Quad/Graphics, Inc. Revises Unaudited Preliminary Earnings Guidance for the Year Ending December 31, 2015; Provides 2016 Preliminary Financial Guidance
January 06, 2016 at 09:45 pm
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Quad/Graphics, Inc. revised unaudited preliminary earnings guidance for the year ending December 31, 2015. The company expects preliminary net sales for full-year 2015 to be approximately $4.65 billion and adjusted EBITDA to be at least $460 million, representing an approximate 10% adjusted EBITDA margin. The preliminary full-year adjusted EBITDA results are at least $10 million greater than the high end of the previous guidance range of $430 million to $450 million, primarily as a result of cost productivity improvements and earlier than expected impacts from the company's previously announced $100 million cost reduction program. Preliminary free cash flow is expected to be approximately $210 million for full-year 2015, and is $30 million greater than the high end of the previous guidance range of $165 million to $180 million. Free cash flow increased $56 million or 36% over the prior year due to sustainable improvements in the cash conversion process primarily impacting working capital.
The company provided the following 2016 preliminary financial guidance: Net sales of $4.4 billion to $4.6 billion; adjusted EBITDA of $420 million to $460 million; Adjusted EBITDA margin of approximately 10% at the midpoint of guidance and flat with the expected 2015 margin; Free cash flow of $190 million to $230 million, flat with 2015 at the $210 million midpoint of guidance.
Quad/Graphics, Inc. is a marketing experience company. The Company's segments include the United States Print and Related Services and International. The United States Print and Related Services segment consists of its United States printing operations and is managed as one integrated platform. This includes print execution and logistics for retail inserts, catalogs, long-run publications, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products, along with global paper procurement, and marketing and other complementary services, such as data intelligence and analytics, technology solutions, media planning, placement and optimization, creative strategy and content creation. The International segment consists of its printing operations in Europe and Latin America, including operations in England, France, Germany, Poland, Colombia, Mexico and Peru.
Quad/Graphics, Inc. Revises Unaudited Preliminary Earnings Guidance for the Year Ending December 31, 2015; Provides 2016 Preliminary Financial Guidance