11.09.15
RR Donnelley reported its third quarter 2015 results. Net sales in the quarter were $2.8 billion, down $129.8 million, or 4.4%, from the third quarter of 2014. After adjusting for the impact of acquisitions and dispositions, as well as changes in foreign exchange rates and pass-through paper, organic sales decreased 3.1% from the third quarter of 2014, as modest increases in the Strategic Services and International segments only partially offset declines in the Publishing and Retail Services and Variable Print segments.
Third-quarter 2015 net earnings attributable to common shareholders was $14.3 million, or $0.07 per diluted share, compared to net earnings attributable to common shareholders of $62.2 million, or $0.31 per diluted share, in the third quarter of 2014. The third-quarter net earnings attributable to common shareholders included pre-tax charges of $69.4 million and $22.6 million in 2015 and 2014, respectively, all of which are excluded from the presentation of non-GAAP net earnings attributable to common shareholders.
Non-GAAP adjusted EBITDA in the third quarter of 2015 was $305.2 million, compared to $313.2 million in the third quarter of 2014. Non-GAAP adjusted EBITDA margin in the third quarter of 2015 was 10.8%, or 20 basis points higher than in the third quarter of 2014, as productivity improvements more than offset volume declines and price pressure.
“We are pleased with our performance during the quarter, given the challenging demand environment. Our continuing focus on matching costs to demand resulted in a non-GAAP adjusted EBITDA margin of 10.8% in the quarter, a 20 basis point improvement from the same quarter last year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “Our updated guidance assumes the fourth-quarter demand environment will be similar to what we’ve experienced throughout the year, and the improvement in margin guidance is reflective of our continuing to manage the business to create value for all of our stakeholders. In addition, we continue to expect free cash flow in the range of $400 million to $500 million, unchanged from our previous guidance.”
Non-GAAP net earnings attributable to common shareholders totaled $76.0 million, or $0.36 per diluted share, in the third quarter of 2015 compared to $78.9 million, or $0.39 per diluted share, in the third quarter of 2014.
Third-quarter 2015 net earnings attributable to common shareholders was $14.3 million, or $0.07 per diluted share, compared to net earnings attributable to common shareholders of $62.2 million, or $0.31 per diluted share, in the third quarter of 2014. The third-quarter net earnings attributable to common shareholders included pre-tax charges of $69.4 million and $22.6 million in 2015 and 2014, respectively, all of which are excluded from the presentation of non-GAAP net earnings attributable to common shareholders.
Non-GAAP adjusted EBITDA in the third quarter of 2015 was $305.2 million, compared to $313.2 million in the third quarter of 2014. Non-GAAP adjusted EBITDA margin in the third quarter of 2015 was 10.8%, or 20 basis points higher than in the third quarter of 2014, as productivity improvements more than offset volume declines and price pressure.
“We are pleased with our performance during the quarter, given the challenging demand environment. Our continuing focus on matching costs to demand resulted in a non-GAAP adjusted EBITDA margin of 10.8% in the quarter, a 20 basis point improvement from the same quarter last year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “Our updated guidance assumes the fourth-quarter demand environment will be similar to what we’ve experienced throughout the year, and the improvement in margin guidance is reflective of our continuing to manage the business to create value for all of our stakeholders. In addition, we continue to expect free cash flow in the range of $400 million to $500 million, unchanged from our previous guidance.”
Non-GAAP net earnings attributable to common shareholders totaled $76.0 million, or $0.36 per diluted share, in the third quarter of 2015 compared to $78.9 million, or $0.39 per diluted share, in the third quarter of 2014.