10.31.18
R.R. Donnelley & Sons Company (RRD) reported financial results for the third quarter of 2018.
Net sales in the quarter were $1.65 billion, down $85.4 million or 4.9% from the third quarter of 2017, which included a decline of $106.4 million related to the sale of the Print Logistics business. On an organic basis, consolidated net sales increased 1.8% primarily driven by higher volume in the Business Services segment.
Gross profit in the third quarter of 2018 was $315.4 million or 19.1% of net sales versus $323.5 million or 18.6% of net sales in the prior year quarter. The favorable impact of cost reduction initiatives was more than offset by unfavorable mix, modest price pressure and the disposition of the company’s Print Logistics business.
“Our third quarter performance was in-line with our expectations as we continue to help our clients create better connections with their customers through the execution of their multichannel marketing and business communications,” said Dan Knotts, RRD’s president and CEO. “We delivered our fourth consecutive quarter of organic sales growth, made meaningful progress in executing our plans to lower our overall cost structure and delivered improved operating cash flow. We also took an important step to reposition our balance sheet through a successful debt refinancing. As we enter our seasonally strongest quarter, we are well positioned for a solid finish to the year.”
Income from operations was $60.9 million in the third quarter compared to $31.8 million in the third quarter of 2017. Non-GAAP income from operations of $67.4 million, or 4.1% of net sales, increased $1.8 million from $65.6 million, or 3.8% of net sales, reported in the prior year period.
Cash provided by operating activities of $64.1 million in the third quarter of 2018 increased $26.4 million versus the prior year period amount. As of Sept. 30, 2018, cash on hand was $247.0 million and total debt outstanding was $2.18 billion.
Net sales in the quarter were $1.65 billion, down $85.4 million or 4.9% from the third quarter of 2017, which included a decline of $106.4 million related to the sale of the Print Logistics business. On an organic basis, consolidated net sales increased 1.8% primarily driven by higher volume in the Business Services segment.
Gross profit in the third quarter of 2018 was $315.4 million or 19.1% of net sales versus $323.5 million or 18.6% of net sales in the prior year quarter. The favorable impact of cost reduction initiatives was more than offset by unfavorable mix, modest price pressure and the disposition of the company’s Print Logistics business.
“Our third quarter performance was in-line with our expectations as we continue to help our clients create better connections with their customers through the execution of their multichannel marketing and business communications,” said Dan Knotts, RRD’s president and CEO. “We delivered our fourth consecutive quarter of organic sales growth, made meaningful progress in executing our plans to lower our overall cost structure and delivered improved operating cash flow. We also took an important step to reposition our balance sheet through a successful debt refinancing. As we enter our seasonally strongest quarter, we are well positioned for a solid finish to the year.”
Income from operations was $60.9 million in the third quarter compared to $31.8 million in the third quarter of 2017. Non-GAAP income from operations of $67.4 million, or 4.1% of net sales, increased $1.8 million from $65.6 million, or 3.8% of net sales, reported in the prior year period.
Cash provided by operating activities of $64.1 million in the third quarter of 2018 increased $26.4 million versus the prior year period amount. As of Sept. 30, 2018, cash on hand was $247.0 million and total debt outstanding was $2.18 billion.