Quad Pleased with Q1 Results and Integration of Vertis

“As expected, our Adjusted EBITDA margin was 10.1 percent. This reflects Vertis' lower margin profile; continued pressure on Vertis' margins due to pre-acquisition financial challenges, including its bankruptcy filing; the seasonality of Vertis' business, which has volumes and profitability more heavily weighted in the back half of the year; and ongoing industry pricing pressures,” said John Fowler, Quad/Graphics executive vice president and CFO. “The $160 million increase in debt during the quarter is attributable to the $237 million in net cash paid for the Vertis acquisition. Our leverage ratio of 2.54x is in line with our expectations for the quarter. We continue to believe that operating in the 2.0x to 2.5x leverage range is the appropriate target, but at times, like this quarter, we may go above that range given economic changes, working capital seasonality, timing of investments like Vertis, and growth opportunities. We remain confident in our annual guidance, including strong, sustainable Recurring Free Cash Flow in excess of $360 million, which will allow us to continue to pay down debt and drive future value.”

About Quad/Graphics
Quad/Graphics (NYSE: QUAD), a leading global printer and media channel integrator, is redefining print in today's multichannel media world by helping marketers and publishers capitalize on print's ability to complement and connect with other media channels. With consultative ideas, worldwide capabilities, leading-edge technology and single-source simplicity, Quad/Graphics has the resources and knowledge to help its clients maximize the revenue they derive from their marketing spend through channel integration, and minimize their total cost of production and distribution through a fully integrated national distribution network. The Company provides a diverse range of print solutions, media solutions and logistics services from multiple locations throughout North America, Latin America and Europe.

Source: Quad.