Volume and pricing pressures pushed Quad/Graphics, Inc. revenue down, but cutting costs and improved productivity narrowed the Sussex-based company’s loss during the second quarter.
[caption id="attachment_131624" align="alignright" width="300"] Quad/Graphics' Sussex headquarters.[/caption]
Quad reported a net loss for the quarter of $7.7 million, an improvement over the $45.1 million loss during the same period last year. The company had a loss of 16 cents per diluted share, an improvement from the 94 cent loss last year.
Revenue was off 2.6 percent to $1.03 billion. The company turned an operating profit of $13.3 million, compared to a $25.8 million loss last year.
Joel Quadracci, Quad/Graphics chairman, president and chief executive officer, said the results reflected the company’s ongoing efforts to improve manufacturing productivity and sustainably reduce costs.
The company lowered its full-year guidance for revenue to a range from $4.35 billion to $4.45 billion, the midpoint of which is at the bottom of the previous guidance.
However, Quad also increased its targets for adjusted EBITDA and free cash flow by $40 million on the top and bottom end of each. Adjusted EBITDA is now targeted for a range of $460 million to $500 million and the free cash flow range is $230 million to $270 million.
"The operational efficiency and cost reduction momentum established during the first half of the year is driving stronger earnings and cash flow results and, therefore, we are increasing our guidance for adjusted EBITDA and free cash flow each by $40 million at the midpoint of their respective ranges," said Dave Honan, Quad/Graphics executive vice president and chief financial officer.
The company will discuss results in more detail during an earnings call Tuesday.