Financial Analysis: Financial Figures and Concepts IP
Present your findings of data in a table. Add a paragraph that summarizes your results, indicating whether investors would find the financial analysis results of Apix competitive as compared to rivals in the sector. Be sure to include both positive and negative trends in your analysis.
Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.
In anticipation of Mary’s request for comparative analysis, it will be useful at this time to do some research. You know that you can obtain the financials of companies within the same sector or Standard Industry Code as Apix Printing (e.g., commercial printing), and that the North American Industry Classification System (NAICS) Standard Industry 2012 code for Apix Printing is presently 323111. Use the FINC615 Library Guide to search for two other companies in the same industry as Apix Printing.
When you get to work the next day, you see the following e-mail from Mary:
Here is the list of financial ratios you asked for. I need you to explain the computation of each and compute these for Apix’s results for the financial statements you are using for the PowerPoint presentation. Also, compare Apix’s 2-year trend results to that of two other firms in the sector. Indicate how each of Apix’s ratios differ, and indicate whether the two other companies’ ratios or Apix’s ratios are indicative of better performance.
Explain the computation for each of the following, and compute each for Apix and two other companies in the same industry as Apix Printing:
- Current ratio
- (Long-term) debt to equity ratio
- Gross margin percentage
- Net profit margin percentage
- Return on equity percentage
Apex Printing Balance Sheets As of December 31, 2013 and 2012
000$ 000$
Assets 2013 2012 Cash 6,000 5,700 Accounts Receivable 2,350 2,300 Inventory 12,100 6,500 Total Current Assets 20,450 14,500
Land 25,000 20,000 Building & Equipment 300,000 300,000 Less: Accumulated Depreciation – Building & Equipment (187,850) (160,000) Total Long Term Assets 137,150 160,000 Total Assets 157,600 174,500
Liabilities and Stockholders' Equity
Accounts Payable 4,600 3,500 Salaries Payable 0 2,100 Interest Payable 1,500 0 Short Term Notes Payable 12,000 0 Taxes Payable 0 5,600 Total Current Liabilities 18,100 11,200
Mortgate Payable 54,950 100,000 Total Long Term Liabilities 54,950 100,000
Common Stock 60,000 60,000 Retained Earnings 24,550 3,300 Total Stockholders' Equity 84,550 63,300 Total Liabilities and Stockholders' Equity 157,600 174,500
Apex Printing Income Statements
For the Periods Ended December 31, 2013 and 2012 000$ 000$
2013 2012
Revenue: 450,000 475,000
Less: Cost of Goods Sold (324,300) (374,500)
Less: Depreciation Expense (27,850) (26,000)
Gross Margin 97,850 74,500
Selling, General & Administrative Expenses (29,100) (32,000)
Income Before Interest & Taxes 68,750 42,500
Interest Expense (7,500) (6,000)
Income Before Taxes 61,250 36,500
Income Taxes (35,000) (30,000)
Net Income 26,250 6,500
Apex Printing
Statement of Cash Flows
For the Period Ended December 31, 2013
000$
Cash Flows from Operating Activities: Net Income 26,250
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation Expense 27,850 Increase in accounts receivable (50) Increase in inventory (5,600) Decrease in salaries payable (2,100) Increase in interest payable 1,500 Decrease in taxes payable (5,600) Increase in Short Term notes Payable 12,000 Increase in accounts payable 1,100 Net Cash Flow from Operating Activities
55,350
Cash Flows from Investing Activities: Cash paid to purchase land (5,000)
Net Cash Flow from Investing Activities
(5,000)
Cash Flows From Financing Activities:
Cash paid for mortgage (45,050) Cash paid for dividends (5,000) Net Cash Flow from Financing Activities
(50,050)
Net Increase in Cash
300
Plus: Cash Balance at December 31, 2012
5,700
Cash Balance at December 31, 2013
6,000
,
Impreso, Inc. Profile
652 Southwestern Blvd Coppell, TX 75019-4419 United States Phone: 1-972-462-0100 http://www.tstimpreso.com
WELCOME
Hoover's is the business information resource that delivers a unique combination of up-to-date data, broad coverage, and comprehensive information about companies, decision makers, and industries – along with powerful tools to put this information to work for your business. Hoover's offers everything you need to successfully:
* Identify and evaluate potential sales leads, markets, and business partners * Deepen relationships with current customers * Assess competitive risks and eliminate threats * Build presentation-ready reports and customized lists of companies, industries, and decision makers
Unlike other business information providers, only Hoover's has a full-time, in-house editorial and research team dedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most comprehensive, up-to-date information available on companies, industries, and executives.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE i
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE ii
Table of Contents
Company Overview 1
Key Information 1
Key Financials 1
Key People 2
Industry Information 3
People 4
Employees 4
Board Members 4
Biographies 5
MARSHALL D SOROKWASZ 5
DONALD E JETT 5
JEFF BOREN 5
JOHN L GRAVES 5
SUSAN M ATKINS 5
Company Financials 7
Financial Summary 7
Annual Income Statement 8
Quarterly Income Statement 9
Annual Balance Sheet 10
Quarterly Balance Sheet 11
Annual Cash Flow 12
Quarterly Cash Flow 13
Financial Market Data 14
Historical Financials 15
Competition 16
Competitors List 16
Competitive Landscape 16
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 1
Company Overview
652 Southwestern Blvd Coppell, TX 75019-4419 United States Phone: 1-972-462-0100 http://www.tstimpreso.com
Money is just paper to holding company Impreso. Impreso, a Spanish word meaning "printed matter," was founded in 1976. Through its primary subsidiary TST/Impreso, the company makes and distributes specialty paper and film imaging products. Its paper products include thermal fax, copier, wide-format, continuous-feed, and special surface papers, such as film transparencies. Impreso operates a number of manufacturing plants and distributes in North America through its warehouses to dealers and other resellers. Impreso owns two other subsidiaries: Hotsheet.com (provides links to popular websites), and Alexa Springs (a custom-label water bottling business). Impreso suspended its SEC reporting obligations in 2006.
Key Information
DUNS Number 021366930 Location Type Parent/Headquarters Subsidiary Status No Manufacturer Yes Company Type Publicly Traded Company – Corporation Plant/Facility Size (Square Feet) 75,000.00 Owns/Rents Accountant Total Employees 201 Employee Growth (1-5 years) 18% Employees At This Location 75 Year of Founding or Change in Control 2000 Primary Industry 1068: Commercial Printing Primary SIC Code 27610000: Manifold business forms Primary NAICS Code 323111: Commercial Printing (except Screen and
Books) Tradestyle TSTImpreso Latitude/Longitude 32.948529 / -97.009799
Key Financials
Fiscal Year-End August 2005 Sales (Actual) $77.73M 1-Year Sales Growth (25.25)% Net Income $(2,909,328.00) 1-Year Net Income Growth 0.00% Total Assets $41.79M Market Value $14.15M Prescreen Score Low Risk
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 2
Key People
Name Title
MARSHALL D SOROKWASZ Chairman of the Board, President DONALD E JETT Secretary JEFF BOREN Vice President JOHN L GRAVES Vice President SUSAN M ATKINS Vice President
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 3
Industry Information
Primary SIC Code 27610000: Manifold business forms
Primary NAICS Code 323111: Commercial Printing (except Screen and Books)
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 4
People
Employees
Title Name Age Salary Bonus
Chairman of the Board, President
MARSHALL D SOROKWASZ — $367,454.00 —
Secretary DONALD E JETT — — — Vice President JEFF BOREN — — — Vice President JOHN L GRAVES — $147,093.00 — Vice President SUSAN M ATKINS — $131,274.00 —
Board Members
Title Name Age
Chairman of the Board, President MARSHALL SOROKWASZ — Board Member JEFF BOREN —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 5
Biographies
MARSHALL D SOROKWASZ
Chairman of the Board, President, Chief Executive Officer, Treasurer
Salary: $367,454.00
Biography Marshall D. Sorokwasz, 62, is one of the founders of the Company and has been our President, Chief Executive Officer, and a Director since our organization in 1976, Treasurer since 1992, and Chairman of the Board since 1996. Prior thereto, Mr. Sorokwasz held several positions with O.E.I. Business Products of Chicago, Illinois, a manufacturer and distributor of continuous business forms.
DONALD E JETT
Secretary and Director
Biography Donald E. Jett, is also a founder of the Company and has been a Director and the Secretary of the Company since 1976. Currently, Mr. Jett is retired. From 1994 to 1999, Mr. Jett worked as a consultant to Budget Cardio, a company that sold and refurbished new and used cardiovascular exercise equipment. During 1993, Mr. Jett owned and operated Uniglobe Clocktower Travel, a travel agency in Coppell, Texas. From 1978 until May 1991, Mr. Jett served as a Vice President and a Director of Origami, Inc., a business consumable wholesaler. Prior to working at Origami, Inc., he was a regional sales manager for 11 years in a division of Scott Paper Company, with sales responsibilities for 21 states.
JEFF BOREN
Vice President
JOHN L GRAVES
Vice President, Manufacturing
Salary: $147,093.00
Biography John L. Graves was promoted to Vice President of Manufacturing in June 1986. Prior to being elected Vice President, Mr. Graves was Operations Manager with the Company since August 1981.
SUSAN M ATKINS
Chief Financial Officer, Vice President-Finance, Assistant Secretary
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 6
Salary: $131,274.00
Biography Susan M. Atkins has been Vice President of Finance and Chief Financial Officer of the Company since December 1995, and Assistant Secretary since November 1999. Ms. Atkins was Controller of the Company prior to her election as Vice President of Finance and Chief Financial Officer.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 7
Company Financials
Financial Summary
Company Type Publicly Traded Company – Corporation Norwegian OTC:ZCOM Parent/Headquarters
Fiscal Year-End August 2005 Sales (Actual) $77.73M 1-Year Sales Growth (25.25)% 2005 Net Income $(2,909,328.00) 1-Year Net Income Growth 0.00% Prescreen Score Low Risk
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 8
Annual Income Statement
All amounts in millions of US Dollars except per share amounts.
Aug 2005 Aug 2004 Aug 2003 Aug 2002 Revenue 77.73 103.99 117.22 123.07 Cost of Goods Sold 73.55 90.28 103.43 110.45 Gross Profit 4.18 13.71 13.79 12.62 Gross Profit Margin 5.38% 13.18% 11.76% 10.25% SG&A Expense 9.06 10.88 11.30 9.33 Depreciation and Amortization — — — — Operating Income (4.03) 2.83 2.49 3.29 Operating Margin (5.18%) 2.72% 2.12% 2.67% Nonoperating Income — — — — Nonoperating Expenses — — — — Income Before Taxes (4.51) (1.69) 1.02 2.73 Income Taxes (1.60) 0.67 0.40 1.05 Net Income After Taxes (2.91) 1.01 0.62 1.68
Continuing Operations (2.91) 1.01 0.62 1.68 Discontinued Operations — — — — Total Operations — — — — Total Net Income (2.91) 1.01 0.62 1.68 Net Profit Margin (3.74%) 0.97% 0.53% 1.37%
Diluted EPS from Continuing Operations — — — — Diluted EPS from Total Operations — — — — Diluted EPS from Total Net Income (0.55) 0.19 0.12 0.32 Dividends Per Share — — — —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 9
Quarterly Income Statement
All amounts in millions of US Dollars except per share amounts.
Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005 Revenue 17.84 16.12 17.84 19.29 19.83 Cost of Goods Sold 15.74 14.88 16.24 17.77 18.73 Gross Profit 2.10 1.24 1.60 1.52 1.10 Gross Profit Margin 11.77% 7.69% 8.97% 7.88% 5.55% SG&A Expense 1.88 1.91 1.84 2.33 2.22 Depreciation and Amortization — — — — — Operating Income 0.26 (0.63) (0.18) (0.39) (1.08) Operating Margin 1.46% (3.91%) (1.01%) (2.02%) (5.45%) Nonoperating Income — — — — — Nonoperating Expenses — — — — — Income Before Taxes (0.07) (0.90) (0.51) (0.74) (0.85) Income Taxes (0.01) (0.28) (0.17) (0.37) (0.27) Net Income After Taxes (0.05) (0.62) (0.33) (0.37) (0.57)
Continuing Operations (0.05) (0.62) (0.33) (0.37) (0.57) Discontinued Operations — — — — — Total Operations — — — — — Total Net Income (0.05) (0.62) (0.33) (0.37) (0.57) Net Profit Margin (0.28%) (3.85%) (1.85%) (1.92%) (2.87%)
Diluted EPS from Continuing Operations — — — — — Diluted EPS from Total Operations — — — — — Diluted EPS from Total Net Income (0.01) (0.12) (0.06) (0.07) (0.11) Dividends Per Share — — — — —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 10
Annual Balance Sheet
All amounts in millions of US Dollars except per share amounts.
Assets Aug 2005 Aug 2004 Aug 2003 Aug 2002
Cash — 0.17 0.10 0.20 Net Receivables 9.00 12.67 12.14 15.86 Inventories 16.75 22.64 28.46 34.11 Other Current Assets — — — — Total Current Assets 29.33 36.55 41.42 50.92 Net Fixed Assets 12.39 15.12 14.83 15.94 Other Noncurrent — — — — Total Assets 41.79 51.75 56.34 66.97
Shareholder's Equity Aug 2005 Aug 2004 Aug 2003 Aug 2002
Preferred Stock Equity — — — — Common Stock Equity 0.05 0.05 0.05 0.05 Total Equity 15.15 18.05 17.04 16.42 Shares Outstanding (M) 5.28 5.28 5.28 5.28
Liabilities Aug 2005 Aug 2004 Aug 2003 Aug 2002
Accounts Payable 8.18 12.71 11.10 16.30 Short-Term Debt 8.03 8.27 15.71 18.99 Other Current Liabilities — — — — Total Current Liabilities 17.97 23.83 28.70 39.00 Long-Term Debt 7.77 8.39 9.57 10.61 Other Noncurrent 0.91 1.48 — — Total Liabilities 26.65 33.70 39.30 50.56
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 11
Quarterly Balance Sheet
All amounts in millions of US Dollars except per share amounts.
Assets Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005 Cash — — — — 0.63 Net Receivables 8.56 6.92 8.60 9.00 7.73 Inventories 15.16 15.42 15.66 16.75 20.96 Other Current Assets — — — — — Total Current Assets 27.26 25.93 27.96 29.33 34.69 Net Fixed Assets 11.42 11.70 12.04 12.39 12.75 Other Noncurrent — — — — — Total Assets 39.10 37.92 40.06 41.79 47.83
Shareholder's Equity Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005 Preferred Stock Equity — — — — — Common Stock Equity 0.05 0.05 0.05 0.05 0.05 Total Equity 14.14 14.19 14.81 15.15 15.51 Shares Outstanding (M) 5.28 5.28 5.28 5.28 5.28
Liabilities Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005 Accounts Payable 8.48 7.51 7.60 8.18 9.34 Short-Term Debt 7.14 7.29 6.85 8.03 9.49 Other Current Liabilities — — 0.39 — — Total Current Liabilities 17.50 16.23 16.96 17.97 21.14 Long-Term Debt 6.98 6.97 7.57 7.77 9.18 Other Noncurrent 0.48 0.53 0.57 0.91 0.65 Total Liabilities 24.95 23.73 25.25 26.65 32.32
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 12
Annual Cash Flow
All amounts in millions of US Dollars except per share amounts.
Aug 2005 Aug 2004 Aug 2003 Aug 2002 Cash & Cash Equivalents at Beginning of Year
0.17 0.10 0.20 0.21
Net Cash Provided by Operating Activities
0.33 10.41 4.55 5.44
Net Cash Provided by Investing Activities (0.35) (1.71) (0.33) (4.92) Net Cash Privided by Financing Activities (0.16) (8.62) (4.32) (0.53) Net Increase/Decrease in Cash & Equivalents
(0.17) 0.08 (0.11) (0.01)
Cash & Cash Equivalents at End of Year 0.00 0.17 0.10 0.20
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Quarterly Cash Flow
All amounts in millions of US Dollars except per share amounts.
Quarter Ending May 2006 Feb 2006 Nov 2005 Aug 2005 May 2005 Cash & Cash Equivalents at Beginning of Year
0.00 0.00 0.00 0.63 0.79
Net Cash Provided by Operating Activities
1.58 0.17 1.41 0.51 3.82
Net Cash Provided by Investing Activities (0.07) (0.01) (0.02) 0.54 (0.20) Net Cash Privided by Financing Activities (0.15) (0.16) (1.39) (1.67) (3.79) Net Increase/Decrease in Cash & Equivalents
— — — (0.63) (0.17)
Cash & Cash Equivalents at End of Year 1.36 0.00 0.00 0.00 0.63
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 14
Financial Market Data
Current Information
Last Close (Invalid date) — Price/Sales Ratio 0.20 52-Week High — Price/Book Ratio 1.01 52-Week Low — Price/Earnings Ratio — 60-Month Beta — Price/Cash Flow Ratio 3.90 Market Cap $14.15M Return on Assets (6.22%) Shares Outstanding — Return on Equity (17.53%) Dividend Rate — Current Ratio 1.63 Dividend Yield — Long-Term Debt/Equity 0.51 # of Institutional Holders — % Owned by Institutions — Latest Short Interest Ratio — Latest Net Insider Transactions —
Growth 12 Month 36 Month 60 Month
Revenue Growth (25.25%) (14.20%) 0.96% EPS Growth — — — Dividend Growth — — —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 15
Historical Financials
Income Statement
Year Revenue ($M) Net Income ($M) Net Profit Margin
Aug 2005 77.73 (2.91) (3.74)% Aug 2004 103.99 1.01 0.97% Aug 2003 117.22 0.62 0.53% Aug 2002 123.07 1.68 1.36%
2005 Year-End Financials
Debt Ratio 51.33% Return on Equity (17.53%) Cash ($M) — Current Ratio 1.63 Long-Term Debt ($M) 7.77 Shares Outstanding (M) — Dividend Yield — Dividend Payout — Market Cap ($M) 14.15
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 16
Competitors List
Company Gross Revenue Employees
Altaba Inc. $332.80M 8,500 Georgia-Pacific LLC $17,229.97M 46,270 International Paper Company $20,580.00M 49,300 Paris Corporation of New Jersey $80.00M 90 SPICERS LIMITED $217.32M
Competitive Landscape
Companies listed are Top Competitors.
Key Numbers Impreso, Inc. Annual Sales ($M) $77.73M Employees 201 Market Cap ($M) $14.15M
Profitability Impreso, Inc. Gross Profit Margin 5.37% Pre-Tax Profit (5.80%) Net Profit Margin (3.74%) Return on Equity (17.53%) Return on Assets (6.22%) Return on Invested Capital (8.86%)
Valuation Impreso, Inc. Price/Sales Ratio 0.20 Price/Earnings Ratio — Price/Book Ratio 1.01 Price/Cash Flow 3.90
Operations Impreso, Inc. Days of Sales Outstanding 50.9 Inventory Turnover 3.7 Days of Cost of Goods Sold in Inventory 97.8 Asset Turnover 1.7 Net Receivables Turnover Flow 7.2 Effective Tax Rate —
Financial Impreso, Inc. Current Ratio 1.63 Quick Ratio 0.57 Leverage Ratio 2.76 Total Debt/Equity 1.04 Interest Coverage —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 17
Per Share Data Impreso, Inc. Earnings Per Share -$0.55 Dividend Per Share — Cash Flow Per Share $0.69 Working Capital Per Share $1.85 Long-Term Debt Per Share — Book Value Per Share $2.68 Total Assets Per Share $7.41
Growth Impreso, Inc. 12-Month Revenue (25.25%) 12-Month Net Income — 12-Month EPS Growth — 12-Month Dividend Growth — 36-Month Revenue (14.20%) 36-Month Net Income — 36-Month EPS Growth — 36-Month Dividend Growth —
Reproduced with permission of copyright owner. Further reproduction prohibited without permission.
,
Quad/Graphics Inc. Profile
N61W23044 Harrys Way Sussex, WI 53089-3995 United States Phone: 1-414-566-6000 http://www.quad.com
WELCOME
Hoover's is the business information resource that delivers a unique combination of up-to-date data, broad coverage, and comprehensive information about companies, decision makers, and industries – along with powerful tools to put this information to work for your business. Hoover's offers everything you need to successfully:
* Identify and evaluate potential sales leads, markets, and business partners * Deepen relationships with current customers * Assess competitive risks and eliminate threats * Build presentation-ready reports and customized lists of companies, industries, and decision makers
Unlike other business information providers, only Hoover's has a full-time, in-house editorial and research team dedicated wholly to investigating, pinpointing, authenticating, and analyzing data to provide the most comprehensive, up-to-date information available on companies, industries, and executives.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE i
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE ii
Table of Contents
Company Overview 1
Key Information 1
Key Financials 1
Company Rankings 2
Key People 2
Company Description 3
Industry Information 5
People 6
Employees 6
Board Members 6
Biographies 7
J JOEL QUADRACCI 7
THOMAS J FRANKOWSKI 7
DAVID J HONAN 7
JENNIFER J KENT 7
JULIE CURRIE 8
ANNE M BAUER 8
Company Financials 9
Financial Summary 9
Annual Income Statement 10
Quarterly Income Statement 11
Annual Balance Sheet 12
Quarterly Balance Sheet 13
Annual Cash Flow 14
Quarterly Cash Flow 15
Financial Market Data 16
Historical Financials 17
Competition 18
Competitors List 18
Competitive Landscape 18
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 1
Company Overview
N61W23044 Harrys Way Sussex, WI 53089-3995 United States Phone: 1-414-566-6000 http://www.quad.com
Trading as Quad, Quad/Graphics Inc is a worldwide marketing solutions partner in the US, producing catalogs, magazines, books, direct mail, and other commercial materials. The company's services include consumer insights, audience targeting, personalization, media planning and placement, process optimization, campaign planning and creation, pre-media production, videography, photography, digital execution, print execution and logistics. The company has printing facilities located around the world. With print media in structural decline, Quad/Graphics has been acquiring integrated new media marketing companies, including Periscope, Rise Interactive, and Ivie. The company generates the majority of its revenue domestically. Having nothing to do with the number four, Quad takes its name from Harry Quadracci, who founded the company in 1971. His youngest son Joel runs the company today as Chairman and CEO.
Key Information
DUNS Number 055302756 Location Type Parent/Headquarters Subsidiary Status No Manufacturer Yes Company Type Publicly Traded Company – Corporation Plant/Facility Size (Square Feet) 1,970,000.00 Owns/Rents Owns Accountant Deloitte & Touche LLP Total Employees 15,800 Employee Growth (1-3 years) -13% Employees At This Location 700 Year of Founding or Change in Control 1971 Primary Industry 1068: Commercial Printing Primary SIC Code 27520101: Offset printing Primary NAICS Code 323111: Commercial Printing (except Screen and
Books) Tradestyle Quad Latitude/Longitude 43.1276 / -88.2007
Key Financials
Fiscal Year-End December 2020 Sales (Actual) $2,929.60M 1-Year Sales Growth (25.33)% Net Income $(128,300,000.00) 1-Year Net Income Growth 0.00% Total Assets $1,927.70M Market Value $191.38M Prescreen Score Low Risk
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 2
Company Rankings
746 in Fortune 1000 Revenue Rank (2021)
Key People
Name Title
J JOEL QUADRACCI Chairman of the Board, President, Chief Executive Officer
THOMAS J FRANKOWSKI President, Chief Operating Officer DAVID J HONAN Executive Vice President, Chief Financial Officer JENNIFER J KENT Executive Administration Vice-President, General
Counsel JULIE CURRIE Executive Vice President, Officer ANNE M BAUER Executive Director, Officer
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 3
Company Description
Operations Quad's two principal segments are United States Print & Related Services (USP) and International. A small Corporate segment holds unallocated general and administrative expenses. The USP segment provides around 90% of the company's revenue. It consists of Quad's printing operations for retail inserts, publications, catalogs, special interest publications, journals, direct mail, books, directories, in- store marketing and promotion, packaging, newspapers, custom print products, and other commercial and specialty printed products. Also allocated to the USP segment are Quad's marketing services, which include marketing strategy, media planning and placement, data insights, segmentation, analytics, creative services, and digital publishing. USP also manufactures ink. Quad's International segment consists of its printing operations in Europe and Latin America as well as investments in printing operations in Brazil and India. The International segment accounts for the remaining 10% of the company's net sales.
Financial Performance Quad's revenue has been fluctuating for the past five years. It has an overall decline of 15% ($673.7 million). Its net loss has a five-year improvement of 76%. In 2019 the company's revenue dipped by $62.4 million, a 2% change from the previous year. Its net income of $7.9 million in 2018, declined by $164.2 million to a net loss of $156.3 in 2019. Quad's cash on hand grew $9.2 million during 2019, ending the year at $78.7 million. The company's operations generated $155.5 million, offset by $208.1 million used in its investing activities. Financing activities generated $61.8 million.
Geographic Reach Wisconsin-based Quad operates more than 140 facilities in about 15 countries across North America, South America, Europe, and Asia. The company has investments in printing operations in Brazil and India. Quad generates about 90% of its sales from its home market of the US.
Mergers and Acquisitions In early 2020, Quad/Graphics, Inc. acquired Apple Tree Group, a strategic and creative agency specializing in point-of-sale advertising innovation for some of the world's best-known brands. The acquisition strengthens Quad's one-of-a-kind integrated marketing solutions offering that helps brand owners and retailers reduce complexity, enhance process efficiencies and improve marketing spend effectiveness across all media channels.
Sales and Marketing Quad's clients include industry-leading blue chip companies that operate in a wide range of industries and serve both businesses and consumers. It also serves retailers, publishers, direct marketers, and companies from the retail, financial/insurance, healthcare, consumer packaged goods, publishing and direct-to-consumer. Quad's ten largest clients account for about 15% of sales.
Strategy Quad's strategic priorities are as follows: The Company encourages all employees, regardless of job title, to walk in the shoes of clients by putting a priority on listening to clients' needs and challenges, doing what they can to make it easy to work with Quad, and making the client experience enjoyable at every touchpoint. The Company creates more value than the traditional agency approach that operates in silos and is focused on profit by individual media channel. The Company calls this transformation Quad 3.0. With this, Quad's unique integrated marketing platform removes the complexity Quad's clients face when working with multiple agency partners and vendors, eliminating multiple handoffs that compromise both the strategy of programs as well as the speed at which they are executed.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 4
Quad uses a disciplined return on capital framework and historically has made significant investments in its print manufacturing platform and data management capabilities. The Company's continued focus to strengthen its core manufacturing platform through investments that streamline, automate and improve efficiencies and throughput, while reducing labor costs, promotes sustainable cash flow and continued value creation. Quad's strategy to empower employees throughout their career journey builds on key aspects of the Company's distinct corporate culture. Enhance Financial Strength and Create Shareholder Value. This strategy is centered on the Company's ability to maximize net earnings, Free Cash Flow and operating margins; maintain consistent financial policies to ensure a strong balance sheet, liquidity level and access to capital; and retain the financial flexibility needed to strategically allocate and deploy capital as circumstances change.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 5
Industry Information
Primary SIC Code 27520101: Offset printing
Primary NAICS Code 323111: Commercial Printing (except Screen and Books)
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 6
People
Employees
Title Name Age Salary Bonus
Chairman of the Board, President, Chief Executive Officer
J JOEL QUADRACCI — — —
President, Chief Operating Officer
THOMAS J FRANKOWSKI — $643,067.00 $618,800.00
Executive Vice President, Chief Financial Officer
DAVID J HONAN — $551,200.00 $530,400.00
Executive Administration Vice-President, General Counsel
JENNIFER J KENT — $459,333.00 $442,000.00
Executive Vice President, Officer
JULIE CURRIE — — —
Executive Director, Officer ANNE M BAUER — — —
Board Members
Title Name Age
Chairman of the Board, President, Chief Executive Officer
J QUADRACCI —
Board Member MR. CHRISTOPHER HARNED — Board Member MR. DOUGLAS BUTH — Board Member MR. MARK ANGELSON — Board Member MR. STEPHEN FULLER —
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 7
Biographies
J JOEL QUADRACCI
Chairman of the Board, President, Chief Executive Officer
THOMAS J FRANKOWSKI
Chief Operating Officer, Executive Vice President
Salary: $643,067.00 Bonus: $618,800.00
Biography Mr. Thomas J. Frankowski serves as Chief Operating Officer, Executive Vice President of the Company since March 2014. He previously served as Executive Vice President of Manufacturing Operations and President of Quad Europe from July 2010 to March 2014. Prior thereto, Mr. Frankowski was Senior Vice President of Manufacturing from 2004 to July 2010, President of Quad Europe from 2008 to July 2010, and served in various other capacities since he joined Quad in 1979. Mr. Frankowski also serves on the Quad/Graphics Europe Management Board and the board of Memjet Ink.
DAVID J HONAN
Chief Financial Officer, Executive Vice President
Salary: $551,200.00 Bonus: $530,400.00
Biography Mr. David J. Honan serves as Chief Financial Officer, Executive Vice President of the Company since January 2015. He previously served as Vice President and Chief Financial Officer from March 2014 to January 2015, Vice President and Chief Accounting Officer from July 2010 to March 2014, Vice President and Corporate Controller from December 2009 to July 2010 and Quad's Corporate Controller from when he joined Quad in May 2009 until December 2009. Currently, he serves on the Advisory board of FM Global. Prior to joining Quad, Mr. Honan served as Vice President, General Manager and Chief Financial Officer of Journal Community Publishing Group, a subsidiary of media conglomerate Journal Communications Inc., for five years. Before joining Journal Community Publishing Group, Mr. Honan worked in executive-level roles in investor relations and corporate development at Newell Rubbermaid, a global marketer of consumer and commercial products. Prior thereto, Mr. Honan worked at the accounting firm Arthur Andersen LLP for 11 years.
JENNIFER J KENT
Executive Vice President – Administration, General Counsel
Salary: $459,333.00 Bonus: $442,000.00
Biography Ms. Jennifer J. Kent serves as Executive Vice President – Administration, General Counsel of the Company
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 8
since June 2015. She previously served as Vice President and General Counsel from December 2013 to June 2015, and as Quad's Assistant General Counsel from when she joined Quad in August 2010 until December 2013. Ms. Kent joined the board of Mayville Engineering Company, (MEC: NYSE), a manufacturer of tooling, production fabrication, coating, assembly and aftermarket components, in December 2020 and serves on the board of Building Brave, a non-profit virtual community for professional women. Prior to joining Quad, Ms. Kent held various positions in the legal department at Harley-Davidson Motor Company from March 2003 to July 2010. Prior thereto, Ms. Kent served as an Assistant United States Attorney for the Eastern District of Wisconsin and practiced law at Foley & Lardner LLP, a Milwaukee-based law firm.
JULIE CURRIE
Executive Vice President, Chief Revenue Officer
Biography Ms. Julie A. Currie serves as Executive Vice President, Chief Revenue Officer of the Company since November 2020. She previously served as Executive Consultant of FCM, LLC from 2019 to 2020. Prior thereto, Ms. Currie served as Senior VP of Global Retail Product Leadership from 2016 to 2019, as Senior VP, Global Loyalty Commercial Director from 2012 to 2016, as Senior VP, Global Business Services North America from 2008 to 2012, as VP, National Accounts Group Client Director from 2003 to 2007, and as VP, Group Client Director from 2001 to 2003 of The Nielsen Company. Ms. Currie also serves on the board of Boys & Girls Club of Lake County.
ANNE M BAUER
Chief Accounting Officer, Executive Director
Biography Ms. Anne M. Bauer serves as Chief Accounting Officer, Executive Director of the Company since March 2017. She previously served as Director – Corporate Controller of Quad from May 2016 until March 2017. She joined Quad in September 2011, serving as Director of Corporate Accounting until May 2016. Prior to joining Quad, Ms. Bauer held various accounting positions at Journal Communications, Inc. during her 18 years there, including Vice President and Controller from June 2000 until September 2011.
HOOVERS.COM866-541-3770 • September 14, 2021 • PAGE 9
Company Financials
Financial Summary
Company Type Publicly Traded Company – Corporation NYSE:QUAD Parent/Headquarters
Fiscal Year-End December 2020 Sales (Actual) $2,929.60M 1-Year Sales Growth (25.33)% 2020 Net Income $(128,300,000.00) 1-Year Net Income Growth 0.00% Prescreen Score Low Risk
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Annual Income Statement
All amounts in millions of US Dollars except per share amounts.
Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Revenue 2,929.60 3,923.40 3,985.80 3,951.20 4,329.50 Cost of Goods Sold 2,334.80 3,192.20 3,221.40 3,091.30 3,394.80 Gross Profit 594.80 731.20 764.40 859.90 934.70 Gross Profit Margin 20.30% 18.64% 19.18% 21.76% 21.59% SG&A Expense 335.10 397.60 358.90 408.70 466.70 Depreciation and Amortization 181.60 209.50 214.90 218.50 277.10 Operating Income 78.10 124.10 190.60 232.70 190.90 Operating Margin 2.67% 3.16% 4.78% 5.89% 4.41% Nonoperating Income (21.90) (100.60) (22.00) (10.90) — Nonoperating Expenses — — — — — Income Before Taxes (106.10) (79.80) 26.50 108.90 59.30 Income Taxes 0.30 (24.40) (2.40) (9.20) 13.00 Net Income After Taxes (128.30) (156.30) 8.50 107.20 44.90
Continuing Operations (106.60) (55.70) 29.90 118.10 44.90 Discontinued Operations — — — — — Total Operations — — — — — Total Net Income (106.40) (55.70) 30.50 118.10 44.90 Net Profit Margin (3.63%) (1.42%) 0.77% 2.99% 1.04%
Diluted EPS from Continuing Operations — — — — — Diluted EPS from Total Operations — — — — — Diluted EPS from Total Net Income (2.53) (3.12) 0.16 2.07 0.90 Dividends Per Share 0.15 1.05 1.20 1.20 1.20
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Quarterly Income Statement
All amounts in millions of US Dollars except per share amounts.
Quarter Ending Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Revenue 705.80 843.30 679.30 584.50 822.50 Cost of Goods Sold 559.80 682.90 543.30 460.90 647.70 Gross Profit 146.00 160.40 136.00 123.60 174.80 Gross Profit Margin 20.69% 19.02% 20.02% 21.15% 21.25% SG&A Expense 80.50 97.10 75.10 63.30 99.60 Depreciation and Amortization 41.90 42.70 44.80 46.70 47.40 Operating Income 23.60 20.60 16.10 13.60 27.80 Operating Margin 3.34% 2.44% 2.37% 2.33% 3.38% Nonoperating Income 0.00 (8.30) (1.10) (8.70) (3.80) Nonoperating Expenses — — — — — Income Before Taxes 10.60 (68.60) (8.90) (18.80) (9.80) Income Taxes 0.50 17.80 (12.00) (4.30) (1.20) Net Income After Taxes 10.20 (94.00) 1.60 (23.50) (12.40)
Continuing Operations 10.20 (85.70) 2.70 (15.00) (8.60) Discontinued Operations — — — — — Total Operations — — — — — Total Net Income 10.20 (85.70) 2.70 (14.80) (8.60) Net Profit Margin 1.45% (10.16%) 0.40% (2.53%) (1.05%)
Diluted EPS from Continuing Operations — — — — — Diluted EPS from Total Operations — — — — — Diluted EPS from Total Net Income 0.19 (1.85) 0.03 (0.46) (0.25) Dividends Per Share 0.00 0.00 0.00 0.00 0.15
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Annual Balance Sheet
All amounts in millions of US Dollars except per share amounts.
Assets Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016
Cash 55.20 78.70 69.50 64.40 9.00 Net Receivables 399.10 456.10 497.60 552.50 563.60 Inventories 170.20 210.50 279.00 246.50 265.40 Other Current Assets — — — — — Total Current Assets 679.20 910.90 946.60 908.50 902.60 Net Fixed Assets 965.20 1,134.40 1,153.80 1,377.60 1,519.90 Other Noncurrent — — — — — Total Assets 1,927.70 2,417.10 2,469.10 2,452.40 2,570.10
Shareholder's Equity Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016
Preferred Stock Equity 0.00 0.00 0.00 0.00 — Common Stock Equity 1.40 1.40 1.40 1.40 1.40 Total Equity 84.10 226.60 442.50 522.40 441.50 Shares Outstanding (M) 53.20 52.70 51.60 52.00 51.40
Liabilities Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016
Accounts Payable 320.00 416.70 496.30 381.60 323.50 Short-Term Debt 20.70 40.00 42.90 42.00 84.70 Other Current Liabilities 146.50 149.70 116.00 — — Total Current Liabilities 682.70 813.40 851.30 745.90 774.60 Long-Term Debt 902.70 1,058.50 882.60 903.50 1,019.80 Other Noncurrent 22.60 29.30 37.50 33.40 44.80 Total Liabilities 1,842.90 2,172.80 2,008.90 1,930.00 2,128.60
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Quarterly Balance Sheet
All amounts in millions of US Dollars except per share amounts.
Assets Quarter Ending Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Cash 80.60 55.20 92.90 70.20 207.80 Net Receivables 340.30 399.10 370.10 331.10 401.80 Inventories 162.00 170.20 218.30 169.50 188.90 Other Current Assets — — — — — Total Current Assets 633.70 679.20 751.10 694.30 917.60 Net Fixed Assets 929.40 965.20 1,037.10 1,064.40 1,098.20 Other Noncurrent — — — — — Total Assets 1,837.20 1,927.70 2,101.40 2,103.10 2,368.60
Shareholder's Equity Quarter Ending Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Preferred Stock Equity 0.00 0.00 0.00 0.00 0.00 Common Stock Equity 1.40 1.40 1.40 1.40 1.40 Total Equity 92.40 84.10 163.80 154.20 178.50 Shares Outstanding (M) 54.70 53.20 53.70 53.70 52.70
Liabilities Quarter Ending Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Accounts Payable 330.00 320.00 320.60 309.40 418.40 Short-Term Debt 16.80 20.70 56.80 57.90 44.10 Other Current Liabilities 76.20 146.50 118.00 126.80 114.90 Total Current Liabilities 628.70 682.70 695.60 659.90 740.70 Long-Term Debt 871.30 902.70 969.10 983.70 1,137.80 Other Noncurrent 20.40 22.60 23.40 24.90 29.60 Total Liabilities 1,744.10 1,842.90 1,936.90 1,948.20 2,172.30
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Annual Cash Flow
All amounts in millions of US Dollars except per share amounts.
Dec 2020 Dec 2019 Dec 2018 Dec 2017 Dec 2016 Cash & Cash Equivalents at Beginning of Year
78.70 69.50 64.40 19.20 24.30
Net Cash Provided by Operating Activities
190.20 155.50 260.60 344.00 353.60
Net Cash Provided by Investing Activities 9.70 (208.10) (120.50) (47.20) (88.80) Net Cash Privided by Financing Activities (223.60) 61.80 (133.50) (251.70) (269.30) Net Increase/Decrease in Cash & Equivalents
(23.70) 9.20 6.60 45.10 (4.50)
Cash & Cash Equivalents at End of Year 55.20 78.70 69.50 64.40 19.20
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Quarterly Cash Flow
All amounts in millions of US Dollars except per share amounts.
Quarter Ending Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Cash & Cash Equivalents at Beginning of Year
55.20 92.90 70.20 207.80 78.70
Net Cash Provided by Operating Activities
72.90 82.80 40.20 22.50 44.70
Net Cash Provided by Investing Activities (6.00) 2.70 0.90 (8.20) 14.30 Net Cash Privided by Financing Activities (41.40) (123.70) (18.40) (152.20) 70.70 Net Increase/Decrease in Cash & Equivalents
25.50 (38.20) 22.70 (137.90) 129.70
Cash & Cash Equivalents at End of Year 80.60 55.20 92.90 70.20 207.80
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Financial Market Data
Current Information
Last Close (03-Sep-2021) $4.11 Price/Sales Ratio 0.06 52-Week High $6.36 Price/Book Ratio 2.07 52-Week Low $2.11 Price/Earnings Ratio — 60-Month Beta 2.10 Price/Cash Flow Ratio 0.82 Market Cap $191.38M Return on Assets (5.91%) Shares Outstanding 54.68M Return on Equity (82.59%) Dividend Rate — Current Ratio 0.99 Dividend Yield — Long-Term Debt/Equity 11.41 # of Institutional Holders 148 % Owned by Institutions 33.42% Latest Short Interest Ratio — Latest Net Insider Transactions —
Growth 12 Month 36 Month 60 Month
Revenue Growth (25.33%) (9.49%) (8.62%) EPS Growth — — — Dividend Growth (85.71%) (50.00%) (34.02%)
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Historical Financials
Income Statement
Year Revenue ($M) Net Income ($M) Net Profit Margin
Dec 2020 2,929.60 (128.30) (4.38)% Dec 2019 3,923.40 (156.30) (3.98)% Dec 2018 3,985.80 8.50 0.21% Dec 2017 3,951.20 107.20 2.71% Dec 2016 4,329.50 44.90 1.04%
2020 Year-End Financials
Debt Ratio 1,140.55% Return on Equity (82.59%) Cash ($M) 55.20 Current Ratio 0.99 Long-Term Debt ($M) 902.70 Shares Outstanding (M) 54.68 Dividend Yield — Dividend Payout — Market Cap ($M) 191.38
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Competitors List
Company Gross Revenue Employees
Angstrom Graphics Inc $98.88M 1,015 Cenveo, Inc. (Top Competitor) — 7,300 DAI NIPPON PRINTING CO., LTD. $12,693.35M 37,062 Datasite Global Corporation (Top Competitor) $704.14M 6,010 R. R. Donnelley & Sons Company (Top Competitor) $4,766.30M 36,400
Competitive Landscape
Companies listed are Top Competitors.
Key Numbers Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Annual Sales ($M) $2,929.60M — — $4,766.30M Employees 15,800 — — — Market Cap ($M) $191.38M — — $441.86M
Profitability Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Gross Profit Margin 20.30% — — 20.50% Pre-Tax Profit (3.62%) — — (0.33%) Net Profit Margin (3.63%) — — (0.55%) Return on Equity (82.59%) — — — Return on Assets (5.91%) — — 3.05% Return on Invested Capital (6.16%) — — —
Valuation Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Price/Sales Ratio 0.06 — — 0.09 Price/Earnings Ratio — — — — Price/Book Ratio 2.07 — — — Price/Cash Flow 0.82 — — 2.11
Operations Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Days of Sales Outstanding 53.3 — — 78.5 Inventory Turnover 12.3 — — 12.5 Days of Cost of Goods Sold in Inventory 29.8 — — 29.1 Asset Turnover 1.3 — — 1.5
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Net Receivables Turnover Flow 6.9 — — 4.6 Effective Tax Rate — — — —
Financial Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Current Ratio 0.99 — — 1.36 Quick Ratio 0.67 — — 1.01 Leverage Ratio 22.92 — — — Total Debt/Equity 12.02 — — — Interest Coverage (0.54) — — 0.88
Per Share Data Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
Earnings Per Share -$2.53 — — $1.36 Dividend Per Share $0.15 — — $0.03 Cash Flow Per Share $4.27 — — $2.90 Working Capital Per Share $0.09 — — $5.28 Long-Term Debt Per Share — — — — Book Value Per Share $1.69 — — -$3.71 Total Assets Per Share $33.60 — — $41.28
Growth Quad/Graphics Inc.
Cenveo, Inc. Datasite Global Corporation
R. R. Donnelley & Sons
Company
12-Month Revenue (25.33%) — — (12.92%) 12-Month Net Income — — — — 12-Month EPS Growth — — — — 12-Month Dividend Growth (85.71%) — — (75.00%) 36-Month Revenue (9.49%) — — (11.77%) 36-Month Net Income — — — — 36-Month EPS Growth — — — — 36-Month Dividend Growth (50.00%) — — (62.30%)
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