R.R. Donnelley & Sons Company (RRD) reported financial results for the third quarter of 2020.
Net sales in the quarter were $1.19 billion, down $225.9 million or 15.9% from the third quarter of 2019. The decrease includes a $62.9 million reduction from the previous dispositions of its Global Document Solutions (GDS) and Chile businesses.
Income from operations was $15.9 million in the third quarter compared to income from operations of $71 million in the third quarter of 2019. The third quarter of 2020 included net restructuring and other charges of $54.2 million, an increase of $56.5 million from the prior year quarter.
Non-GAAP adjusted income from operations of $73.9 million decreased $0.3 million from the prior year period. The decline was driven by lower volume associated with the global impact of COVID-19 and the Census project and price pressure, which were nearly fully offset by the aggressive actions taken to reduce the company’s cost structure.
Loss per share from continuing operations attributable to common stockholders was $0.13 in the third quarter of 2020 compared to loss per share of $0.10 in the third quarter of 2019.
Cash provided by operating activities of $69.4 million in the third quarter of 2020 improved $40.1 million versus the prior year amount. For the nine months ended Sept. 30, 2020, cash provided by operating activities improved by $113 million.
“We delivered a strong third quarter amidst a volatile business environment. We continue to win new business, execute our cost reduction plans, and improve our capital structure with a disciplined focus on generating cash flow, all while protecting the health and well-being of our employees,” said Dan Knotts, RRD president and CEO.
“Through the combination of better than expected net sales performance and a significant reduction in our cost structure, we delivered adjusted income from operations compared to the prior year, improved our operating margin, and achieved our third consecutive quarter of improved operating cash flow,” Knotts added. “Despite ongoing uncertainty and volatility, we continue to advance our strategic priorities and are confident in our ability to emerge from the pandemic as a stronger RRD.”