Company Takes Actions to Augment Quad 3.0
Strategy and Provide Additional Financial Flexibility, Including
the Divestiture of Its Kentucky Book Facility
Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”) today
announced it continues to execute on its transformation strategy,
while managing through the COVID-19 pandemic, by further aligning
its business portfolio, strengthening its product and service
offering, and improving its financial flexibility through a recent
amendment to the Company’s existing credit agreement. Quad also
continues to carry out business continuity plans in response to the
COVID-19 pandemic, prioritizing the health and well-being of its
employees, protecting its financial health, and providing
extraordinary client service.
Recent Actions:
- Quad completed the sale of its Versailles, Ky., book
manufacturing plant, to CJK Group, Inc., which serves book,
magazine, catalog, and journal publishers. This initiative was the
first step in the previously announced strategic decision to divest
the Company’s book business to optimize its product portfolio. Quad
expects to use the proceeds from the sale to reduce debt.
- The Company obtained an amendment to its existing April 28,
2014, senior secured credit facility that widens the leverage ratio
by an estimated 0.75x to 1.0x turn through the third quarter of
2021. As a part of this agreement, Quad maintains the ability to
complete certain acquisitions during the relief period and has
agreed to reduce the revolver capacity, which was previously
expanded to support a subsequently terminated acquisition, from
$800 million to $500 million. The agreement’s maturity remains
January 2024, and Quad’s next nearest debt maturity is the 7%
senior unsecured notes due May 2022.
- Quad recently strengthened its leadership team at its
integrated marketing agency, Periscope, with the addition of new
President, Cari Bucci-Hulings. Bucci-Hulings is an industry expert
who has driven highly successful product development and business
growth platforms, and most recently served as President of MARC
USA, one of the largest independent agencies in the country.
- The Company also continues to scale Accelerated Insights, its
proprietary virtual testing platform, to help clients in multiple
industry verticals predict which combination of format, offer,
message and imagery will be most effective in print. The
unparalleled testing methodology drives improved response at a
fraction of the time and cost of traditional testing. Quad recently
brought aboard senior-level data analytics and business insights
talent to expand the solution beyond direct mail and catalogs to
packaging and other retail uses.
Joel Quadracci, Chairman, President & CEO of Quad, said: “We
continue to execute against our Quad 3.0 strategy by optimizing our
product portfolio and ensuring we have the financial flexibility to
navigate today’s fluid environment and emerge a stronger company
post-pandemic. Today, we announce the divestiture of our book
manufacturing facility in Versailles, Ky., to CJK Group. We are
very happy to have found a great home for our talented team in
Versailles while we continue to make progress on the potential sale
of our remaining two East Coast book plants.”
Quadracci continued: “We are also pleased to have proactively
completed an amendment to our existing credit agreement to further
enhance our financial flexibility and ability to continue to invest
in our strategic priorities. Given that the severity and duration
of the COVID-19 pandemic on the global economy remains unknown, we
believed it was prudent to take these proactive measures from both
a risk-management and opportunistic perspective. We will continue
to prioritize maximizing Free Cash Flow generation in order to
reduce our overall debt levels as we progress through fiscal 2020,
and have access to more than $500 million of estimated liquidity as
of June 30, 2020.”
Quadracci concluded: “Our team remains highly proactive as we
continue to pursue innovative new products, services and solutions
for our clients, and invest in talent that will continue to deliver
competitive advantages. We are thrilled to welcome Cari
Bucci-Hulings, a results-oriented, growth-minded leader, as
President of Periscope. Cari has deep experience in building strong
service offerings, cultures and creative communities that serve the
constantly evolving needs of today’s marketers. We look forward to
her experience and energy, and the fresh perspective she will bring
to Periscope as we continue to build an agile agency that is part
of Quad’s integrated marketing platform that delivers brilliant
strategy, world-class creative and effective solutions like
Accelerated Insights for our clients.”
Credit Agreement Amendment Arrangers and Advisors
JPMorgan Chase Bank, N.A., acted as Lead Left, Bookrunner and
Administrative Agent for the transaction. Bank of America, N.A.,
BMO Capital Markets Corp., Fifth Third Bank National Association,
PNC Capital Markets LLC, and U.S. Bank National Association were
Joint Lead Arrangers and Joint Bookrunners. The Company was advised
by Foley & Lardner LLP, and JPMorgan Chase was advised by
Sidley Austin LLP.
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, cash flows, results of operations and supply
chain, as well as 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 inability of
the Company to reduce costs and improve operating efficiency
rapidly enough to meet market conditions; 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 COVID-19 may have on the Company’s ability to
continue to be in compliance with these restrictive covenants; the
impact of increased business complexity as a result of the
Company’s transformation into a marketing solutions partner; the
failure to successfully identify, manage, complete and integrate
acquisitions and other significant transactions, as well as the
successful identification and execution of strategic divestitures;
the failure of clients to perform under contracts or to renew
contracts with clients on favorable terms or at all; the impact of
changing future economic conditions; the fragility and decline in
overall distribution channels, including newspaper distribution
channels; the impact of changes in postal rates, service levels or
regulations; the failure to attract and retain qualified talent
across the enterprise; the impact of regulatory matters and
legislative developments or changes in laws, including changes in
cyber-security, privacy and environmental laws; significant capital
expenditures may be needed to maintain the Company’s platforms and
processes and to remain technologically and economically
competitive; 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 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 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 (including as so supplemented and amended in the
Company’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on May 6, 2020).
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200701006002/en/
Investor Relations Contact Katie Krebsbach Investor
Relations Lead, Quad 414-566-4247 kkrebsbach@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