QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
par value $0.025 per share |
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Class | Outstanding as of April 26, 2024 | |||||||
Class A Common Stock | ||||||||
Class B Common Stock | ||||||||
Class C Common Stock |
Page No. | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net sales | |||||||||||
Products | $ | $ | |||||||||
Services | |||||||||||
Total net sales | |||||||||||
Cost of sales | |||||||||||
Products | |||||||||||
Services | |||||||||||
Total cost of sales | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Depreciation and amortization | |||||||||||
Restructuring, impairment and transaction-related charges | |||||||||||
Total operating expenses | |||||||||||
Operating income (loss) | ( | ||||||||||
Interest expense | |||||||||||
Net pension income | ( | ( | |||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Loss per share | |||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||
Weighted average number of common shares outstanding | |||||||||||
Basic and diluted | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income | |||||||||||
Translation adjustments | ( | ||||||||||
Interest rate derivatives adjustments | |||||||||||
Pension benefit plan adjustments | |||||||||||
Other comprehensive income, before tax | |||||||||||
Income tax impact related to items of other comprehensive income | ( | ( | |||||||||
Other comprehensive income, net of tax | |||||||||||
Comprehensive loss | $ | ( | $ | ( |
(UNAUDITED) March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, less allowances for credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment—net | |||||||||||
Operating lease right-of-use assets—net | |||||||||||
Goodwill | |||||||||||
Other intangible assets—net | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Accounts payable | $ | $ | |||||||||
Other current liabilities | |||||||||||
Short-term debt and current portion of long-term debt | |||||||||||
Current portion of finance lease obligations | |||||||||||
Current portion of operating lease obligations | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Finance lease obligations | |||||||||||
Operating lease obligations | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 7) | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock | |||||||||||
Common stock, Class A | |||||||||||
Common stock, Class B | |||||||||||
Common stock, Class C | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, at cost | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Impairment charges | |||||||||||
Amortization of debt issuance costs and original issue discount | |||||||||||
Stock-based compensation | |||||||||||
Gain on the sale or disposal of property, plant and equipment, net | ( | ( | |||||||||
Deferred income taxes | |||||||||||
Changes in operating assets and liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Cost investment in unconsolidated entities | ( | ( | |||||||||
Proceeds from the sale of property, plant and equipment | |||||||||||
Other investing activities | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Payments of current and long-term debt | ( | ( | |||||||||
Payments of finance lease obligations | ( | ( | |||||||||
Borrowings on revolving credit facilities | |||||||||||
Payments on revolving credit facilities | ( | ( | |||||||||
Purchases of treasury stock | ( | ||||||||||
Equity awards redeemed to pay employees’ tax obligations | ( | ( | |||||||||
Payment of cash dividends | ( | ( | |||||||||
Other financing activities | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rates on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Quad’s Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives adjustments, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Pension benefit plan liability adjustments, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of class B shares | ( | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based awards, net of other activity | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Equity awards redeemed to pay employees’ tax obligations | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Quad’s Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives adjustments, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Pension benefit plan liability adjustments, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Issuance of share-based awards, net of other activity | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Equity awards redeemed to pay employees’ tax obligations | — | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||
United States Print and Related Services | International | Total | |||||||||||||||
Three months ended March 31, 2024 | |||||||||||||||||
Catalog, publications, retail inserts and directories | $ | $ | $ | ||||||||||||||
Direct mail and other printed products | |||||||||||||||||
Other | |||||||||||||||||
Total products | |||||||||||||||||
Logistics services | |||||||||||||||||
Marketing services and medical services | |||||||||||||||||
Total services | |||||||||||||||||
Total net sales | $ | $ | $ | ||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||
Catalog, publications, retail inserts and directories | $ | $ | $ | ||||||||||||||
Direct mail and other printed products | |||||||||||||||||
Other | |||||||||||||||||
Total products | |||||||||||||||||
Logistics services | |||||||||||||||||
Marketing services and medical services | |||||||||||||||||
Total services | |||||||||||||||||
Total net sales | $ | $ | $ |
Costs to Obtain Contracts | |||||
Balance at December 31, 2023 | $ | ||||
Amortization of costs to obtain contracts | ( | ||||
Balance at March 31, 2024 | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Employee termination charges | $ | $ | |||||||||
Impairment charges | |||||||||||
Transaction-related charges | |||||||||||
Integration costs | |||||||||||
Other restructuring charges | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Vacant facility carrying costs and lease exit charges | $ | $ | |||||||||
Equipment and infrastructure removal costs | |||||||||||
Other restructuring activities | |||||||||||
Other restructuring charges | $ | $ |
Employee Termination Charges | Impairment Charges | Transaction-Related Charges | Integration Costs | Other Restructuring Charges | Total | ||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Expense, net | |||||||||||||||||||||||||||||||||||
Cash payments, net | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Non-cash adjustments/reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | $ | $ |
United States Print and Related Services | International | Total | |||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ||||||||||||||
DART acquisition | ( | ( | |||||||||||||||
Balance at March 31, 2024 | $ | $ | $ |
Allowance for Credit Losses | |||||
Balance at December 31, 2023 | $ | ||||
Provisions | |||||
Write-offs | ( | ||||
Balance at March 31, 2024 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Raw materials and manufacturing supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
March 19, 2019 Interest Rate Swap | |||||
Effective date | March 29, 2019 | ||||
Termination date | March 28, 2024 | ||||
Term | |||||
Notional amount | $ | ||||
Fixed swap rate | |||||
Balance Sheet Location | December 31, 2023 | ||||||||||
Interest rate swap asset | Prepaid expenses and other current assets | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash Flow Impacts | |||||||||||
Net interest received | $ | ( | $ | ( | |||||||
Impacts with Swap as Nonhedging Instrument | |||||||||||
Loss recognized in interest expense excluded from hedge effectiveness assessments | |||||||||||
Amounts reclassified out of accumulated other comprehensive loss to interest expense | |||||||||||
Net interest expense | ( | ( | |||||||||
Total impact of swap to interest expense | $ | $ | |||||||||
December 12, 2022 Interest Rate Collar | December 14, 2022 Interest Rate Collar | ||||||||||
Effective date | February 1, 2023 | February 1, 2023 | |||||||||
Termination date | October 30, 2026 | October 31, 2025 | |||||||||
Term | |||||||||||
Notional amount | $ | $ | |||||||||
Floor Rate | |||||||||||
Ceiling Rate |
Balance Sheet Location | March 31, 2024 | December 31, 2023 | |||||||||||||||
Interest rate collar assets | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Interest rate collar liabilities | Other long-term liabilities | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash Flow Impacts | |||||||||||
Net interest received | $ | ( | $ | ||||||||
Gain recognized in other comprehensive income | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest cost | $ | ( | $ | ( | |||||||
Expected return on plan assets | |||||||||||
Net periodic pension income | |||||||||||
Amortization of actuarial loss | ( | ( | |||||||||
Net pension income | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Denominator | |||||||||||
Basic weighted average number of common shares outstanding for all classes of common stock | |||||||||||
Plus: effect of dilutive equity incentive instruments | |||||||||||
Diluted weighted average number of common shares outstanding for all classes of common stock | |||||||||||
Loss per share | |||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||
Cash dividends paid per common share for all classes of common stock | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Restricted Stock (“RS”) and Restricted Stock Units (“RSU”) equity awards expense | $ | $ | |||||||||
Deferred Stock Units (“DSU”) awards expense | |||||||||||
Total equity incentive compensation expense | $ | $ |
Restricted Stock | Restricted Stock Units | ||||||||||||||||||||||||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted- Average Remaining Contractual Term (years) | Units | Weighted- Average Grant Date Fair Value Per Unit | Weighted- Average Remaining Contractual Term (years) | ||||||||||||||||||||||||||||||
Nonvested at December 31, 2023 | $ | $ | |||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||||||||||||||
Nonvested at March 31, 2024 | $ | $ |
Deferred Stock Units | |||||||||||
Units | Weighted-Average Grant Date Fair Value Per Unit | ||||||||||
Outstanding at December 31, 2023 | $ | ||||||||||
Dividend equivalents granted | |||||||||||
Settled | ( | ||||||||||
Outstanding at March 31, 2024 | $ |
Issued Common Stock | |||||||||||||||||||||||
Authorized Shares | Outstanding | Treasury | Total Issued Shares | ||||||||||||||||||||
Class A stock ($ | |||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Class B stock ($ | |||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Class C stock ($ | |||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
December 31, 2023 |
March 31, 2023 | |||||
Shares of Class A common stock | |||||
Weighted average price per share | $ | ||||
Total repurchases during the period (in millions) | $ |
Declaration Date | Record Date | Payment Date | Dividend Amount per Share | ||||||||||||||||||||
2024 | |||||||||||||||||||||||
Q1 Dividend | February 16, 2024 | February 27, 2024 | March 12, 2024 | $ |
Translation Adjustments | Interest Rate Derivatives Adjustments | Pension Benefit Plan Adjustments | Total | ||||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications | ( | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | |||||||||||||||||||||||
Net other comprehensive income | ( | ||||||||||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( |
Translation Adjustments | Interest Rate Derivatives Adjustments | Pension Benefit Plan Adjustments | Total | ||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net loss | |||||||||||||||||||||||
Net other comprehensive income | |||||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( |
Details of Accumulated Other Comprehensive Loss Components | Three Months Ended March 31, | Condensed Consolidated Statements of Operations Presentation | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
Amortization of amounts accumulated for interest rate swaps de-designated as a cash flow hedge | $ | $ | Interest expense | |||||||||||||||||
Impact of income taxes | ( | ( | Income tax expense | |||||||||||||||||
Amortization of amounts accumulated for interest rate swaps de-designated as a cash flow hedge, net of tax | $ | $ | ||||||||||||||||||
Amortization of pension and other postretirement benefit plan adjustments | $ | $ | Net pension income | |||||||||||||||||
Impact of income taxes | ( | Income tax expense | ||||||||||||||||||
Amortization of pension and other postretirement benefit plan adjustments, net of tax | $ | $ | ||||||||||||||||||
Total reclassifications for the period | $ | $ | ||||||||||||||||||
Impact of income taxes | ( | ( | ||||||||||||||||||
Total reclassifications for the period, net of tax | $ | $ |
Net Sales | Operating Income (Loss) | Restructuring, Impairment and Transaction- Related Charges | |||||||||||||||||||||
Products | Services | ||||||||||||||||||||||
Three months ended March 31, 2024 | |||||||||||||||||||||||
United States Print and Related Services | $ | $ | $ | ( | $ | ||||||||||||||||||
International | |||||||||||||||||||||||
Total operating segments | |||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||
United States Print and Related Services | $ | $ | $ | $ | |||||||||||||||||||
International | |||||||||||||||||||||||
Total operating segments | |||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating income (loss) | $ | ( | $ | ||||||||
Less: interest expense | |||||||||||
Less: net pension income | ( | ( | |||||||||
Loss before income taxes | $ | ( | $ | ( |
Operating Income (Loss) | Operating Margin | Net Loss | Diluted Loss Per Share | ||||||||||||||||||||
For the three months ended March 31, 2023 | $ | 0.1 | — | % | $ | (24.6) | $ | (0.50) | |||||||||||||||
Restructuring, impairment and transaction-related charges (1) | (6.5) | (1.6) | % | (4.9) | (0.12) | ||||||||||||||||||
Other operating income elements (2) | (4.3) | — | % | (3.2) | (0.06) | ||||||||||||||||||
Operating Income | (10.7) | (1.6) | % | (32.7) | (0.68) | ||||||||||||||||||
Interest expense (3) | N/A | N/A | 0.8 | 0.01 | |||||||||||||||||||
Net pension income (4) | N/A | N/A | (0.2) | (0.01) | |||||||||||||||||||
Income taxes (5) | N/A | N/A | 4.0 | 0.08 | |||||||||||||||||||
For the three months ended March 31, 2024 | $ | (10.7) | (1.6) | % | $ | (28.1) | $ | (0.60) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
(dollars in millions) | |||||||||||||||||
Loss before income taxes | $ | (25.7) | $ | (15.8) | $ | (9.9) | |||||||||||
Normalized tax rate | 25.0 | % | 25.0 | % | |||||||||||||
Income tax benefit at normalized tax rate | (6.4) | (4.0) | (2.4) | ||||||||||||||
Income tax expense from the condensed consolidated statements of operations | 2.4 | 8.8 | (6.4) | ||||||||||||||
Impact of income taxes | $ | 8.8 | $ | 12.8 | $ | (4.0) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | % of Sales | 2023 | % of Sales | $ Change | % Change | ||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||
Products | $ | 507.2 | 77.5 | % | $ | 607.9 | 79.3 | % | $ | (100.7) | (16.6) | % | |||||||||||||||||||||||
Services | 147.6 | 22.5 | % | 158.6 | 20.7 | % | (11.0) | (6.9) | % | ||||||||||||||||||||||||||
Total net sales | 654.8 | 100.0 | % | 766.5 | 100.0 | % | (111.7) | (14.6) | % | ||||||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||||||||||||||
Products | 426.5 | 65.1 | % | 516.1 | 67.3 | % | (89.6) | (17.4) | % | ||||||||||||||||||||||||||
Services | 94.8 | 14.4 | % | 101.4 | 13.2 | % | (6.6) | (6.5) | % | ||||||||||||||||||||||||||
Total cost of sales | 521.3 | 79.5 | % | 617.5 | 80.5 | % | (96.2) | (15.6) | % | ||||||||||||||||||||||||||
Selling, general & administrative expenses | 83.1 | 12.7 | % | 89.2 | 11.6 | % | (6.1) | (6.8) | % | ||||||||||||||||||||||||||
Depreciation and amortization | 28.6 | 4.4 | % | 33.7 | 4.4 | % | (5.1) | (15.1) | % | ||||||||||||||||||||||||||
Restructuring, impairment and transaction-related charges | 32.5 | 5.0 | % | 26.0 | 3.5 | % | 6.5 | 25.0 | % | ||||||||||||||||||||||||||
Total operating expenses | 665.5 | 101.6 | % | 766.4 | 100.0 | % | (100.9) | (13.2) | % | ||||||||||||||||||||||||||
Operating income (loss) | $ | (10.7) | (1.6) | % | $ | 0.1 | — | % | $ | (10.8) | nm |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
(dollars in millions) | |||||||||||||||||
Employee termination charges | $ | 13.7 | $ | 13.1 | $ | 0.6 | |||||||||||
Impairment charges (a) | 12.6 | 9.5 | 3.1 | ||||||||||||||
Transaction-related charges | 0.5 | 0.6 | (0.1) | ||||||||||||||
Integration costs | 0.1 | 0.5 | (0.4) | ||||||||||||||
Other restructuring charges | |||||||||||||||||
Vacant facility carrying costs and lease exit charges | 4.3 | 1.9 | 2.4 | ||||||||||||||
Equipment and infrastructure removal costs | 1.1 | 0.3 | 0.8 | ||||||||||||||
Other restructuring activities | 0.2 | 0.1 | 0.1 | ||||||||||||||
Other restructuring charges | 5.6 | 2.3 | 3.3 | ||||||||||||||
Total restructuring, impairment and transaction-related charges | $ | 32.5 | $ | 26.0 | $ | 6.5 |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | % of Net Sales | 2023 | % of Net Sales | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
EBITDA and EBITDA margin (non-GAAP) | $ | 18.1 | 2.8 | % | $ | 34.2 | 4.5 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Net loss (1) | $ | (28.1) | $ | (24.6) | |||||||
Interest expense | 15.2 | 16.3 | |||||||||
Income tax expense | 2.4 | 8.8 | |||||||||
Depreciation and amortization | 28.6 | 33.7 | |||||||||
EBITDA (non-GAAP) | $ | 18.1 | $ | 34.2 |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Products | $ | 435.9 | $ | 504.5 | $ | (68.6) | (13.6) | % | |||||||||||||||
Services | 143.0 | 153.1 | (10.1) | (6.6) | % | ||||||||||||||||||
Operating income (loss) (including restructuring, impairment and transaction-related charges) | (1.3) | 7.3 | (8.6) | nm | |||||||||||||||||||
Operating margin | (0.2) | % | 1.1 | % | N/A | N/A | |||||||||||||||||
Restructuring, impairment and transaction-related charges | $ | 31.6 | $ | 22.5 | $ | 9.1 | 40.4 | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
(dollars in millions) | |||||||||||||||||
Employee termination charges | $ | 13.4 | $ | 12.8 | $ | 0.6 | |||||||||||
Impairment charges (a) | 12.6 | 7.5 | 5.1 | ||||||||||||||
Integration costs | 0.1 | — | 0.1 | ||||||||||||||
Other restructuring charges | 5.5 | 2.2 | 3.3 | ||||||||||||||
Total restructuring, impairment and transaction-related charges | $ | 31.6 | $ | 22.5 | $ | 9.1 |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Products | $ | 71.3 | $ | 103.4 | $ | (32.1) | (31.0) | % | |||||||||||||||
Services | 4.6 | 5.5 | (0.9) | (16.4) | % | ||||||||||||||||||
Operating income (including restructuring, impairment and transaction-related charges) | 3.4 | 7.7 | (4.3) | (55.8) | % | ||||||||||||||||||
Operating margin | 4.5 | % | 7.1 | % | N/A | N/A | |||||||||||||||||
Restructuring, impairment and transaction-related charges | $ | 0.8 | $ | 2.6 | $ | (1.8) | (69.2) | % | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
(dollars in millions) | |||||||||||||||||
Employee termination charges | $ | 0.3 | $ | — | $ | 0.3 | |||||||||||
Impairment charges (a) | — | 2.0 | (2.0) | ||||||||||||||
Transaction-related charges | 0.4 | — | 0.4 | ||||||||||||||
Integration costs | — | 0.5 | (0.5) | ||||||||||||||
Other restructuring charges | 0.1 | 0.1 | — | ||||||||||||||
Total restructuring, impairment and transaction-related charges | $ | 0.8 | $ | 2.6 | $ | (1.8) |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Operating expenses (including restructuring, impairment and transaction-related charges) | $ | 12.8 | $ | 14.9 | $ | (2.1) | (14.1) | % | |||||||||||||||
Restructuring, impairment and transaction-related charges | 0.1 | 0.9 | (0.8) | (88.9) | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | $ Change | |||||||||||||||
(dollars in millions) | |||||||||||||||||
Employee termination charges | $ | — | $ | 0.3 | $ | (0.3) | |||||||||||
Transaction-related charges | 0.1 | 0.6 | (0.5) | ||||||||||||||
Total restructuring, impairment and transaction-related charges | $ | 0.1 | $ | 0.9 | $ | (0.8) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in millions) | |||||||||||
Net cash used in operating activities | $ | (52.2) | $ | (50.6) | |||||||
Less: purchases of property, plant and equipment | 17.9 | 28.7 | |||||||||
Free Cash Flow (non-GAAP) | $ | (70.1) | $ | (79.3) |
March 31, 2024 | December 31, 2023 | ||||||||||
(dollars in millions) | |||||||||||
Total debt and finance lease obligations on the condensed consolidated balance sheets | $ | 553.8 | $ | 522.7 | |||||||
Less: Cash and cash equivalents | 10.2 | 52.9 | |||||||||
Net Debt (non-GAAP) | $ | 543.6 | $ | 469.8 | |||||||
Divided by: Adjusted EBITDA (non-GAAP) | 224.1 | $ | 233.7 | ||||||||
Debt Leverage Ratio—Net Debt (non-GAAP) | 2.43 | x | 2.01 | x |
Add | Subtract | Trailing Twelve Months Ended | |||||||||||||||||||||
Year Ended | Three Months Ended | ||||||||||||||||||||||
December 31, 2023 (1) | March 31, 2024 | March 31, 2023 | March 31, 2024 | ||||||||||||||||||||
Net loss | $ | (55.4) | $ | (28.1) | $ | (24.6) | $ | (58.9) | |||||||||||||||
Interest expense | 70.0 | 15.2 | 16.3 | 68.9 | |||||||||||||||||||
Income tax expense | 12.8 | 2.4 | 8.8 | 6.4 | |||||||||||||||||||
Depreciation and amortization | 128.8 | 28.6 | 33.7 | 123.7 | |||||||||||||||||||
EBITDA (non-GAAP) | $ | 156.2 | $ | 18.1 | $ | 34.2 | $ | 140.1 | |||||||||||||||
Restructuring, impairment and transaction-related charges | 77.5 | 32.5 | 26.0 | 84.0 | |||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 233.7 | $ | 50.6 | $ | 60.2 | $ | 224.1 |
March 31, 2023 | |||||
Shares of Class A common stock | 64,271 | ||||
Weighted average price per share | $ | 3.98 | |||
Total repurchases during the period (in millions) | $ | 0.3 |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2) | ||||||||||||||||||||||
January 1, 2024 to January 31, 2024 | — | — | — | 77,507,158 | ||||||||||||||||||||||
February 1, 2024 to February 29, 2024 | — | — | — | 77,507,158 | ||||||||||||||||||||||
March 1, 2024 to March 31, 2024 | 345,186 | (3) | — | — | 77,507,158 | |||||||||||||||||||||
Total | 345,186 | — |
Exhibit Number | Exhibit Description | |||||||
(101) | Financial statements from the Quarterly Report on Form 10-Q of Quad/Graphics, Inc. for the quarter ended March 31, 2024 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Operations (Unaudited), (ii) the Condensed Consolidated Statements of Comprehensive Loss (Unaudited), (iii) the Condensed Consolidated Balance Sheets (Unaudited), (iv) the Condensed Consolidated Statements of Cash Flows (Unaudited), (v) the Notes to Condensed Consolidated Financial Statements (Unaudited), and (vi) document and entity information. | |||||||
(104) | Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101). |
QUAD/GRAPHICS, INC. | ||||||||||||||
Date: | May 1, 2024 | By: | /s/ J. Joel Quadracci | |||||||||||
J. Joel Quadracci | ||||||||||||||
Chairman, President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: | May 1, 2024 | By: | /s/ Anthony C. Staniak | |||||||||||
Anthony C. Staniak | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
Date: | May 1, 2024 | |||||||
/s/ J. Joel Quadracci | ||||||||
J. Joel Quadracci | ||||||||
Chairman, President and Chief Executive Officer |
Date: | May 1, 2024 | |||||||
/s/ Anthony C. Staniak | ||||||||
Anthony C. Staniak | ||||||||
Chief Financial Officer |
/s/ J. Joel Quadracci | |||||
J. Joel Quadracci | |||||
Chairman, President and Chief Executive Officer | |||||
/s/ Anthony C. Staniak | |||||
Anthony C. Staniak | |||||
Chief Financial Officer |
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Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Total net sales | $ 654.8 | $ 766.5 |
Total cost of sales | 521.3 | 617.5 |
Operating expenses | ||
Selling, general and administrative expenses | 83.1 | 89.2 |
Depreciation and amortization | 28.6 | 33.7 |
Restructuring, impairment and transaction-related charges | 32.5 | 26.0 |
Total operating expenses | 665.5 | 766.4 |
Operating income (loss) | (10.7) | 0.1 |
Interest expense | 15.2 | 16.3 |
Net pension income | (0.2) | (0.4) |
Loss before income taxes | (25.7) | (15.8) |
Income tax expense | 2.4 | 8.8 |
Net loss | $ (28.1) | $ (24.6) |
Loss per share | ||
Basic (USD per share) | $ (0.60) | $ (0.50) |
Diluted (USD per share) | $ (0.60) | $ (0.50) |
Weighted average number of common shares outstanding | ||
Basic (in shares) | 47.2 | 49.2 |
Diluted (in shares) | 47.2 | 49.2 |
Products | ||
Total net sales | $ 507.2 | $ 607.9 |
Total cost of sales | 426.5 | 516.1 |
Services | ||
Total net sales | 147.6 | 158.6 |
Total cost of sales | $ 94.8 | $ 101.4 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (28.1) | $ (24.6) |
Other comprehensive income | ||
Translation adjustments | (0.4) | 6.5 |
Interest rate derivatives adjustments | 1.1 | 0.8 |
Pension benefit plan adjustments | 0.3 | 0.1 |
Other comprehensive income, before tax | 1.0 | 7.4 |
Income tax impact related to items of other comprehensive income | (0.3) | (0.2) |
Other comprehensive income, net of tax | 0.7 | 7.2 |
Comprehensive loss | $ (27.4) | $ (17.4) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 25.5 | $ 25.7 |
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
| |
Statement of Stockholders' Equity [Abstract] | |
Cash dividend declared (USD per share) | $ 0.05 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements for Quad/Graphics, Inc. and its subsidiaries (the “Company” or “Quad”) have been prepared by the Company pursuant to the rules and regulations for interim financial information of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such SEC rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated annual financial statements as of and for the year ended December 31, 2023, and notes thereto included in the Company’s latest Annual Report on Form 10-K filed with the SEC on February 22, 2024. The Company is subject to seasonality in its quarterly results as net sales and operating income are higher in the second half of the calendar year as compared to the first half of the calendar year. The fourth quarter is typically the highest seasonal quarter for cash flows from operating activities and Free Cash Flow due to the reduction of working capital requirements that reach peak levels during the third quarter. Seasonality is driven by increased catalogs and retail inserts primarily due to back-to-school and holiday-related advertising and promotions. The Company expects seasonality impacts to continue in future years. The financial information contained herein reflects all adjustments, in the opinion of management, necessary for a fair presentation of the Company’s results of operations for the three months ended March 31, 2024 and 2023. All of these adjustments are of a normal recurring nature, except as otherwise noted. All intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates.
|
Revenue Recognition |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Revenue Disaggregation The following tables provide information about disaggregated revenue by the Company’s operating segments and major products and services offerings for the three months ended March 31, 2024 and 2023:
Nature of Products and Services The Company recognizes its products and services revenue based on when the transfer of control passes to the client or when the service is completed and accepted by the client. The products offering is predominantly comprised of the Company’s print operations which includes retail inserts, publications, catalogs, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, other commercial and specialty printed products and global paper procurement. The Company considers its logistic operations as services, which include the delivery of printed material. The services offering also includes revenues related to the Company’s marketing services operations, which include data and analytics, technology solutions, media services, creative and content solutions, managed services and execution in non-print channels (e.g., digital and broadcast), as well as medical services. Costs to Obtain Contracts In accordance with Accounting Standards Codification 606 — Revenue from Contracts with Customers, the Company defers certain contract acquisition costs paid to the client at contract inception. Costs to obtain contracts with a duration of less than one year are expensed as incurred. For all contract costs with contracts over one year, the Company amortizes the costs to obtain contracts on a straight-line basis over the estimated life of the contract and reviews quarterly for impairment. Activity impacting costs to obtain contracts for the three months ended March 31, 2024, was as follows:
|
Restructuring, Impairment and Transaction-Related Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, Impairment and Transaction-Related Charges | Restructuring, Impairment and Transaction-Related Charges The Company recorded restructuring, impairment and transaction-related charges for the three months ended March 31, 2024 and 2023, as follows:
The costs related to these activities have been recorded in the condensed consolidated statements of operations as restructuring, impairment and transaction-related charges. See Note 16, “Segment Information,” for restructuring, impairment and transaction-related charges by segment. Restructuring Charges The Company has a restructuring program related to eliminating excess manufacturing capacity and properly aligning its cost structure. The Company classifies the following charges as restructuring: •Employee termination charges are incurred when the Company reduces its workforce through facility consolidations and separation programs. •Integration costs are incurred primarily for the integration of acquired companies. •Other restructuring charges consisted of the following during the three months ended March 31, 2024 and 2023:
The restructuring charges recorded were based on plans that have been committed to by management and were, in part, based upon management’s best estimates of future events. Changes to the estimates may require future restructuring charges and adjustments to the restructuring liabilities. The Company expects to incur additional restructuring charges related to these and other initiatives. Impairment Charges The Company recognized impairment charges of $12.6 million during the three months ended March 31, 2024, which consisted of $10.8 million for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction activities, and $1.8 million for operating lease right-of-use assets. The Company recognized impairment charges of $9.5 million during the three months ended March 31, 2023, which consisted primarily of certain property, plant and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction activities. The fair values of the impaired assets were determined by the Company to be Level 3 under the fair value hierarchy (see Note 10, “Financial Instruments and Fair Value Measurements,” for the definition of Level 3 inputs) and were estimated based on broker quotes, internal expertise related to current marketplace conditions and estimated future discounted cash flows. These assets were adjusted to their estimated fair values at the time of impairment. If estimated fair values subsequently decline, the carrying values of the assets are adjusted accordingly. Transaction-Related Charges The Company incurs transaction-related charges primarily consisting of professional service fees related to business acquisition and divestiture activities. Transaction-related charges of $0.5 million and $0.6 million were recorded during the three months ended March 31, 2024 and 2023, respectively. Restructuring Reserves Activity impacting the Company’s restructuring reserves for the three months ended March 31, 2024, was as follows:
The Company’s restructuring reserves at March 31, 2024, included a short-term and a long-term component. The short-term portion included $22.9 million in other current liabilities and $0.6 million in accounts payable in the condensed consolidated balance sheets as the Company expects these reserves to be settled within the next twelve months. The long-term portion of $8.1 million is included in other long-term liabilities in the condensed consolidated balance sheets.
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Goodwill |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is assigned to specific reporting units and is tested annually for impairment as of October 31, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying value. The Company recorded preliminary goodwill within the United States Print and Related Services segment related to the acquisition of DART Innovation (“DART”), an in-store digital media solutions provider, completed during the fourth quarter of 2023. The amount of preliminary goodwill is subject to the completion of the final valuation of the net assets acquired in the acquisition. Activity impacting goodwill for the three months ended March 31, 2024, was as follows:
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Receivables |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||
Receivables | Receivables Prior to granting credit, the Company evaluates each client in an underwriting process, taking into consideration the prospective client’s financial condition, past payment experience, credit bureau information and other financial and qualitative factors that may affect the client’s ability to pay. Specific credit reviews and standard industry credit scoring models are used in performing this evaluation. Clients’ financial condition is continuously monitored as part of the normal course of business. Some of the Company’s clients are highly leveraged or otherwise subject to their own operating and regulatory risks. Specific client provisions are made when a review of significant outstanding amounts, utilizing information about client creditworthiness, as well as current and future economic trends based on reasonable forecasts, indicates that collection is doubtful. The Company also records a general provision based on the overall risk profile of the receivables and through the assessment of reasonable economic forecasts. The risk profile is assessed on a quarterly basis using various methods, including external resources and credit scoring models. Accounts that are deemed uncollectible are written off when all reasonable collection efforts have been exhausted. The Company has recorded credit loss expense of $0.1 million and $0.9 million during the three months ended March 31, 2024 and 2023, respectively, which is included in selling, general and administrative expenses in the condensed consolidated statements of operations. Activity impacting the allowance for credit losses for the three months ended March 31, 2024, was as follows:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories at March 31, 2024, and December 31, 2023, were as follows:
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Commitments and Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is named as a defendant in various lawsuits in which claims are asserted against the Company in the normal course of business. The liabilities, if any, which ultimately result from such lawsuits are not expected by management to have a material impact on the condensed consolidated financial statements of the Company. Environmental Reserves The Company is subject to various laws, regulations and government policies relating to health and safety, to the generation, storage, transportation, and disposal of hazardous substances, and to environmental protection in general. The Company provides for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such reserves are adjusted as new information develops or as circumstances change. The environmental reserves are not discounted. The Company believes it is in compliance with such laws, regulations and government policies in all material respects. Furthermore, the Company does not anticipate that maintaining compliance with such environmental statutes will have a material impact upon the Company’s condensed consolidated financial position.
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Debt |
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Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Credit Facility The Company completed the seventh amendment to its Senior Secured Credit Facility on January 24, 2023, which transitioned the Company’s reference rate from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”) effective February 1, 2023. The Company elected the practical expedient outlined in Accounting Standards Update (“ASU”) 2020-04 and ASU 2021-01 which allowed the Company to prospectively adjust the effective interest rate after the reference rate change. The transition from LIBOR to SOFR did not have a material impact on the condensed consolidated financial statements. The Company completed the eighth amendment to its Senior Secured Credit Facility on January 4, 2024, which added an additional $25.0 million principal value to the Term Loan A (under the portion maturing on November 2, 2026). On January 31, 2024, the Company used liquidity available under its revolving credit facility and available cash on hand to fund the repayment on maturity of $87.7 million aggregate principal amount, outstanding at the time, of its Term Loan A. Additionally, due to a portion of the revolving credit facility maturing on January 31, 2024, the total capacity under the revolving credit facility was reduced to $342.5 million as of this date. Press Financing Arrangements During the three months ended March 31, 2024, the Company entered into two press financing arrangements. The first arrangement of $13.8 million bears interest at a fixed rate of 8.31%, maturing in 2028. The second arrangement of $14.0 million bears interest at a current weighted average variable rate of 9.27%, maturing in 2028. Payments are made monthly on both arrangements.
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Income Taxes |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company records income tax expense on an interim basis. For the three months ended March 31, 2024, the Company’s income tax expense was recorded using an actual effective income tax rate for the year-to-date period. Based on the Company’s current operating results, the Company believes the actual effective tax rate for the year-to-date period is the best estimate of the annual effective tax rate. The actual effective income tax rate differs from the statutory tax rate primarily due to net increases in valuation allowance reserves, non-deductible expenses and global intangible low taxed income (“GILTI”) from foreign controlled corporations. For the three months ended March 31, 2023, the Company used an estimated annual effective income tax rate to record its income tax expense. The estimated annual effective income tax rate differs from the statutory tax rate primarily due to estimated non-deductible expenses, income from foreign branches and net increases in valuation allowance reserves. The Company currently has various open tax audits in multiple jurisdictions. From time to time, the Company will receive tax assessments as part of the process. Based on the information available as of March 31, 2024, the Company has recorded its best estimate of the potential settlements of these audits. Actual results could differ from the estimated amounts. The Company’s liability for unrecognized tax benefits as of March 31, 2024, was $16.9 million, an increase of $0.2 million from $16.7 million as of December 31, 2023. The Company anticipates a $6.7 million decrease to its liability for unrecognized tax benefits within the next twelve months due to the resolution of income tax audits or statute expirations, of which $0.1 million would impact the Company’s effective tax rate.
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Financial Instruments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of acquisitions or impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. There were no Level 3 recurring measurements of assets or liabilities as of March 31, 2024. Interest Rate Swap The Company held one interest rate swap contract until its termination on March 28, 2024. The purpose of entering into the contract was to reduce the variability of cash flows from interest payments related to a portion of Quad’s variable rate debt. The interest rate swap was previously designated as a cash flow hedge as it effectively converted the notional value of the Company’s variable rate debt based on one-month LIBOR to a fixed rate, including a spread on underlying debt, and a monthly reset in the variable interest rate. However, the Company amended its Senior Secured Credit Facility during the second quarter of 2020, which added a 0.75% LIBOR floor to the Company’s variable rate debt, changing the critical terms of the hedged instrument. Due to this change in critical terms, the Company had elected to de-designate the swap as a cash flow hedge, resulting in future changes in fair value being recognized in interest expense. The balance of the accumulated other comprehensive loss attributable to the interest rate swap as of June 30, 2020 was then amortized to interest expense on a straight-line basis over the remaining lives of the swap contracts. Due to the Company’s transition from LIBOR to SOFR during the first quarter of 2023, the interest rate swap’s fixed swap rate was amended to be based on one-month term SOFR. The key terms of the interest rate swap were as follows:
The Company classifies interest rate swaps as Level 2 because the inputs into the valuation model are observable or can be derived or corroborated utilizing observable market data at commonly quoted intervals. The fair value of the interest rate swap classified as Level 2 as of December 31, 2023, was as follows:
Prior to the Company’s de-designation of the interest rate swap as a cash flow hedge, the interest rate swap was considered highly effective, with no amount of ineffectiveness recorded into earnings. The change in the fair value of the interest rate swap was recorded as an adjustment to interest expense in the condensed consolidated statements of operations. The cash flows associated with the interest rate swap have been recognized as an adjustment to interest expense in the condensed consolidated statements of operations:
Effective April 30, 2024, the Company entered into an interest rate swap contract with a notional value of $50.0 million that will effectively convert the Company’s variable rate debt, based on one-month SOFR, to a fixed swap rate of 4.67%. The Company will pay interest on the notional value of debt at the fixed swap rate, plus a spread on underlying debt, according to the Senior Secured Credit Facility. The interest rate swap will terminate on March 31, 2027. Interest Rate Collars The Company has entered into two interest rate collar contracts, both effective February 1, 2023. The purpose of entering into the contracts is to reduce the variability of cash flows from interest payments related to a portion of Quad’s variable rate debt. The interest rate collars will be designated as cash flow hedges as they effectively convert the notional value of the Company’s variable rate debt based on one-month term SOFR to a fixed rate if that month’s interest rate is outside of the collars’ floor and ceiling rates, including a spread on underlying debt, and a monthly reset in the variable interest rate. The key terms of the interest rate collars are as follows:
The Company classifies interest rate collars as Level 2 because the inputs into the valuation model are observable or can be derived or corroborated utilizing observable market data at commonly quoted intervals. The fair value of the interest rate collars classified as Level 2 as of March 31, 2024, and December 31, 2023, were as follows:
The interest rate collars were highly effective as of March 31, 2024. No amount of ineffectiveness has been recorded into earnings related to these cash flow hedges. The cash flows associated with the interest rate collars have been recognized as an adjustment to interest expense in the condensed consolidated statements of operations, and the changes in the fair value of the interest rate collars have been included in other comprehensive income in the condensed consolidated statements of comprehensive loss:
Foreign Exchange Contracts The Company has operations in countries that have transactions outside their functional currencies and periodically enters into foreign exchange contracts. These contracts are used to hedge the net exposures of changes in foreign currency exchange rates and are designated as either cash flow hedges or fair value hedges. Gains or losses on net foreign currency hedges are intended to offset losses or gains on the underlying net exposures in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. As of March 31, 2024, there were no open foreign currency exchange contracts. Natural Gas Forward Contracts The Company periodically enters into natural gas forward purchase contracts to hedge against increases in commodity costs. The Company’s commodity contracts qualified for the exception related to normal purchases and sales during the three months ended March 31, 2024 and 2023, as the Company takes delivery in the normal course of business. Debt The Company measures fair value on its debt instruments using interest rates available to the Company for borrowings with similar terms and maturities and is categorized as Level 2. Based upon the interest rates available to the Company for borrowings with similar terms and maturities, the fair value of the Company’s total debt was approximately $0.5 billion at March 31, 2024 and December 31, 2023. Other Estimated Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets that may result in impairment charges, which are categorized as Level 3. See Note 3, “Restructuring, Impairment and Transaction-Related Charges” and Note 4, “Goodwill” for further discussion on fair value remeasurements. See Note 3, “Restructuring, Impairment and Transaction-Related Charges” for impairment charges recorded as a result of the remeasurement of certain long-lived assets. The Company records the fair value of its forward contracts and pension plan assets on a recurring basis. The fair value of cash and cash equivalents, receivables, inventories, accounts payable and other current liabilities approximate their carrying values as of March 31, 2024, and December 31, 2023.
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Employee Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plans | Employee Retirement Plans Defined Contribution Plans The Quad/Graphics, Inc. Employee Stock Ownership Plan (“ESOP”) holds profit sharing contributions of Company stock, which are made at the discretion of the Company’s Board of Directors. There were no profit sharing contributions during the three months ended March 31, 2024 and 2023. Pension Plans The Company assumed various funded and unfunded frozen pension plans for a portion of its full-time employees in the United States as part of the acquisition of World Color Press Inc. (“World Color Press”) in 2010. Benefits are generally based upon years of service and compensation. These plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all qualified plans using actuarial cost methods and assumptions acceptable under government regulations. The components of net pension income for the three months ended March 31, 2024 and 2023, were as follows:
The Company made $0.1 million in benefit payments to its non-qualified defined benefit pension plans and made no contributions to its qualified defined benefit pension plans during the three months ended March 31, 2024. Multiemployer Pension Plans (“MEPPs”) The Company has withdrawn from all significant MEPPs and replaced these union sponsored “promise to pay in the future” defined benefit plans with a Company sponsored “pay as you go” defined contribution plan. The two MEPPs, the Graphic Communications International Union – Employer Retirement Fund (“GCIU”) and the Graphic Communications Conference of the International Brotherhood of Teamsters National Pension Fund (“GCC”), are significantly underfunded, and require the Company to pay a withdrawal liability to fund its pro rata share of the underfunding as of the plan year the full withdrawal was completed. As a result of the decision to withdraw, the Company accrued a withdrawal liability based on information provided by each plan’s trustee. The Company has reserved $23.1 million for the total MEPPs withdrawal liability as of March 31, 2024, of which $21.0 million was recorded in other long-term liabilities and $2.1 million was recorded in other current liabilities in the condensed consolidated balance sheets. The Company is scheduled to make payments to the GCIU until April 2032 and made its final payment to the GCC in February 2024. The Company made payments totaling $1.4 million and $1.5 million for the three months ended March 31, 2024 and 2023, respectively.
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Earning (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earning (Loss) Per Share | Loss Per Share Basic earnings (loss) per share is computed as net earnings (loss) divided by the basic weighted average common shares outstanding. The calculation of diluted earnings (loss) per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned stock-based compensation costs attributable to future services. Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net earnings, and accordingly, the Company excludes them from the calculation. Due to the net loss incurred during the three months ended March 31, 2024 and 2023, the assumed exercise of all equity incentive instruments was anti-dilutive and therefore, not included in the diluted loss per share calculation. Reconciliations of the numerator and the denominator of the basic and diluted per share computations for the Company’s common stock for the three months ended March 31, 2024 and 2023, are summarized as follows:
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Equity Incentive Programs |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Programs | Equity Incentive Programs Equity Incentive Compensation Expense Equity incentive compensation expense was recorded primarily in selling, general and administrative expenses in the condensed consolidated statements of operations. The total compensation expense recognized related to all equity incentive programs for the three months ended March 31, 2024 and 2023, was as follows:
Total future compensation expense related to all equity incentive programs granted as of March 31, 2024, was estimated to be $11.8 million, which consists entirely of expense for RS and RSU awards. Estimated future compensation expense is $4.6 million for the remainder of 2024, $4.5 million for 2025, $2.4 million for 2026 and $0.3 million for 2027. Restricted Stock and Restricted Stock Units The following table is a summary of RS and RSU award activity for the three months ended March 31, 2024:
Deferred Stock Units The following table is a summary of DSU award activity for the three months ended March 31, 2024:
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity The Company has three classes of common stock as follows (share data in millions):
In accordance with the Articles of Incorporation, each class A common share has one vote per share and each class B and class C common share has ten votes per share on all matters voted upon by the Company’s shareholders. Liquidation rights are the same for all three classes of common stock. The Company also has 0.5 million shares of $0.01 par value preferred stock authorized, of which none were issued at March 31, 2024, and December 31, 2023. The Company has no present plans to issue any preferred stock. On July 30, 2018, the Company’s Board of Directors authorized a share repurchase program of up to $100.0 million of the Company’s outstanding class A common stock. There were no share repurchases during the three months ended March 31, 2024, and the following repurchases occurred during the three months ended March 31, 2023:
As of March 31, 2024, there were $77.5 million of authorized repurchases remaining under the program. In March 2024, 294,875 shares of class B common stock were converted to class A common stock, and the class B common shares were canceled and returned to the status of authorized but unissued shares. In accordance with the Articles of Incorporation, dividends are paid equally for all three classes of common stock. The Company’s Board of Directors suspended the Company’s quarterly dividends beginning in the second quarter of 2020. On February 15, 2024, the Board of Directors reinstated the Company’s quarterly dividends. The dividend activity related to the then outstanding shares for the three months ended March 31, 2024 is as follows:
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended March 31, 2024, were as follows:
The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended March 31, 2023, were as follows:
The details of the reclassifications from accumulated other comprehensive loss to net loss for the three months ended March 31, 2024 and 2023, were as follows:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Quad is a global marketing experience (MX) company that helps brands make direct consumer connections, from household to in-store to online. The Company’s mission is to provide a better marketing experience for its clients, so they can focus on delivering the best customer experience to theirs. The Company’s operating and reportable segments are aligned with how the chief operating decision maker of the Company currently manages the business. The Company’s operating and reportable segments, including their product and service offerings, and a “Corporate” category are as follows: •United States Print and Related Services •International •Corporate United States Print and Related Services The United States Print and Related Services segment is predominantly comprised of the Company’s United States printing operations and is managed as one integrated platform. This includes print execution and logistics for retail inserts, catalogs, long-run publications, special interest publications, journals, direct mail, directories, in-store marketing and promotion, packaging, newspapers, custom print products, as well as other commercial and specialty printed products, along with global paper procurement, and marketing and other complementary services, such as data intelligence and analytics, technology solutions, media planning, placement and optimization, creative strategy and content creation, as well as execution in non-print channels (e.g., digital and broadcast). This segment also includes the manufacture of ink. International The International segment consists of the Company’s printing operations in Europe and Latin America, including operations in England, France, Germany, Poland, Colombia, Mexico and Peru. This segment provides printed products and marketing and other complementary services consistent with the United States Print and Related Services segment. Corporate Corporate consists of unallocated general and administrative activities and associated expenses including, in part, executive, legal and finance, as well as certain expenses and income from frozen employee retirement plans, such as pension benefit plans. The following is a summary of segment information for the three months ended March 31, 2024 and 2023:
Restructuring, impairment and transaction-related charges for the three months ended March 31, 2024 and 2023, are further described in Note 3, “Restructuring, Impairment and Transaction-Related Charges,” and are included in the operating income (loss) results by segment above. A reconciliation of operating income (loss) to loss before income taxes as reported in the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023, was as follows:
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New Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods with fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the adoption of 2023-07 on the consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which establishes new income tax disclosures to consistently categorize and provide greater disaggregation of information in the rate reconciliation, including dollar value and percentage impacts of each component of the reconciliation, as well as further disaggregates income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the adoption of the 2023-09 on the consolidated financial statements.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Declaration of Quarterly Dividend On April 22, 2024, the Company declared a quarterly dividend of $0.05 per share, which will be paid on June 7, 2024, to shareholders of record as of May 22, 2024.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (28.1) | $ (24.6) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurement | Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of acquisitions or impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP also classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Unobservable inputs for the asset or liability. There were no Level 3 recurring measurements of assets or liabilities as of March 31, 2024.
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Earnings Per Share | The calculation of diluted earnings (loss) per share includes the effect of any dilutive equity incentive instruments. The Company uses the treasury stock method to calculate the effect of outstanding dilutive equity incentive instruments, which requires the Company to compute total proceeds as the sum of the amount the employee must pay upon exercise of the award and the amount of unearned stock-based compensation costs attributable to future services. Equity incentive instruments for which the total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net earnings, and accordingly, the Company excludes them from the calculation. Due to the net loss incurred during the three months ended March 31, 2024 and 2023, the assumed exercise of all equity incentive instruments was anti-dilutive and therefore, not included in the diluted loss per share calculation.
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables provide information about disaggregated revenue by the Company’s operating segments and major products and services offerings for the three months ended March 31, 2024 and 2023:
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Costs to Obtain Contracts with Customers | Activity impacting costs to obtain contracts for the three months ended March 31, 2024, was as follows:
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Restructuring, Impairment and Transaction-Related Charges (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring, Impairment and Transaction-Related Charges | The Company recorded restructuring, impairment and transaction-related charges for the three months ended March 31, 2024 and 2023, as follows:
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Activity Impacting Reserves for Restructuring, Impairment and Transaction-Related Charges | Activity impacting the Company’s restructuring reserves for the three months ended March 31, 2024, was as follows:
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Goodwill (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Activity impacting goodwill for the three months ended March 31, 2024, was as follows:
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Receivables (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||
Activity Impacting Allowance for Credit Losses | Activity impacting the allowance for credit losses for the three months ended March 31, 2024, was as follows:
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Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventory | The components of inventories at March 31, 2024, and December 31, 2023, were as follows:
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Financial Instruments and Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The key terms of the interest rate swap were as follows:
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Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The cash flows associated with the interest rate swap have been recognized as an adjustment to interest expense in the condensed consolidated statements of operations:
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Employee Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Pension Income | The components of net pension income for the three months ended March 31, 2024 and 2023, were as follows:
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Earning (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earning (Loss) Per Share | Reconciliations of the numerator and the denominator of the basic and diluted per share computations for the Company’s common stock for the three months ended March 31, 2024 and 2023, are summarized as follows:
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Equity Incentive Programs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Total Compensation Expense | The total compensation expense recognized related to all equity incentive programs for the three months ended March 31, 2024 and 2023, was as follows:
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Summary of RS and RSU Award Activity | The following table is a summary of RS and RSU award activity for the three months ended March 31, 2024:
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Summary of DSU Award Activity | The following table is a summary of DSU award activity for the three months ended March 31, 2024:
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Shareholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The Company has three classes of common stock as follows (share data in millions):
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Schedule of Share Repurchases | There were no share repurchases during the three months ended March 31, 2024, and the following repurchases occurred during the three months ended March 31, 2023:
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Schedule of Dividend Activity Related to the Outstanding Shares | The dividend activity related to the then outstanding shares for the three months ended March 31, 2024 is as follows:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss By Component, Net of Tax | The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended March 31, 2024, were as follows:
The changes in accumulated other comprehensive loss by component, net of tax, for the three months ended March 31, 2023, were as follows:
The details of the reclassifications from accumulated other comprehensive loss to net loss for the three months ended March 31, 2024 and 2023, were as follows:
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | The following is a summary of segment information for the three months ended March 31, 2024 and 2023:
|
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Reconciliation of Operating Income (Loss) to Earnings (Loss) Before Income Taxes and Equity in Loss of Unconsolidated Entities | A reconciliation of operating income (loss) to loss before income taxes as reported in the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023, was as follows:
|
Revenue Recognition - Costs to Obtain Contracts (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Change in Capitalized Contract Costs [Roll Forward] | |
Balance at December 31, 2023 | $ 1.8 |
Amortization of costs to obtain contracts | (0.2) |
Balance at March 31, 2024 | $ 1.6 |
Restructuring, Impairment and Transaction-Related Charges - Schedule of Restructuring, Impairment and Transaction-Related Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring and Related Activities [Abstract] | ||
Employee termination charges | $ 13.7 | $ 13.1 |
Impairment charges | 12.6 | 9.5 |
Transaction-related charges | 0.5 | 0.6 |
Integration costs | 0.1 | 0.5 |
Other restructuring charges | 5.6 | 2.3 |
Restructuring, impairment and transaction-related charges | $ 32.5 | $ 26.0 |
Restructuring, Impairment and Transaction-Related Charges - Schedule of Other Restructuring (Income) Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Other restructuring charges | $ 5.6 | $ 2.3 |
Facilities Idled | ||
Restructuring Cost and Reserve [Line Items] | ||
Vacant facility carrying costs and lease exit charges | 4.3 | 1.9 |
Equipment and Infrastructure Removal Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Equipment and infrastructure removal costs | 1.1 | 0.3 |
Other restructuring charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Other restructuring activities | $ 0.2 | $ 0.1 |
Restructuring, Impairment and Transaction-Related Charges - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Impairment charges | $ 12.6 | $ 9.5 |
Transaction-related charges | 0.5 | $ 0.6 |
Machinery and equipment | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment charges | 10.8 | |
Operating And Finance Lease, Right-Of-Use Asset | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment charges | 1.8 | |
Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Short-term restructuring reserve | 22.9 | |
Accounts Payable | ||
Restructuring Cost and Reserve [Line Items] | ||
Short-term restructuring reserve | 0.6 | |
Other long-term liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Long-term restructuring reserve | $ 8.1 |
Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at December 31, 2023 | $ 103.0 |
DART acquisition | (2.7) |
Balance at March 31, 2024 | 100.3 |
United States Print and Related Services | |
Goodwill [Roll Forward] | |
Balance at December 31, 2023 | 103.0 |
DART acquisition | (2.7) |
Balance at March 31, 2024 | 100.3 |
International | |
Goodwill [Roll Forward] | |
Balance at December 31, 2023 | 0.0 |
DART acquisition | 0.0 |
Balance at March 31, 2024 | $ 0.0 |
Receivables - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Receivables [Abstract] | ||
Accounts receivable, credit loss expense | $ 0.1 | $ 0.9 |
Receivables - Rollforward (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 25.7 |
Provisions | 0.1 |
Write-offs | (0.3) |
Balance at end of period | $ 25.5 |
Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and manufacturing supplies | $ 105.9 | $ 102.7 |
Work in process | 38.6 | 30.1 |
Finished goods | 36.1 | 46.0 |
Total | $ 180.6 | $ 178.8 |
Debt (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2024
USD ($)
|
Mar. 31, 2024
USD ($)
arrangement
|
Jan. 04, 2024
USD ($)
|
|
Debt Instrument [Line Items] | |||
Number of instruments | arrangement | 2 | ||
Line of Credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 342.5 | ||
Term Loan A | Senior Notes | |||
Debt Instrument [Line Items] | |||
Accordion feature, increase limit | $ 25.0 | ||
Repayments of long-term debt | $ 87.7 | ||
Press Financing Arrangements | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 13.8 | ||
Interest rate, percentage | 8.31% | ||
Press Financing Arrangements, Variable Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 14.0 | ||
Weighted average interest rate | 9.27% |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Liability for unrecognized tax benefits | $ 16.9 | $ 16.7 |
Increase in unrecognized tax benefits | 0.2 | |
Anticipated decrease in unrecognized tax benefits within the next twelve months | 6.7 | |
Anticipated decrease in unrecognized tax benefits, effective rate impact | $ 0.1 |
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | $ 1,423,700,000 | $ 1,509,700,000 |
Liabilities | 1,334,500,000 | $ 1,390,200,000 |
Fair Value, Inputs, Level 3 | Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Assets | 0 | |
Liabilities | $ 0 |
Financial Instruments and Fair Value Measurements - Foreign Exchange Contracts (Details) |
Mar. 31, 2024
contract
|
---|---|
Foreign Exchange Contract | |
Derivatives, Fair Value [Line Items] | |
Foreign currency exchange contracts | 0 |
Financial Instruments and Fair Value Measurements - Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Fair value of company debt | $ 500.0 | $ 500.0 |
Employee Retirement Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Retirement Benefits [Abstract] | ||
Employee stock ownership plan contribution expense | $ 0.0 | $ 0.0 |
Employee Retirement Plans - Pension Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Net pension income | $ 0.2 | $ 0.4 |
Pension Plans | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Interest cost | (4.1) | (4.4) |
Expected return on plan assets | 4.5 | 5.0 |
Net periodic pension income | 0.4 | 0.6 |
Amortization of actuarial loss | (0.2) | (0.2) |
Net pension income | 0.2 | $ 0.4 |
Pension Plans | Non-qualified | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Benefit payments on non-qualified pension plans | 0.1 | |
Pension Plans | Qualified | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Contributions on qualified pension plans | $ 0.0 |
Employee Retirement Plans - Multiemployer Pension Plans (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
plan
|
Mar. 31, 2023
USD ($)
|
|
Multiemployer Plans [Line Items] | ||
Number of underfunded plans | plan | 2 | |
Withdrawal obligation | $ 23.1 | |
Payments to multiemployer pension plans | 1.4 | $ 1.5 |
Other Long-Term Liabilities | ||
Multiemployer Plans [Line Items] | ||
Withdrawal obligation | 21.0 | |
Other Current Liabilities | ||
Multiemployer Plans [Line Items] | ||
Withdrawal obligation | $ 2.1 |
Earning (Loss) Per Share - Schedule of Calculation of Numerator and Denominator in Earning (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator | ||
Net loss | $ (28.1) | $ (24.6) |
Denominator | ||
Basic weighted average number of common shares outstanding for all classes of common shares (in shares) | 47.2 | 49.2 |
Plus: effect of dilutive equity incentive instruments (in shares) | 0.0 | 0.0 |
Diluted weighted average number of common shares outstanding for all classes of common shares (in shares) | 47.2 | 49.2 |
Loss per share | ||
Basic (USD per share) | $ (0.60) | $ (0.50) |
Diluted (USD per share) | (0.60) | (0.50) |
Cash dividends paid per common share for all classes of common shares (USD per share) | $ 0.05 | $ 0 |
Equity Incentive Programs - Deferred Stock Unit Activity (Details) - Deferred Stock Units (DSUs) |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Units | |
Outstanding at beginning of period (in shares) | shares | 865,267 |
Dividend equivalents granted (in shares) | shares | 8,347 |
Settled (in shares) | shares | (18,101) |
Outstanding at end of period (in shares) | shares | 855,513 |
Weighted-Average Grant Date Fair Value Per Unit | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 6.30 |
Dividend equivalents granted (in dollars per share) | $ / shares | 6.04 |
Settled (USD per share) | $ / shares | 17.65 |
Outstanding at end of period (USD per share) | $ / shares | $ 6.05 |
Shareholders' Equity - Schedule of Stock by Class (Details) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (USD per share) | $ 0.025 | |
Authorized Shares | 105,000,000.0 | 105,000,000.0 |
Outstanding | 38,700,000 | 37,400,000 |
Treasury | 3,800,000 | 5,100,000 |
Total Issued Shares | 42,500,000 | 42,500,000 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (USD per share) | $ 0.025 | |
Authorized Shares | 80,000,000.0 | 80,000,000.0 |
Outstanding | 13,300,000 | 13,600,000 |
Treasury | 0 | 0 |
Total Issued Shares | 13,300,000 | 13,600,000 |
Common Class C | ||
Class of Stock [Line Items] | ||
Common stock, par value (USD per share) | $ 0.025 | |
Authorized Shares | 20,000,000.0 | 20,000,000.0 |
Outstanding | 0 | 0 |
Treasury | 500,000 | 500,000 |
Total Issued Shares | 500,000 | 500,000 |
Shareholders' Equity - Narrative (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
vote
stock_class
$ / shares
shares
|
Dec. 31, 2023
$ / shares
shares
|
Jul. 30, 2018
USD ($)
|
|
Shareholders' Equity [Line Items] | |||
Number of classes of common stock | stock_class | 3 | ||
Preferred stock, authorized shares | shares | 500,000 | 500,000 | |
Preferred stock, par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | |
Preferred stock, issued shares | shares | 0 | 0 | |
Remaining authorized repurchases | $ | $ 77,500,000 | ||
Common Stock | |||
Shareholders' Equity [Line Items] | |||
Conversion of class B shares, shares | shares | 294,875 | ||
Common Class A | |||
Shareholders' Equity [Line Items] | |||
Number of votes | vote | 1 | ||
Share repurchase program, authorized amount | $ | $ 100,000,000 | ||
Common Class B | |||
Shareholders' Equity [Line Items] | |||
Number of votes | vote | 10 | ||
Common Class C | |||
Shareholders' Equity [Line Items] | |||
Number of votes | vote | 10 |
Shareholders' Equity - Schedule of Share Repurchases (Details) - Common Class A - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Stock [Line Items] | ||
Purchases of treasury stock (in shares) | 0 | 64,271 |
Shares repurchased, price per share (USD per share) | $ 3.98 | |
Shares repurchased, total purchase price | $ 0.3 |
Shareholders' Equity - Schedule of Dividend Activity Related to the Outstanding Shares (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid per common share for all classes of common shares (USD per share) | $ 0.05 | $ 0 |
Segment Information - Reconciliation of Operating Profit from Segment to Consolidated (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting [Abstract] | ||
Operating income (loss) | $ (10.7) | $ 0.1 |
Less: interest expense | 15.2 | 16.3 |
Less: net pension income | (0.2) | (0.4) |
Loss before income taxes | $ (25.7) | $ (15.8) |
Subsequent Events (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Apr. 22, 2024 |
Mar. 31, 2024 |
|
Subsequent Event [Line Items] | ||
Cash dividend declared (USD per share) | $ 0.05 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Cash dividend declared (USD per share) | $ 0.05 |
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