03.03.20
R.R. Donnelley & Sons Company (RRD) reported financial results for the fourth quarter and full year of 2019.
The company reported full-year 2019n net sales, including the impact of dispositions and FX, declined 7.7% to $6.28 billion; organic net sales declined 2.3% GAAP loss per share of $1.31 includes a fourth quarter goodwill impairment charge of $1.38 per share. Non-GAAP adjusted earnings per share of $0.66 include a fourth-quarter charge of $0.09 per share for a state tax valuation allowance
RRD reduced total debt by $273 million from prior year while increasing investments for strategic projects; total liquidity, including availability on credit facility and cash on hand, exceeds $800 million.
“Despite a challenging industry backdrop, I am pleased to report that we delivered solid full-year results in 2019,” said Dan Knotts, RRD president and CEO. “For the year, we reported growth in adjusted income from operations and expanded operating margins by improving our core operating performance, leveraging our extensive portfolio of capabilities to expand existing client relationships, and continuing to win new clients. Further, we significantly reduced our debt outstanding and expanded our liquidity in line with our strategic focus to improve our balance sheet flexibility. As we look to 2020, we have a strong client opportunity pipeline, a relentless focus on lowering our cost to serve, and a strengthened financial position to execute our strategy as a leading marketing and business communications company.”
Net sales in the fourth quarter were $1.63 billion, down $137.2 million or 7.8% from the fourth quarter of 2018. The decrease includes a $78.2 million impact from business dispositions and a $5.6 million reduction due to changes in foreign exchange rates. On an organic basis, consolidated net sales declined 3%.
The Marketing Solutions segment grew 12.4% organically driven by higher volumes in the Direct Marketing and Digital Print product categories. The Business Services segment was down 6.6% organically due primarily to declines in Commercial Print and Logistics, partially offset by growth in Labels.
Loss from operations was $19.4 million in the fourth quarter compared to income from operations of $90 million in the fourth quarter of 2018. Cash provided by operating activities of $227.1 million in the fourth quarter of 2019 decreased $40.3 million versus the prior-year period amount.
Cash provided by operating activities during the 12 months ended Dec. 31, 2019, was $139.3 million compared to $203.5 million in the prior-year period. The full-year decrease is primarily related to higher tax and restructuring payments.
As of Dec. 31, 2019, cash on hand was $190.8 million, down $179.8 million from 2018, and total debt outstanding was $1.82 billion, down $273 million from 2018.
The company reported full-year 2019n net sales, including the impact of dispositions and FX, declined 7.7% to $6.28 billion; organic net sales declined 2.3% GAAP loss per share of $1.31 includes a fourth quarter goodwill impairment charge of $1.38 per share. Non-GAAP adjusted earnings per share of $0.66 include a fourth-quarter charge of $0.09 per share for a state tax valuation allowance
RRD reduced total debt by $273 million from prior year while increasing investments for strategic projects; total liquidity, including availability on credit facility and cash on hand, exceeds $800 million.
“Despite a challenging industry backdrop, I am pleased to report that we delivered solid full-year results in 2019,” said Dan Knotts, RRD president and CEO. “For the year, we reported growth in adjusted income from operations and expanded operating margins by improving our core operating performance, leveraging our extensive portfolio of capabilities to expand existing client relationships, and continuing to win new clients. Further, we significantly reduced our debt outstanding and expanded our liquidity in line with our strategic focus to improve our balance sheet flexibility. As we look to 2020, we have a strong client opportunity pipeline, a relentless focus on lowering our cost to serve, and a strengthened financial position to execute our strategy as a leading marketing and business communications company.”
Net sales in the fourth quarter were $1.63 billion, down $137.2 million or 7.8% from the fourth quarter of 2018. The decrease includes a $78.2 million impact from business dispositions and a $5.6 million reduction due to changes in foreign exchange rates. On an organic basis, consolidated net sales declined 3%.
The Marketing Solutions segment grew 12.4% organically driven by higher volumes in the Direct Marketing and Digital Print product categories. The Business Services segment was down 6.6% organically due primarily to declines in Commercial Print and Logistics, partially offset by growth in Labels.
Loss from operations was $19.4 million in the fourth quarter compared to income from operations of $90 million in the fourth quarter of 2018. Cash provided by operating activities of $227.1 million in the fourth quarter of 2019 decreased $40.3 million versus the prior-year period amount.
Cash provided by operating activities during the 12 months ended Dec. 31, 2019, was $139.3 million compared to $203.5 million in the prior-year period. The full-year decrease is primarily related to higher tax and restructuring payments.
As of Dec. 31, 2019, cash on hand was $190.8 million, down $179.8 million from 2018, and total debt outstanding was $1.82 billion, down $273 million from 2018.
