Net sales in the quarter were $2.8 billion, up $95.7 million, or 3.6%, from the fourth quarter of 2012. After adjusting for the impact of acquisitions, changes in foreign exchange rates and pass-through paper sales, organic sales grew by 2.3% from the fourth quarter of 2012, driven by volume growth in many offerings and an increase in pass-through postage revenue.
Fourth-quarter 2013 net earnings attributable to common shareholders were $104.0 million, or $0.56 per diluted share, compared to a net loss attributable to common shareholders of $849.0 million in the fourth quarter of 2012. Fourth-quarter 2013 non-GAAP adjusted EBITDA was $293.6 million or 10.7% of net sales, compared to non-GAAP adjusted EBITDA of $292.2 million, or 11.0% of net sales, in the fourth quarter of 2012.
For the full year, R.R. Donnelley had net sales of $10.48 billion. Non-GAAP Adjusted EBITDA margin was 11.0%, and free cash flow was $478.2 million.
“We are pleased with the fourth-quarter organic revenue growth of 2.3%, driven by strong revenue performance across many of our offerings. For the year, we realized reported revenue growth of 2.5% and organic growth of 0.6%, our best organic revenue growth performance since 2010, and continued to deliver strong free cash flow, at the upper end of our guidance for the year,” said Thomas J. Quinlan III, R.R. Donnelley’s president and CEO. “The continuing development of our market segment solutions, combined with our recent acquisition of Consolidated Graphics, will allow us to build upon the positive trend realized in 2013. We continue to target gross leverage on a long-term sustainable basis to be in the range of 2.25x to 2.75x.”
The company provided the following full-year guidance for 2014, which includes 11 months of performance from the acquisition of Consolidated Graphics that closed on Jan. 31, 2014. Net sales are expected to increase to $11.5 to $11.7 billion, with a non-GAAP adjusted EBITDA margin of 10.5% to 11.0%.