Quad/Graphics announced Wednesday it had preliminary net sales of $4.65 billion in 2015, within expectations offered in November when the company announced a $100 million cost reduction plan.
The Sussex-based printing company completed that plan ahead of schedule, according to Wednesday’s announcement. It included previously announced plant closures to reduce excess manufacturing capacity in Loveland, Colo.; Enfield, Conn.; Augusta, Ga.; and East Greenville, Ga. Other elements included an increased focus on productivity, reduced selling, general and administrative costs and an new organizational structure.
“Our team was able to react quickly to increased pricing and volume pressure, and incrementally reduce our cost structure,” said president and CEO Joel Quadracci, noting the company plans to report stronger than expected results for the fourth quarter and improve its position for 2016.
The company lowered its 2015 guidance for net sales, earnings and free cash flow in November when it reported sales were off 2.8 percent from 2014. The preliminary results released Wednesday indicated the company’s adjusted earnings before income, taxes, depreciation and amortization will be about $460 million, $10 million above the guidance offered in November.
The preliminary free cash flow is approximately $210 million, $30 million above November’s guidance.
Quad offered 2016 financial guidance, projecting net sales of $4.4 billion to $4.6 billion, adjusted EBITDA of $420 million to $460 million and free cash flow of $190 million to $230 million.
Executive vice president and CFO Dave Honan said “because of permanent improvements to our cost structure and working capital levels, our preliminary financial guidance for 2016 demonstrates our ability to deliver a sustainable level of free cash flow.”
The company will provide detailed audited financial statements and will discuss 2015 results and 2016 guidance as part of its regular quarterly conference call on Feb. 23.
