SUSSEX, Wis. - Quad/Graphics, Inc. today reported results for its third quarter ending September 30, 2014. The reported results include Brown Printing from the day of acquisition onMay 30, 2014. Prior year financial results do not include the acquisition of Brown Printing. For full financial results, including reconciliations of non-GAAP financial measures, please see the accompanying information.
“Our third quarter results were in-line with our expectations and we remain on track to achieve our 2014 financial objectives,” said Joel Quadracci, Quad/Graphics Chairman, President & CEO. “We continue to move forward with our disciplined integration of Brown Printing, which includes a strong focus on serving our clients well while improving the efficiency and productivity of our platform to drive future cost savings. As always, we are committed to our priorities to maintain a strong and flexible balance sheet, invest in our business, pursue profitable investment opportunities, and create long-term value for our shareholders and clients.”
For the third quarter of 2014, net sales were $1.2 billion, an increase of 2.5% compared to the same period in 2013 due to the Brown Printing acquisition. Third quarter 2014 Adjusted EBITDA was $151 million as compared to $154 million for the same period in 2013, and Adjusted EBITDA Margin was 12.2% as compared to 12.8% in 2013, which reflect the impacts of ongoing volume and pricing pressures.
For the first nine months of 2014, net sales were $3.4 billion, consistent with the same period in 2013. Year-to-date Adjusted EBITDA was $360 million versus $379 million for the same period in 2013, and Adjusted EBITDA Margin was 10.5% as compared to 11.0% in 2013.
“Year-to-date Free Cash Flow generation was in line with our expectations, and we continue to be a significant annual cash flow generator,” said Dave Honan, Quad/Graphics Vice President and CFO. “We realize our strongest volumes in the back half of the year due to seasonality and, as a result, our Free Cash Flow is primarily generated in the fourth quarter of the year.”
Quad/Graphics’ quarterly dividend of $0.30 per share will be payable on December 19, 2014, to shareholders of record as of December 8, 2014.