08.04.15
R.R. Donnelley & Sons Company reported financial results for the second quarter of 2015. The company also separately announced the intent to create three independent publicly traded companies.
Net sales in the quarter were $2.7 billion, down $154.4 million, or 5.3%, from the second quarter of 2014. After adjusting for the impact of acquisitions, changes in foreign exchange rates, dispositions and changes in pass-through paper, organic sales decreased 2.1% from the second quarter of 2014, as increases in the Strategic Services and International segments only partially offset declines in the Publishing and Retail Services and Variable Print segments.
Second-quarter 2015 net earnings attributable to common shareholders was $43.5 million, or $0.21 per diluted share, compared to net earnings attributable to common shareholders of $64.7 million, or $0.32 per diluted share, in the second quarter of 2014. The second-quarter net earnings attributable to common shareholders included pre-tax charges of $50.9 million and $28.3 million in 2015 and 2014, respectively, all of which are excluded from the presentation of non-GAAP net earnings attributable to common shareholders.
Second-quarter operating cash flow of $205.3 million and free cash flow of $152.7 million exceeded the second quarter of 2014 by $55.2 million and $59.9 million, respectively.
“Despite a challenging demand environment, we aggressively managed our cost structure to achieve a non-GAAP adjusted EBITDA margin of 11.3%,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “In addition, we are pleased with our second quarter free cash flow of $152.7 million, which represented a 65% improvement from the second quarter of last year.
“As we look to the back half of 2015, we will continue to aggressively manage costs, which is reflected in our improved non-GAAP adjusted EBITDA margin guidance for full-year 2015,” Quinlan added.
The company provides the following updated full-year guidance for 2015, with net sales of $11.4 billion to $11.6 billion and free cash flow of $400 million to $500 million.
Net sales in the quarter were $2.7 billion, down $154.4 million, or 5.3%, from the second quarter of 2014. After adjusting for the impact of acquisitions, changes in foreign exchange rates, dispositions and changes in pass-through paper, organic sales decreased 2.1% from the second quarter of 2014, as increases in the Strategic Services and International segments only partially offset declines in the Publishing and Retail Services and Variable Print segments.
Second-quarter 2015 net earnings attributable to common shareholders was $43.5 million, or $0.21 per diluted share, compared to net earnings attributable to common shareholders of $64.7 million, or $0.32 per diluted share, in the second quarter of 2014. The second-quarter net earnings attributable to common shareholders included pre-tax charges of $50.9 million and $28.3 million in 2015 and 2014, respectively, all of which are excluded from the presentation of non-GAAP net earnings attributable to common shareholders.
Second-quarter operating cash flow of $205.3 million and free cash flow of $152.7 million exceeded the second quarter of 2014 by $55.2 million and $59.9 million, respectively.
“Despite a challenging demand environment, we aggressively managed our cost structure to achieve a non-GAAP adjusted EBITDA margin of 11.3%,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “In addition, we are pleased with our second quarter free cash flow of $152.7 million, which represented a 65% improvement from the second quarter of last year.
“As we look to the back half of 2015, we will continue to aggressively manage costs, which is reflected in our improved non-GAAP adjusted EBITDA margin guidance for full-year 2015,” Quinlan added.
The company provides the following updated full-year guidance for 2015, with net sales of $11.4 billion to $11.6 billion and free cash flow of $400 million to $500 million.