RR Donnelley Reports Q2 2015 Results, Intent to Create Three Independent Publicly Traded Companies
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.
Non-GAAP adjusted EBITDA in the second quarter of 2015 was $309.2 million, or 11.3 percent of net sales, compared to $325.6 million, or 11.2 percent of net sales, in the second quarter of 2014. The decrease in non-GAAP adjusted EBITDA was due to volume declines in Variable Print and Publishing and Retail Services segments and price pressure in all four operating segments. These decreases were partially offset by productivity improvements and lower variable compensation expense, which also positively impacted margin.
Non-GAAP net earnings attributable to common shareholders totaled $83.6 million, or $0.41 per diluted share, in the second quarter of 2015 compared to $84.4 million, or $0.42 per diluted share, in the second quarter of 2014.
The company also announced that it intends to create three independent, publicly traded companies: one business focused on financial communications and data services; one business focused on publishing and retail-centric print services; and one business focused on customized multichannel communications management.
"Over the last decade, we have strengthened our business portfolio through a combination of organic growth and strategic acquisitions, developing new products and services, inventing fresh ways to serve customers, attracting additional talent and building information technology systems," noted Quinlan.
He continued, "We see a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries. Each company will have the strategic focus, management resources and capital structure to enable it to strengthen its market position and pursue its growth opportunities, enhancing long-term value for stakeholders."