(a) Employee termination charges were related to workforce reductions through facility consolidations and involuntary separation programs.
(b) Impairment charges incurred in the three months ended June 30, 2012 were for certain buildings and equipment no longer being utilized in production as a result of facility consolidations, primarily related to the Company's Stillwater, Oklahoma and Pila, Poland facilities.
(c) Transaction-related charges incurred in the three months ended June 30, 2012 consisted of professional service fees related to business acquisition and divestiture activities.
(d) Integration costs were primarily related to preparing existing facilities to meet new production requirements resulting from work transferring from closed plants, as well as other costs related to the integration of the acquired companies.(e) Other restructuring charges were primarily from costs to maintain and exit closed facilities, as well as lease exit charges. (2) Includes the Adjusted EBITDA and Adjusted EBITDA Margin for the Canadian operations sold on March 1, 2012, calculated in a consistent manner with the calculation above for Adjusted EBITDA and Adjusted EBITDA Margin from continuing operations. In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Recurring Free Cash Flow and Adjusted Diluted Earnings Per Share. They are presented to provide additional information regarding Quad/Graphics' performance and because they are important measures by which Quad/Graphics assesses the profitability and liquidity of its business. These measures should not be considered alternatives to net earnings (loss) as a measure of operating performance or to cash flows provided by operating activities as a measure of liquidity.
|RECONCILIATION OF GAAP TO NON-GAAP MEASURES|
|EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin|
|For the Six Months Ended June 30, 2012 and 2011|
|Six Months Ended June 30,|
|Net earnings (loss) attributable to Quad/Graphics common shareholders||$||26.6||$||(17.6||)|
|Income tax benefit||(44.1||)||(10.9||)|
|Depreciation and amortization||169.3||170.8|
|EBITDA Margin (Non-GAAP)||10.1||%||10.1||%|
|Restructuring, impairment and transaction-related charges (1)||75.9||50.3|
|Loss from discontinued operations, net of tax||3.2||6.1|
|Gain on disposal of discontinued operations, net of tax||(35.3||)||—|
|Adjusted EBITDA from continuing operations (Non-GAAP)||$||237.7||$||257.8|
|Adjusted EBITDA Margin from continuing operations (Non-GAAP)||12.4||%||12.9||%|
|Adjusted EBITDA from discontinued operations (Non-GAAP) (2)||$||(1.5||)||$||9.6|
|Adjusted EBITDA Margin from discontinued operations (Non-GAAP) (2)||(4.7||)%||5.5||%|
|Adjusted EBITDA - consolidated (Non-GAAP)||$||236.2||$||267.4|
|Adjusted EBITDA Margin - consolidated (Non-GAAP)||12.1||%||12.3||%|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV