Quad/Graphics Inc. (QUAD) Q4 2023 Earnings Conference Call February 21, 2024 10:00 AM ET
Company Participants
Katie Krebsbach - IR
Joel Quadracci - Chairman, President and CEO
Anthony Staniak - CFO
Conference Call Participants
Kevin Steinke - Barrington Research Associates
Barton Crockett - Rosenblatt Securities
Operator
Good morning, and welcome to the Quad's Fourth Quarter and Full Year 2023 Conference Call. During today’s call all participants will be in a listen-only mode. [Operator Instructions].
A slide presentation accompanies today's webcast and participants are invited to follow along, advancing the slides themselves. To access the webcast, follow instructions posted in the earnings release. Alternatively, you can access the slide presentation on the Investors section of Quad's website under the Events and Presentations link. [Operator Instructions]. Please note, that this event is being recorded.
I'd now like to turn the conference over to Katie Krebsbach, Quad's Investor Relations Manager. Katie, please go ahead.
Katie Krebsbach
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 today's call with a business update, and Tony will follow with a summary of Quad's fourth quarter and full year 2023 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, Katie. And good morning, everyone. Beginning on Slide 3, I am pleased to report we delivered solid 2023 results, meeting our guidance across all metrics. Our results included adjusted EBITDA above the midpoint of our guidance range, and adjusted EBITDA margin consistent with 2022, despite an 8% decline in annual net sales, created by a significant postal rate increase that was well above the rate of inflation, ongoing economic uncertainty, especially in early 2023 and the impact of elevated interest rates on the financial services sector, leading to reduced direct mail budgets.