Quad/Graphics Financials in Line With Expectations

"The combination of Quad/Graphics and Brown will enhance the many ways in which we help publishers and marketers drive top-line revenues while better controlling their overall total cost of print production and distribution.”

First quarter 2014 free cash flow was negative $13 million versus positive $93 million for the same period in 2013. According to Quad, the variance is primarily attributable to an estimated $70 million benefit realized in the first quarter of 2013 from the restoration of normalized working capital levels following the company’s January 2013 acquisition of Vertis Inc., which was acquired without normalized levels of accounts payable and accrued liabilities. The remaining variance primarily reflects $18 million in higher capital expenditures in 2014 due primarily to carryover projects from 2013, as well as working capital fluctuations.