QUAD - Earnings call 4 2023 | Quad/Graphics, Inc.

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Operator

Good morning, and welcome to Quad's Fourth Quarter and Full Year 2023 Conference Call. [Operator Instructions] A slide presentation accompanies today's webcast and participants are invited to follow along, advancing the slides themselves. To access the webcast, follow the instructions posted in the earnings release. Alternatively, you can access the slide presentation on the Investors section of Quad's website under the Events and Presentations link. [Operator Instructions] Please note, this event is being recorded.

to Relations call Manager. like Krebsbach, to now Investor Quad's would turn over the Katie I Katie, go please ahead.

Katie Krebsbach

Q&A. and results, and Thank of a you, Officer. business Joel full President update, are and With Joel Quad's me Executive followed operator, and call XXXX will year good fourth Quadracci, morning, will lead and Quad's quarter with Chief Tony Staniak, summary Quad's Tony everyone. by today's today Chief financial Financial Officer; a Chairman, with follow

would everyone are generally being to outlined I remind presentation webcast, X. financial and release safe as on is to this call slide Quad's news results like that provisions in accounting quarterly forward-looking subject in with are accepted principles. today's Slide accordance and prepared statements our harbor in

also non-GAAP adjusted free cash including adjusted presentation adjusted earnings debt this and debt measures contains leverage per EBITDA, diluted financial ratio. flow, share, margin, EBITDA However, net

the measures. have slide financial GAAP presentation in these measures to of reconciliations We included non-GAAP financial

call today. Finally, concludes available quad.com call a our replay of shortly after section and the the Investors on presentation of be will slide the

I will over now Joel. call to hand the

J. Joel Quadracci

Thank delivered guidance Katie, XXXX report I to am meeting and we Slide everyone. good pleased on you, Beginning our metrics. across X. all results, solid morning,

budgets. share XXXX detail rates the the leading sales on net to sales above was direct of midpoint sector, by economic included rate in I adjusted that with net EBITDA more shortly. of decline impact a our Our increase consistent financial inflation, ongoing will results and interest significant rate well above elevated of created our EBITDA X% range especially mail and annual on in margin the postal breakdown adjusted uncertainty, guidance XXXX the an despite services early reduced

we balance of XXXX with our and guidance to range return Xx, continued debt have in paid reduction our January through our end years. near flow also ended high repurchases. X, shareholders further cash a level to was XX% reducing strengthen X leverage strong to sheet, XXXX. since XXXX, our our over to generation debt, million used We the capital off we net leverage lowest Since that share $XXX XXXX, Through cash free

continue will a share And our per dividend announced share. of last repurchases. have we as terms in we future opportunistic of week, to quarterly We be reinstated $X.XX

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financial turn now over Tony I'll to a the review. for call

Anthony Staniak

XXXX XX and XXXX. is and down Net of Joel, full quarter good quarter $XXX of sales XX% the our million fourth XXXX, results. Slide everyone. were fourth year a snapshot in morning, Thanks, from financial

of For and logistics were X% down XXXX. the the full year, paper sales lower sales well billion, decline from print, as $X rate due specific of print operations. increases, XXXX were primarily the was ongoing divestiture The postal sales elevated external net interest net clients. impacted Print significant to as our rates and negatively including effect headwinds, Argentina volumes on economic uncertainty by

Adjusted X.X% fourth was $XX and in X.X% quarter of XXXX. of the in declined million quarter fourth compared fourth the as million to $XX margin EBITDA of in quarter fourth the in adjusted the XXXX, XXXX of compared to XXXX quarter EBITDA

XXXX. $XXX in was XXXX EBITDA For to million million in the year, $XXX compared full adjusted

X.X% decrease lower million as EBITDA improved pension full productivity offset from impact year margin EBITDA was initiatives. from the due cost partially The in X.X%. by of well savings adjusted income benefits of from adjusted reduction lower to manufacturing sales primarily improved $XX However, as to and

per was the in $X.XX fourth in the quarter diluted compared of XXXX share as XXXX. Adjusted fourth to $X.XX quarter of earnings

shares the invest million flow primarily our price was And cash total free cash $X.XX $XX quarter, of positive XXXX to adjusted net For shareholders Free in to million we diluted XXXX, XXXX. flow impact automation we adjusted XXXX. and repurchases. $XX capital by in earnings to decline compared we share partially to and purchase $XX due an per was The capital repurchases. compared expenditures lower shares XX% continued X.X was in in full from $XX have outstanding as million. innovation share share $X.XX of offset the XXXX approximately a quarter or return continue for million fourth due was In decline was earnings million to in the to repurchased in the through in increase since of to The second year, initiatives. primarily

During expenditures XXXX, we $XX in capital million efficiencies. invested drive to

cash free XX. we to to flow, shown cash continue asset addition from Slide as In also generate sales, on significant

the cash sales. X-year we for our Merced, quarter California we equipment print free and building million. During $XX which include property, X of $XXX as million closure closed to from quarter generate sales. into net plant the the from that owned of we flow additional XXXX of we over asset as sales our announced certain sold fourth will proceeds portions proceeds of sales asset business XXXX of will of the XXXX, from of and in in facilities, divestitures from Beginning expect an proceeds facilities XXXX These generate noncore well first XXXX, and period we of from have as such further

allocation XX. cash on strategy, Slide strong capital fuels This generation as our shown

debt Our capital from to DART, shareholders. offerings capital continued scaling to allocation proceeds of such and using reduction free as priorities our flow the and invest in include cash as marketing cash experience company, asset a acquisition sales return

a announced annualized share of on or dividend our reinstated week, February basis. on per of Directors quarterly $X.XX per an last share $X.XX As Board XX,

also quarterly and We to our return continue to share terms be are future to shareholders pleased the expect capital repurchases. opportunistic dividend, through in to of we

We commitment Slide debt XX. saw our on to reduction

by reached of approximately and of XXXX. long-term the We $X over As million, leverage X.Xx net of to further a reduction the reduced $XXX strategy, XX% we had to we a low at reduction X, by debt debt XXXX, leverage was XXXX, billion intend multiyear end we reduce end debt January debt from on range. part end which previous targeted our debt the of leverage, of X.Xx

now X.XX turn to debt We targeted also X.XXx. leverage lowering X.XXx to range by are be a our

debt presses by of our then presses increasing At $XX was includes with to the and was was loan million million, a credit million We our generated add debt XXXX, summary of XX X.X%, into end early rate that our time, to facility million XXXX, term commitment interest capital our facility blended net to Slide our debt term of purchasing by successfully structure. the XX% cash our on $XXX printing by $XX fixed. $XX In XX% $XX one our under floating we $XX instead of banks and cash our outright. to million. at revolving same those repay for used of leases $XXX maturity, entering of an large total revolving loan hand million and the capacity and decreased X credit million and

November our is debt complete, With maturity the now significant XXXX. debt in step-down nearest of next

XX, Slide sales sales we due in certain declines decline decline to X% to net The heightened organic product is year. significant to included compared guidance. rate Annual On are XXXX have by in expected X% our the financial to expected postal increases. lines primarily prior net

net a of be In addition, by long-standing a relationship ending with the sales our large guidance grocery will client. impacted

and this XXXX with the concludes of of client end relationship our Our represented at month, this net X% sales. approximately

client disappointing, annual X% highly client While loss no the more is any our representing diversified our with cloud revenue. single of of than revenue is

have X,XXX that offerings provide we base sales marketing experience opportunities as large continue We company. our a a expand as to of clients over growth

Full cost expected These of a at year $X savings. include production XXXX well X.X%, $XXX are New and to in adjusted point cost improved in a in of savings productivity XX from labor initiatives EBITDA, Bolingbrook, million result annual expected the benefits cost million range, but basis as be million and due reductions These facilities and Etchingham $XXX SG&A. York difficult, to Illinois; our margin Saratoga California; of to Springs, million EBITDA closures initiatives. $XX while million reduction $XXX decline reduction midpoint is with adjusted decisions, Sacramento, other as from representing adjusted the improvement XXXX from in manufacturing and that to between EBITDA

quarter of annualized be first we XXXX the will adjusted in improved EBITDA perspective, their of the as lowest then actions the second full late to half benefit anticipate combined the with quarter second peak. cost the full From production adjusted EBITDA higher amount to a our due expect sales seasonal during in We reduction of actions the in benefits the from of XXXX. our reach quarterly XXXX restructuring

half $XX range, be compared We million million $XX closures particularly the range flow payments, decline million higher of XXXX. free million, of most to be actions. XXXX to impacted midpoint the $XX labor other and cash In $XX cash that plant due first XXXX, recent will to with flow at the free restructuring representing the in year to a by the expect of in

The lower higher flow restructuring working lower expected will payments sales the capital expenditures million of be payments lower expenditures. capital, $X are lower the improvements due $XX our by and in reduction and from cash interest in midpoint the of XXXX guidance to our Capital than debt reduction million, be million $XX in partially range net offset at approximately to to range. XXXX

expect timing new debt continue to by prioritize debt We the proceeds be recently our buildings for augmented our selling approximately which XXXX, cash With to near low cash will sales. net the will of that announced our X.XX were we of to strong by the to end from our The free of be debt to cash based of reduction range of be X.Xx long-term X.XXx. and closure. targeted generation, reduce flow the net on asset ratio extent leverage expect further end leverage

experience investments believe that continue key maybe we investment company. Quad more as a quarterly and recently as as compelling a We compelling digital DART and such in-store offerings with dividend, sales our company, includes higher focused continued is growing remain XX the we as announced revenue Slide diversification our net long-term acquisition. promotions of momentum marketing on profitability investment build marketing driving in new to even and with highlights our the clients a experience with offerings including through expanded our on

clients is addressable revenue both new with base opportunity There a significant as of existing well our large clients. as

end X.Xx leverage strategy, multiyear provides XXXX, our at flexibility the debt achieving debt of addition, allocation. In in capital successful reduction us including increased

we rate will what industry-leading reduction debt its environment and in not as costs on we interest an Quad change believe focus shareholders best strengthen is in is as and this reduce financial interest of interest further high the foundation. that Our

While ways shareholders we to capital debt, to continuing add reduce dividend. with the provide to now to we flexibility the quarterly the of also reinstatement returns have the

to questions. for turn back With that, operator our the like I'd call to

Operator

of [Operator from Barrington first Associates. Instructions] The question comes Research Steinke Kevin

Kevin Steinke

expecting targeted to about the think the the Nice touch getting asking uncertainty range you just and increases, results job to to as low I in postage But prior as well XXXX, forward. what by Maybe just of of can behind wanted organic factors year you start kind the ratio certain that. as on about rate out the categories about categories to expected on end outlook sales leverage on quarter economic also was interest good product you're as range, just you see and categories. you decline XXXX? in well, fourth which your the and touch it mentioned various quarter talked saw I you full and then well as declines rates, in as going the reduce fourth the

J. Joel Quadracci

Yes.

great I can with way what talk for kind Joel. years, And cash where through it double-digit we we we print manage this and flow that's The lines especially me of free for continue is large-scale and just XXXX, just think it's forward always we'll is those say. we inserts, to from that expect down is with -- been of retail roll kind probably clip and of and organic Kevin, in to about we get decline, that. a start one walk that best manage many and

uncertainty. economic in manageable I'd a that One at would 'XX of happened So the X process. The thing the beginning say themes. year, be it's

that from our We are hearing clients.

the with XXXX us sort sharing was around they that little And everyone of it plan. a definitely muted how hearing their bit think world. I were

could in. You it built being see

including exposure banking mail where a rate other to that part exiting on one main segment, consumer direct know. as increases was you interest financial we was And because significant business. really big impacted the pretty like, player the hard The had us

rates, you especially direct interest very large saw lending with consumer and a big in pullback amongst mail services. so And

So that's what impacted that.

XX% -- is that to they did theme would forward go the really in in were biggest part going Clients year say is post middle the significant that the their a already one, second did to the year, with clients' of they they increase not increase our a early first important cost. expect increase The in to the for with in the XX% decided and I combined but the budgets locked so an office decided second had of year.

And so whenever this was happens, of post the and digital result again, it's office. the biggest decline increase. cost, was we as the saw in This specifically disruption. a significant postage the mail This second half by catalog significantly above-inflation not a increase direct

significantly happens And pretty they is make right to mailing their up for so reduced away it. what prospecting

You in catalog, names second your you customers. that increase that. Whenever like -- saw there's And try sell have you in this, to you quarter. then and a rent customers, that the your big typically have out-of-whack a we off existing get pullback it's

looked X% we the but catalogs loaded when would we for was where the heavily be that about back-end think decline. that sales I year-to-date, off at year, saw very

everyone announced no XXXX, go knows, to because back, with strategy making the the a is belief, of going the one but backbones and office And our As not forward as of They about planning marketing away. post in the couple the for on a office think of one rest is sound absolutely, roll post This forward has post office I passed mail just a is X%, X.X% they're let work. significant increase. the in July. along weeks XX% about going another

be the going the to et that's taxpayer there's concerned working not post but with about the a what they're -- I'm should is ability to should office distribute because White where post right cetera, by we're own. major postage Congress, office, So takeover concerned, its the everyone through now, that or and House, towards losing funds everyone concerned heading be bailout

last years. mean so increase do, literally triple in sense. largest X for And sense they're trying what XX% it cost in It the of I makes it's the no over make anybody. the rate inflation doesn't to economic

to We to that through. hinted have our hope goes postage organic we're our but of due put discounts. the I it a in skip for post -- our major roll as post Also for around office to managing back, We of into many post work the are expected We've, that innovated about guidance. guidance. big more product. changes, And built it lot customers years to we into We years, office. out -- get a towards most if doing decline the office

And so of doing form the call for in what a skipping we and that we office. of the the post infrastructure do mailing work the lot and

potentially save product to a new could We've costs. coming got of out help that XX% people XX% postage their

to So core offsetting reiterate see lending. personal in maybe coming I'd mail is say office we're while the I'll the it direct doing, make financial some post helping back least back, this but increase that not to not starting of in. that's inexplicable the interest build manageable, at on but From segment an rate side, standpoint,

I'm digital you've from got on are direct it the the And And of in But have of we've decrease back works. in. the got et also cetera. to who away promising that effectiveness going cookies, of because also strength a may come mail, direct pulled seeing mail, people deprecation conversations starting several with very

at full they're be so to and And mix everyone and that looking is try Does going optimize ignoring Kevin? not make sense, print. the media to it

Kevin Steinke

great was color. Absolutely. That

perhaps XXXX, about say? that than uncertainty. your the really, think -- it's postal the comments, weighted to economic rate fair I more feels increases Is as it like from is expected towards decline more So it

J. Joel Quadracci

catalogs, been way decline, for what of areas And would the that we've saying and years. you at be though direct looking large-scale it. that's like But in we're I'll print, expect double-digit That's remind in mail, that the we accurate. to continue

Kevin Steinke

mentioned U.S. largest trend I the government of know, the with working slow reverse this mailers or trying one of the rates. Okay. And perhaps increasing to in on is obviously, don't you

have ear a your their or have you know don't any -- you sense I as I industry's thinking guess? these these is other were suppose large mean what just whether by volume if their level think the would they bit. volume of influence? surprised probably lot I they're And wondering Or And influences they I a You do what level of mean are after mailers. getting seeing declines, declines? pushback, from I to of

J. Joel Quadracci

I in about we've went mix. mean I stuck direct because there, mail declines have what mailers disruption, if talk to the to raising era labor It's called increase on doesn't elasticity that my cost. something digital just to prices volume a CPI you going don't math lot my disruption. digital of catalog that this to told in lot like out particular still of and and it a our And telling they believe go in use at because XX%, somewhere the we say is no ability of in but would Yes, world of been that we are they this huge me through is the is it cost customers the range. is work. pass up biggest be most And

as Now no billions capped about of rates is of on at post their got relief couple of cap world in with We like the in one after office CXX, same huge that. of of lot a bill in from of retirement this, a the They times up else single behalf that just the groups. a the person years. things released for health is work rate I've we but testified lot save ago at a by having not CPI. having pre-form years is they the on and different got conjunction working Congress we postal which multiple was XX But downside mailers. can speak influence to everybody care made different to dollars

this. extreme And they like to doesn't it levels would just make And sense. thought go logically one no

run don't business You way. a this

of there's lot will out we're in the world, their lot of And a world. -- you of who a see this screaming. there's hitting the now, lot there's tell nonprofit will that players own of this. a about are also lobbying it lot I but it, So AARPs a you Nonprofits think lot killed players that of big people there do a other by of you right getting

away, one who that going not about governors massive bear. of again, much on. and hopefully, Congress' takeover, going it's of will but should some it's that which board And attention to oversee I ultimately, taxpayer go no worried there's it to bring rational And because wants getting be they behavior a the think too to

Kevin Steinke

wanted That's backfill client, how -- there would to what the of you time? helpful. a kind if grocery of loss touch just I mentioned -- longtime that maybe to just over right. you you on also -- there? And All expect happened maybe

J. Joel Quadracci

Yes.

for we their help have asking paid that there And the to things hate work We I'll I multiple on just And some things with losing also we of get that do This We're we did for backfill what to world, we all paid through a -- clients. we this is lot two services. to say also client, complexities it I'll need to do. customer of get we managing will not what complex own. the say very it. complex but across these for do. services significant is

I'll it that. So leave at

Kevin Steinke

touch what is Understood. I you the I was thinking of kind maybe profitability mean, that's yes, wasn't there. perhaps on

your is significant an it's maybe profitability to not revenue. your large perhaps impact So or as of

J. Joel Quadracci

we Yes. a integration, giving think ask. that paid things, all by it's my important I this That's just all benefit shareholders providing price. savings, postal different get we in for that and just so invest a people get these fair things do. my employees all We we huge the all paid as we for we're that

term that my you of long results in don't like, the answers the And so sometimes, company. best but answers for

Kevin Steinke

Great. Understood.

to So you're and about there. solutions talk seeing wanted the I also end-to-end demand bargaining solutions, your agency

you think mentioned a business I pipeline. strong

seeing what maybe these on uncertain economic that times? be of in if kind to And resilient that continues front? So you're

J. Joel Quadracci

remember, actually say aperture is heating year is a that to up access pipeline before. brand -- up just had relaunched our ago, we nicely this because I'd lot opening never is the we a the about clients Yes, and of

to the of And so space solutions. and CPG it that. weren't in viewed we as We really things like weren't providing agency direct always media or

telling that past ramped mean, ago, never brand for I'd year. we're I really VX. -- never we up redesigning look so the Titleist thought I years you a of this And be Pro that couple I'd

And of win, want I just to -- entry solution any you flywheel. what as about shared agency point at not an a this Wolverine When relationship. is want It's point. the I it's look entry win think to a today, we great

that suddenly into quite in-store. entered problem. on different about I'd if how able we them in instance, someone their talking to few -- to and then then So to packaging, for offer enter appear see a with Wolverine, products solve we're package services we we're like space creative a that for does suddenly

people. talk our to in-store Let's

out that advertising the out our spend, we your CPGs to network launching help to media that then the the we with experience comes of to the way, network love as using media manage data on audience. new we're but the media further go with retail start eyeballs, of data store to get after take sell retail that we'd within By

create of in think a I well, of the of lot creating a big think targeted so and as it's a flywheel channels And revenue And all as Wolverine speeding of example great this up. that. revenue across lot that's will And especially a print is print.

Kevin Steinke

Okay. Great.

think I when EBITDA you how end low the what of as the those ranges XXXX, map you factors So the gives you about guidance play out, some high of guidance those maybe adjusted that as for think the or ranges year about end and out? might are sales the

Anthony Staniak

is think on I Kevin. Tony, -- this the

on marketing environment throughout the of side. sales I economy from economic improve the extent could benefit from lasts the thus kind it think with improved kind the To is would the the on of how that environment that perspective, we spend, today the revenue economic we've it, similar substantially standpoint, to assumed XXXX. and along

those think that United for I'd the how of with side, productivity. to still wide we provide into to print to and And then and us. profitability to States. benefits work in improvement can lot a agency just on respectively a say XXXX, We're EBITDA the putting can said I at agency what one in Joel all did month. XXXX, improve can that continue put just couple sales going look of Mexico presses in automation web And we're the how or large continuing that this the We leading we but generate print. that about into from it we're to On continue to that we comes flywheel of put to back

J. Joel Quadracci

is And that. play hold then postal thing I've play Do point about, is what into other been does thoughts on do come one wild side the revenue strategy, they steady the that, a card their or last correct the talking on bit how this out. of

Anthony Staniak

say that with would guidance, revenue with us the we're I rates. just happy maintaining Kevin, you're fact that And postal profitability despite the these we're from on hearing pressures the

the are margin. resulting even a the slightly profitability So improved in improving as on margin adjusted EBITDA we

happy So about that.

Kevin Steinke

profitability out Yes, as despite at I the of flattish stood the midpoint me, sales that within clearly looked the guidance to that at Absolutely. range decline. projected kind essentially

couple So maybe here. just more a

DART Just on and commentary size on just commentary that purchase any or on more quantitatively in price brings or of what any qualitatively Innovation, other color you? terms to

J. Joel Quadracci

this The grocery retailer working deployed for team table Save was it several with been from our around a opportunity Mart, has currently is with but large that veterans the for they've in not a a leadership, it large we an that -- years, of it's exciting very Yes, That a several brought it's years size to the deal, business. who's thing one. important deal, now. in

the They to other as launching already rollout stores retailers. is, on them a we're They it bigger They us. know know for They test business. well hopefully a trust us. well. is their fact rollout know with in And the as with

point So just a leapfrog world media, you huge because retail Vizio step very try this conversation you to saw follow in Walmart where the to buy their space, right this if a of media is the networks important into stores. is and now own

the Walmart be opportunity and the aren't of get and space within a what able it's to to that us, happens in the the for help all-important of of the as are size they actually play girth so who to store. of control people real And same data

Anthony Staniak

Yes.

in-store Kevin, the now and significant already to which possibility have ties out highest exciting retailers of digital take assembled, it our got think in, quite very discussions combine there's that of scale relationships, what we signage, and that with they with having the DART's to up rounding with that think Quad's in-store and offering offerings I retailers. signage, physical of frankly, group to we're level

Kevin Steinke

the your just And like maybe think, about lastly, the Great. ask I'd to to was reinstate welcome, went dividend. I the thought decision that Certainly, into that just then and reinstating process dividend?

J. Joel Quadracci

it. and first think I Well, foremost, sustainability the of

back very that about come we're point, balance to wanted to careful the sheet. we've As

low a But we've of is we'll done levels, that. ourselves that this launching do that focusing really a we down we've continue debt on at for more, to very starting proven feel paying to revisit as great size think us. and love I sustainable dividend job Tony? future? this will to Of if it we sustainable very can in and point, at the Would we course, this a point. do we great but we see to like

Anthony Staniak

was we payer. important Kevin, us That Quad shareholders. long-time to was I'd to reward it's dividend add, Yes. a -- our --

was got debt, It on that And shareholders. providing our that so to revisit and to of to range, of the the the the of down stopped focused And dividend. previous turning can end X.X. the COVID, Joel's prudent now We back beginning we at on right time. this low decision return at range point,

be able to that. happy So to do

Operator

Crockett The [Operator comes Rosenblatt. Barton question from Instructions] of next

Barton Crockett

And stepping think from real revenue down I perspective go CPI you that a kind can as your to prerequisite just the is it's again a Or what the even have presentation take and that price, to is need one grow covered I outsized road for continues for of growth? guys your happen? thing back back, Joel, out? would Does if And it that, lot service to of growth. the get is I versus to laid appreciate you get there have to a mean, do normalized the you service where revenues the of on the there? postal I price opportunity a growth Q&A. would of place kind But the shares to world postal kind mean,

J. Joel Quadracci

up in-store Yes. to I the at going the grow through services. mean end. other to was all revenue year-to-date I continue we're XX% mean,

fact, of help. point year, of we that new to in. some increase that Certainly, didn't of organic type last office comes having how would coming from example that, with feeling really that good with doing we're of . So feature about the more that and were in multi people. if thinking deal post versus relationship have flip you sort And of we do significantly of rational that's an revenue decline that

that And reaction got but people so the significant second said caught, there direction. heading No, half, this were that we to where like yet? we saw with And are I surprise we then in it.

other trajectory, I have be to trying the they through will on how with think the and initiatives to manage very question customers it pass post the smart to customers. cost their about keeps is office

And seen, that but plays feel ability I so it. to our be out will through how good about manage

manage and a ahead I to mean it that we years. make sure postal had close a because when of for significant that I with happened can forward year, just closed saw ours plant very I last postal closing consolidate. increase relationship many XX-year of I the increase the we of pulled

agency. how core But what the in it. we'll and the time, at as react happen continue And mean to we lines, on see so variable. we all which when that's direct in-store to we other all grow will impact offerings, we same mail, say volume like know to things something traditional costs we packaging, If treat catalog,

And as So to it puts out. but that see hope customer works. I'd lot some of but get able you onus that the a is line they direct to base to of mail the is, hope that works, the figure reaction onetime surprise, certainly the I onus forward, happens. catalog there's -- big a be -- go bottom when typically on But that moderate, even

go-forward for is because people mix media part a challenging the mix landscape So of one. that it's important an media

product. sell your still to have You

Barton Crockett

I right. All appreciate Okay. that.

year, you understand keep even kind you after to what could guidance there your guys to I your argument the some if if of this time you this around some is degree maturity continue are longer-term expect at but I unknowns. debt? an reduce pressures kind know some for To should How but the that? do to about for of revenue of XXXX, marks next continue there be reducing Now question year, debt. guess guys revenue I feel trajectory. look the we

J. Joel Quadracci

Yes.

like I Yes, which therefore, but I people question share think something look being paying same is business, look see will at I opportunistically still think answered. And to I business to repurchases, balance why we your Tony? to debt business our you dividend the until conjunction underleveraged. unknowns. say the and would leverage in tell In I want and we're keep with because a debt we leverage a range. being I doing, down we're And ability to on to to a would And I that's in you're different. of we're want -- growth challenges. continue In sustainable like pay to prudent able have the see levels down, debt this, that we very manage those at guidance of continue why changed you, will

Anthony Staniak

mean the heard when I slides, debt XX% we roughly you we floating it interest -- rate. through have is of speaking, XX% -- this but fixed, of our pardon And is

it of but innovate. things also make rates some that point, are in technology from debt, to growth pay revenue saves our now, efficient, putting and of to continue interest the the Yes, prices large so there's in, to more And prudent and company. we we capital to it continue to put We that they debt more spend, use still dedicate we're maintenance, that leverage to into spend automation as money X% Joel's of as with expenditures. to is on being real where then use down lower in cash the just addition right that can

that that and to see in move happy lowering helps money the you'll regard, So direction, dividend. us do in debt

J. Joel Quadracci

volume in And we playing squeezing strong plants the come started put we look good, where down then flow managing -- the sure another cash that back platform the about from lines efficient most thing, was when Barton, by it making the are went as down. in and our strategy, in at consolidator if you business where product the a core work free you shrinking,

isn't that flow. It's of happened. decline isn't the a organic just yearly the basis, sales expected not just cash close assets sell on free just it's you and cash those regular So from from as

That's them as And it. ability resulted huge a treated down pandemic, we're X all to I mean, as with we down debt. through closed because still so pay went the the cost have we plants in and variable dictated of that paying debt, volume

other and go. is in And what all us. to driving other will goes large continue invoices so print of flywheel the meanwhile, to that ability there But manage this to services

Operator

closing the session. over conference concludes I remarks. our question-and-answer to back like turn Quadracci for to Joel This would

J. Joel Quadracci

Okay. confidence our as our joining want I close marketing team for Thank future call. to in by and my experience you, a just everyone, in strategy company. today's reiterating and our

prioritize business with our new greatest stability thanks remains and product and value to opportunities aspects of lines verticals while growth and shareholder in unique will for to strong business offering, expansion continue creation. pipeline Our and managing for long-term our all we the strength

quarter. So with that, we look forward to to speaking you next

Operator

for The conference attending has now today's presentation. concluded. Thank you

You may now disconnect.

Quad/Graphics (QUAD) 21 Feb 242023 Q4 Earnings call transcript