02.29.16
R.R. Donnelley & Sons Company reported financial results for the fourth quarter and full year of 2015.
“Despite a challenging demand environment, our continued focus on managing costs resulted in a non-GAAP adjusted EBITDA margin of 11.2% in the quarter, a 50 basis point improvement from the same quarter last year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “For the full year, we achieved a non-GAAP adjusted EBITDA margin of 10.7%, flat to full-year 2014, and generated $444 million in free cash flow. These results enabled us to reduce year-end total debt by $179 million and decrease our gross leverage ratio to 2.8x, just above the top end of our targeted range of 2.25x to 2.75x.
“As we begin 2016, we remain focused on operational excellence, while also preparing for the spin offs of LSC Communications and Donnelley Financial Solutions, which we expect to complete in October,” Quinlan added.
Net sales in the quarter were $2.9 billion, down $134.7 million, or 4.4%, from the fourth quarter of 2014. After adjusting for the impact of acquisitions and dispositions, as well as changes in foreign exchange rates and pass-through paper, organic sales decreased 2.8% from the fourth quarter of 2014, as increases in the International and Strategic Services segments only partially offset declines in the Variable Print and Publishing and Retail Services segments.
Fourth-quarter 2015 net earnings attributable to common shareholders was $71.0 million, or $0.34 per diluted share, compared to net earnings attributable to common shareholders of $19.5 million, or $0.10 per diluted share, in the fourth quarter of 2014. Non-GAAP adjusted EBITDA in the fourth quarter of 2015 was $329.0 million, compared to $326.9 million in the fourth quarter of 2014.
The company provides the following full-year guidance for 2016, which excludes the impact of the previously announced pending spin-off transactions, including net sales of $11.3 billion to $11.5 billion, compared to $11.3 billion in 2015. Free cash flow is anticipated to be between $400 million to $500 million, compared to $444.4 million in 2015.
“Despite a challenging demand environment, our continued focus on managing costs resulted in a non-GAAP adjusted EBITDA margin of 11.2% in the quarter, a 50 basis point improvement from the same quarter last year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO. “For the full year, we achieved a non-GAAP adjusted EBITDA margin of 10.7%, flat to full-year 2014, and generated $444 million in free cash flow. These results enabled us to reduce year-end total debt by $179 million and decrease our gross leverage ratio to 2.8x, just above the top end of our targeted range of 2.25x to 2.75x.
“As we begin 2016, we remain focused on operational excellence, while also preparing for the spin offs of LSC Communications and Donnelley Financial Solutions, which we expect to complete in October,” Quinlan added.
Net sales in the quarter were $2.9 billion, down $134.7 million, or 4.4%, from the fourth quarter of 2014. After adjusting for the impact of acquisitions and dispositions, as well as changes in foreign exchange rates and pass-through paper, organic sales decreased 2.8% from the fourth quarter of 2014, as increases in the International and Strategic Services segments only partially offset declines in the Variable Print and Publishing and Retail Services segments.
Fourth-quarter 2015 net earnings attributable to common shareholders was $71.0 million, or $0.34 per diluted share, compared to net earnings attributable to common shareholders of $19.5 million, or $0.10 per diluted share, in the fourth quarter of 2014. Non-GAAP adjusted EBITDA in the fourth quarter of 2015 was $329.0 million, compared to $326.9 million in the fourth quarter of 2014.
The company provides the following full-year guidance for 2016, which excludes the impact of the previously announced pending spin-off transactions, including net sales of $11.3 billion to $11.5 billion, compared to $11.3 billion in 2015. Free cash flow is anticipated to be between $400 million to $500 million, compared to $444.4 million in 2015.