Company increases Free Cash Flow by $45 million and is on target to generate $180 million to $200 million in 2015

Highlights:

• Generated second quarter net sales of $1.1 billion and Adjusted EBITDA of $90 million.
• Achieved Free Cash Flow of $40 million year-to-date, representing a $45 million increase over prior year.
• Narrows full-year 2015 guidance for net sales to a range of $4.8 billion to $4.9 billion, and Adjusted EBITDA to a range of $500 million to $520 million.
• Declared quarterly dividend of $0.30 per share.

SUSSEX, Wis. - Quad/Graphics, Inc. (NYSE: QUAD) ("Quad/Graphics" or the "Company") today reported results for its second quarter ending June 30, 2015. The reported results include Brown Printing Company ("Brown Printing") from the day of acquisition on May 30, 2014. For full financial results, including reconciliations of non-GAAP financial measures, please see the accompanying information.

"We are pleased with our continued solid Free Cash Flow generation, which is the foundation of our strong balance sheet and enables us to deploy capital in ways that generate value for the Company and our shareholders," said Joel Quadracci, Quad/Graphics Chairman, President & Chief Executive Officer. "Our ability to generate strong Free Cash Flow comes from ongoing strategic investments in our core print platform, including technology, automation and processes that drive productivity and efficiencies. Our second quarter operating results reflect ongoing industry headwinds, a sluggish advertising environment for publishers and a less than robust retail environment, all of which impacted our sales. As we continue on our transformational journey, we remain committed to helping our clients perform better in today's rapidly changing world through innovative and integrated solutions that capitalize on print's ability to connect with other media channels to drive engagement and response while also reducing overall costs."

Net sales for the second quarter 2015 were $1.1 billion, representing a 1.8% decrease from second quarter of 2014. Second quarter Adjusted EBITDA was $90 million compared to $102 million for the same period in 2014, and Adjusted EBITDA margin was 8.4% compared to 9.3% in 2014. The Adjusted EBITDA variance primarily reflects ongoing industry volume and pricing pressures partially offset by incremental earnings from acquisitions.

For the first six months of 2015, net sales were $2.2 billion, representing a 0.7% decrease from the first six months of 2014. Year-to-date Adjusted EBITDA was $191 million as compared to $209 million for the same period in 2014, and Adjusted EBITDA margin was 8.8% as compared to 9.5% in 2014. Free Cash Flow was $40 million for the first six months of 2015, an increase of $45 million over the prior year due to sustainable improvements in the cash conversion process primarily impacting working capital as well as the receipt of a $10 million acquisition termination fee from Courier Corporation, which was excluded from Adjusted EBITDA as a non-recurring gain.

"Based on our results thus far and expectations for the remainder of 2015, we are narrowing guidance for net sales and Adjusted EBITDA," said Dave Honan, Quad/GraphicsExecutive Vice President and Chief Financial Officer. "We expect full-year 2015 net sales to be in the range of $4.8 billion to $4.9 billion, narrowed from our prior guidance range of$4.8 billion to $5.0 billion, and full-year 2015 Adjusted EBITDA to be in the range of $500 million to $520 million, narrowed from our prior guidance range of $500 million to $540 million. We continue to believe Quad/Graphics will be a significant Free Cash Flow generator and, because of the sustainable improvements impacting working capital, we remain confident in full-year 2015 Free Cash Flow guidance of $180 million to $200 million. Going forward, we will continue to maintain a strong balance sheet, which enables us to pursue compelling investment opportunities, deleverage the balance sheet through debt and pension liability reductions, and return cash to our shareholders."

Quad/Graphics' next quarterly dividend of $0.30 per share will be payable on September 18, 2015, to shareholders of record as of September 7, 2015.