SUSSEX, Wis., September 18, 2024 — Quad/Graphics, Inc (“Quad”), a global marketing experience company, and the Harry V. Quadracci family’s Windhover Foundation today announced a new three-year, $1 million commitment to The BrandLab, a non-profit dedicated to changing the face and voice of the marketing profession by creating career opportunities for young people from diverse ethnic backgrounds. Additionally, Quad and The BrandLab have created a new scholarship program to support students pursuing a degree in marketing or advertising. These actions build on an initial three-year, $1 million commitment that helped The BrandLab extend its presence to the Milwaukee market in 2021.

“Quad and the Windhover Foundation are committed to this work because it is deeply connected to our values and reflects our long-standing commitment to invest in the future of the Milwaukee community through programs that grow human capital,” said Joel Quadracci, Chairman, President and CEO of Quad. “The BrandLab is helping drive a meaningful difference for young people by providing access and opportunities to careers in the marketing and advertising profession. The BrandLab is purpose-built to help achieve that reality.”

The $1 million investment will bolster The BrandLab’s programmatic efforts and help accelerate its growth. Specifically, it will help:

Claire Ho
Director of Corporate Communications, Quad
414-566-2955
cho@quad.com

In brief: The U.S. Postal Service reported a net loss despite slightly higher revenue for its fiscal third quarter (April through June), prompting one member of the Board of Governors, Dan Tangherlini, to note that the agency’s financial position “continues to degrade.” Labor disputes threaten freight deliveries, while paper markets prepare for price increases and delivery disruptions. The U.S. International Trade Commission now plans to vote in late October on imposing tariffs on printing plates imported from Japan and China.  

Built on our roots as a printer, mail industry partner and logistics leader, Quad is a marketing experience company focused on delivering streamlined solutions at scale to our clients. As the largest USPS customer, we are uniquely positioned to provide clients with best practices and insights on the latest postal, paper and logistics topics. If you have any questions or concerns, contact your Quad representative. We’ll tap our in-house experts to investigate and get you the answers you need.  

The USPS posted a net loss of $2.5 billion for the April-through-June third quarter of the government’s fiscal year 2024, bringing year-to-date losses to more than $6 billion. As reported in a USPS news release dated Aug. 8, revenue grew in all mail categories except International and Periodicals. Overall mail volume fell about 1.6%, to 26.5 billion pieces. Shipping and Packages was the only category that did not decline, with volumes increasing by 46 million pieces or 2.7%, providing a $182 million revenue increase.

The USPS cited “inflationary headwinds” leading to higher operating costs as a primary factor in the $2.5 billion loss, along with expenses associated with amortization of unfunded retiree pension liabilities. The USPS lost $1.7 billion in the same quarter a year ago.

One bright spot was a transportation expense reduction of $236 million.

Postmaster General Louis DeJoy said that he remains focused on increasing revenue while discounting volume declines: “We are making solid progress in generating a sustained revenue growth trajectory in our mailing and shipping businesses, which is validation of the product and pricing strategies and network capabilities enabled by our Delivering for America plan.”

Two members of the Board of Governors appeared to be less optimistic.

Comments from Tangherlini and Stroman were reported by Federal News Network.

Additional highlights of the earnings report, compared to the same period
last year:

Rising postal costs make it crucial for mailers to seek maximum savings from USPS promotions and incentives. Significant changes are in store for 2025, as the Postal Service launches new promotions and makes updates to program structures and requirements.

As one of the largest customers of the Postal Service, Quad can help you understand these changes so you can optimize your mail and offset the rising cost of postage to the fullest extent.

In a free webinar on September 17, Quad subject matter experts will provide insights to the 2025 programs and an overview on what you need to know for successful implementation.

They will also provide an overview of Quad’s extensive postal optimization programs and explain how our team can assist. Quad uses factors such as mail type, volume and geographic delivery region to determine which solution will create the greatest end-to-end efficiencies and savings for clients. Our latest optimization solution, Household Fusion, was introduced in April.

Also on the agenda:

Save the date on your calendars! Look for a registration link soon!

Overall, USPS performance continued to be “good” through July and early August. As we approach September, volume will increase slightly and we may see some slower delivery in the weeks after Labor Day. We expect to see slightly less mail in-home early and on the first day or two of the target window, while still hitting about 90% to 95% by the end of the window.

	Week of 7/22	Week of 7/29	Week of 8/5	Week of 8/12
Early	26%	36%	27%	27%
Day 1	52%	60%	55%	52%
Day 2	76%	77%	77%	70%
Day 3	89%	87%	91%	79%
Day 4	95%	93%	96%	90%
1 Day Late	96%	94%	98%	93%

Although the nationwide averages look good, there are some facilities where Flat mail is moving more slowly than it should. Less than 50% of the mail we tracked through Network Distribution Center (NDC) St. Louis in July was in-home by Service Standard. Sectional Center Facility (SCF) St. Louis is also delayed with less than 70% in-home on time. And SCFs Atlanta and North Metro Georgia continue to track at 60% to 65% in-home on-time. The late mail is mostly in-home one to two days after the end of the Service Standard window. Letter mail is moving well through all facilities. 

LPC (Local Processing Center) South Houston, Texas opened Aug. 24. This new facility will process mail for some of the ZIP Codes that have been handled in SCF North Houston. The USPS originally planned to open South Houston several months ago but pulled back to assure a smoother transition. This was after the extreme delays in Georgia, when the new Regional Process and Distribution Center (RPDC) opened in Palmetto.  We will be closely monitoring performance in the Houston area.  

USPS volume

Mail volume for the week ended Aug. 10, 2024, compared to last year Total Mail Volume N/A Packages N/A Single Piece Down 3.7% ▼ Presort First Class Up 2.9% ▲ Marketing Mail Up 5.1% ▲ Periodicals Down 13.4 ▼

Mail volume for the week ended Aug. 3, 2024 Total Mail Volume Down 2.6% ▼ Packages Up 3.9% ▲ Single Piece Down 9.0% ▼ Presort First Class Down 9.8% ▼ Marketing Mail Up 3.9% ▲ Periodicals Down 18.2%

Mail volume for the week ended July 27, 2024 Total Mail Volume Up 0.1% ▲ Packages Up 8.1% ▲ Single Piece Down 9.1% ▼ Presort First Class Up 2.5% ▲ Marketing Mail Down 5.1% ▼ Periodicals Up 5.1% ▲

Mail volume for the week ended July 20, 2024 Total Mail Volume Up 5.9% ▲ Packages Up 0.8% ▲ Single Piece Down 8.4% ▼ Presort First Class Down 0.4% ▼ Marketing Mail Down 17.5% ▼ Periodicals Up 13.5% ▲

Paper markets are preparing for price increases and potential delays in shipments. 

Labor disputes threaten freight disruptions at U.S. ports and Canadian rail line rail lines, while diesel prices are edging down.

As always, your Quad representative will work diligently to find you the lowest rates with the most efficient transportation available. 

For decades, better marketing has been built on Quad. Since the marketing experience (MX) company’s 2023 rebrand and the official rollout of its MX Suites, this marketing excellence has been widely recognized throughout the industry, with numerous awards and accolades for Quad and its solutions.

The strength of the MX Suites lies in the synergy of products, technologies and agencies working together to provide brands across various sectors—including health, financial services, CPG, retail, and direct-to-consumer—with everything they need for integrated marketing success.

In 2024, Quad and its agencies have achieved significant recognition, winning or being shortlisted for more than six industry awards since January. Notably, Ad Age ranked Quad at number 19 among the world’s 25 largest agency companies, marking Quad’s fifth consecutive year on the list. As Josh Golden, Quad’s Chief Marketing Officer, says, “Quad stands alone in its range of marketing solutions, and our agencies are powerful differentiators for us.” 

Anchoring the media and intelligence branch of Quad’s agency offering is Chicago-based digital agency Rise, whose omnichannel media strategies have powered brands including Ulta Beauty, Stanley Steemer, Jelmar, the American Lung Association and more.

The agency’s proprietary intelligence platform, Connex®, was awarded the SAMMY Product of the Year by Business Intelligence Group. Connex has real-time data, transparency and cross-channel insights across major platforms like Google, Facebook and Amazon. Its automation capabilities deliver high-impact optimization and actionable insights, highlighting Rise’s dedication to leveraging advanced technology for exceptional client results.

It is this dedication to client results, specifically its work with Ulta Beauty on YouTube, that made Rise a finalist for the Global Digital Excellence Awards, under the category “Paid social media campaign of the year.”

This accolade, announced at the end of July, came just one month after Rise was named Marketing Agency of the Year by the Global Agency Awards, celebrating Rise’s commitment to innovation, creativity and client success in the dynamic world of marketing. Both awards come from Don’t Panic, a U.K.-based B2B events agency, and spotlight the achievements of agencies making significant contributions to the marketing industry.

“Our recognition is a celebration of our success pushing the boundaries of marketing with unwavering commitments to data transparency, measurement and putting people first,” says Howard Diamond, Senior Vice President and Head of Growth and Product at Rise. “I am immensely proud of our team’s hard work and the culture of excellence we’ve cultivated at Rise.”

Northwest of Rise’s Chicago headquarters lives Quad’s Minneapolis-based creative agency, Betty, which has also seen remarkable success since launching in May 2024. Anchoring the MX: Creative suite and with a national presence, Betty integrates all of Quad’s creative capabilities, offering best-in-class brand strategy, design, campaign ideation and content creation, powered by an in-house network of talented strategists, creatives, content makers, and production and post-production experts. “I am excited about the strength of the overall offering coming together in a pointed way,” Cari Bucci-Hulings, President of Betty, told Campaign US, adding that the new structure is making all of Quad’s creative offerings stronger and “helping clients deliver on bigger, smarter ideas.”

Recently, Betty was shortlisted for the prestigious Communication Arts Design Competition for its branding and design of dog food brand Heckova!. The team crafted a compelling name, positioning and design from scratch to launch the new brand, leading to a successful launch in e-commerce and major retailers including Costco and Target.

In addition to its agency work, Quad’s teams and products have made significant waves in the industry this year. The In–Store team, spearheading the MX: Production suite, brings brand ideas to life from design to fulfillment. Embracing Quad’s spirit of “building better,” the production team continually seeks to enhance its processes on an environmental level, ensuring sustainability remains at the forefront of its innovation efforts. 
 
The payoff? This summer, Quad’s sustainability innovation, the LAMà Band, was named a Sustainability Product of the Year by Business Intelligence Group for reducing waste and streamlining packaging processes. 

While proven to shine on their own, it’s the collaboration of Quad’s creative, production, media and intelligence suites that positions the company as a top-tier integrated partner. The solutions come together to enhance marketing across various industries, with notable success in the health sector.

For the first time, Quad has been ranked among North America’s top health industry marketing firms by MM+M, debuting at number 22. Notable health clients include Abbott, Anthem and UnitedHealthcare. Jennifer Hickman, Head of Growth and Strategy for Health, remarks, “Our success in this industry demonstrates our exceptional rigor and commitment to serving such a heavily regulated sector as health.”

Quad’s rebrand and the introduction of the MX Suites have solidified its position as a leader in the marketing industry. From innovative creative solutions to cutting-edge intelligence and media strategies, Quad continues to set new standards for marketing excellence. As the company celebrates its accolades and industry recognition, it remains dedicated to delivering unparalleled marketing experiences across all verticals.

SUSSEX, WI, August 19, 2024 — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a global marketing experience company, today announced its participation in upcoming investor conferences and its inaugural Investor Day.

Members of Quad management will participate in the following upcoming investor conferences:

• The Midwest IDEAS Investor Conference at The Gwen in Chicago, Illinois, on Wednesday, August 28, 2024. Tony Staniak, Quad Chief Financial Officer, will present and host one-on-one and small group meetings with investors. The presentation will begin at 2:45 p.m. CT and can be accessed through the conference host’s main website at https://www.threepartadvisors.com/midwest.
• The Barrington Research Virtual Fall Investment Conference on Thursday, September 12, 2024. Tony Staniak and Don Pontes, Quad Executive Director of Investor Relations, will be available for one-on-one and small group meetings with investors that day.

Quad will host an Investor Day at its New York City offices on Wednesday, November 20, 2024, starting at 8:30 a.m. ET until approximately 12:00 p.m. ET.

Quad will provide an overview of its strategy, growth opportunities and long-term financial targets. Presenting for Quad will be Joel Quadracci, Quad Chairman, President and CEO, Tony Staniak, and other key members of the management team.

Quad’s presentation will be broadcast live and may be accessed via Quad’s Investor Relations website at http://www.quad.com/investor-relations. Presentation materials and an archived recording will be available on Quad’s Investor Relations website following the event.

For more information on Investor Day, please contact Quad Investor Relations at IR@quad.com.

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one the largest commercial printers in North America, according to Printing Impressions.

For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

Don Pontes
Executive Director of Investor Relations
916-532-7074
dwpontes@quad.com

SUSSEX, Wis., August 15, 2024 — Quad/Graphics, Inc. (NYSE: QUAD), a global marketing experience company, announced today the appointment of marketing and advertising industry leader Courtney Ballantini to the position of Senior Vice President and Head of Client Experience at Rise, Quad’s full-service integrated media agency. Ballantini will oversee all Rise client relationships and lead the Client Experience team in delivering media solutions and omnichannel execution that meet the evolving and expanding needs of brands and marketers.

In her role, Ballantini will lead a team of client partners focused on solving the complex challenges marketers face today while also anticipating their future needs. Her leadership will be an important contribution to Rise’s growth trajectory as an integrated media agency with an engine that both elevates brands and captures demand across the marketing funnel.
“As large-brand marketers increasingly lean into the unique solutions Rise offers, Courtney’s background across both agency and client-side roles, and her deep commitment to nurturing talent, make her exceptionally well suited to understand and connect with our clients,” said Joshua Lowcock, President of Media for Quad. “Courtney understands our vision to provide integrated solutions that remove friction wherever they occur in the marketing journey, while staying true to our commitments to transparency and the disruptor differentiator path we’re on. She’s an ideal leader to drive Rise’s ongoing transformation and enhance our client relationships.”

Ballantini, who will report to Lowcock as a member of his senior leadership team, brings more than two decades of experience in the marketing and advertising industry, including executive roles at Starcom and Tyson Foods. Her understanding of business models and challenges from both the client and agency perspectives equips her with the knowledge and empathy to connect effectively with clients and equip the Rise team to produce effective work that generates real business impact.

“I’m thrilled to join Rise at this pivotal moment in its growth journey,” Ballantini said. “The agency’s impressive track record, combined with its collaborative team and growth-oriented culture, give Rise the potential to solve client problems in bigger, more meaningful ways. As a leader who thrives on building and transforming teams and businesses, this offers me an unparalleled opportunity. I’m looking forward to collaborating with the team, delighting our clients, and helping Rise continue to establish itself as a full-service media agency.”

In addition to her work experience, Ballantini has been actively involved in industry organizations that support and advance working women and mothers, including She Runs It, a non-profit that aims to pave the way for more women to lead at every stage of their marketing, media and tech careers. She is passionate about mentoring rising leaders and parents, sharing her experiences as both a successful executive and a mother of two children.

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one of the largest commercial printers in North America, according to Printing Impressions.
For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

Rise, a Quad agency, is a full-service, omnichannel media agency that provides strategic solutions for brands to valuably connect with their audiences.

Specializing in media, customer experience, and analytics, Rise helps clients seamlessly navigate both brand and demand, driving consumer connections and making all media accountable for business outcomes. Powered by approximately 500 people who globally support over $1 billion in media, Rise serves brands across all industries including retail, direct-to-consumer, consumer packaged goods, healthcare, and financial services.

As part of Quad, Rise leverages a proprietary tech and data stack that provides brands with a telescopic view into the media touchpoints that change behavior and can transparently optimize their marketing spend to drive business growth. Learn more at meetrise.com.

Jennifer Wasmer
Director of External Communications
203-522-1699
jawasmer@quad.com

SUSSEX, WI, July 30, 2024 — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a global marketing experience company, today reported results for the second quarter ended June 30, 2024.

• Recognized Net Sales of $634 million in the second quarter of 2024 compared to $703 million in 2023 and realized a Net Loss of $3 million or $0.06 Diluted Loss Per Share for the second quarter of 2024.
• Achieved Non-GAAP Adjusted EBITDA of $52 million in the second quarter of 2024, increased from $50 million in the second quarter of 2023, and delivered $0.12 Adjusted Diluted Earnings Per Share for the second quarter of 2024.
• Increased Adjusted EBITDA Margin by 100 basis points to 8.2% in the second quarter of 2024 compared to the same period in 2023.
• Introduced Betty, a creative agency that delivers best-in-class strategy and creative, backed by Quad’s global production resources for speed and scale.
• Launched 3D Commerce by Quad, the first commercially available automated and scalable 3D scanning solution in the North American market for creating photorealistic 3D assets.
• Expanded partnerships for In-Store Connect by Quad, the company’s in-store retail media network.
• Generated $22 million of cash proceeds from sale of minority investment in Manipal Technologies, a leading print services and end-to-end business solutions provider headquartered in India.
• Declared quarterly dividend of $0.05 per share.
• Reaffirms full-year 2024 financial guidance.

Joel Quadracci, Chairman, President and CEO of Quad, said: “During the second quarter, we continued our focus on differentiating ourselves as a marketing experience company, including investments in innovative solutions and superior talent. We joined all of our creative business lines under a single agency called Betty, pairing the strategic creative services of an Agency of Record with our global production platform to offer highly scalable content at elevated speeds without sacrificing brand consistency or quality. We further enhanced our creative capabilities with the launch of 3D Commerce by Quad, the first commercially available automated and scalable 3D scanning solution in North America for creating photorealistic 3D assets for a range of applications, including product videos and virtual try-ons. Meanwhile, we advanced our In-Store Connect retail media network, or RMN, through a partnership with Swiftly, a prominent retail technology and media company whose industry-leading platform will help us bring the best elements of digital commerce into physical store environments. We continue to build sales momentum behind In-Store Connect. The Save Mart Companies, the largest private regional grocer on the West Coast, is in the process of activating our in-store RMN solution, and Homeland Stores, a large Oklahoma grocery chain, is scheduled to debut it in October. Additionally, we are in active conversations with more than a dozen other supermarket chains.

“As always, we remain focused on enhancing Quad’s financial strength and creating shareholder value and will continue to prioritize growth while further reducing debt in 2024.”

Added Tony Staniak, Chief Financial Officer: “During the second quarter, our Adjusted EBITDA margin increased by 100 basis points primarily due to higher manufacturing productivity and cost savings from completed restructuring actions that are ultimately expected to generate $60 million of savings in 2024. We generate cash from Free Cash Flow driven by our cost discipline as well as proceeds from asset sales, including $22 million in the second quarter of 2024 from the sale of our minority investment in Manipal Technologies. Net Sales declined in the second quarter reflecting pressure from ongoing external headwinds, including significant postal rate increases and the impact of elevated interest rates on financial services clients. Despite lower Net Sales, with our margin improvement and strong cash generation we are reaffirming our full-year guidance, including approximately 1.8x debt leverage, and we will continue to invest in accelerating our competitive position as a marketing experience company while returning capital to shareholders through our quarterly dividend. We also expect to be opportunistic in terms of our future share repurchases.”

• Net Sales were $634 million in the second quarter of 2024, a decrease of 10% compared to the same period in 2023 primarily due to lower print volumes, a higher mix of lower unit price gravure versus offset print in our magazine and catalog offerings from segment share wins, and lower paper and agency solutions sales, including the loss of a large grocery client.

• Net Loss was $3 million in the second quarter of 2024 compared to $6 million in the same period in 2023. The improvement is primarily due to benefits from increased manufacturing productivity, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies, partially offset by the impact from lower Net Sales.

• Adjusted EBITDA was $52 million in the second quarter of 2024 compared to $50 million in the same period in 2023, primarily due to the same reasons as the improvement in Net Loss.

• Adjusted Diluted Earnings Per Share was $0.12 in the second quarter of 2024 compared to $0.02 in the same period in 2023, primarily due to higher Adjusted Net Earnings and the beneficial impact from the Company repurchasing Class A shares totaling approximately 11% of its outstanding shares since the second quarter of 2022.

• Net Sales were $1.3 billion in the six months ended June 30, 2024, a decrease of 12% compared to the same period in 2023 primarily due to lower print volumes, a higher mix of lower unit price gravure versus offset print in our magazine and catalog offerings from segment share wins, and lower paper and agency solutions sales, including the loss of a large grocery client.

• Net Loss was $31 million, or $0.65 Diluted Loss Per Share, in the six months ended June 30, 2024, compared to Net Loss of $31 million, or $0.62 Diluted Loss Per Share, in the same period in 2023. The impact from lower Net Sales and higher restructuring and impairment charges from recent plant closures was offset by benefits from improved manufacturing productivity, lower depreciation and amortization, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies.

• Adjusted EBITDA was $102 million in the six months ended June 30, 2024, a decrease of $8 million compared to the same period in 2023. The decrease was due to lower Net Sales, partially offset by benefits from improved manufacturing productivity, savings from cost reduction initiatives and a $4 million gain on the sale of the Company’s minority investment in Manipal Technologies.

• Adjusted Diluted Earnings Per Share was $0.22 in the six months ended June 30, 2024, compared to $0.17 in the same period in 2023.

• Net Cash Used in Operating Activities was $48 million in the six months ended June 30, 2024, compared to Net Cash Provided by Operating Activities of $0.3 million in the six months ended June 30, 2023. Free Cash Flow was negative $82 million in the six months ended June 30, 2024, compared to negative $45 million in the same period in 2023. During the six months ended June 30, 2023, the Company realized non-recurring cash flow benefits from reducing inventories enabled by an improved supply chain environment. As a reminder, the Company historically generates most of its Free Cash Flow in the fourth quarter of the year.

• Net Debt was $532 million at June 30, 2024, compared to $470 million at December 31, 2023, and $604 million at June 30, 2023. Compared to December 31, 2023, Net Debt increased primarily due to the negative $82 million of Free Cash Flow in the six months ended June 30, 2024, less the $22 million of proceeds from the sale of the Company’s minority investment in Manipal Technologies. Quad continues to expect to reduce Net Debt to approximately $405 million, achieving a 1.8x Debt Leverage Ratio, at the end of this year.

Quad’s next quarterly dividend of $0.05 per share will be payable on September 6, 2024, to shareholders of record as of August 19, 2024.

The Company’s full-year 2024 financial guidance ranges are unchanged and are as follows:

Financial Metric	2024 Guidance
Annual Net Sales Change	5% to 9% decline
Full-Year Adjusted EBITDA	$205 million to $245 million
Free Cash Flow	$50 million to $70 million
Capital Expenditures	$60 million to $70 million
Year-End Debt Leverage Ratio (1)	Approximately 1.8x

⁽¹⁾ Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance.

Quad will hold a conference call at 8:30 a.m. ET on Wednesday, July 31, to discuss second quarter and year-to-date 2024 financial results. The call will be hosted by Joel Quadracci, Quad Chairman, President and CEO, and Tony Staniak, Quad CFO. As part of the conference call, Quad will conduct a question-and-answer session.

Participants can pre-register for the webcast by navigating to https://dpregister.com/sreg/10191016/fd1a26f188. Participants will be given a unique PIN to gain access to the call, bypassing the live operator. Participants may pre-register at any time, including up to and after the call start time.

Alternatively, participants may dial in on the day of the call as follows:

• S. Toll-Free: 1-877-328-5508
• International Toll: 1-412-317-5424

An audio replay of the call will be posted on the Investors section of Quad’s website shortly after the conference call ends. In addition, telephone playback will be available until August 31, 2024, accessible as follows:

• S. Toll-Free: 1-877-344-7529
• International Toll: 1-412-317-0088
• Replay Access Code: 1737252

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one the largest commercial printers in North America, according to Printing Impressions.

For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company’s future results, financial condition, sales, earnings, free cash flow, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company and can generally be identified by the use of words or phrases such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “foresee,” “project,” “believe,” “continue” or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company’s expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.

The factors that could cause actual results to materially differ include, among others: the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creates downward pricing pressures and potential under-utilization of assets; the impact of increased business complexity as a result of the Company’s transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets and technologies, such as artificial intelligence; the impact of changes in postal rates, service levels or regulations, including delivery delays; the impact of fluctuations in costs (including labor and labor-related costs, energy costs, freight rates and raw materials, including paper and the materials to manufacture ink) and the impact of fluctuations in the availability of raw materials, including paper, parts for equipment and the materials to manufacture ink; the impact macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as cost and labor pressures, distribution challenges and the price and availability of paper, have had, and may continue to have, on the Company’s business, financial condition, cash flows and results of operations (including future uncertain impacts); the inability of the Company to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of a data-breach of sensitive information, ransomware attack or other cyber incident on the Company; the fragility and decline in overall distribution channels; the failure to attract and retain qualified talent across the enterprise; the impact of digital media and similar technological changes, including digital substitution by consumers; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the impact of risks associated with the operations outside of the United States (“U.S.”), including trade restrictions, currency fluctuations, the global economy, costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents, and geopolitical events like war and terrorism; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the impact negative publicity could have on our business and brand reputation; significant capital expenditures and investments may be needed to sustain and grow the Company’s platforms, processes, systems, client and product technology, marketing and talent, and to remain technologically and economically competitive; the impact of the various restrictive covenants in the Company’s debt facilities on the Company’s ability to operate its business, as well as the uncertain negative impacts macroeconomic conditions may have on the Company’s ability to continue to be in compliance with these restrictive covenants; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment and other intangible assets; the impact of regulatory matters and legislative developments or changes in laws, including changes in cybersecurity, privacy and environmental laws; the impact on the holders of Quad’s class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company’s most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as non-GAAP), specifically Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense (benefit), depreciation and amortization and restructuring, impairment and transaction-related charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Free Cash Flow is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. Debt Leverage Ratio is defined as total debt and finance lease obligations less cash and cash equivalents (Net Debt) divided by the last twelve months of Adjusted EBITDA. Adjusted Diluted Earnings Per Share is defined as earnings (loss) before income taxes excluding restructuring, impairment and transaction-related charges and adjusted for income tax expense at a normalized tax rate, divided by diluted weighted average number of common shares outstanding.

The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies. Reconciliation to the GAAP equivalent of these non-GAAP measures are contained in tabular form on the attached unaudited financial statements.

Don Pontes
Executive Director of Investor Relations
916-532-7074
dwpontes@quad.com

Claire Ho
Director of Marketing Communications
414-566-2955
cho@quad.com

The U.S. Postal Regulatory Commission (PRC) is conducting two significant programmatic reviews that may impact rates and mailing rules. At the same time, the USPS is out with its updated diary study of the U.S. mail. Paper markets and logistics chains are stable while adapting to surprises such as Hurricane Beryl.

Built on our roots as a printer, mail industry partner and logistics leader, Quad is a marketing experience company focused on delivering streamlined solutions at scale to our clients. As the largest USPS customer, we are uniquely positioned to provide clients with best practices and insights on the latest postal, paper and logistics topics. If you have any questions or concerns during these challenging times for our industry, contact your Quad representative. We’ll tap our in-house experts to investigate and get you the answers you need.

With rates climbing and mail volumes declining, the U.S. Postal Regulatory Commission (PRC) earlier this year initiated a new review of the postal ratemaking system. The first phase of that review, which gave interested parties the chance to submit comments, closed on July 9.

The review intends to consider potential changes to the system, if necessary, to align with statutory objectives. It’s the first review since 2020 and follows steep rate increases that Quad and others believe undermine USPS financial stability and threaten private-sector jobs.

Twenty-five companies, industry organizations and groups submitted comments to the PRC, including over 800 pages of materials and recommendations. Quad submitted comments in July that, among other points, reiterated that USPS rate increases have contributed to a reduction in volumes to their lowest levels in four decades. Quad CEO Joel Quadracci stated “[t]he loss of mail volume is not only problematic for USPS’ operations, but has a significant impact on our nation as a whole, as it represents lost commerce that could be helping to grow our economy.”

The Postal Service will now review the comments and respond to regulators later in the fall.

In its review of a Postal Service proposal for new rates for Parcel Select, the Postal Regulatory Commission expressed renewed concerns about USPS pricing strategies.

The Postal Service proposal will see Parcel Select rates increase between 8% and 43%, depending on the category of the mailing. Regulators said the USPS estimated that the increases could lower volumes by up to 76 million pieces, or 2%. In comments to the commission, the Package Shippers Association described the proposed increases as “punitive.”

The commission noted that while it doesn’t have the authority to reject a proposed price increase that’s consistent with the law, it is “concerned that the Postal Service’s proposal may have a negative and disruptive impact.”

The Postal Regulatory Commission is also considering proposed changes to the requirements for securing bundles of flats. Mail bundling helps the Postal Service become more efficient by assembling and securing mail in groups for delivery to a specific area. However, bundles often break in transit.

In response, the Postal Service wants all bundles, including those that are shrink-wrapped, to have two or more cross-strapped bands, and to eliminate the use of rubber bands or string.

The comment period on the proposed rule closed on Monday, July 15, and will be followed by responses from the Postal Service. Quad will keep you updated in subsequent PPL newsletters.

U.S. households sent and received 97 billion pieces of mail in 2023, most of it related to advertising or transactions, according to the annual U.S. Postal Service Household Diary Study survey.

Fielded continuously since 1987, the Household Diary Survey provides a fascinating statistical portrait of the U.S. mail. It consists of a rolling study based on a sampling of households that offer information on demographics, lifestyle, attitudes toward mail advertising, bill-paying practices and use of the internet and other information technologies.

Among the insights in this year’s Household Diary Study:

In July, we saw generally “good” delivery performance data. August may start to bring a slight slowing. We may see less mail in-home the first few days after the mail enters the USPS, which in August will translate to a lower percentage of mail in-home early and in the first two days of the target window.

	Week of 6/3	Week of 6/10	Week of 6/17	Week of 6/24	Week of 7/1
Early	32%	32%	33%	46%	28%
Day 1	59%	55%	65%	72%	51%
Day 2	78%	78%	84%	85%	64%
Day 3	88%	88%	88%	92%	88%
Day 4	94%	95%	94%	96%	91%
1 Day Late	96%	96%	98%	96%	98%

Some locations are still moving flat mail slower than the USPS Service Standard, including Atlanta and North Metro, Georgia, and NDC (Network Distribution Center) St. Louis, Missouri. The Atlanta area is still being impacted by the modernization changes that have been taking place over the last five months as the USPS brings a new Regional Processing & Distribution Center online. Quad is continuing to try to get USPS’ attention on this issue, but delays of one to two days may continue through the summer.

On June 8, Hurricane Beryl made landfall on the Gulf Coast of Texas. It weakened to a tropical storm soon after moving on land, but strong storm surge, damaging winds and heavy rain still battered southeastern Texas and left millions without power for days. SCF (Sectional Center Facility) North Houston, which processes mail for ZIP Codes 773 and 775 through 778, was closed June 8 through July 13. The SCF did start processing mail that was in its facility prior to the storm by mid-week. The USPS has not reported any curtailed delivery, but some residents may not have received mail the week of July 8.

Mail volume for the week ended 7/6/24, compared to last year Total Mail Volume Up 2% ▲ Packages Up 5.7% ▲ Single Piece Down 2.5% ▼ Presort First Class Down 7.6% ▼ Marketing Mail Down 14.6% ▼ Periodicals Down 41.4% ▼

Mail volume for the week ended 6/29/24 Total Mail Volume Down 1% ▼ Packages Up 7.1% ▲ Single Piece Down 8.5% ▼ Presort First Class Up 1.2% ▲ Marketing Mail Down 3.1% ▼ Periodicals Up 1.1% ▲

 

Mail volume for the week ended 6/22/24 Total Mail Volume N/A Packages N/A Single Piece Down 4.6% ▼ Presort First Class Down 1.3% ▼ Marketing Mail Up 1.9% ▲ Periodicals Down 11.6% ▼

Mail volume for the week ended 6/15/24 Total Mail Volume Down 0.1% ▼ Packages Up 5.2% ▲ Single Piece Down 4.4% ▼ Presort First Class Down 0.8% ▼ Marketing Mail Up 5% ▲ Periodicals Down 7.4% ▼

Mail volume for the week ended 6/8/24, compared to last year Total Mail Volume Down 1.3% ▼ Packages N/A Single Piece Up 3.2% ▲ Presort First Class Down 2.6% ▼ Marketing Mail Up 7.5% ▲ Periodicals Up 13.9% ▲

Mail volume for the week ended 6/1/24 Total Mail Volume Down 3.8% ▼ Packages Up 3.2% ▲ Single Piece Down 12.5% ▼ Presort First Class Down 4.4% ▼ Marketing Mail Down 0.3% ▼ Periodicals Down 14.4% ▼

Paper order lead times are slightly longer as we head into the busy season. That said, paper supply is sufficient to meet current demand levels. Paper prices are currently stable as the market is more balanced this year than last.

Rail workers at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) have voted to authorize a strike in the event a labor agreement is not reached this month. The situation is currently pending federal review to determine the legality of the strike. As a contingency, Canadian paper mills have increased their dependence upon trucking to deliver paper.

The U.S. freight market is seeing some normal seasonal summer tightening but nothing that is impacting customer deliveries at this time. Imports from Asia into the United States and Mexico are creating bottlenecks at some ports handling the influx of containers. These bottlenecks are limiting the supply of chassis and containers — creating challenges with rail.

Truck imports from Mexico to the United States are extremely high as companies are rushing to avoid tariffs and focusing on nearshoring operations since the supply chain crisis during the pandemic.

Looking ahead, a potential strike involving members of the International Longshoremen’s Association (ILA) could complicate operations for cargo owners this fall. A six-year labor contract between the ILA and United States Maritime Alliance (USMX) is set to expire Sept. 30, according to The Loadstar, a news source for the shipping industry. The ILA represents about 85,000 longshoremen on the Atlantic and Gulf Coasts and other bodies of water; USMX membership consists of Container Carriers, Marine Terminal Operators, and Port Associations from Maine to Texas. Based on previous experience, the impact of a strike would create potential disruptions nationally. Quad will continue to monitor these situations closely.

As always, your Quad representative will work diligently to find you the lowest rates with the most efficient transportation available.

SUSSEX, WI, July 23, 2024 — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a global marketing experience company, today announced that its Board of Directors declared a quarterly dividend on the Company’s common stock of $0.05 per share.

The dividend is payable on September 6, 2024, to shareholders of record as of August 19, 2024.

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one the largest commercial printers in North America, according to Printing Impressions.

For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

Don Pontes
Executive Director of Investor Relations
916-532-7074
dwpontes@quad.com

SUSSEX, WI, July 17, 2024 — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a global marketing experience company, announced today that it will release its second quarter and year-to-date 2024 financial results after the close of regular market trading on Tuesday, July 30, 2024. The Company will host a conference call at 8:30 a.m. ET on Wednesday, July 31, 2024, to discuss the aforementioned results.

The call will be hosted by Joel Quadracci, Quad Chairman, President and CEO, and Tony Staniak, Quad CFO. The full earnings release and slide presentation will be concurrently available on the Investors section of Quad’s website at http://www.quad.com/investor-relations. As part of the conference call, Quad will conduct a question and answer session.

Participants can pre-register for the webcast by navigating to https://dpregister.com/sreg/10191016/fd1a26f188. Participants will be given a unique PIN to access the call on July 31. Participants may pre-register at any time, including up to and after the call start time.

Alternatively, participants may dial in on the day of the call as follows:

• S. Toll-Free: 1-877-328-5508
• International Toll: 1-412-317-5424

An audio replay of the call will be posted on the Investors section of Quad’s website shortly after the conference call ends. In addition, telephone playback will also be available until August 31, 2024, accessible as follows:

• S. Toll-Free: 1-877-344-7529
• International Toll: 1-412-317-0088
• Replay Access Code: 1737252

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service Rise media agency and Betty creative agency. Quad is also one the largest commercial printers in North America, according to Printing Impressions.

For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

Don Pontes
Executive Director of Investor Relations
916-532-7074
dwpontes@quad.com

Claire Ho
Corporate Communications Director
414-566-2955
cho@quad.com

SUSSEX, WI, July 9, 2024 — Quad/Graphics Inc. (NYSE: QUAD), a global marketing experience company, is joining forces with Homeland Stores, an Oklahoma-based supermarket chain, for the ongoing roll-out of its innovative in-store retail media network, In-Store Connect, at 15 Homeland banner stores this year. By adding another regional grocer to its In-Store Connect roster, Quad is continuing to build a nationwide in-store retail media network.

Quad elevates the shopping experience by installing networked digital screens and kiosks at retailer locations like Homeland to deliver engaging messages and targeted promotions right at the store shelf – the most critical moment in the purchasing decision. In-Store Connect by Quad enables CPGs and retailers to collaborate on dynamic content that resonates with the customer and provides the unique opportunity to directly connect with shoppers at strategic locations throughout the store, creating awareness, influencing decisions in real-time, and driving sales.

“Our relationship with Homeland underscores Quad’s commitment to innovating impactful solutions that drive results for our clients,” said Kevin Bridgewater, Senior Vice President of Strategic Retail Initiatives for Quad. “In-Store Connect is a robust, strategic offering that’s opening new marketing and revenue opportunities for mid-market retailers and the brands on their shelves. We believe Quad is on the road to becoming the industry standard for in-store retail media networks.”

“This is a breakthrough for retailers like us because it allows us to stack up against the big e-commerce players while enhancing our in-store experience and providing our customers with relevant and engaging digital content,” said Christin King, Director of Marketing of HAC, Inc. and Homeland. “Quad’s In-Store Connect is truly innovative and aligns with our commitment to deliver exceptional service and value to our shoppers and partners. We look forward to an ongoing partnership with Quad that drives growth and success for our business.”

In-Store Connect digital signage, which is controlled centrally and serviced locally, can be linked together across grocery chains to provide powerful, at-shelf promotional opportunities for national brands seeking coast-to-coast coverage. Quad recently announced that it is partnering with Swiftly, a leading retail technology and media company whose industry-leading platform helps In-Store Connect bring the best elements of digital commerce into physical store environments.

Quad (NYSE: QUAD) is a global marketing experience company that helps brands make direct consumer connections, from household to in-store to online. Supported by state-of-the-art technology and data-driven intelligence, Quad uses its suite of media, creative and production solutions to streamline the complexities of marketing and remove friction from wherever it occurs in the marketing journey. Quad tailors its uniquely flexible, scalable and connected solutions to clients’ objectives, driving cost efficiencies, improving speed to market, strengthening marketing effectiveness, and delivering value on client investments.

Quad employs approximately 13,000 people in 14 countries and serves approximately 2,700 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked as the 14th largest agency company in the U.S. by Ad Age (2023), and the second-largest commercial printer in North America, according to Printing Impressions (2023). 

For more information about Quad, including its commitment to ongoing innovation, culture and sustainable impact, visit quad.com.

Jennifer Wasmer
Director of External Communications
203-522-1699
jawasmer@quad.com