quad graphics inc (QUAD) Key Developments
Quad/Graphics, Inc. Enters into Amendment to Second Amended and Restated Credit Agreement
Dec 23 14
On December 18, 2014, Quad/Graphics, Inc. entered into amendment No. 1 to its second amended and restated credit agreement dated as of April 28, 2014. The amendment eliminates the net debt concept from the calculation of the maximum total leverage ratio and maximum senior secured leverage ratio in the credit agreement, and provides for elimination of the covenant which requires maintenance of a minimum consolidated net worth.
Quad/Graphics, Inc. Announces the Installation of a Drent Global Vision Offset Printing Press
Dec 22 14
Quad/Graphics, Inc. announced the installation of a Drent Global Vision offset printing press at its location in Westampton, N.J. The addition of the hybrid press at the company’s high-volume Northeast region production center optimizes the company’s direct mail production platform. In-line die cutting module creates attractions like windows, pull tabs, and pop-ups to better target consumers with meaningful, relevant offers that increase response rates. Impact of each direct mail piece is fortified with exact color replication and vivid color consistency. Unique formats are produced with near limitless imaging lengths and an oversized 20” web width. Production time can be cut on repeat orders by as much as 70% with an information management system that stores and retrieves key settings and job specifications. Makeready waste can be cut by up to 50%, reducing paper costs. Faster turnaround is achieved due to a 35% decrease in makeready time. The offset press works seamlessly with Quad/Graphics’ digital workflow tools to quickly and accurately print customized content. It is also equipped with UV drying and specialty gluing and coating capabilities, enabling the facility to deliver complete laser lettershop packages under one roof. The addition of this technology rounds out Quad/Graphics’ suite of offset presses operating in the company’s Direct Marketing division, enhancing the potential for lower postage and freight cost, and faster in-home delivery for East Coast regional customers.
Quad/ Graphics to Close Dickson Quad/Graphics Plant Permanently on March 12, 2015
Dec 19 14
Quad/Graphics announced that the Dickson Quad/Graphics plant will close permanently on March 12, 2015, impacting about 115 employees. The plant shuttering was caused by Gannett's decision to cease publishing USA Weekend and the reduced circulation of Parade magazine. The approximately 90 full-time and approximately 25 part-time employees impacted the closure will have the opportunity to transfer to another Quad/Graphics facility.
Quad/Graphics, Inc. Enters into the Fourth Amendment to the Note Agreement
Nov 26 14
On November 24, 2014, Quad/Graphics, Inc. and certain of its subsidiaries entered into the fourth amendment to the Note Agreement, dated September 1, 1995, among the Company, certain subsidiaries of the Company, and the purchasers named therein. The Amendment, among other things, amends the financial covenants, including deleting the minimum Fixed Charge Coverage Ratio and minimum Consolidated Net Worth requirements and adding a minimum Interest Coverage Ratio, a maximum Total Leverage Ratio and a maximum Senior Secured Leverage Ratio, which has the effect of aligning the financial covenants in the Note Agreement more closely with the financial covenants in the Company's Second Amended and Restated Credit Agreement dated as of April 28, 2014.
Quad/Graphics, Inc. Declares Quarterly Dividend, Payable on December 19, 2014; Announces Consolidated Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Reports Impairment Charges for the Third Quarter Ended September 30, 2014; Provides Free Cash Flow Guidance for the Year 2014
Nov 5 14
Quad/Graphics, Inc. declared quarterly dividend of $0.30 per share will be payable on December 19, 2014, to shareholders of record as of December 8, 2014.
The company announced consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported net sales of $1,236.4 million compared with $1,206.0 million for the same period a year ago. Operating income was $53.6 million compared with $44.4 million for the same period a year ago. Earnings before income taxes and equity in earnings of unconsolidated entities was $28.5 million compared with $23.5 million for the same period a year ago. Net earnings attributable to company common shareholders was $24.4 million or $0.50 per diluted share compared with $13 million or $0.26 per diluted share for the same period a year ago. On non-GAAP basis, adjusted EBITDA was $151.0 million compared with $154.1 million for the same period a year ago. EBITDA (Non-GAAP) was $136.9 million compared to $126.3 million for the same period a year ago. Adjusted net earnings (non-GAAP) was $24.6 million or $0.51 per diluted share compared with $30.7 million or $0.64 per diluted share for the same period a year ago. Net sales were representing a 2.5% increase from 2013, primarily due to the Brown acquisition.
For the nine months, the company reported net sales of $3,438.2 million compared with $3,446.3 million for the same period a year ago. Operating income was $65.1 million compared with $38.3 million for the same period a year ago. Loss before income taxes and equity in earnings of unconsolidated entities was $10.4 million compared with $25.8 million for the same period a year ago. Net loss attributable to company common shareholders was $7.2 million or $0.16 per diluted share compared to $28.2 million or $0.62 per diluted share for the same period a year ago. Net cash provided by operating activities was $74.8 million compared with $219.4 million for the same period a year ago. Purchases of property, plant and equipment was $113.1 million compared with $117.6 million for the same period a year ago. On non-GAAP basis, adjusted EBITDA was $359.9 million compared with $378.8 million for the same period a year ago. On non-GAAP basis, EBITDA was $308 million compared to $295.9 million for the same period a year ago. Adjusted net earnings (non-GAAP) was $20.4 million or $0.42 per diluted share compared with $33.2 million or $0.69 per diluted share for the same period a year ago. Free cash flow was a negative $38 million for the first the months of 2014 versus a positive $102 million for the same period in 2013. The variance is primarily due to an estimated $77 million benefit realized in the first 9 months of 2013 related to its acquisition of Vertis, which was acquired without normalized levels of accounts payable and accrued liabilities.
The company reported impairment charges of $3.1 million for the third quarter ended September 30, 2014 against $8.8 million a year ago.
For the year 2014, the company guidance for free cash flow remains unchanged at a range of $155 million to $165 million.