Quad/Graphics Inc (QUAD) 2024 Q3 法說會逐字稿

Good morning, and welcome to Quad's third-quarter 2024 conference call. (Operator Instructions)

早上好，歡迎參加 Quad 2024 年第三季電話會議。（操作員指令）

A slide presentation accompanies today's webcast, and participants are invited to follow along, advancing the slides themselves. To access the webcast, follow the instructions posted in the earnings release. Alternatively, you can access the slide presentation on the Investors section of Quad's website under the Events and Presentations link. (Operator Instructions) Please note this event is being recorded.

今天的網路直播附帶幻燈片演示，邀請參與者跟隨並繼續觀看幻燈片。若要存取網路廣播，請按照收益報告中發布的說明進行操作。或者，您可以透過 Quad 網站的「投資者」部分中的「活動和簡報」連結存取幻燈片簡報。（操作員指示）請注意，此事件正在被記錄。

I will now turn the conference over to Katie Krebsbach, Quad's Investor Relations Manager. Katie, please go ahead.

現在，我將會議交給 Quad 投資者關係經理 Katie Krebsbach。凱蒂，請繼續。

Thank you, operator, and good morning, everyone. With me today are Joel Quadracci, Quad's Chairman, President and Chief Executive Officer; and Tony Staniak, Quad's Chief Financial Officer. Joel will lead today's call with a business update and Tony will follow with a summary of Quad's third quarter and year-to-date 2024 financial results followed by Q&A.

謝謝接線員，大家早安。今天與我一起的是 Quad 董事長、總裁兼執行長 Joel Quadracci；以及 Quad 的財務長 Tony Staniak。喬爾 (Joel) 將主持今天的電話會議並通報業務最新情況，隨後托尼 (Tony) 將總結 Quad 第三季度和 2024 年年初至今的財務業績，隨後進行問答。

I would like to remind everyone that this call is being webcast and forward-looking statements are subject to Safe Harbor provisions as outlined in our quarterly news release and in today's slide presentation on slide 2.

我想提醒大家，本次電話會議正在透過網路直播，前瞻性陳述受安全港條款的約束，如我們的季度新聞稿和今天的幻燈片 2 所述。

Quad's financial results are prepared in accordance with generally accepted accounting principles. However, this presentation also contains non-GAAP financial measures including adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, free cash flow, net debt, and debt leverage ratio. We have included in the slide presentation reconciliations of these non-GAAP financial measures to GAAP financial measures.

Quad 的財務結果是按照公認會計原則編製的。然而，本報告也包含非 GAAP 財務指標，包括調整後的 EBITDA、調整後的 EBITDA 利潤率、調整後的每股稀釋收益、自由現金流、淨債務和債務槓桿率。我們在幻燈片簡報中納入了這些非 GAAP 財務指標與 GAAP 財務指標的對帳。

Finally, a replay of the call will be available on the Investors section of quad.com shortly after our call concludes today.

最後，今天電話會議結束後不久，quad.com 的「投資者」專欄將提供本次電話會議的重播。

I will now hand over the call to Joel.

我現在將電話轉給喬爾。

Thank you, Katie, and good morning, everyone. Our third quarter results were in line with our expectations. Third quarter net sales declined versus prior year due to lower paper and agency solutions sales. However, we achieved improvements in both adjusted EBITDA and adjusted EBITDA margin with adjusted EBITDA margin increasing by 54 basis points to 8.7%. \

謝謝你，凱蒂，大家早安。我們的第三季業績符合我們的預期。由於紙張和代理商解決方案銷售額下降，第三季淨銷售額較上年同期下降。然而，我們的調整後 EBITDA 和調整後 EBITDA 利潤率均取得了改善，調整後 EBITDA 利潤率增加了 54 個基點，達到 8.7%。\

We also continue to be a strong cash generator, using these funds to pay down debt, strengthen our balance sheet, and return capital to shareholders through a quarterly dividend. Despite full year 2024 net sales trending toward the higher end of decline in our guidance range, we are maintaining the midpoints of our guidance for adjusted EBITDA and free cash flow.

我們也繼續成為強大的現金產生器，利用這些資金償還債務，加強我們的資產負債表，並透過季度股利向股東返還資本。儘管 2024 年全年淨銷售額趨向於我們預期範圍內下降的高端，但我們仍維持調整後 EBITDA 和自由現金流預期的中點。

We are also reducing anticipated year-end net debt leverage from approximately 1.8 times to 1.5 times, pending the sale of the majority of our European operations by year-end. As announced last week, we entered into a definitive agreement with Capmont, a Germany-based private capital investment management firm to sell our European print operations for an enterprise value of approximately $45 million, operations that represent just 5% of our total net sales. This proposed sale supports Quad's ongoing strategic focus to optimize our business portfolio for growth as a marketing experience or MX company.

我們也將把預計年底淨債務槓桿率從約 1.8 倍降至 1.5 倍，等待年底前出售大部分歐洲業務。正如上周宣布的那樣，我們與德國私人資本投資管理公司 Capmont 達成了最終協議，以約 4500 萬美元的企業價值出售我們的歐洲印刷業務，這些業務僅占我們總淨銷售額的 5%。此次擬議的出售支持了 Quad 的持續策略重點，即優化我們的業務組合，以實現作為行銷體驗或 MX 公司的成長。

We will continue to maintain state-of-the-art print operations in locations that support our MX offering, including the Americas, with North America comprising our largest base of operations. The transaction is expected to close by the end of the year pending customary regulatory clearances and other closing conditions.

我們將繼續在支援 MX 服務的地區維持最先進的印刷業務，包括美洲，其中北美是我們最大的營運基地。待獲得常規監管批准並滿足其他成交條件後，此交易預計將於今年底完成。

As a company founded on creating a better way, we continue to use every tool at our disposal to improve the marketers' experience. Our solution suite shown on slide 3 helps brands enhance their marketing experience by removing friction wherever it appears across the marketing journey from creative production and media to everywhere in between.

作為一家致力於創造更好方式的公司，我們將繼續利用我們掌握的一切工具來改善行銷人員的體驗。投影片 3 中所展示的解決方案套件可協助品牌消除行銷過程中（從創意製作和媒體到其間各個環節）出現的摩擦，從而增強行銷體驗。

Supported by state-of-the-art technology and data-driven intelligence, our solutions are scalable and flexible, operating together to provide clients with integrated service excellence. Our focus as an MX company includes accelerating our position in market value, leveraging ingenuity and innovation, relentlessly solving marketers' biggest challenges across industries, and building on our strong culture as an MX company.

在最先進技術和數據驅動智慧的支援下，我們的解決方案具有可擴展性和靈活性，可以協同運行，為客戶提供卓越的綜合服務。作為一家 MX 公司，我們的重點包括加速提升我們的市場價值地位、利用創造力和創新能力、堅持不懈地解決各行業行銷人員面臨的最大挑戰、以及建立我們作為 MX 公司的強大文化。

On slide 4, we are excited to share the momentum behind In-Store Connect by Quad, our in-store retail media network solution that elevates the shopping experience by bringing the best elements of digital commerce into physical store environments.

在投影片 4 上，我們很高興分享 Quad 的 In-Store Connect 背後的發展動力，這是我們的店內零售媒體網路解決方案，它將數位商務的最佳元素帶入實體店環境，從而提升購物體驗。

During the quarter, The Save Mart Companies, the largest private regional grocer on the West Coast, activated our solution in 15 stores and then initial results are promising with participating brands all registering a positive sales lift. Tamara Pattison, Chief Digital Officer at The Save Mart Companies, echoed our enthusiasm for our solution, saying what was most compelling to us was the capabilities around targeting, around activation, and around analytics that came with the solution.

在本季度，西海岸最大的私人區域雜貨店 Save Mart Companies 在 15 家商店啟用了我們的解決方案，初步結果令人滿意，參與的品牌均實現了積極的銷售成長。Save Mart Companies 首席數位長 Tamara Pattison 對我們解決方案的熱情表示認同，並表示最吸引我們的是該解決方案附帶的定位、激活和分析功能。

We are really excited about what we're seeing not only from an in-store activation perspective, but from the excitement with the supplier community. As we rolled out the initial testing phase of 15 stores, we haven't been disappointed. We are excited for the future.

我們不僅從店內激活的角度看到這一幕，而且從供應商社區的興奮角度看到這一幕，都感到非常興奮。當我們在 15 家商店開展初步測試階段時，我們並沒有失望。我們對未來充滿興奮。

In addition, The Save Mart Companies -- two of The Save Mart Companies, two other large regional grocery chains, including the Oklahoma-based Homeland Stores are in the process of testing our in-store connection solution and through which we expect to have activations at approximately 30 more stores by year-end. Momentum is building not only with supermarket chains, but department stores, home improvement stores, and convenience stores too.

此外，The Save Mart Companies（The Save Mart Companies 中的兩家）和另外兩家大型區域性連鎖雜貨店，包括總部位於俄克拉荷馬州的 Homeland Stores，正在測試我們的店內連接解決方案，我們預計到年底將在約 30 家商店中啟動該解決方案。這種勢頭不僅在連鎖超市中興起，在百貨公司、家居裝飾店和便利商店中也同樣如此。

Moving on to slide 5, I'm proud to share how we are continuing to enhance our media intelligence solutions through the power of a proprietary household-based data stack. Comprised of more than 3 billion data points that are revalidated weekly, our data stack represents more than 20,000 attributes from approximately 97% of the adult US population. We are leveraging this robust data set to power our audience targeting solutions and helps clients optimize customer acquisition efforts and creating engaging content for their existing customers.

接下來是第 5 張投影片，我很自豪地分享我們如何透過專有家庭資料堆疊的強大功能繼續增強我們的媒體智慧解決方案。我們的資料堆疊由每週重新驗證的超過 30 億個資料點組成，代表了約 97％ 美國成年人口的 20,000 多個屬性。我們正在利用這個強大的數據集來支援我們的受眾定位解決方案，並幫助客戶優化客戶獲取工作並為現有客戶創建引人入勝的內容。

In September, we announced our next step in monetizing our data stack through an exciting partnership with Google Cloud. By leveraging Google Cloud's artificial intelligence optimization capabilities and large language models, we are creating new AI-driven solutions that tap into our data and seamlessly connect it with clients' creative and media.

9 月，我們宣布了透過與 Google Cloud 建立令人興奮的合作夥伴關係將我們的資料堆疊貨幣化的下一步舉措。透過利用 Google Cloud 的人工智慧優化功能和大型語言模型，我們正在創建新的 AI 驅動的解決方案，利用我們的數據並將其與客戶的創意和媒體無縫連接。

In addition to streamlining access to Quad's audience targeting capabilities, these combined solutions will provide highly personalized content at scale across multiple marketing channels via image generation, content creation, layout design, translation, and more. We plan to roll out our new AI-driven offerings in the coming months.

除了簡化對 Quad 受眾定位功能的存取之外，這些組合解決方案還將透過圖像生成、內容創建、佈局設計、翻譯等方式在多個行銷管道中大規模提供高度個人化的內容。我們計劃在未來幾個月推出新的人工智慧驅動產品。

Next, I'd like to spotlight two client examples that showcase the measurable benefits of our MX solutions suite. Advancing to slide 6, Nicklaus Children's Hospital, a nationally ranked children's healthcare system in Miami, partnered with our Rise media agency to revise its marketing strategy. The focus of our work was to maintain reach while adhering to new guidelines for healthcare marketers related to heightened privacy regulations. With our help, the hospital implemented a refreshed campaign strategy that ensured compliance while increasing engagement.

接下來，我想重點介紹兩個客戶案例，展示我們的 MX 解決方案套件的可衡量優勢。進入第 6 張幻燈片，尼克勞斯兒童醫院是邁阿密一家全國排名靠前的兒童醫療保健系統，它與我們的 Rise 媒體機構合作修改了其行銷策略。我們的工作重點是保持影響力，同時遵守與加強隱私法規相關的醫療保健行銷人員的新準則。在我們的幫助下，醫院實施了全新的活動策略，在確保合規性的同時提高了參與度。

Our work included a complete creative refresh to its various ad formats, including increased usage of video content, a refined paid media strategy that enhanced ad relevancy and increased web traffic and an updated SEO strategy that improved the hospital's metadata and identified and addressed content gaps. These integrated efforts led to a 93% higher click through rate and a 375% higher engagement in paid social media ads year-over-year and 68% growth in website traffic. The client is extremely pleased with his results from our ongoing partnership, and we look forward to supporting continued growth for this client as its media agency of record.

我們的工作包括對各種廣告格式進行徹底的創意更新，包括增加視頻內容的使用、改進付費媒體策略以增強廣告相關性和增加網絡流量，以及更新搜尋引擎優化策略以改進醫院的元數據並識別和解決內容差距。這些綜合努力使付費社群媒體廣告的點擊率比去年同期提高了 93%，參與度提高了 375%，網站流量增加了 68%。客戶對我們持續合作所取得的成果感到非常滿意，我們期待作為其媒體代理商支持該客戶的持續成長。

On slide 7, we show our work for consolidated communications, a $1 billion broadband and business communications provider serving customers across more than 20 states. Through a multi-channel direct marketing campaign, we helped enhance customer acquisition efforts in new regions covered by Fidium Fiber, the client's rapidly expanding consumer broadband service. Specifically, we applied our proprietary household-based data stack and advanced analytics to identify and reach high potential audience targets, designed and optimized creative content for both online and offline channels, and designed a printed direct mail to drive online conversions with Flowcode technology.

在投影片 7 上，我們展示了為合併通訊公司所做的工作，這是一家價值 10 億美元的寬頻和商業通訊提供商，為 20 多個州的客戶提供服務。透過多通路直接行銷活動，我們幫助客戶加強了 Fidium Fiber（客戶快速擴展的消費者寬頻服務）覆蓋的新地區的客戶獲取力度。具體來說，我們應用專有的基於家庭的數據堆疊和高級分析技術來識別和接觸高潛力受眾目標，為線上和線下管道設計和優化創意內容，並設計印刷直郵以利用 Flowcode 技術推動線上轉換。

The campaign combined the power of digital and print by supplementing mail pieces with targeted social media and website ads as well as remarketing web-based consumer leads with personalized mailings. The results of the campaign included high engagement and e-mail open rates, reinforcing the value of well-conceived and connected multichannel marketing campaigns.

該活動結合了數位和印刷的力量，透過在郵件中添加有針對性的社交媒體和網站廣告，並透過個人化郵件對基於網路的消費者線索進行再行銷。活動成果包括較高的參與率和電子郵件開啟率，強化了精心構思和互聯的多通路行銷活動的價值。

Before I turn the call over to Tony, I would like to take a moment to thank our employees during our seasonally busiest time of the year for the continued hard work and commitment to providing the highest levels of service for each of our clients. I am proud of our team and our futures as an MX company.

在將電話轉給托尼之前，我想花點時間感謝我們的員工在一年中最繁忙的時期堅持不懈地工作，致力於為每位客戶提供最高水準的服務。我為我們的團隊和作為 MX 公司的未來感到自豪。

And with that, I will now turn the call over to Tony for the financial review.

說完這些，我現在將電話轉給托尼進行財務審查。

Thanks, Joel, and good morning, everyone. On slide 8, we show our diverse revenue mix. Net sales were $675 million in the third quarter of 2024, a decline of 4% compared to the same period in 2023, primarily due to lower paper and agency solution sales, including the loss of a large grocery client.

謝謝，喬爾，大家早安。在投影片 8 上，我們展示了多樣化的收入組合。2024 年第三季淨銷售額為 6.75 億美元，較 2023 年同期下降 4%，主要原因是紙張和代理商解決方案銷售額下降，包括失去一個大型雜貨客戶。

On a year-to-date basis, net sales were $2 billion in 2024, a 9% decline compared to 2023, primarily due to lower paper sales and lower print volumes, including the impact from client mix and increased gravure volume that has a lower unit price with a higher profit margin, as well as lower agency solution sales.

從年初至今，2024 年的淨銷售額為 20 億美元，較 2023 年下降 9%，主要原因是紙張銷售額下降和印刷量下降，包括客戶組合的影響和單價較低、利潤率較高的凹印量增加，以及代理解決方案銷售額下降。

During the first nine months of 2024, magazines and catalogs increased as a portion of our net sales mix by 2% compared to the previous year due to recent segment share wins such as AARP, while retail inserts decreased 2%.

2024 年前 9 個月，由於 AARP 等近期細分市場的份額增長，雜誌和目錄在我們的淨銷售額中所佔的比例與上一年相比增加了 2%，而零售插頁則下降了 2%。

Slide 9 provides a snapshot of our third quarter 2024 financial results. Adjusted EBITDA was $59 million in the third quarter of 2024 as compared to $57 million in the third quarter of 2023, and adjusted EBITDA margin increased 54 basis points from 8.2% to 8.7%.

幻燈片 9 提供了我們 2024 年第三季財務表現的快照。2024 年第三季的調整後 EBITDA 為 5,900 萬美元，而 2023 年第三季為 5,700 萬美元，調整後 EBITDA 利潤率從 8.2% 增加 54 個基點至 8.7%。

On a year-to-date basis, adjusted EBITDA was $161 million in 2024 compared to $168 million in 2023 and adjusted EBITDA margin increased 48 basis points from 7.7% in the first nine months of 2023 to 8.2% in the first nine months of 2024. The margin increase in both periods was primarily due to benefits from improved manufacturing productivity and savings from cost reduction initiatives.

自年初至今，2024 年調整後的 EBITDA 為 1.61 億美元，而 2023 年為 1.68 億美元，調整後的 EBITDA 利潤率從 2023 年前 9 個月的 7.7% 增加 48 個基點至 2024 年前 9 個月的 7.7% 增加 48 個基點至 2024 年前 9 個月的 8.2%。兩個期間的利潤率成長主要得益於製造生產力提高以及成本削減措施帶來的節省。

During the first half of 2024, we completed previously announced restructuring actions, including plant closures and labor reductions that we expect will generate $60 million of cost savings this year.

2024 年上半年，我們完成了先前宣布的重組行動，包括關閉工廠和裁員，預計今年將節省 6,000 萬美元的成本。

Adjusted diluted earnings per share was $0.26 in the third quarter of 2024 as compared to $0.11 in the third quarter of 2023. Year-to-date, adjusted diluted earnings per share was $0.49 in 2024 compared to $0.28 in 2023. The increase in both periods was primarily due to higher adjusted net earnings and the beneficial impact of a lower share count due to stock buybacks.

2024 年第三季調整後每股攤薄收益為 0.26 美元，而 2023 年第三季為 0.11 美元。年初至今，2024 年調整後每股攤薄收益為 0.49 美元，而 2023 年為 0.28 美元。兩個時期的成長主要歸因於調整後淨收益增加，以及股票回購導致股數減少的有利影響。

Since the second quarter of 2022, we have repurchased approximately 11% of our total outstanding common stock. Quad's Board of Directors authorized a share repurchase program of up to $100 million of our outstanding Class A common stock in 2018. As of September 30, 2024, there was $77.5 million of authorized repurchases remaining under this program.

自 2022 年第二季以來，我們已回購了約 11% 的總流通股。Quad 董事會批准了 2018 年最高價值 1 億美元已發行 A 類普通股的股票回購計畫。截至 2024 年 9 月 30 日，該計劃下剩餘的授權回購金額為 7,750 萬美元。

Free cash flow was negative $92 million in the first nine months of 2024 as compared to negative $18 million in the first nine months of 2023. This change was primarily due to non-recurring cash flow benefits realized in 2023 from reducing inventories enabled by an improved supply chain environment.

2024 年前 9 個月的自由現金流為負 9,200 萬美元，而 2023 年前 9 個月的自由現金流為負 1,800 萬美元。這項變更主要歸因於 2023 年供應鏈環境改善導致庫存減少而實現的非經常性現金流收益。

As we have previously shared, we will continue to generate proceeds from asset sales in addition to our strong free cash flow as shown on slide 10. During the five-year period from 2020 to 2024, we now expect to generate over $830 million of free cash flow and proceeds from asset sales. These asset sales include divestitures of certain non-core portions of our business such as the expected year-end sale of the majority of our European operations for an enterprise value of approximately $45 million as well as sales of property, plant and equipment from closed facilities.

正如我們之前所分享的，除了強勁的自由現金流（如幻燈片 10 所示）之外，我們還將繼續從資產出售中獲得收益。在 2020 年至 2024 年的五年期間，我們預計將產生超過 8.3 億美元的自由現金流和資產出售收益。這些資產出售包括剝離我們業務的某些非核心部分，例如預計年底以約 4500 萬美元的企業價值出售我們大部分的歐洲業務，以及出售已關閉工廠的財產、廠房和設備。

In September, we completed the sale of our former Saratoga Springs, New York, 1 million square foot manufacturing facility for net cash proceeds of $41 million. And last week, we announced the closure of our Waukee, Iowa directory manufacturing facility. We expect to generate further cash proceeds in 2025 from the sale of the Waukee building and three additional owned facilities we closed earlier in 2024.

9 月份，我們完成了位於紐約州薩拉託加泉市的佔地 100 萬平方英尺的原製造工廠的出售，淨現金收益為 4,100 萬美元。上週，我們宣布關閉位於愛荷華州沃基的目錄製造工廠。我們預計，2025 年將透過出售 Waukee 大樓和 2024 年初關閉的另外三處自有設施獲得更多現金收益。

We show the seasonality of our free cash flow and debt leverage on slide 11. Due to the seasonality of our business, we typically generate negative free cash flow in the first nine months of the year followed by large positive free cash flow in the fourth quarter. Our seasonal production peak occurs in the late third quarter and early fourth quarter of the year due to the timing of holiday-related advertising and promotions.

我們在第 11 張投影片上展示了自由現金流和債務槓桿的季節性。由於我們業務的季節性，我們通常在一年的前九個月產生負自由現金流，然後在第四季度產生大量的正自由現金流。由於假期相關廣告和促銷的時間安排，我們的季節性生產高峰出現在每年的第三季末和第四季初。

This leads to inventory build prior to that time and then results in higher collections from clients in the fourth quarter. In 2024, we continue to anticipate a similar seasonal pattern more comparable to 2022 when we generated $174 million of free cash flow in the fourth quarter.

這會導致庫存提前積累，從而導致第四季度客戶收款金額增加。到 2024 年，我們將繼續預計會出現與 2022 年類似的季節性模式，當時我們在第四季度產生了 1.74 億美元的自由現金流。

We believe we are on track to generate $142 million to $162 million of free cash flow in the fourth quarter this year to meet our full-year 2024 free cash flow guidance of $50 million to $70 million. And we plan to achieve net debt leverage of approximately 1.5 times with net debt of $330 million pending the completion of the European divestiture.

我們相信，我們預計在今年第四季產生 1.42 億至 1.62 億美元的自由現金流，以實現 2024 年全年 5,000 萬至 7,000 萬美元的自由現金流預期。我們計劃在完成歐洲資產剝離後，實現淨債務槓桿約 1.5 倍，淨債務為 3.3 億美元。

Slide 12 includes a summary of our debt capital structure. At the end of the third quarter of 2024, our net debt was $490 million, reduced $94 million from $584 million one year ago on September 30, 2023. We have focused on debt reduction over the past five years. And by this year-end, we anticipate reducing debt by over $700 million since January 1, 2020. Including interest rate derivatives, our debt at the end of the third quarter was 57% floating and 43% fixed with a blended interest rate of 7.8% and our total available liquidity including cash on hand was $196 million.

投影片 12 包括我們的債務資本結構的摘要。截至 2024 年第三季末，我們的淨債務為 4.9 億美元，較去年同期的 2023 年 9 月 30 日的 5.84 億美元減少了 9,400 萬美元。過去五年來，我們一直致力於減少債務。到今年年底，我們預計自 2020 年 1 月 1 日起將減少 7 億多美元的債務。包括利率衍生性商品在內，我們第三季末的負債為57％浮動債務和43％固定債務，混合利率為7.8％，包括現金在內的總可用流動資金為1.96億美元。

We are pleased with the October extension of our $690 million Term Loan A and revolving credit agreement and the ongoing long-term support and partnership with our premier bank group. Our next significant maturity is now $193 million due in October 2029. We will continue to focus on debt reduction with our capital allocation. This debt extension also provides us with additional financial flexibility to focus on the growth and development of our offerings as a marketing experience company while also returning capital to our shareholders.

我們很高興看到 6.9 億美元定期貸款 A 和循環信貸協議於 10 月延期，並將繼續與我們的主要銀行集團保持長期支持和合作。我們的下一筆重要到期款項為 1.93 億美元，將於 2029 年 10 月到期。我們將繼續專注於透過資本配置來減少債務。這次債務延期也為我們提供了額外的財務靈活性，使我們能專注於作為行銷體驗公司的產品的成長和發展，同時向股東返還資本。

We share our updated 2024 guidance as shown on slide 13. Consistent with what we communicated in the second quarter earnings call, our annual net sales are trending toward the higher end of decline in our guidance range, and we expect a decline of approximately 9% compared to the original guidance of annual net sales declining 5% to 9%. With our flexible model, higher labor productivity, and focus on disciplined cost management, we are maintaining the midpoints of adjusted EBITDA guidance at $225 million and free cash flow guidance at $60 million. Free cash flow includes $65 million of capital expenditures to further accelerate our offerings.

我們分享更新後的 2024 年指引，如投影片 13 所示。與我們在第二季財報電話會議上傳達的訊息一致，我們的年度淨銷售額趨向於指導範圍的高端下降，我們預計下降約 9％，而最初指導的年度淨銷售額下降 5％至 9％。憑藉我們靈活的模式、更高的勞動生產力以及對嚴格的成本管理的關注，我們將調整後的 EBITDA 指引中位數維持在 2.25 億美元，自由現金流指引中位數維持在 6,000 萬美元。自由現金流包括 6500 萬美元的資本支出，以進一步加速我們的產品銷售。

And finally, as previously mentioned, enabled by our strong cash generation, we now expect debt leverage to improve to approximately 1.5 times by the end of 2024, which is reduced from our original guidance of 1.8 times and is also below our targeted long-term debt leverage range of 1.75 times to 2.25 times.

最後，如前所述，由於我們強勁的現金創造能力，我們現在預計到 2024 年底債務槓桿率將改善至約 1.5 倍，低於我們最初預期的 1.8 倍，也低於我們目標長期債務槓桿率範圍 1.75 倍至 2.25 倍。

Slide 14 includes our key investment highlights as we continue to build on our momentum as a marketing experience company. We believe that Quad is a compelling long-term investment, and we remain focused on growing net sales and driving higher profitability through continued diversification of our revenue and clients.

投影片 14 包含了我們的主要投資亮點，我們將繼續保持作為行銷體驗公司的良好發展勢頭。我們相信 Quad 是一項引人注目的長期投資，我們將繼續專注於增加淨銷售額，並透過持續實現收入和客戶多元化來提高獲利能力。

With our expanded offerings such as In-Store Connect and our proprietary household-based data stack discussed earlier, there is a significant addressable revenue opportunity with both our large base of existing clients as well as new clients. In addition, our strong cash generation will continue to fuel our capital allocation priorities. These include investing in scaling our offerings, further reducing debt, and returning capital to shareholders through our next quarterly dividend of $0.05, payable on December 6. We also expect to continue to be opportunistic in terms of our future share repurchases.

隨著我們擴展的產品範圍，例如前面討論過的 In-Store Connect 和專有的家庭資料堆棧，我們龐大的現有客戶群和新客戶群都存在巨大的潛在收入機會。此外，我們強勁的現金創造能力將繼續推動我們的資本配置重點。這些措施包括投資擴大我們的產品範圍、進一步減少債務，以及透過 12 月 6 日支付的下一季股利 0.05 美元向股東返還資本。我們也期望在未來的股票回購方面繼續抓住機會。

We look forward to sharing a more comprehensive update on our strategy and growth opportunities at our upcoming Investor Day on November 20 in New York City.

我們期待在 11 月 20 日於紐約舉行的投資者日上分享有關我們的策略和成長機會的更全面的更新。

With that, I'd like to turn the call back to our operator for questions.

說到這裡，我想把電話轉回給我們的接線生以便回答問題。

(Operator Instructions) Kevin Steinke, Barrington Research Associates.

（操作員指示） Kevin Steinke，Barrington Research Associates。

Good morning, Kevin.

早安，凱文。

Good morning, Kevin.

早安，凱文。

Thanks and good morning. Great. Well, I wanted to start out by asking about the partnership with Google. Looks like a really exciting and intriguing announcement. Just I know you said you're going to be rolling that out in the coming months, but any -- have you gathered any initial feedback or initial reaction from your client base and how they see this benefiting them?

謝謝，早安。偉大的。好吧，我想先詢問一下與Google的合作關係。這看起來是一個非常令人興奮和有趣的公告。我只知道您說過您將在未來幾個月內推出這項服務，但是——您是否從客戶群中收集到了任何初步反饋或初步反應，以及他們認為這項服務如何使他們受益？

Yes, I mean, I think one of the biggest challenges in marketing today is in finding good audience. And the other big challenge once you find good audience is actually having the content follow the messaging in a variable sort of way. The old days of sort of shock and blast everybody with the same message and the same content doesn't work so well. So the world expects to be more personalized.

是的，我認為當今行銷的最大挑戰之一就是找到好的受眾。找到好的受眾之後，另一個巨大的挑戰就是讓內容以某種可變的方式跟隨訊息傳遞。過去用同樣的訊息和內容震驚和打擊所有人的方式已經不再有效了。因此世界期待更加個人化。

And so by adding the AI element to our very large data stack, and I'll remind you that the data stack consists of all the household personalities in the country because of our existence as a printing company. We do all the work for the post office. It's almost 10% of the volume of the post office of marketing mail. So we're going to every mailbox across the country with content. And we know what content is going in. That's what creates the personality knowledge of the household. So once you have that, it's sort of digging through that huge data stack to find out for the marketer what is the specific set of that data that works for us.

因此，透過將人工智慧元素添加到我們非常大的資料堆疊中，我要提醒你，由於我們是一家印刷公司，資料堆疊包含了全國所有家喻戶曉的人物。我們為郵局做一切工作。這幾乎占到郵局行銷郵件量的10%。因此我們會將內容傳送到全國各地的每個信箱。我們知道輸入的內容是什麼。這就是創造家庭個性知識的原因。因此，一旦你有了這個，就可以從龐大的資料堆疊中挖掘出行銷人員可以適用的具體資料集。

And that's where AI comes into play to help us sift through that, as opposed to using a team of data scientists. Now, once we get that audience through AI, we use AI to actually auto generate content that's both in sort of text as well as actual visual content, because if you think about a customer for call it horticultural products, you may have different passions by each customer. One may be much more tactical on how they like garden. Therefore, you want something that's more specific to them to hit them with content versus the person who just wants things to look nice and not have to put in a lot of work.

這就是人工智慧發揮作用的地方，它可以幫助我們篩選這些訊息，而不是使用一個資料科學家團隊。現在，一旦我們透過人工智慧獲得了受眾，我們就會使用人工智慧來自動產生文字和實際視覺內容，因為如果你考慮到一個稱之為園藝產品的客戶，你可能會發現每個客戶的興趣不同。人們可能會更有策略地選擇自己喜歡的花園。因此，你需要為這些人提供更具體的內容來吸引他們，而不是只為讓事情看起來漂亮而又不必投入大量工作的人。

And so you can literally vary the type of content that goes with this specific audience you follow. And so it's a huge deal because it really helps solve a problem that most of our marketing customers are dealing with today. And the response so far is people are anxious to jump on and start testing the content and the data.

因此，你可以根據所關注的特定受眾來改變內容類型。這意義重大，因為它確實有助於解決我們大多數行銷客戶目前面臨的問題。到目前為止的反應是人們急切地想要開始測試內容和數據。

That sounds great. I was wondering with this new kind of tool in your back pocket here, if you feel like this is something you can go out to the market as a differentiator to market yourself and win new business.

聽起來不錯。我想知道，有了這種新工具，如果您覺得這可以作為一種差異化因素，讓您在市場上推銷自己並贏得新業務。

Yes, absolutely. And we've been working on this for a while and so it's all coming together and we're combining it with our media offering and analytics offering. And we'll also remind people that our approach is to be completely transparent in what we're spending of your media dollars. That is not always the case out there. And there's a lot of murkiness as to am I spending the right dollars on the right audience.

是的，絕對是如此。我們在這方面已經工作了一段時間，現在一切都已整合在一起，我們將它與我們的媒體產品和分析產品結合。我們也會提醒大家，我們在媒體支出方面的做法是完全透明的。但情況並不總是這樣的。我是否把正確的錢花在了正確的受眾身上，這仍然很模糊。

And so we believe that the hunger is there not only for the transparency, but also the specificity of the type of audience that we can attract and go after for our clients and then again allowing content to follow along with it. It's very difficult for content to match your efforts on your audience when you start breaking down into significant number of different types of passions that people might have. And so, yes, I believe this will be a very large differentiator for us.

因此，我們相信，我們不僅渴望透明度，還渴望為客戶吸引和爭取特定類型的受眾，然後再次讓內容隨之跟進。當你開始將人們可能擁有的大量不同類型的興趣細分時，內容很難與你針對受眾所付出的努力相匹配。所以，是的，我相信這對我們來說將是一個非常大的區別因素。

Excellent. I wanted to follow up by asking about the reduction in your year-end leverage ratio target. Is that, as I understand it, being specifically driven by the European operations sale?

出色的。我想繼續問一下你們年底槓桿率目標的降低情況。據我了解，這是否是由於歐洲業務出售而特別推動的？

It's a combination of -- because we -- look, we've had a very busy quarter, as you know. We not only increased the margin that we have, but the divestitures of not just Poland, but also our very large, high-quality asset in Saratoga Springs to what we believe is a very good owner in terms of, for the community. So it's a combination of all that.

這是由多種因素造成的——因為我們——你看，正如你所知，我們度過了一個非常繁忙的季度。我們不僅增加了利潤，而且不僅剝離了波蘭的資產，還將我們在薩拉託加溫泉的大量優質資產剝離給了我們認為對社區非常好的所有者。所以它是所有這些的結合。

Okay. And so as you think about the targeted leverage ratio range, you expect to come in below that at year-end 2024, are you sticking with the same target leverage range or is that something maybe you think about revising in the future?

好的。因此，當您考慮目標槓桿率範圍時，您預計到 2024 年底槓桿率將低於該範圍，您會堅持相同的目標槓桿率範圍嗎？

Hi, Kevin, we look at that every year, once a year and release that with our February earnings call, the next earnings call. So we'll come back to you at that point. But we're going to continue to have a commitment to keeping debt low going forward and we're happy with the low leverage. It gives us dry powder to continue to expand our offerings.

嗨，凱文，我們每年都會查看一次，並在二月份的收益電話會議，也就是下一次收益電話會議中發布。到時候我們再回覆您。但我們將繼續致力於維持低債務水平，我們對低槓桿率感到滿意。它為我們繼續擴大產品範圍提供了有力支持。

Yes, it kind of begs the questions of uses of capital. And look, I love what we've done with our balance sheet because it really gives us optionality, whether that's -- we've -- whether or not we return capital to shareholders through the dividend or through repurchases that we've done in the past. We'll continue to be opportunistic there, but also in terms of enhancing our capabilities. So having that lower leverage range is great. But we always say that we may ebb and flow from that depending on the opportunities out there.

是的，這有點引出了資本用途的問題。我很喜歡我們對資產負債表所做的安排，因為它確實為我們提供了選擇權，無論是透過股利還是透過我們過去的回購向股東返還資本。我們將繼續在那裡抓住機會，同時也增強我們的能力。因此，較低的槓桿範圍是很好的。但我們總是說，我們可能會根據外面的機會而起伏。

Yes, that makes sense. Certainly, it gives you more options on capital allocation. So that's great. And just when I think about the -- again you talked about it last quarter, but the sales trending to more like the 9% decline for the full year. I assume the European sale is not factored into that. Or is it -- or should -- I know you said year-end 2024 for the sale, but I was just wondering if that's potentially before year-end and if that could affect the outlook for sales for the full year?

是的，這很有道理。當然，它為您提供了更多資本配置的選擇。這太棒了。當我想到——您上個季度再次談到這一點時，但全年銷售額趨勢更像是下降 9%。我認為歐洲的銷售額沒有被考慮進去。或者是 —— 或者應該 —— 我知道您說的銷售時間是 2024 年底，但我只是想知道這是否有可能在年底之前，以及這是否會影響全年銷售前景？

Yes. With the regulatory clearances and other customary conditions, we won't close the sale until, you know, in December at some point, right. So it won't have a significant impact on the guidance if it closes, let's say like December 15 or something like that, right? So you should look at the minus 9% consistent with what we said in the second quarter call with how our sales were playing out over the year. And keep in mind we talk about the loss of the large grocery client and that's 3% of that -- of that amount. So the second half is kind of playing out as we expected.

是的。由於獲得了監管部門的批准和其他慣例條件，我們要到 12 月的某個時候才會完成銷售。因此，如果它關閉，比如說 12 月 15 日或類似的日期，它不會對指導產生重大影響，對嗎？因此，您應該將-9%與我們在第二季電話會議上所說的話以及我們全年的銷售情況相一致。請記住，我們談論的是大型雜貨客戶的損失，這佔該金額的 3%。下半場的進展正如我們所預期的。

Okay, that sounds good. I wanted to also just when you talk about the sales outlook, maybe just get an update on what you're seeing from your clients in terms of how they are reacting to higher postal rates, interest rates? Are they getting a little bit more confident about interest rates coming down and maybe a little bit more comfortable with the economic outlook? I know I hit on a lot of areas there, but just trying to get a sense of the general tone of business with regard to some of those macro factors.

好的，聽起來不錯。當您談論銷售前景時，我還想了解您的客戶對更高的郵資和利率有何反應？他們對利率下降更有信心，對經濟前景更滿意？我知道我觸及了很多領域，但只是想根據一些宏觀因素來了解商業的整體基調。

Yes, I think, look, the postal increase that we experienced in the last several years is huge. And no doubt that continues to kind of have some impact this year, even though as I've said in the past, at least the increases this year the customers knew about. Last year, I'll remind you that the big increase that happened in July was quite a surprise, post everybody's budgeting process. That being said, they're going to hold off on doing what was an expected increase after the first of the year. That's great news.

是的，我認為，過去幾年我們經歷的郵政業務成長是巨大的。毫無疑問，這種情況今年仍會繼續產生一定的影響，儘管正如我過去所說的，至少今年的價格上漲是客戶知道的。去年，我要提醒你們，7 月的大幅成長是相當令人驚訝的，這是每個人預算過程的結果。話雖如此，他們還是會在年初之後推遲實施預期的成長。這真是個好消息。

The challenge is, is that they still plan on doing an increase in the second half of the year. Good news there is that people are planning for it. Bad news is it's a cumulative effect on volumes over the past three years continues to have some impact and some of that is in that 9%. We hope people will start to build back volumes as they see improvement with the consumer. From an interest rate standpoint, and we don't necessarily see the direct correlation or hear that from our customers other than we saw sort of in the CPG space, some softness.

挑戰在於，他們仍計劃在今年下半年增加產量。好消息是人們正在為此做計劃。壞消息是，它對過去三年銷售的累積效應繼續產生一定影響，其中一部分影響就在那 9% 中。我們希望，隨著消費狀況的改善，人們會開始恢復銷售。從利率的角度來看，我們不一定能看到直接的相關性，也不一定能從客戶那裡聽到這種說法，除了我們在 CPG 領域看到的一些疲軟。

And what I'm hearing from CPGs is if you're at the lower end of the economic sort of ladder, that whole group has really been hit hard for the hardest and they've seen some pullback and spend on higher end items and really pivoting towards the need to have while maybe the middle tier and the higher tier are still spending quite well. So I think how that plays out is a little bit -- we've obviously got a big election coming and we'll see what comes after that. But right now, I think that it's a little bit of not a one size fits all when we talk to our customers. It's a little bit across -- every spectrum with sort of a maybe a little bit negative to neutral in our view.

我從快速消費品公司了解到的情況是，如果你處於經濟階梯的底層，那麼整個群體確實受到了最嚴重的打擊，他們已經看到了一些回調，在高端物品上的支出真正轉向了必需品，而中層和高層的支出可能仍然相當不錯。所以我認為這會如何發展——我們顯然即將迎來一場大選，我們看看之後會發生什麼。但現在，我認為當我們與客戶交談時，並沒有適合所有情況的解決方案。在我們看來，這種看法有點過於寬泛了——各方面都有點負面到中性的味道。

Okay. Thanks for the update there. Just lastly, I wanted to ask about what you're seeing in Mexico, Latin America, trends there in terms of business and kind of that's -- you continue to view that as a core part of your portfolio in the Americas.

好的。感謝您的更新。最後，我想問您對墨西哥、拉丁美洲的看法，以及那裡的商業趨勢，您仍然將其視為美洲投資組合的核心部分。

Yes, so -- yes, I'll start with our Mexico operations. That's a natural extension of our US print platform. We export quite a bit of volume out of Mexico into the United States and had a particularly strong third quarter in Mexico this quarter. So we remain bullish about the opportunity. And Colombia and Peru as well can serve as extensions as we go across all of South America. So as Joel said in the prepared comments, we're a marketing experience company across the Americas.

是的，是的，我將從我們的墨西哥業務開始。這是我們美國印刷平台的自然延伸。我們從墨西哥向美國出口了相當一部分產品，本季墨西哥的第三季表現特別強勁。因此，我們仍然對這機會持樂觀態度。哥倫比亞和秘魯也可以作為我們穿越整個南美洲的延伸。正如喬爾在準備好的評論中所說，我們是一家橫跨美洲的行銷體驗公司。

Okay. Thanks for all the good commentary. I will turn it over. Thanks.

好的。感謝所有精彩的評論。我會把它翻過來。謝謝。

Thanks, Kevin. Operator?

謝謝，凱文。操作員？

Barton Crockett, Rosenblatt.

巴頓·克羅克特、羅森布拉特。

Good morning, Barton.

早上好，巴頓。

Hi, Barton.

你好，巴頓。

Good morning, guys. Thanks for taking the question. I -- just I guess a little bit about the numbers here to make sure I understand. So implicit, I think in your 9% full year guide, if I'm doing the math right, would be about an 8% decline in the fourth quarter. Is that right? And why would it be a little bit more pressured than the third quarter? Is that maybe just the mix from the grocery client you lost or is there something else going on? So that's one question.

大家早安。感謝您回答這個問題。我 — — 我只是稍微猜測一下這裡的數字，以確保我理解。所以隱含的，我認為，在您 9% 的全年指引中，如果我沒算錯的話，第四季將下降約 8%。是嗎？為什麼會比第三季壓力更大一點呢？這可能只是您失去的雜貨店客戶造成的混亂，還是還有其他事情發生？這是一個問題。

Yes, I think -- so, yes, first off, your first part on fourth quarter, yes, 8% to 9% decline in the fourth quarter to get us to that approximately 9% for the year. And you will see ebb and flow depending on how volumes come out, in particular, retail inserts.

是的，我認為——所以，是的，首先，您關於第四季度的第一部分，是的，第四季度下降了 8% 到 9%，使今年的降幅達到約 9%。而且，您會看到，銷售量會出現起伏，特別是零售插頁的情況。

We saw, for instance, in the third quarter, July 2023 was a pretty low quarter for us. So we had a favorable comparable there in 2024. And that can happen on a monthly basis going forward. So again, we're saying we're consistent with the negative 9% we gave for the year starting late last quarter that we talked about.

例如，我們看到在第三季度，2023 年 7 月對我們來說是一個相當低迷的季度。因此我們在 2024 年有一個有利的可比性。而這種情況今後可以按月發生。因此，我們再次重申，我們所說的上個季度末開始的年度虧損與負 9% 的預測一致。

Yes. And I'd probably add that if there was a soft spot would be maybe from that -- in the previous questions that we answered in the CPG space, impacting a little bit more on packaging in the quarter. So there's a little bit of that going on.

是的。我可能要補充一點，如果有弱點，那可能是因為我們之前回答過 CPG 領域的問題，這對本季度的包裝產生了更大的影響。所以有一點這樣的事情正在發生。

Okay. All right. Now, in terms of the sale of the majority of your European operations, is there any bigger than a breadbasket sizing you can give us for like the cash flow impact of that? I think you guys have reported like Europe overall is about 5% of revenues and I assume that's the majority. But if you could give us a little bit more color on that, it'd be great.

好的。好的。現在，就出售大部分歐洲業務而言，您能為我們提供比糧倉規模更大的數據，以了解其對現金流的影響嗎？我認為你們已經報告過歐洲整體收入約佔 5%，我認為這是大部分。但如果您能就此向我們提供更多詳細信息，那就太好了。

Yes, I can talk to some of that. So first, the wording on the majority of the European operations. So we have a very important shared services center in Poland, 400 people strong, that supports our US admin operations as well as our clients, and we're retaining that going forward, right? So it is -- that stays with us, then the revenue generating operations, the 5% that you saw in the pie chart, that is what we are selling to Capmont as part of the transaction. So again, 5% of revenue.

是的，我可以談論其中的一些。首先，關於大多數歐洲行動的措詞。因此，我們在波蘭有一個非常重要的共享服務中心，擁有 400 名員工，為我們的美國管理營運以及客戶提供支持，我們會繼續保留這個中心，對嗎？所以它是 - 這留在我們這裡，然後是創收業務，您在餅圖中看到的 5％，這就是我們作為交易的一部分出售給 Capmont 的。所以，再次強調，這是收入的 5%。

And think partner -- typical print EBITDA multiple on that $45 million enterprise value, and you can kind of get to the approximate EBITDA range. And then when you think about that our debt leverage ratio is half of the EBITDA multiple, you can see how this is nicely deleveraging for us as we put these proceeds towards debt reduction.

想想合作夥伴——典型的印刷 EBITDA 倍數在 4500 萬美元的企業價值上，您就可以獲得大致的 EBITDA 範圍。然後，當您想到我們的債務槓桿率是 EBITDA 倍數的一半時，您就會明白，當我們將這些收益用於減少債務時，這對我們來說是多麼好的去槓桿化。

Okay. I'm sorry, you said the leverage range is half of the EBITDA. Did I hear you correctly when you just said?

好的。抱歉，您說槓桿範圍是 EBITDA 的一半。你剛才說的話我聽清楚了嗎？

You did? Yes. So our leverage ratio, as you see, 2.16x right around there. And that's half of roughly what typical print multiples are.

你做到了？是的。所以我們的槓桿率，如你所見，就在 2.16 倍左右。這大約是典型印刷倍數的一半。

Okay. All right. And in terms of the outlook for the start of next year, you're slowing down here in the fourth quarter. You've got a postage hiatus, but the cumulative impacts of CPG weakening, any early sense? I mean, do things feel any better at the start of next year? Is it too early to say? Any comments about the revenue trajectory for next year that you can give us?

好的。好的。從明年年初的前景來看，第四季的成長將會放緩。你們的郵資已經中斷，但是 CPG 疲軟的累積影響，有任何早期跡象嗎？我的意思是，明年年初情況會好轉嗎？現在說這個還太早嗎？您能對明年的營收走勢提出什麼建議嗎？

Yes, I'd say it's probably too early to say because our clients are still on the busy season here. And so they're entering into the planning segment and so we get some early reads, but not much. It usually starts playing out as we get closer to the end of the year.

是的，我想現在說可能還為時過早，因為我們的客戶這裡仍處於旺季。因此，他們正在進入規劃階段，我們得到了一些早期讀數，但不多。它通常在我們接近年底時開始出現。

Okay. You guys have called out, I think, asset sales booked so far of $113.7 million. I think your statement of cash flow shows proceeds from asset sales are like $46 million. And I know Europe to comment is probably in there, but there's probably a little bit more in there. Could you give us a sense of what else is in that number? And also, since I know you've got some other assets that are on the block, could there be some other things that flow in that are increments to that number this year, or is that all kind of pushed to next year?

好的。我認為，你們已經宣布迄今為止的資產銷售額已達 1.137 億美元。我認為您的現金流量表顯示資產出售收益約為 4,600 萬美元。我知道歐洲可能會發表評論，但可能會有更多評論。您能告訴我們這個數字還包含什麼嗎？而且，因為我知道您還有一些其他資產正在出售，那麼今年是否還會有其他資產流入，從而增加該數字，還是所有這些都推遲到明年？

So for the cash flow statement, there's a couple line items on there that roll up into our total proceeds. You picked up the asset sales in the $40 million, which is primarily the Saratoga sale that hit in the third quarter, Saratoga building sale. There's also a line item for the sale of our Manipal investment in India that we did in the second quarter of the year, another $22 million.

因此，對於現金流量表，其中有幾個項目累計到我們的總收益。您獲得了 4,000 萬美元的資產銷售額，主要是第三季的 Saratoga 大樓銷售額。另外還有一項是我們在今年第二季出售在印度馬尼帕爾 (Manipal) 投資的項目，價值又為 2,200 萬美元。

So if you add those two numbers together, and then the Europe sale is not yet in the statement of cash flow, because the deal is enclosed, it is signed, but we have to work through these closing conditions. And so when that comes in, that gets you to the $114 million in total, just to give you that bridge.

因此，如果將這兩個數字加在一起，那麼歐洲銷售尚未出現在現金流量表中，因為交易已附上，已簽署，但我們必須完成這些成交條件。所以當這些錢到賬時，總額就達到了 1.14 億美元，只是為了給你搭建這座橋樑。

And then, as far as items, the rest of this year, we do have buildings for sale right now, but I'm not anticipating them to sell yet in the end of 2024. So I would think about that more as 2025 proceeds.

然後，就物品而言，今年剩餘時間我們確實有建築物待售，但我預計它們不會在 2024 年底售出。因此，隨著 2025 年的到來，我會更多地考慮這個問題。

Okay. All right. And then in terms of the savings that you talked about, $60 million savings, is that a realized number this year, or is that an annualized run rate exiting next year?

好的。好的。那麼就您談到的節省而言，6000 萬美元的節省，是今年實現的數字，還是明年的年化運行率？

It's realized -- sorry, Barton, it's realized this year to answer that part of the question.

它已經實現了——抱歉，巴頓，今年它已經實現了，可以回答問題的這一部分。

No. Thank you. So what would be kind of the annualized rate from that?

不。謝謝。那麼年化利率是多少呢？

So if the full $60 million is realized, yes, now you have a little bit more of tailwind, as you're pointing out, going into 2025, because some of the plant closures we still had people on for the first part of the year. And so you could see an increment, $15 million to $20 million as you get into the next part of the year, I mean, 2025.

因此，如果全部 6,000 萬美元的目標得以實現，那麼，正如您所指出的，現在您將擁有更多的順風，進入 2025 年，因為一些工廠關閉，我們在上半年仍有人員在崗。因此，到 2025 年，你會看到增量為 1500 萬美元到 2000 萬美元。

Okay. Now, you've talked about your debt reduction, and you did get to the Ninth Amendment, so you've changed some of the terms a little bit. How should we think about your interest expense trajectory from here?

好的。現在，您已經談到了減債問題，並且您確實談到了第九修正案，因此您稍微改變了一些條款。我們該如何看待您的利息支出軌跡？

So yes, with the new debt deal, the spread on that increased by 50 basis points. But you will -- we expect, as everyone else does in the market, to see the variable interest rates come down. This is variable rate debt. So with where our debt is at and how it's a -- the interest rate varies based on the debt leverage range that we're at. With all the good work we've done on debt leverage, we could be at an interest rate of 7% relatively quickly and then on a lower amount of debt, right. So the interest costs could come down quite a bit.

是的，隨著新債務協議的達成，利差增加了 50 個基點。但是，正如市場上的其他人一樣，我們預計浮動利率將下降。這是浮動利率債務。因此，根據我們的債務狀況以及它的情況，利率會根據我們所處的債務槓桿範圍而有所變化。透過我們在債務槓桿方面所做的所有出色工作，我們可以相對較快地達到 7% 的利率，然後降低債務額，對吧。因此利息成本可能會下降不少。

Okay. All right. Great. And then one final question here, just going harkening back to the Google AI arrangement. When do you expect that to start to be in the market and something that's impacting your business at a level that matters?

好的。好的。偉大的。這裡還有最後一個問題，讓我們回顧一下谷歌人工智慧計畫。您預計這種技術什麼時候會開始進入市場並對您的業務產生重大影響？

I'd say that we expect to sort of roll it out in a live format towards the end of the year, but really rolling into next year. And so it will start to come online through that. And it really sort of impacts the overall experience with our customers because once we bring them in trying to find audience, we expect that it starts to spill over to other services. So it's revenue from sort of the whole stack that starts to accumulate. But I expect that we'll probably see some early-stage reaction from existing clients to start with.

我想說，我們預計將在今年年底以現場直播的形式推出這項服務，但實際上要等到明年。所以它將通過它開始上線。這確實會影響我們客戶的整體體驗，因為一旦我們讓他們來尋找受眾，我們預計這種影響就會蔓延到其他服務。因此，整個堆疊的收入開始累積。但我預計，我們首先可能會看到現有客戶的一些早期反應。

Okay. All right. Great. That's it from me. Thank you, guys.

好的。好的。偉大的。我要說的就這些。謝謝你們。

Thanks, Barton.

謝謝，巴頓。

Thanks, Barton. Operator?

謝謝，巴頓。操作員？

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議交還給管理階層，以便他們發表結束語。

All right. Well, thanks, everyone, for joining today's call. And I want to close by reiterating that our integrated marketing offering continues to be a competitive differentiator and key driver behind our ongoing evolution as an MX company. By providing a better experience for our clients, they could focus on best customer experience for their clients.

好的。好吧，感謝大家參加今天的電話會議。最後，我想重申，我們的整合行銷產品仍然是我們作為 MX 公司不斷發展的競爭優勢和關鍵驅動力。透過為我們的客戶提供更好的體驗，他們可以專注於為客戶提供最佳的客戶體驗。

And I'd like to remind investors of our November 20 Investor Day in New York City, where you can learn more about the MX experience. With that, thank you, again, and have a great day.

我想提醒投資者註意我們 11 月 20 日在紐約舉行的投資者日，屆時您可以了解有關 MX 體驗的更多資訊。最後，再次感謝您，祝您有個愉快的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。