R.R. Donnelley & Sons Company reported financial results for the second quarter of 2016.
Net sales in the quarter were $2.7 billion, down $18.4 million, or 0.7%, from the second quarter of 2015. After adjusting for the impact of acquisitions and dispositions, as well as changes in foreign exchange rates and pass-through paper sales, organic sales decreased 1.6% from the second quarter of 2015, as an increase in the Strategic Services segment only partially offset declines in the Variable Print, International and Publishing and Retail Services segments.
“We are pleased with the second-quarter improvement in revenue trends, reflective of new customer wins and a modest improvement in capital markets activity. We expect these improving trends, in conjunction with our continuing cost management efforts, to continue to have a positive impact during the second half of the year,” said Thomas J. Quinlan III, RR Donnelley’s president and CEO.
“We are finalizing the spin-offs of LSC Communications and Donnelley Financial Solutions, both of which remain on track to be completed in October,” Quinlan continued.
Second-quarter 2016 net loss attributable to common shareholders was $14.5 million, or $0.07 per diluted share, compared to net earnings attributable to common shareholders of $43.5 million, or $0.21 per diluted share, in the second quarter of 2015. The second quarter net earnings attributable to common shareholders included pre-tax charges of $130.3 million and $50.9 million in 2016 and 2015, 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 2016 was $286.7 million, or 10.5% of net sales, compared to $309.2 million, or 11.3% of net sales, in the second quarter of 2015. The decrease in the non-GAAP adjusted EBITDA was primarily due to price pressure in all four operating segments, which also negatively impacted margin
Non-GAAP net earnings attributable to common shareholders totaled $71.1 million, or $0.34 per diluted share, in the second quarter of 2016 compared to $83.6 million, or $0.41 per diluted share, in the second quarter of 2015.