Net sales grew 3.6% and organic sales grew 2.6% for the fourth quarter 2017 to $1.93 billion. Organic growth represents strongest performance since 2014. GAAP income from operations increased to $105 million in the fourth quarter, while non-GAAP income from operations was up 11% to $113 million. These both are at the highest levels since 2014.
Operating cash flow for the full year was up 71% to $218 million. The company reduced debt by $278 million during 2017, improving leverage ratio by 10%.
“We delivered a very strong fourth quarter to cap a successful year,” said Dan Knotts, RRD’s president and CEO. “Our results validate our strategic path and demonstrate our ability to grow sales, aggressively manage costs and generate strong cash flow to invest in our future and reduce debt.”
Net sales in the quarter were $1.93 billion, up $66.9 million or 3.6% from the fourth quarter of 2016. On an organic basis, consolidated net sales increased 2.6% driven by significant volume growth in the International segment.
Gross profit in the fourth quarter of 2017 was $365.0 million or 19.0% of net sales versus $363.7 million or 19.6% of net sales in the prior year quarter.
Income from operations was $104.6 million in the fourth quarter compared to a loss from operations of $466.9 million in the 2016 quarter. The prior year period included pre-tax charges of $557.6 million primarily for the impairment of goodwill and intangible assets in the Variable Print segment and $11.1 million for spinoff-related transaction expenses and other items.
Net loss attributable to common stockholders from continuing operations of $52.8 million in the fourth quarter compared to a net loss of $488.6 million in the fourth quarter of 2016.
Cash provided by operating activities in 2017 was $217.9 million compared to $127.2 million in the prior year period. As of Dec. 31, 2017, cash on hand was $273.4 million and total debt outstanding was $2.11 billion, including $216.0 million drawn against the credit facility.