The Big Reveal: Introducing the Arandell Catalog

David Henkel’s path in life — his ultimate trajectory — really began after his father’s service in World War II, when his family moved to the suburbs of Chicago. While Henkel willingly admits he “didn’t have a strong sense of direction” in his early life, he was distinctly interested in sales and marketing, and attended the University of Illinois (B.A. in economics) and Indiana University (MBA in marketing). Following post-college positions in marketing research and medical supply sales, the family business, Johnson & Quin, beckoned. Henkel’s father, Robert, had purchased Johnson & Quin in 1960. Johnson & Quin, in Niles, Illinois, has a long history in the printing industry. Henkel highlights that the company is 145 years old, based on records. He believes the business may even be older than that — the true age perhaps unknowable — due to the loss of city records during the Great Chicago Fire of 1871.

Q4 2022 - Revenue of $1.94 billion, up 9.2 percent year-over-year or up 13.9 percent in constant currency. GAAP earnings per share (EPS) of $0.74, up $4.71 year-over-year. Prior year Q4 GAAP EPS includes an after-tax non-cash goodwill impairment charge of $4.38 per share. Operating cash flow of $186 million, down $12 million year-over-year. Free cash flow of $168 million, down $14 million year-over-year. FY 2022 - Revenue of $7.11 billion, up 1.0 percent year-over-year, or up 4.8 percent in constant currency. GAAP loss per share of $2.15, up $0.41 year-over-year. Both the current year and prior year include after-tax non-cash goodwill impairment charges of $2.54 and $4.08 per share, respectively. Operating cash flow of $159 million, down $470 million year-over-year. Free cash flow of $143 million, excluding a one-time product supply termination charge, down $418 million year-over-year.

Recent Highlights • Reported Net Sales of $703 million and Net Loss of $6 million in the second quarter of 2023, or $0.12 diluted loss per share. • Increased Net Cash Provided by Operating Activities by $24 million for the six months ended June 30, 2023, compared to the same period in 2022. • Increased Free Cash Flow by $12 million for the six months ended June 30, 2023, compared to the same period in 2022, including $34 million of Free Cash Flow generation in the second quarter of 2023. • Reduced Net Debt by $80 million over last 12 months to end the second quarter with a Debt Leverage Ratio of 2.34x, which is within the company’s long-term targeted leverage range of 2.0x – 2.5x.