Quad Provides Business Update Related to COVID-19
2020年4月3日 - 7:02AM
ビジネスワイヤ(英語)
Company Takes Actions to Realign Business in
Response to Changes in Near Term Customer Demand
Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”) today
provided a business update on its actions taken in response to the
COVID-19 pandemic.
Quad has been executing business continuity plans focused on
protecting the health and well-being of its employees, while also
continuing to service customers, and protect the long-term
financial health of the Company as the COVID-19 pandemic
evolves.
“The health and safety of our employees remains our top
priority,” said Joel Quadracci, Quad’s Chairman, President and CEO.
“We have directed employees who can work from home to do so, as
well as implemented additional social distancing and sanitizing
precautions to ensure the safety of our employees working in
essential manufacturing facilities. We have implemented a temporary
furlough program throughout all areas of the Company and have
temporarily ceased operations at a number of our manufacturing
facilities. We will continue to prioritize the health and
well-being of our employees while making the tough but necessary
decisions to protect the financial health of Quad. Through it all,
we will continue to provide extraordinary client service and
quality to quickly meet our clients changing needs and innovate new
ideas to help them maintain business continuity and consumer
engagement during this period of uncertainty.”
Recent COVID-19 Actions:
- Suspended all domestic and international travel;
- Implemented temporary salary reductions for over 300 leaders,
including a 50% salary reduction for the CEO and a 35% reduction
for the other named executive officers;
- At the recommendation of the Board of Directors, temporarily
reduced directors’ fees by 50%;
- Implemented a temporary employee furlough program with
Company-paid medical benefits;
- Changed vacation policies;
- Suspended production at several manufacturing facilities where
declining client volume or other effects of the pandemic have
impacted the Company’s ability to operate;
- Delayed capital spending projects; and
- Increased borrowings by $100 million under the credit facility
to increase cash on hand to approximately $200 million to ensure
continued financial flexibility.
Given the uncertainty of the duration of the COVID-19 pandemic,
Quad is withdrawing its full-year 2020 financial guidance issued on
February 18, 2020. Additionally, due to uncertainty in customer
demand as a result of COVID-19, the Board of Directors made the
proactive decision to temporarily suspend the Company’s quarterly
dividend of $0.15 per share. The Company remains committed to
paying a dividend over the long-term and will seek to resume the
dividend following stabilization of its operating environment.
Added Quadracci: “We have faced tough times before and
persevered. While the COVID-19 pandemic is unique and presents
uncertainty, I am confident in our ability to find a better way and
weather this storm.”
Forward-Looking Statements
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 uncertain negative impacts the
coronavirus (COVID-19) will have on the Company’s business,
financial condition, profitability and cash flows, and the global
economy in general; the impact of decreasing demand for printed
materials and significant overcapacity in the highly competitive
environment creates downward pricing pressures and potential
underutilization of assets; the impact of digital media and similar
technological changes, including digital substitution by consumers;
the impact of fluctuations in costs (including labor and labor-
related costs, energy costs, freight rates and raw materials) and
the impact of fluctuations in the availability of raw materials;
the failure to successfully identify, manage, complete and
integrate acquisitions and investments; the inability of the
Company to reduce costs and improve operating efficiency rapidly
enough to meet market conditions; the impact of increased business
complexity as a result of the Company’s transformation into a
marketing solutions partner; the impact of regulatory matters and
legislative developments or changes in laws, including changes in
cyber-security, privacy and environmental laws; the impact of
changing future economic conditions; the failure of clients to
perform under contracts or to renew contracts with clients on
favorable terms or at all; the failure to attract and retain
qualified talent across the enterprise; significant capital
expenditures may be needed to maintain the Company’s platforms and
processes and to remain technologically and economically
competitive; the impact of changes in postal rates, service levels
or regulations; the fragility and decline in overall distribution
channels, including newspaper distribution channels; the impact of
the various restrictive covenants in the Company’s debt facilities
on the Company’s ability to operate its business; the impact of
risks associated with the operations outside of the United States,
including costs incurred or reputational damage suffered due to
improper conduct of its employees, contractors or agents; 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; 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 intangible assets; the impact of
divestitures or discontinued operations; 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.
About Quad
Quad (NYSE: QUAD) is a worldwide marketing solutions partner
dedicated to creating a better way for its clients through a
data-driven, integrated marketing platform that helps reduce
complexity, increase efficiency and enhance marketing spend
effectiveness. Quad provides its clients with unmatched scale for
client on-site services and expanded subject expertise in marketing
strategy, creative solutions, media deployment (which includes a
strong foundation in print) and marketing management services. With
a client-centric approach that drives its expanded offering,
combined with leading-edge technology and single-source simplicity,
Quad has the resources and knowledge to help a wide variety of
clients in multiple vertical industries, including retail,
financial/insurance, healthcare, consumer packaged goods,
publishing and direct-to-consumer. Quad has multiple locations
throughout North America, South America and Europe, and strategic
partnerships in Asia and other parts of the world. For additional
information visit www.QUAD.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200402005855/en/
Investor Relations Contact Kyle Egan Director of Investor
Relations and Assistant Treasurer, Quad 414-566-2482
kegan@quad.com
Media Contact Claire Ho Director of Corporate
Communications, Quad 414-566-2955 cho@quad.com
Quad Graphics (NYSE:QUAD)
過去 株価チャート
から 6 2024 まで 7 2024
Quad Graphics (NYSE:QUAD)
過去 株価チャート
から 7 2023 まで 7 2024