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Quad/Graphics News
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Quad Reports Fourth Quarter and Full-Year 2011 Financial Results

Company Exceeds 2011 Adjusted EBITDA Guidance and Increases Quarterly Cash Dividend by 25%


• Achieves $638 millionin full-year Adjusted EBITDA, exceeding guidance of $610 million to $625 million.

• Reports fourth quarter Adjusted EBITDA margin of 15.0%and full-year Adjusted EBITDA margin of 13.7%. Excluding Canadian operations, full-year Adjusted EBITDA margin increases to 14.3%.

• Generates $340 millionin full-year Recurring Free Cash Flow, surpassing guidance of $260 million to $300 million.

• Repays $163 million in debt during the quarter and $325 million since the Worldcolor acquisition, reducing leverage to 2.3x.

• Increases quarterly cash dividend by 25% to $0.25per share.

• Receives authorization from the Canadian Competition Bureau to proceed with the sale of its Canadian business to Transcontinental.

SUSSEX, WI, February 28, 2012— Quad/Graphics, Inc. (NYSE: QUAD) (“Quad/Graphics” or the “Company”), today reported strong fourth quarter and full-year 2011 results that surpassed management's previously announced guidance. The reported results include the Company's Canadian operations, which are in the process of being sold, unless otherwise noted. References to pro forma results for 2010 treat the July 2, 2010, Worldcolor acquisition as if it occurred on January 1, 2010. For full financial results, please go

“We are pleased with our 2011 fourth quarter results, which reflect our ongoing focus on improving productivity and aggressively managing costs, while continuing to pay down debt to strengthen our credit metrics and balance sheet,” said Joel Quadracci, Quad/Graphics Chairman, President & CEO. “Given our strong finish to the year, as well as the strength of our recurring free cash flow and lower risk profile that our recent leverage reduction has provided, we are pleased to declare a 25% increase in our quarterly dividend, which will be payable on March 23, 2012, to shareholders of record on March 12, 2012.”

Net sales for the fourth quarter 2011 were $1.31 billion, down from $1.39 billionfor the same period in 2010. Fourth quarter 2011 Adjusted EBITDA was $197 million versus $224 million for the same period in 2010. These results were adversely impacted by volume and pricing pressures, primarily in Canada and in the U.S. retail insert and book product lines, as well as by higher bad debt provisions in 2011 and non-recurring gains in 2010. Offsetting these impacts were productivity improvements, and incremental synergy savings, which totaled $44 million during the quarter and $196 million since the Worldcolor acquisition.

For the full-year 2011, net sales were $4.67 billion versus pro forma net sales of $4.76 billion for the previous year. Adjusted EBITDA was $638 million for 2011 and, due to stronger fourth quarter performance, the Company surpassed revised 2011 guidance of $610 million to $625 million. Recurring Free Cash Flow was $340 million, exceeding original guidance of $260 million to $300 million and continuing a track record of solid cash flow generation.

The Company continues to manage its outstanding debt and pension liabilities to maintain a strong balance sheet that provides it with flexibility to adjust to changing economic conditions. “We are proud of the progress we have made to repay $163 million in debt during the fourth quarter of 2011, and $325 million since the Worldcolor acquisition,” said John Fowler, Executive Vice President & Chief Financial Officer. “Our year-end leverage ratio of 2.3x remains within our targeted range of 2.0x to 2.5x. Further, we believe our business will continue to generate significant cash flow to support our disciplined capital deployment strategy. As always, the priorities for that capital will be adjusted based on current circumstances and what we think is best for shareholder value creation. For example, our large debt paydown in the quarter, combined with our confidence in our ability to continue generating strong free cash flow, enables us to increase our cash dividend to shareholders, reinforcing our commitment to providing long-term shareholder returns.”

On February 7, 2012, the Company received authorization from the Canadian Competition Bureau to proceed with the sale of its Canadian business to Transcontinental, and expects the transaction to close shortly. Quad/Graphics entered into a definitive agreement with Transcontinental on July 12, 2011, to essentially exchange its Canadian assets (with the exception of its Vancouver, B.C., facility, which was not part of the original transaction) for Transcontinental's Mexican assets. Quad/Graphics completed the acquisition of the Mexican assets on September 8, 2011.

2012 Outlook
The Company remains cautious about 2012 given the ongoing transformation in the industry. “We anticipate our revenue to be approximately $4.0 billion, which excludes our discontinued operations in Canada that had 2011 revenues of $344 million,” Quadracci said. “In addition, we expect Adjusted EBITDA margin from continuing operations to be flat to slightly less than our 2011 Adjusted EBITDA margin of 14.3%, and Recurring Free Cash Flow to be in excess of $300 million. We will continue to aggressively manage what is within our control and make decisions that are in the best interests of our shareholders. We remain confident in our strategy to redefine print in a multichannel world. Through the dedication and hard work of our employees, we continue to transform our company, making it leaner, stronger and poised for long-term stability and success.”

Fourth Quarter 2011 Conference Call
Quad/Graphics (NYSE: QUAD) will hold a conference call at 10 a.m. ET on Wednesday, February 29, to discuss fourth quarter 2011 results. The call will be hosted by Quad/Graphics Chairman, President & CEO Joel Quadracci and Executive Vice President & CFO John Fowler. The full earnings release and the slide presentation will be concurrently available on the investor relations section of Quad/Graphics' website at

To access the conference call, it is recommended that you listen via computer at

Please test your connection prior to joining to ensure a successful user experience. The test link is

If for any reason you are unable to stream, you can listen to the audio via the telephone by calling:

• Toll-Free: (877) 217 - 9946 (US/Canada)
• Toll: (702) 696 - 4824 (International)
• Conference ID: 36386722

The replay will be available for 30 days following the conference call. To access the replay via phone, please call (855) 859-2056 or (404) 537-3406 and enter the Conference ID number 36386722.

To access the replay via the internet, please use the following link:

Forward-Looking Statements
To the extent any statements in this press release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, the objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of Quad/Graphics, and can generally be identified by the use of words such as "may", "will", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms, variations on them and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties and other factors could cause actual results to differ materially from those expressed or implied by those forward-looking statements. Among risks, uncertainties and other factors that may impact Quad/Graphics are those described in Item 1A of the Company's most recent Form 10-K and the following: the impact of significant overcapacity in the highly competitive commercial printing industry, which creates downward pricing pressure and fluctuating demand for printing services; the potential 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; the impact of changing future economic conditions; the potential failure to renew long-term contracts with customers, the renewal of those contracts under different terms, or customer nonperformance in accordance with the terms and for the duration of long-term contracts; significant capital expenditures may be needed to maintain the Company's platform and processes and to remain technologically and economically competitive; 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 environmental and privacy laws and postal rates, regulations and services; the impact on Quad/Graphics class A common shareholders of a limited active market for Quad/Graphics common stock and the inability to independently elect directors or control decisions due to the class B common stock voting rights; an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of goodwill, other intangible assets and property, plant and equipment; the liabilities of Worldcolor with respect to pension and postretirement benefits could grow in the future and create additional costs; restrictions imposed by various covenants in the Company's debt facilities may affect the Company's ability to operate its business; failure to successfully integrate the operations of Quad/Graphics and Worldcolor; risks associated with the Company's operations outside of the United States; and the inability to retain and attract additional, key employees, or the adverse effects of any strikes or other labor protests.

Quad/Graphics cautions that the foregoing list of risks, uncertainties and other factors is not exhaustive and you should carefully consider the other factors detailed from time to time in Quad/Graphics' filings with the United States Securities and Exchange Commission and other uncertainties and potential events when reviewing the Company's forward-looking statements.

Because forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Except to the extent required by the federal securities laws, Quad/Graphics undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Quad/Graphics
Quad/Graphics (NYSE: QUAD) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts and circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 24,000 full-time equivalent employees working from approximately 60 print-production facilities as well as other support locations throughout North America, Latin America and Europe. As a printing industry innovator, Quad/Graphics ( is redefining the power of print in today's multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.

Investor Relations Contact:

Kelly Vanderboom

Vice President and Treasurer, Quad/Graphics


Media Contact:

Claire Ho

Director of Corporate Communications, Quad/Graphics



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