Quad/Graphics, Inc. (QUAD) Q3 2022 Earnings Conference Call November 2, 2022 10:00 AM ET

Company Participants

Claire Ho - Director of Corporate Communications

Joel Quadracci - Chairman, President, and Chief Executive Officer

Anthony Staniak - Chief Financial Officer

Operator

Good morning, ladies and gentlemen, and welcome to Quad's Third Quarter Conference Call. [Operator Instructions] Please note today's event is being recorded.

At this time, I'd like to turn the conference call over to Claire Ho, Quad's Director of Corporate Communications. Claire, please go ahead.

Claire Ho

Thank you, operator, and good morning, everyone. With me today are Joel Quadracci, Quad's Chairman, President and Chief Executive Officer; and Tony Staniak, Quad's Chief Financial Officer. Joel will lead off today's call with a business update, and Tony will follow with a summary of Quad's third quarter 2022 financial results, followed by Q&A.

I would like to remind everyone that this call is being webcast, and forward-looking statements are subject to safe harbor provisions as outlined in our quarterly news release and in today's slide presentation on Slide 2.

Quad's financial results are prepared in accordance with generally accepted accounting principles. However, this presentation also contains non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, free cash flow, net debt and debt leverage ratio. We have included in the slide presentation reconciliations of these non-GAAP financial measures to GAAP financial measures.

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

Joel Quadracci

Thank you, Claire, and good morning, everyone. I'm pleased to report that in the third quarter, we delivered better-than-expected net sales of $830 million, an 18% increase. This was the sixth consecutive quarter of sales growth for Quad and reflects continued print segment share gains, increased pricing in response to inflationary cost pressures, and increased sales in our international locations.

Our focus as a marketing experience company is driving segment share gains and new client wins. And as a result, we are raising our full year net sales guidance range from 3% to 7% growth to 8% to 10% growth. We've also narrowed our other guidance within the previously provided ranges to reflect our results through the first 9 months of the year, which Tony will cover later in the call.