TC Transcontinental is proud to announce the release of its new 2025 Corporate Social Responsibility Plan, Building our Future. Recognized earlier this year as the 16th most sustainable corporation in the world in the renowned Corporate Knights’ Global 100 Sustainable Corporations ranking, TC Transcontinental strives to build a future that is green, inclusive, innovative, sustainable, united, and responsible. The new plan focuses on five major themes that will guide the Corporation’s actions over the next four years: greener growth, an inclusive and safe environment, innovative and sustainable products, community involvement, and responsible governance and business practices. “As a family business, we are building for the long term,” said Isabelle Marcoux, Chair of the Board. “Corporate Social Responsibility (CSR) has been engrained in TC Transcontinental's DNA since its beginning and is an integral part of our growth strategy, particularly in terms of developing sustainable products. It is underpinned by rigorous governance, as well as our values and culture of diversity and inclusion. As such, we are meeting our customers’ needs and our investors’ long-term value creation objectives while also contributing to the welfare of our communities.”
Joel Quadracci, Chairman, President & CEO of Quad, said: “Our second quarter Net Sales increase of 14% excluding divestitures exceeded our expectations. This strong growth included print segment share gains and Net Sales growth across all of our offerings. Increasingly, brand owners and marketers are recognizing our unique value as a marketing experience company. We have architected a better way for our clients to deploy their marketing through a discipline-led, integrated platform that addresses all efforts – from idea to execution – and includes business strategy, insights and analytics, technology solutions, managed services, agency and studio solutions, media, print, in-store, and packaging. We will continue to strategically invest in our platform excellence to give our clients a more efficient, effective and frictionless way to go to market and reach consumers, while enhancing our competitive position to drive profitable growth.
“Our team continues to work diligently to mitigate the impacts of macro-economic headwinds, including ongoing supply chain constraints that impacted productivity and cost inflation. This included implementing an additional price increase in mid-May. We also made investments in the first half of the year to serve our clients well and drive higher sales and profitability during our seasonally busier second half of the year, where we see continued strong demand.
“As we look forward, we remain focused on serving our clients well, while enhancing Quad’s financial strength and driving shareholder value, including repurchasing shares. We will continue to prioritize growth while improving productivity and reducing debt during 2022, consistent with our commitment to create a better, more purposeful and sustainable way forward for all our stakeholders.”
Results for the three months ended June 30, 2022, include:
Net Sales — Net Sales were $758 million in the second quarter of 2022, reflecting topline growth of 9% from the same period in 2021. Excluding the divestiture of QuadExpress, a third-party logistics (3PL) business, Net Sales increased 14% from the second quarter of 2021. Net Sales growth was achieved across all of our offerings due to increased pricing in response to inflationary pressures, print segment share gains and onboarding new clients in Agency Solutions.
Net Earnings and Adjusted EBITDA — Net Earnings were $5 million in the second quarter of 2022 as compared to Net Earnings of $34 million in the second quarter of 2021. Adjusted EBITDA was $56 million in the second quarter of 2022, a decline from $63 million of Adjusted EBITDA in the same period last year. Net Earnings during the second quarter of 2021 were benefited by a $21 million gain ($16 million, net of tax) from the sale of QuadExpress, and a $14 million gain ($10 million, net of tax) from the sale and leaseback of the Chalfont, Pennsylvania, facility.
Adjusted Diluted Earnings Per Share — Adjusted Diluted Earnings Per Share was $0.13 in the second quarter of 2022, consistent with the second quarter of 2021.
Results for the six months ended June 30, 2022, include:
Net Sales — Net Sales were $1.5 billion in the six months ended June 30, 2022, up 7% from the same period in 2021, or up 12% excluding the QuadExpress divestiture. Net Sales growth was achieved across all of our offerings due to increased pricing in response to inflationary pressures, print segment share gains and onboarding new clients in Agency Solutions.
Net Earnings — Net Earnings were $4 million in the six months ended June 30, 2022, as compared to Net Earnings of $45 million in the six months ended 2021. The decrease is primarily due to $35 million ($26 million, net of tax) of gains in 2021 on the sale of QuadExpress, and sale and leaseback of the Chalfont, Pennsylvania, facility.
Net Cash Provided by (Used in) Operating Activities and Free Cash Flow — Net Cash Used in Operating Activities was $24 million in the six months ended June 30, 2022, as compared to Net Cash Provided by Operating Activities of $89 million during the same period in 2021. Free Cash Flow decreased $119 million from last year to negative $57 million in the six months ended June 30, 2022.
details at: https://www.quad.com/resources/news_release/quad-reports-second-quarter-and-year-to-date-2022-results/