David Savastano, Editor02.26.21
R.R. Donnelley & Sons Company (RRD) reported financial results for the fourth quarter and full year of 2020, with good news on the debt front, as the company reported that total debt is down more than $500 million in the quarter, and more than $300 million from a year ago.
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The company’s GAAP net sales, including the impact of dispositions and FX, were $1.35 billion in 4Q 2020, a decrease of 5.6% from the previous year but an increase from the previous two quarters. Net sales for the full year were $4.77 billion, down 12.9%.
Operating cash flow of $124.6 million in the quarter was down from the prior year. The gross leverage ratio of 3.7x improves 1x from Sept. 30, 2020 and 0.5x from Dec. 31, 2019, while the net leverage ratio of 3x improves 0.7x from both Sept. 30, 2020 and Dec. 31, 2019
RRD generated significant cash from non-operating activities, including $244 million primarily from the dispositions of the Logistics businesses and three building sales, and an additional $96 million from liquidating certain life insurance policies
“We delivered a strong fourth quarter to finish an extraordinary year,” said Dan Knotts, RRD president and CEO. “Our teams continue to deliver innovative solutions to our clients, aggressively execute our cost reduction plans, and make meaningful progress in improving our capital structure.
“For the second consecutive year, we achieved full year growth in adjusted income from operations and increased operating margins by lowering our cost structure, expanding client relationships, and securing new business,” added Knotts. “Additionally, we significantly reduced debt outstanding, extended upcoming maturities, and expanded our liquidity as we continue our drive to improve balance sheet flexibility.”
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The company’s GAAP net sales, including the impact of dispositions and FX, were $1.35 billion in 4Q 2020, a decrease of 5.6% from the previous year but an increase from the previous two quarters. Net sales for the full year were $4.77 billion, down 12.9%.
Operating cash flow of $124.6 million in the quarter was down from the prior year. The gross leverage ratio of 3.7x improves 1x from Sept. 30, 2020 and 0.5x from Dec. 31, 2019, while the net leverage ratio of 3x improves 0.7x from both Sept. 30, 2020 and Dec. 31, 2019
RRD generated significant cash from non-operating activities, including $244 million primarily from the dispositions of the Logistics businesses and three building sales, and an additional $96 million from liquidating certain life insurance policies
“We delivered a strong fourth quarter to finish an extraordinary year,” said Dan Knotts, RRD president and CEO. “Our teams continue to deliver innovative solutions to our clients, aggressively execute our cost reduction plans, and make meaningful progress in improving our capital structure.
“For the second consecutive year, we achieved full year growth in adjusted income from operations and increased operating margins by lowering our cost structure, expanding client relationships, and securing new business,” added Knotts. “Additionally, we significantly reduced debt outstanding, extended upcoming maturities, and expanded our liquidity as we continue our drive to improve balance sheet flexibility.”
