
beyond our control.

The factors that could cause actual results to materially differ include,
among others: the impact of significant overcapacity in the highly competitive
commercial printing industry, which creates downward pricing pressure and
fluctuating demand for printing services; the inability of the Company to
reduce costs and improve operating efficiency rapidly enough to meet market
conditions; the impact of electronic media and similar technological changes,
including digital substitution by consumers; the impact of changes in postal
rates, service levels or regulations; the impact of changing future economic
conditions; the failure to renew long-term contracts with clients on favorable
terms or at all; the failure of clients to perform under long-term contracts
due to financial or other reasons or due to client consolidation; the failure
to successfully identify, manage, complete and integrate acquisitions and
investments; the impact of increased business complexity as a result of the
Company’s entry into additional markets; the impact of fluctuations in costs
(including labor-related costs, energy costs, freight rates and raw materials)
and the impact of fluctuations in the availability of raw materials; the
impact of regulatory matters and legislative developments or changes in laws,
including changes in privacy and environmental laws; the impact on the holders
of Quad/Graphics class A common stock of a limited active market for such
shares and the inability to independently elect directors or control decisions
due to the voting power of the class B common stock; the impact of risks
associated with the operations outside of the United States; significant
capital expenditures may be needed to maintain the Company’s platform and
processes and to remain technologically and economically competitive; and the
other risk factors identified in the Company’s most recent Annual Report on
Form 10-K, as such may be amended or supplemented by subsequent Quarterly
Reports on Form 10-Q or other reports filed with the Securities and Exchange
Commission.

Except as required by the federal securities laws, the Company undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release contains financial measures not prepared in accordance with
generally accepted accounting principles (referred to as Non-GAAP),
specifically Adjusted EBITDA and Free Cash Flow.Adjusted EBITDA is defined as
net earnings (loss) attributable to Quad/Graphics common shareholders plus
interest expense, income tax expense (if applicable), depreciation and
amortization and restructuring, impairment and transaction-related charges,
and less income tax benefit (if applicable). Free Cash Flow is defined as net
cash provided by operating activities less purchases of property, plant and
equipment. These measures are presented to provide additional information
regarding Quad/Graphics’ performance and because they are important measures
by which Quad/Graphics assesses the profitability and liquidity of its
business. These measures should not be considered alternatives to net earnings
as a measure of operating performance or to cash flows provided by operating
activities as a measure of liquidity.

About Quad/Graphics

Quad/Graphics (NYSE: QUAD), a leading global printer and media channel
integrator, is redefining print in today’s multichannel media world by helping
marketers and publishers capitalize on print’s ability to complement and
connect with other media channels. With consultative ideas, worldwide
capabilities, leading-edge technology and single-source simplicity,
Quad/Graphics has the resources and knowledge to help its clients maximize the
revenue they derive from their marketing spend through channel integration,
and minimize their total cost of print production and distribution through a
fully integrated national distribution network. The Company provides a diverse
range of print solutions, media solutions and logistics services from multiple
locations throughout North America, Latin America and Europe.

Contact:

Investor Relations Contact:
Quad/Graphics
Kelly Vanderboom, 414-566-2464
Vice President & Treasurer
Kelly.Vanderboom@qg.com
or
Media Contact:
Quad/Graphics
Claire Ho, 414-566-2955
Director of Corporate Communications
Claire.Ho@qg.com
 
Press spacebar to pause and continue. Press esc to stop.