RR Donnelley Reports Q2 2015 Results, Intent to Create Three Independent Publicly Traded Companies
RR Donnelley & Sons Company (RRD), Chicago, has reported financial results for the second quarter of 2015.
- Second-quarter net sales of $2.7 billion declined 5.3 percent from the second quarter of 2014; organic net sales declined 2.1 percent from the second quarter of 2014.
- Second-quarter GAAP net earnings attributable to common shareholders of $43.5 million, or $0.21 per diluted share, compared to GAAP net earnings attributable to common shareholders in the second quarter of 2014 of $64.7 million, or $0.32 per diluted share.
- Second-quarter non-GAAP net earnings attributable to common shareholders of $83.6 million, or $0.41 per diluted share, compared to non-GAAP net earnings attributable to common shareholders in the second quarter of 2014 of $84.4 million, or $0.42 per diluted share.
- 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.
- Company provides updated guidance for full-year 2015; includes the impact of the acquisition of Courier Corp., the sale of its operations in Venezuela and an updated view on the negative impact of foreign exchange rates.
- Company separately announces intent to create three independent publicly traded companies.
"Despite a challenging demand environment, we aggressively managed our cost structure to achieve a non-GAAP adjusted EBITDA margin of 11.3 percent," 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 percent improvement from the second quarter of last year."
Quinlan continued, "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."
Net sales in the quarter were $2.7 billion, down $154.4 million, or 5.3 percent, 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 percent 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.