RR Donnelley Reports Q4, Full-Year Results
RR Donnelley & Sons Company, Chicago, has reported financial results for the fourth quarter and full year of 2014.
- Full-year 2014 results favorable to or in line with previous guidance.
- Fourth-quarter net sales of $3.1 billion grew 11.4 percent from the fourth quarter of 2013; organic net sales grew 0.5 percent from the fourth quarter of 2013.
- Fourth-quarter GAAP net earnings attributable to common shareholders of $19.5 million, or $0.10 per diluted share, compared to GAAP net earnings attributable to common shareholders in the fourth quarter of 2013 of $104.0 million, or $0.56 per diluted share.
- Fourth-quarter non-GAAP net earnings attributable to common shareholders of $105.8 million, or $0.52 per diluted share, compared to non-GAAP net earnings attributable to common shareholders in the fourth quarter of 2013 of $89.8 million, or $0.49 per diluted share.
- Fourth-quarter non-GAAP adjusted EBITDA of $326.9 million increased by $33.3 million, or 11.3 percent, from the fourth quarter of 2013.
- Company issues full-year 2015 guidance.
"We continued to drive positive organic revenue growth and managed our cost structure and capital spending to generate nearly $500 million in free cash flow for the year. These results allowed us to reduce our total debt by $225 million, decreasing our year-end gross leverage ratio from 3.3x to 2.9x and approaching our targeted range of 2.25x to 2.75x on a long-term sustainable basis," said Thomas J. Quinlan III, RR Donnelley's president and chief executive officer. "As we look ahead to 2015, we expect to build upon the success we are having with our four go-to-market strategies, and remain committed to migrating toward our targeted leverage range."
Net sales in the quarter were $3.1 billion, up $314.0 million, or 11.4 percent, from the fourth quarter of 2013, largely due to the acquisitions of Consolidated Graphics and the North American operations of Esselte. After adjusting for the impact of acquisitions, changes in foreign exchange rates, dispositions and changes in pass-through paper, organic sales increased 0.5 percent from the fourth quarter of 2013, as increases in the strategic services, international and variable print segments were partially offset by the decline in the publishing and retail services segment.