Exhibit 99.1
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(UNAUDITED)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | March 31,
2019 | | June 30,
2019 | | September 30,
2019 | | September 30,
2019 |
| Net sales | $ | 961.0 |
| | $ | 948.9 |
| | $ | 943.6 |
| | $ | 2,853.5 |
|
| Cost of sales | 788.3 |
| | 771.5 |
| | 764.5 |
| | 2,324.3 |
|
| Selling, general and administrative expenses | 94.5 |
| | 96.4 |
| | 99.6 |
| | 290.5 |
|
| Depreciation and amortization | 54.2 |
| | 52.9 |
| | 52.2 |
| | 159.3 |
|
| Restructuring, impairment and transaction-related charges | 7.6 |
| | 9.4 |
| | 56.7 |
| | 73.7 |
|
| Total operating expenses | 944.6 |
| | 930.2 |
| | 973.0 |
| | 2,847.8 |
|
| Operating income (loss) from continuing operations | 16.4 |
| | 18.7 |
| | (29.4 | ) | | 5.7 |
|
| Interest expense | 21.8 |
| | 25.8 |
| | 22.0 |
| | 69.6 |
|
| Net pension income | (1.5 | ) | | (1.5 | ) | | (1.5 | ) | | (4.5 | ) |
| Loss on debt extinguishment | 15.9 |
| | — |
| | 14.6 |
| | 30.5 |
|
| Loss from continuing operations before income taxes and equity in loss of unconsolidated entity | (19.8 | ) | | (5.6 | ) | | (64.5 | ) | | (89.9 | ) |
| Income tax benefit | (7.2 | ) | | (3.2 | ) | | (17.6 | ) | | (28.0 | ) |
| Loss from continuing operations before equity in loss of unconsolidated entity | (12.6 | ) | | (2.4 | ) | | (46.9 | ) | | (61.9 | ) |
| Equity in loss of unconsolidated entity | 0.1 |
| | 0.7 |
| | 0.1 |
| | 0.9 |
|
| Net loss from continuing operations | (12.7 | ) | | (3.1 | ) | | (47.0 | ) | | (62.8 | ) |
| Loss from discontinued operations, net of tax | (10.1 | ) | | (11.6 | ) | | (79.4 | ) | | (101.1 | ) |
| Net loss | (22.8 | ) | | (14.7 | ) | | (126.4 | ) | | (163.9 | ) |
| Less: net earnings (loss) attributable to noncontrolling interests | (0.3 | ) | | 0.1 |
| | 0.1 |
| | (0.1 | ) |
| Net loss attributable to Quad common shareholders | $ | (22.5 | ) | | $ | (14.8 | ) | | $ | (126.5 | ) | | $ | (163.8 | ) |
| | | | | | | | |
| EBITDA and Adjusted EBITDA (Non-GAAP) | | | | | | | |
| Net loss attributable to Quad common shareholders | $ | (22.5 | ) | | $ | (14.8 | ) | | $ | (126.5 | ) | | $ | (163.8 | ) |
| Interest expense | 21.8 |
| | 25.8 |
| | 22.0 |
| | 69.6 |
|
| Income tax benefit | (7.2 | ) | | (3.2 | ) | | (17.6 | ) | | (28.0 | ) |
| Depreciation and amortization | 54.2 |
| | 52.9 |
| | 52.2 |
| | 159.3 |
|
| EBITDA (Non-GAAP) | $ | 46.3 |
| | $ | 60.7 |
| | $ | (69.9 | ) | | $ | 37.1 |
|
| EBITDA Margin (Non-GAAP) | 4.8 | % | | 6.4 | % | | (7.4 | )% | | 1.3 | % |
| | | | | | | | |
| Restructuring, impairment and transaction-related charges | $ | 7.6 |
| | $ | 9.4 |
| | $ | 56.7 |
| | $ | 73.7 |
|
| Loss from discontinued operations, net of tax | 10.1 |
| | 11.6 |
| | 79.4 |
| | 101.1 |
|
| Net pension income | (1.5 | ) | | (1.5 | ) | | (1.5 | ) | | (4.5 | ) |
| Loss on debt extinguishment | 15.9 |
| | — |
| | 14.6 |
| | 30.5 |
|
| Other | — |
| | 0.8 |
| | 0.4 |
| | 1.2 |
|
| Adjusted EBITDA (Non-GAAP) | $ | 78.4 |
| | $ | 81.0 |
| | $ | 79.7 |
| | $ | 239.1 |
|
| Adjusted EBITDA Margin (Non-GAAP) | 8.2 | % | | 8.5 | % | | 8.4 | % | | 8.4 | % |
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(UNAUDITED)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Year Ended |
| | March 31,
2018 | | June 30, 2018 | | September 30, 2018 | | December 31, 2018 | | December 31, 2018 |
| Net sales | $ | 922.6 |
| | $ | 964.8 |
| | $ | 973.5 |
| | $ | 1,124.9 |
| | $ | 3,985.8 |
|
| Cost of sales | 749.4 |
| | 777.9 |
| | 777.0 |
| | 917.1 |
| | 3,221.4 |
|
| Selling, general and administrative expenses | 83.4 |
| | 96.2 |
| | 89.2 |
| | 90.1 |
| | 358.9 |
|
| Depreciation and amortization | 52.6 |
| | 54.4 |
| | 55.0 |
| | 52.9 |
| | 214.9 |
|
| Restructuring, impairment and transaction-related charges | 24.9 |
| | 10.4 |
| | 5.3 |
| | 62.7 |
| | 103.3 |
|
| Total operating expenses | 910.3 |
| | 938.9 |
| | 926.5 |
| | 1,122.8 |
| | 3,898.5 |
|
| Operating income from continuing operations | 12.3 |
| | 25.9 |
| | 47.0 |
| | 2.1 |
| | 87.3 |
|
| Interest expense | 17.2 |
| | 18.4 |
| | 18.3 |
| | 19.3 |
| | 73.2 |
|
| Net pension income | (3.1 | ) | | (3.1 | ) | | (3.1 | ) | | (3.1 | ) | | (12.4 | ) |
| Earnings (loss) from continuing operations before income taxes and equity in (earnings) of unconsolidated entity | (1.8 | ) | | 10.6 |
| | 31.8 |
| | (14.1 | ) | | 26.5 |
|
| Income tax expense (benefit) | (1.9 | ) | | (2.4 | ) | | 4.5 |
| | (2.6 | ) | | (2.4 | ) |
| Earnings (loss) from continuing operations before equity in (earnings) of unconsolidated entity | 0.1 |
| | 13.0 |
| | 27.3 |
| | (11.5 | ) | | 28.9 |
|
| Equity in (earnings) of unconsolidated entity | (0.3 | ) | | (0.2 | ) | | (0.2 | ) | | (0.3 | ) | | (1.0 | ) |
| Net earnings (loss) from continuing operations | 0.4 |
| | 13.2 |
| | 27.5 |
| | (11.2 | ) | | 29.9 |
|
| Loss from discontinued operations, net of tax | (3.9 | ) | | (3.7 | ) | | (5.0 | ) | | (9.4 | ) | | (22.0 | ) |
| Net earnings (loss) | (3.5 | ) | | 9.5 |
| | 22.5 |
| | (20.6 | ) | | 7.9 |
|
| Less: net earnings (loss) attributable to noncontrolling interests | — |
| | 0.1 |
| | (0.9 | ) | | 0.2 |
| | (0.6 | ) |
| Net earnings (loss) attributable to Quad common shareholders | $ | (3.5 | ) | | $ | 9.4 |
| | $ | 23.4 |
| | $ | (20.8 | ) | | $ | 8.5 |
|
| | | | | | | | | | |
| EBITDA and Adjusted EBITDA (Non-GAAP) | | | | | | | | | |
| Net earnings (loss) attributable to Quad common shareholders | $ | (3.5 | ) | | $ | 9.4 |
| | $ | 23.4 |
| | $ | (20.8 | ) | | $ | 8.5 |
|
| Interest expense | 17.2 |
| | 18.4 |
| | 18.3 |
| | 19.3 |
| | 73.2 |
|
| Income tax expense (benefit) | (1.9 | ) | | (2.4 | ) | | 4.5 |
| | (2.6 | ) | | (2.4 | ) |
| Depreciation and amortization | 52.6 |
| | 54.4 |
| | 55.0 |
| | 52.9 |
| | 214.9 |
|
| EBITDA (Non-GAAP) | $ | 64.4 |
| | $ | 79.8 |
| | $ | 101.2 |
| | $ | 48.8 |
| | $ | 294.2 |
|
| EBITDA Margin (Non-GAAP) | 7.0 | % | | 8.3 | % | | 10.4 | % | | 4.3 | % | | 7.4 | % |
| | | | | | | | | | |
| Restructuring, impairment and transaction-related charges | $ | 24.9 |
| | $ | 10.4 |
| | $ | 5.3 |
| | $ | 62.7 |
| | $ | 103.3 |
|
| Loss from discontinued operations, net of tax | 3.9 |
| | 3.7 |
| | 5.0 |
| | 9.4 |
| | 22.0 |
|
| Net pension income | (3.1 | ) | | (3.1 | ) | | (3.1 | ) | | (3.1 | ) | | (12.4 | ) |
| Employee stock ownership plan contribution | 22.3 |
| | — |
| | — |
| | — |
| | 22.3 |
|
| Other | (0.3 | ) | | (0.1 | ) | | (1.1 | ) | | (0.1 | ) | | (1.6 | ) |
| Adjusted EBITDA (Non-GAAP) | $ | 112.1 |
| | $ | 90.7 |
| | $ | 107.3 |
| | $ | 117.7 |
| | $ | 427.8 |
|
| Adjusted EBITDA Margin (Non-GAAP) | 12.2 | % | | 9.4 | % | | 11.0 | % | | 10.5 | % | | 10.7 | % |
