Quad/Graphics, based in Sussex Wisconsin, which has been one of the most active printing operations in mergers and acquisitions over the past couple of years, reported results for its second quarter ending June 30, 2014.
These Q2 results include Brown Printing data from the day of acquisition on May 30, 2014. “Our second quarter results were consistent with our expectations and we remain on track to achieve our 2014 objectives,” stated Joel Quadracci, Quad/Graphics Chairman, President & CEO. “We are pleased with our decision to acquire Brown Printing as it supports our ongoing strategy to create value for our clients and shareholders.”
For the second quarter of 2014, Quad/Graphics’ net sales were US$1.1 billion (all dollar figures in U.S.), down one percent compared to the same period in 2013. Second quarter 2014 Adjusted EBITDA was $102 million as compared to $111 million for the same period in 2013, and Adjusted EBITDA Margin was 9.3 percent as compared to 10 percent in 2013.
For the first six months of 2014, Quad/Graphics’ net sales were $2.2 billion, down two percent compared to the same period in 2013. Year-to-date Adjusted EBITDA was $209 million as compared to $225 million for the same period in 2013, and Adjusted EBITDA Margin was 9.5 percent as compared to 10.0 percent in 2013.
“We are increasing guidance for net sales and Adjusted EBITDA to reflect the contribution from the Brown Printing acquisition,” stated Dave Honan, Quad/Graphics Vice President and CFO. “We currently estimate full-year 2014 net sales to be in the range of $4.8 billion to $4.9 billion, increased from a prior guidance range of $4.6 billion to $4.8 billion, and full-year 2014 Adjusted EBITDA to be in the range of $535 million to $560 million, increased from a prior guidance range of $520 million to $550 million.
“We reiterate our annual 2014 guidance of Free Cash Flow to be between $155 million and $165 million,” continued Honan, “which reflects the EBITDA contribution from Brown Printing offset by the integration costs that are front-end loaded.”